Written by Gary
Closing Market Commentary For 10-02-2013
Today's session chart looked exactly like yesterday's graph. The NASDAQ fell in the morning tested yesterday's highs but closed down. The DOW fell in the morning, tested yesterday's midday lows and closed down. The SP500 tried to test yesterday's highs and failed, also closed below yesterday's close.
Not exactly looking like the bulls are having a good time, but the good news is that we are meandering sideways and not losing much ground in the process. By 4 pm the markets closed down with the $RUT taking the biggest hit percentage wise with the DOW coming in second. The small caps staying in the single digits of loss for the day.
Remarkably, the volume was higher than in some recent sessions with the bears and bulls slugging it out, but overall, we ended up about where we closed yesterday. The bad news is the longer this shutdown goes on the wider the number swings on any news, rumor or war mongering. Indicators still point to the sell side, longer views are simply unreliable. It is probably not necessary to remind you that the SP500 closed below 1700 - again! (6 days)
Today Eric Rosengren, President of Boston Federal Reserve, made several points regarding QE and bonds that will essentially delay the 'Taper'. In other words, don't expect the 'Taper' to happen anytime soon and certainly not this month. I can hear the bulls snort and dig hoofs in the pavement. Go bull run!
Without Government data, they will err on the side supplying more QE.
Tapering might not start until 2016.
For today's quote of the day, we go to Boston Fed's president Eric Rosengren who just had the following pearl of wisdom:
- ROSENGREN: 'REALITY DOESN'T ALWAYS LIVE UP TO OUR FORECASTS'
At least he didn't say it is reality that is wrong and the Fed's forecasts being fundamentally correct.
The DOW at 4:00 is at 15133 down 59 or -0.39%.
The SP500 is at 1694 down 1.13 or -0.07%.
SPY is at 168.82 down 0.16 or -0.09%.
The $RUT is at 1082 down 4.88 or -0.45%.
NASDAQ is at 3815 down 3 or -0.08%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bearish and the current bias is positive.
WTI oil is trading between 101.43 and 104.20 today. The session bias is positive and is currently trading up at 103.87.
Brent Crude is trading between 107.69 and 109.46 today. The session bias is positive and is currently trading down at 108.03.
Gold rose from 1278.23 earlier to 1323.70 and is currently trading up at 1316.90.
Dr. Copper is at 3.315 rising from 3.249 earlier.
The US dollar is trading between 80.38 and 79.87 and is currently trading up at 79.99, the bias is currently neutral.
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Written by Gary