Written by Gary
Opening Market Commentary For 09-18-2013
Premarkets were up +0.06% and fell to +0.01% after the 8:30 am the not-so-good financial reports on the housing starts (-3.8%) and building permits (-0.9%). By 9:15 the futures had melted down into the red (-0.06%) and most investors are waiting on the Fed for directions on the 'taper'.
Markets opened mixed, flat and uninspiring. The large caps were in the red (-0.10%) and the small caps were up (+0.16%) on low to moderate volume. By 10 am the markets had settled into a flat sideways zone on low volume and it appears that everyone is sitting on their hands.
Indicators for the long position are still at 50-50 and unreliable, the shorter term is mostly on the negative side ranging fro 15% to 80% sell. Now is not the time to be guessing while the market flounder near historical highs. The shortest term day trade indicator I use is fluctuating between red and green and making trades totally unreliable.
Today is when the Fed's report on whether they will start the 'Taper' reducing their bond purchases by 10 billion. That is what is expected on the 'Street' at any rate and thus signaling the end of the QE as we know it. This will be mostly symbolic as 10 billion is really a drop in the already overflowing debt bucket and may not have much effect on the averages.
In other news, FoxNews opined the "Commerce Department reports housing starts [fell] 0.9% in August to an annual rate of 891,000 units, widely missing expectations of 917,000 units. Housing permits fell 3.8% to an annual rate of 918,000 units, missing estimates of 950,000". Both are rated as medium importance.
The only news today will be what the Feds have to say later this afternoon, nothing else will matter. Toss out the technical's and tea leaves as 'Fed Day' trumps all.
The DOW at 10:00 is at 15516 down 11 or -0.07%.
The SP500 is at 1706 up 1 or 0.05%.
SPY is at 171.11 up 0.05 or 0.02%.
The $RUT is at 1065 down 1.36 or -0.13%.
NASDAQ is at 3750 up 5 or .13%.
NASDAQ 100 is at 3199 up 9 or 0.28%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is sideways with a positive slant.
WTI oil is trading between 105.71 and 104.76 today. The session bias is negative and is currently trading down at 105.11.
Brent Crude is trading between 108.46 and 107.64 today. The session bias is negative and is currently trading down at 108.06.
Gold fell from 1307.54 earlier to 1291.73 and is currently trading up at 1302.30.
Dr. Copper is at 3.269 rose from 3.206 earlier.
The US dollar is trading between 81.21 and 81.37 and is currently trading up at 81.28, the bias is currently sideways with a positive slant.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary