Written by Gary
Midday Market Commentary For 05-12-2014
The DOW has remained elevated near its morning highs and like the other major averages, has been trading sideways in a very narrow trading zone.
By noon many traders are expecting to see the averages slip sometime this afternoon and are watching for bear traps. Volume is moving from low to anemic and the BTFDers are nowhere to be seen, but that doesn't mean trading is over for today, just be alert.
I have mentioned just about every morning that now is NOT the time to be shorting, but obviously, some didn't get the memo.
After "most shorted" stocks had their best (i.e. worst or biggest loss) week in 2 years last week, it was perhaps not entirely surprising that 'they' would smash VIX and JPY to manufacture a short squeeze bloodbath this morning at the open...
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 and that is not enough for me to start shorting. The SP500 MACD has turned flat, but remains above zero at 6.37. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 32 % sell. (Remember this has been negative for weeks.) Investing.com members' sentiments are 71 % bearish.
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The DOW at 12:15 is at 16682 up 99 or 0.60%.
The SP500 is at 1893 up 15 or 0.80%.
SPY is at 189.51 up 1.54 or 0.82%.
The $RUT is at 1130 up 23 or 2.08%.
NASDAQ is at 4134 up 62 or 1.55%.
NASDAQ 100 is at 3605 up 49 or 1.39%.
$VIX 'Fear Index' is at 12.26 down 0.66 or -5.03%. Bullish 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 elevated and sideways.
WTI oil is trading between 100.92 (resistance) and 99.98 (support) today. The session bias is sideways and is currently trading down at 100.65.
Brent Crude is trading between 108.16 (resistance) and 107.40 (support) today. The session bias is sideways and is currently trading up at 107.76.
Gold rose from 1278.38 earlier to 1304.00 and is currently trading down at 1299.20. The current intra-session trend is sideways.
Dr. Copper is at 3.145 rising from 3.084 earlier.
The US dollar is trading between 79.97 and 79.84 and is currently trading up at 79.94, the bias is currently positive and volatile.
Real Time Market Numbers
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Written by Gary