Market Commentary: Markets Make Plus 1% movement Changes Signaling Caution

May 7th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 05-07-2014

I keep reminding readers to watch out for bear and bull traps and just plain old reversals likw we had today. The averages fell down to some serious red levels this morning and the current lot of Wall Street crooks, malcontent financial wizards and HFT algo computers turned the markets around. By noon the SOB's moved the DOW to new session highs and halved the small cap losses. But before I could finish the last sentence, the averages were sliding off the tops.

Volatility is good for trading, but bad for investors, especially the bullish ones looking for stability. The averages have made over 1% changes this morning and that makes me cautious.

Follow up:

Sounds like the Fed is 'back peddling' and using politically correct language that they think there is a problem and don't know what to do about it. But, then what is new about that?

Yellen Warns Of Small Cap Bubble

In mid February Fed's Tarullo first opined on the "stretched valuations" in small and high-tech companies in the US - while careful not to label the entire market a bubble.

It seems, given Janet Yellen's comments today, that this is the new meme...



And then there's this:

  • Yellen: Can't Detect Asset Bubbles With Any Certainty

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 SP500 MACD has turned flat, but remains above zero at +5.44. I would advise caution in taking any position during this volatile transition period although shows a 80 % buy. (I am not so sure about this.) members' sentiments are 61 % bearish.

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 12:15 is at 16363 up 109 or 0.67%. (and falling)

The SP500 is at 1874 up 6 or -0.34%.

SPY is at 187.47 up 0.68 or 0.36%.

The $RUT is at 1102 down 5 or -0.50%.

NASDAQ is at 4049 down 31 or -0.76%.

NASDAQ 100 is at 3531 down 25 or -0.70%.

$VIX 'Fear Index' is at 13.61 down 0.19 or -1.38%. 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 sideways and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 100.97 (resistance) and 99.79 (support) today. The session bias is sideways and volatile and is currently trading down at 100.70.

Brent Crude is trading between 107.89 (resistance) and 106.97 (support) today. The session bias is positive and volatile and is currently trading up at 107.80.

Gold fell at an alarming rate from 1314.67 earlier to 1292.16 and is currently trading down at 1292.90. The current intra-session trend is negative. (and volatile.)

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.032 falling from 3.061 earlier.

The US dollar is trading between 79.12 and 79.28 and is currently trading down at 79.21, the bias is currently trending up and very volatile.

Real Time Market Numbers



Leading Stock Quotes powered by



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


Written by Gary


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved