Written by Gary
Opening Market Commentary For 10-17-2013
Futures shot up like a rocket when the premarkets opened to where the SP500 futures was up 28 points at one point. As the morning trading progressed the percentages started to drop like a bucket of water over Niagara Falls dashing bulls hopes of new market highs.
The markets opened with the DOW falling to minus 144 in a matter of seconds, halting to consolidate for a while and then rising 40 points. By 10 am the action was over as volume fell to lackluster levels and the averages settled in, for now anyway, slowly melting upwards.
I mentioned yesterday that the markets should contract a bit today and they did because in reality, NOTHING has changed on the World's financial Front. However, as you have noted this casino market can swing the other way in a heartbeat and take away profits as quickly as you gained them. Don't hesitate to grab your profits when you can.
Speaking of raising the debt ceiling, Ms Janet Yellen has a big can of 'Market Viagra' she is opening up to help the sagging economy only it is not effective as it once was. Still, it is going to help keep the markets from falling too far, barring any unforeseen, 'Black Swans' out there swimming in the shadows of the market swamp.
Overall indicators are still pointing to a bearish situation sometime in the near future. I can see the testing of the large caps recent highs, but from there the crystal ball is foggy.
Just out from Fed "hawk" Dick Fisher:
FISHER: FISCAL SHENANIGANS HAVE 'SWAMPED' QE TAPER PROSPECTS
FISHER: HARD TO NOW ARGUE TO CHANGE COURSE OF MONETARY POLICY
FISHER HAS FAVORED TAPERING FED MONTHLY BOND PURCHASES
U.S. FED'S FISHER REPEATS BEST TO 'STAY THE COURSE' ON BOND BUYING AT OCTOBER FOMC MEETING
And therein lies the most circular argument of the New Normal.
The DOW at 10:00 is at 15285 down 90 or -0.57%.
The SP500 is at 1719 down 3 or -0.17%.
SPY is at 171.83 down 0.23 or -0.14%.
The $RUT is at 1091 down 1 or -0.12%.
NASDAQ is at 3830 down 9 or -0.24%.
NASDAQ 100 is at 3274 down 7 or -0.23%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is positive.
WTI oil is trading between 102.95 and 100.59 today. The session bias is negative and is currently trading down at 100.60.
Brent Crude is trading between 111.27 and 109.47 today. The session bias is negative and is currently trading up at 109.72.
Gold rose from 1278.85 earlier to 1322.75 and is currently trading up at 1319.20.
Dr. Copper is at 3.282 falling from 3.325 earlier.
The US dollar is trading between 80.85 and 79.70 and is currently trading down at 79.71, the bias is currently negative.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary