Market Commentary: Markets Show Increased Volatility Trading Sideways on Falling Volume

April 21st, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 04-21-2014

The averages fell into the red (-0.10%) around 10:30 am and the $VIX melted up to the low 14's. Volume at the noontime reading is low and falling to anemic as the HFT computer appear to be melting the averages up or at least keeping them elevated for the time being. Looks like a classic 'pump-n-dump' occurred, but at least the traders are happy with increased volatility.

By noon many investors were taking a cautious view of the markets advancing today. The unrest situation in the Ukraine is one factor that is keeping the bulls in their pens. Market weakness is apparent, but unsure if Mr. Market is going to direct the averages upward today.


Follow up:

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 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 up slightly, but remains near zero. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 24 % buy. (Remember this has been negative for weeks.)

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 12:30 is at 16433 up 25 or 0.15%.

The SP500 is at 1868 up 3 or 0.17%.

SPY is at 186.70 up 0.31 or 0.17%.

The $RUT is at 1139 up 0.31 or 0.11%.

NASDAQ is at 4106 up 10 or 0.26%.

NASDAQ 100 is at 3545 up 11 or 0.30%.

$VIX 'Fear Index' is at 13.43 up 0.07 or 0.52%. Neutral 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 positive and the current bias is sideways.

How Oil Really Gets Priced

WTI oil is trading between 104.58 (resistance) and 102.96 (support) today. The session bias is positive and is currently trading down at 103.40.

Brent Crude is trading between 109.94 (resistance) and 108.91 (support) today. The session bias is negative and is currently trading down at 109.58.

Gold fell from 1301.12 earlier to 1282.05 and is currently trading up at 1286.70. The current intra-session trend is sideways.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.044 falling from 3.054 earlier.

The US dollar is trading between 80.06 and 79.86 and is currently trading down at 80.04, the bias is currently positive.

Real Time Market Numbers

 

 

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

gary@econintersect.com

 

Written by Gary

 









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