Markets Continue Melting Upwards, Correction Is Over

August 26th, 2013
in Gary's blogging, market open

Written by

Opening Market Commentary For 08-26-2013

Premarkets were up ~+0.20% and actually rose some when the Durable Goods report came in really short.

Markets opened up at Friday's closing (+0.05%) and quickly descended -0.10% and by the 15 minute mark the averages rose to +0.10% for the large caps to ~ +0.40% for the small caps. This may signal the 'correction' is over and we now climb up the the next resistance about 3% above the current level.

By 10 the averages had once again fallen -0.10% and then melted back up to +0.15% for the DOW and +0.50% for the NASDAQ. Volume has been moderate and even except for one green spike at the opening from the BTFDers.

Follow up:

Market direction for the day is not apparent at this early juncture of the session but the melting upwards has not abated either. Earlier China reported that their PMI data has been fudged and Dr. Copper has plunged most likely due to the very poor Durable Goods reporting.

Read at zerohedge this morning.

Durable Goods Crater On Plunge In Airplane, Manufacturing And Computer Orders: Biggest Miss Since August 2012

The RRR** was narrow at the opening bell today making any predictions of session movements nearly impossible, thus making trading futile and mostly unprofitable. As for shorting, it is too early, however you can revert to guessing. Correctly 'guessing', of course, is the tricky part of the successful trading equation.

Just a reminder there is a wedge between perception and reality that has been going on for some time now where the reality doesn't match this continued bull run.

Swing trading is also at your own risk for all the reasons mentioned above although guessing overnight trades would have been most profitable over the past year. Again, guessing where the market is going to be tomorrow or next week, at this time anyway, can be a foolish and costly endeavor.

The DOW at 10:30 is at 15031 up 20 or 0.13%.

The SP500 is at 1667 up 4 or 0.23%.

SPY is at 167.06 up 0.44 or 0.26%.

The $RUT is at 1041 up 3 or 0.32%.

NASDAQ is at 3673 up 15 or 0.43%.

NASDAQ 100 is at 3138 up 14 or 0.45%.

The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral and the current bias is cccccccc.

How Oil Really Gets Priced

WTI oil is trading between 107.06 and 105.77 today. The session bias is negative and is currently trading up at 106.09.

Brent Crude is trading between 110.51 and 111.33 today. The session bias is positive and is currently trading up at 110.83.

Gold is trading sideways between 1400.48 to 1392.15 and is currently trading down at 1396.30.

Here's why copper has lost its indicator role

Dr. Copper is at 3.320 plunging from 3.395 earlier.

The US dollar is trading between 81.30 and 81.55 and is currently trading up at 81.41, the bias is currently positive.

** RRR = Risk Reward Ratio

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

 

Written by Gary

 















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