Written by Gary
Opening Market Commentary For 09-16-2013
With Lawrence Summers out of the race, by his own choice, the inevitable choice of Janet Yellin as Ben Bernanke's replacement is all but certain. When the futures markets opened this morning they jumped up over +1.05% and stayed that way even after the 'not-so-good' financial's report at 8:30 am.
Markets opened up, gaping significantly, near the +1.00%, with the large caps reaching near their historical highs. The BTFDers got into the act spiking the green volume to heights not seen since September 11, 2013. At the 15 minute mark the averages started to melt down on heavy volume. By 10 am the markets had settled down and the numbers were sea-sawing sideways.
The small caps had either made new historical highs or matched previous numbers. The large caps, the DOW and SP500 have some points to go, but SPY made a new historical high. The head and shoulders formation of the DOW and SP500 could become a reality with the neck at 14800 for the DOW and ~1643 for the SP500.
Market predicting is getting scary as we approach new highs which appear to be unattainable. Boy, when the 'free ice cream' really stops, I haven't clue what is going to keep this market afloat - do you?
The Best Stock Market Indicator Ever: Confirm "Tradeable". However there is a wedge between perception and reality that has been going on for some time now where the reality doesn't match the continued bull run. Maybe we have seen the top - but I wouldn't count it as long as Dr. Ben continues to hand out 'Free Ice Cream"!
The problem facing traders is that the trading range, which has been so narrow lately, that way too much money has to be put on the table just to get back meager gains. Do not fall into the trap of money burning a hole in your pocket, sit tight better days are coming. I keep hoping for increasing volumes to signal improved trading.
The DOW at 10:45 is at 15540 up 163 or 1.06%.
The SP500 is at 1702 up 14 or 0.83%.
SPY is at 170.75 up 1.41 or 0.84%.
The $RUT is at 1061 up 6.64 or 0.63%.
NASDAQ is at 3732 up 11 or 0.29%.
NASDAQ 100 is at 3183 up 5 or 0.15%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is bullish.
WTI oil gaped from 108.54 to 106.76 and continued to fall to 105.60 today. The session bias is negative and is currently trading down at 106.32.
Brent Crude is trading between 111.72 and 108.79 today. The session bias is negative and is currently trading down at 109.83. (A 0.25 gap is at 111.72)
Gold fell from 1334.69 earlier to 1307.45 and is currently trading down at 1320.60.
Dr. Copper is at 3.233 falling from 3.271 earlier.
The US dollar gaped down from 81.66 to 81.37, then fell further to 81.13 and is currently trading down at 81.26, the bias is currently negative.
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Written by Gary