Written by Gary
Closing Market Commentary For 09-30-2013
Markets closed down, but somewhat off the morning opening lows. Gaps that occurred during the opening in the small caps were almost filled and the large caps still need to melt much higher. The USD is down and the Euro is up while gold slowly sinks.
By 4 pm the averages showed up with some green volume but not enough to make much difference in the closing numbers. The aftermarket did some melting up but never reached the 2:30 highs.
We do not know what will happen in Congress this evening, but the odds of a government shutdown at midnight are high. This doesn't explain the bulls buying into this VERY unsure market at the end of the session.
The irresponsibility of Congress and the rest of the political class cannot be understated.
Underwriting this behavior is equivalent to the Fed providing a teenager with a bottle of whiskey and the keys to an automobile.
In a context where the Fed could have done no harm by tapering, they instead created a huge moral hazard that will be exploited by politicians of all stripes.
The DOW at 4:00 is at 15130 down 129 or -0.84%.
The SP500 is at 1681 down 10 or -0.60%.
SPY is at 168.25 down 0.90 or -0.53%.
The $RUT is at 1074 down 0.40 or -0.04%.
NASDAQ is at 3771 down 10 or -0.27%.
NASDAQ 100 is off line.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been negative and the current bias is bearish.
WTI oil is trading between 103.15 and 101.05 today. The session bias is negative and is currently trading down at 102.30. (0.48 point gap at 102.85 was NOT closed)
Brent Crude is trading between 108.95 and 107.23 today. The session bias at the close is bearish and is currently trading down at 108.29. (gap at 108.42 was closed)
Gold fell from 1350.32 earlier to 1323.11 and is currently trading down at 1328.40.
Dr. Copper is at 3.316 rising from 3.294 earlier.
The US dollar is trading between 80.45 and 80.12 and is currently trading up at 80.33, the bias is currently bullish.
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Written by Gary