Written by Gary
Midday Market Commentary For 12-16-2013
The morning highs were lost on the averages loosing momentum and the lack of BTFDers, plus the volume dried up. There are obviously many investors out there that feel the Fed's are NOT going to taper on the 18th. They may be right or they might be incorrect. Either way, am not going to play this game while this house of cards is swaying in the wind.
By noon the averages melted ~0.25% off the morning highs are are now traveling sideways with a slightly negative slant.
The short term indicators are leaning towards the hold side at the midday, but I would advise caution in taking a 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 this week 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.
The DOW at 12:15 is at 15888 up 129 or 0.82%.
The SP500 is at 1786 up 11 or 0.61%.
SPY is at 179.19 up 1.08 or 0.60%.
The $RUT is at 1117 up 10 or 0.91%.
NASDAQ is at 4026 up 25 or 0.64%.
NASDAQ 100 is at 3476 up 20 or 0.58%.
The longer trend is up, the past months trend positive bullish, the past 5 sessions have been negative and the current bias is sideways.
WTI oil is trading between 96.52 and 97.91 today. The session bias is positive and is currently trading down at 97.81.
Brent Crude is trading between 108.53 and 110.40 today. The session bias is now positive and is currently trading down at 109.92.
Gold rose from 1227.28 earlier to 1251.28 and is currently trading down at 1249.60.
Dr. Copper is at 3.329 rising from 3.300 earlier.
The US dollar is trading between 80.36 and 80.06 and is currently trading down at 80.25, the bias is currently sideways.
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Written by Gary