Written by Gary
Closing Market Commentary For 04-15-2014
Today has been a classic 'pump-n-dump' session and it can ONLY lead to one outcome. I hope you have looked at your cash position carefully.
By 4 pm the markets closed nearly at the morning highs on low volume. Call me a skeptic, but I do not see a good viable outcome from today's bullish action on poor news from Japan. The good news is that the SP500 closed above the 100 DMA. The bad news is that everything else looks like, well, you know, like politicians promises. Yes, I would say there are serious risks ahead.
Unbelievable and investors, savvy ones, are scratching their heads in amazement at the turn-around the markets made at 1:00 pm today. The algo HFT computers had a field day and raked in some serious cash at the expense of the 'Sheeples'.
You know it's bad when... the red flashing headline that sparked the accelerating downward momentum in US equity markets to stop and reverse on a dime is...
*JAPAN TO DOWNGRADE ECONOMIC ASSESSMENT IN APRIL REPORT: NIKKEI
Proving once again how insanely non-sensical this bad-news-is-good-news market has become. Fundamentals, schmundamentals.
The short term indicators are leaning towards the hold side at the closing. The all important signs of reversal, up or down, have not bee n observed so we are mostly, at best, neutral and conservatively holding. The important DMA's, volume and a host of other studies have not turned, only a past 6% correction (and recovery) and that is not enough for me to start shorting. The MACD has turned down slightly, but remains at zero. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 8 % buy. (Remember this has been negative for weeks.)
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The DOW at 4:00 is at 16263 up 89 or 0.55%.
The SP500 is at 1843 up 12 or 0.68%.
SPY is at 184.42 up 1.26 or 0.69%.
The $RUT is at 1119 up 4 or 0.37%.
NASDAQ is at 4034 up 11 or 0.29%.
NASDAQ 100 is at 3488 up 13 or 0.38%.
$VIX 'Fear Index' is at 15.49 down 0.62 or -3.85%. Bearish Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past months trend is sideways, the past 5 sessions have been negative and the current bias is positive.
WTI oil is trading between 104.03 (resistance) and 102.95 (support) today. The session bias is sideways and is currently trading down at 103.53.
Brent Crude is trading between 109.72 (resistance) and 108.33 (support) today. The session bias is sideways and is currently trading down at 109.26.
Gold fell from 1228.47 earlier to 1290.00 and is currently trading down at 1302.80. The current intra-session trend is sideways.
Dr. Copper is at 2.994 falling from 3.046 earlier.
The US dollar is trading between 78.77 and 79.97 and is currently trading down at 79.88, the bias is currently sideways.
Real Time Market Numbers
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Written by Gary