Written by Gary
Midday Market Commentary For 05-21-2014
By the noon hour very little has been done to break the sideways trading movement. Volume is anemic as many investors sit on their hands in anticipation of a correction or at least a sign of a new direction.
Market weakness is apparent as we enter the afternoon session, but it is not expected to take on extreme negativity.
I am nervous too.
Last Thursday David Tepper, the highest paid hedge fund manager in the nation in 2013, put out comments that he was "nervous" about the levels of the market right now. The noted money manager has made several great calls on the markets since the financial crisis and his cautious words were one of the primary drivers behind the one percent decline in the markets last Thursday.
I think Mr. Tepper is right on his pessimistic outlook for equities for a variety of reasons. (Read More > > )
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 4.12. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 16 % buy. (Not so bullish this afternoon.) Investing.com members' sentiments are 66 % bearish.
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The DOW at 12:15 is at 16491 up 118 or 0.72%.
The SP500 is at 1881 up 8 or 0.44%.
SPY is at 188.43 up 0.88 or 0.47%.
The $RUT is at 1096 down 2 or -0.18%.
NASDAQ is at 4111 up 14 or 0.34%.
NASDAQ 100 is at 3617 up 17 or 0.47%.
$VIX 'Fear Index' is at 12.35 down 0.61 or -4.71%. 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 neutral and the current bias is trending down.
WTI oil is trading between 104.23 (resistance) and 102.40 (support) today. The session bias is positive and is currently trading down at 104.06.
Brent Crude is trading between 110.69 (resistance) and 109.62 (support) today. The session bias is positive and is currently trading down at 110.50.
Gold fell from 1296.35 earlier to 1286.37 and is currently trading down at 1289.30. The current intra-session trend is sideways.
Dr. Copper is at 3.120 falling from 3.144 earlier.
The US dollar is trading between 80.27 and 79.94 and is currently trading down at 80.22, the bias is currently positive, but volatile.
Real Time Market Numbers
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Written by Gary