Market Commentary: US Markets Fall Into Red On Weak Chinese Data

March 13th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 03-13-2014

About 10:30 the averages had all entered into the red zone of minor losses on low to moderate volume.

By noon the averages had slipped to its lowest level for the session and further losses are expected in light of investors worries over the weakening Chinese financial data.

Follow up:

Until investors have resolved their fears regarding Chinese financial matters this market and it future will remain in question. The question of course is will the market become bearish?

China has released more data indicating that its economy is slowing, with industrial production growth slowing to 8.6% on year in January and February from 9.7% previously and missing consensus of 9.5%.

Retail sales softened to +11.8% from +13.6%, while urban fixed-asset investment also weakened.

The disappointing readings follow data which showed that exports plunged in February.

The short term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The 50DMA, MACD, volume and a host of other studies have not turned, only a 6% correction (and recovery) and that is not enough for me to start shorting. I would advise caution in taking any position during this volatile transition period although shows a 24% sell.

The Best Stock Market Indicator Update says the market is untradable. The OEXA200R ended the week at 82%, unchanged from last weekend.

If you would like to get advanced buy/sell tweets, sign-up in the column to the right of this post by clicking on the 'Follow' button. Write me with suggestions and I promise not to bite.

The DOW at 12:00 is at 16257 down 83 or -0.51%.

The SP500 is at 1861 down 7 or -0.407%.

SPY is at 186.61 down 0.68 or -0.37%.

The $RUT is at 1187 down 4 or -0.36%.

NASDAQ is at 4303 down 21 or -0.48%.

NASDAQ 100 is at 3687 down 20 or -0.53%.

$VIX 'Fear Index' is at 15.00 up 0.53 or 3.66%. Bearish Movement

The longer trend is up, the past months trend is positive, the past 5 sessions have been mixed and the current bias is negative.

How Oil Really Gets Priced

WTI oil is trading between 98.60 and 97.67 today. The session bias is positive and is currently trading up at 98.36.

Brent Crude is trading between 107.79 and 106.95 today. The session bias is negative and is currently trading up at 107.20.

Gold fell from 1375.39 earlier to 1365.03 and is currently trading up at 1370.50. The current intra-session trend is positive.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 2.941 rising from 2.929 earlier.

The US dollar is trading between 79.74 and 79.37 and is currently trading down at 79.49, the bias is currently positive.

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:


Written by Gary


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