Written by Gary
Closing Market Commentary For 11-25-2013
At 3:10 this afternoon the markets took a BIG plunge bringing most averages down to or just below the opening numbers wiping out today's gains. The BTFDers jumped in and saved the averages from falling further, but 10 minutes later on lower volume the averages slipped further to where the SP500 was well below its opening numbers. The SP500 stopped dead after descending to 1800 and bounced back up to 1803 before the averages closed mixed. Sure smacks of manipulation.
The DOW made a double top today and that used to mean 'death and destruction' to the entire market system and its technical charts, something no one lately has paid much attention to, until today. However, the decline never materialized into a waterfall and I highly suspect the HFT computers had a lot to do with this unexpected drop of the averages. I further suspect we will see a nice recovery before the 'Thanksgivukkah' Holiday is over placing hefty profits in the pockets of the Wall Street Scamers. Yes, I am referring to the Wall Street Society of Criminals, Aholes and Misfits whom have continually entertained us for the last several years at our expense.
Can you say 'horse pucky'? 'Normal Growing Pains', 'Fatigue' are you kidding me Mr. Cardillo? This is pure and simple market manipulation.
As stocks slip this afternoon, they are just showing a bit of fatigue, says Peter Cardillo, chief market economist at Rockwell Global Capital.
"It's just normal growing pains," Cardillo said in a phone interview.
"It's a shortened week, volume's light, so the gyrations can somewhat be exaggerated."
Volume wasn't light when it went down in fact it was almost as high as November 20th, so who is kidding who here?
The short term indicators are leaning heavily towards the sell side at the closing about where they were this morning, but I would advise caution in taking a long position because of the Fed's cryptic utterances in hinting when the taper will begin and by how much. I would also take chart and other technical indicators with a grain of salt for the time being and watch what the Fed does WHEN it actually does something.
The longer 6 month outlook remains 40-60 sell until we can see what the Fed is actually going to do, simple as that. If we get some Fed tapering in December the markets will certainly react in a negative fashion, how much of course depends on much bond buying takes place. If the tapering begins in March 2014, like many believe it will, the markets are going to price that in by declining sooner. I am expecting weak to negative markets for the foreseeable future.
Members of the FOMC believe the US economy has shown signs of improvement, but they have assured short-term interest rates would remain low for quite some time to come. Alpari Market Analyst, Craig Erlam, said: "Many members of the Fed now appear eager to start winding down its asset purchases and are looking for ways to do it that will create the least disruption in the financial markets, such as setting simple thresholds for reductions, or even more simply, providing a timetable for tapering that is not data dependent."
ADVFN reported, "The rally in question has been built on the back of the Fed's promise of a stimulatory environment. If any catalyst points to the Fed giving up its accommodative stance, there is a danger of a pullback and near term support for the index lies around the 15,965, 15,890 and 15,804 levels."
Personally, I think it could go a lot lower.
Also, many pundits have stated that we may be seeing the top - but I wouldn't count it as long as the Fed continues to hand out 'Market Viagra'! I would like to see a blowout candle (shooting star) to verify a top along with heavy volume.
The DOW at 4:00 is at 16072 up 7.77 or 0.05%.
The SP500 is at 1802 down 2.28 or -0.13%.
SPY is at 180.77 down 0.18 or -0.10%.
The $RUT is at 1124 down 0.20 or -0.02%.
NASDAQ is at 3994 up 3 or 0.07%.
NASDAQ 100 is at 3427 up 5 or 0.16%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been positive and the current bias is mixed with a positive slant.
WTI oil is trading between 94.90 and 93.24 today. The session bias is negative and is currently trading down at 94.17.
Brent Crude is trading between 111.62 and 108.07 today. The session bias is positive and is currently trading down at 110.93.
Gold fell from 1252.38 earlier to 1227.50 then turned around and is currently trading down at 1248.75.
Dr. Copper is at 3.231 falling from 3.270 earlier.
The US dollar is trading between 80.67 and 81.05 and is currently trading down at 80.96, the bias is currently negative.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary