Market Commentary: Third New High Today For The 500 On Anemic Volume

May 27th, 2014
in Gary's blogging, market close

Written by

Closing Market Commentary For 05-27-2014

SP500 wailed today rising to new historical highs and closed on a another high note. The biggest problem I see is the lack of volume; so who is buying?

By 4 pm there was a party going on, but no one was present. Scary situation when the markets continue to rise, volume is anemic and there isn't an easy explanation. Personally, I would have some cash on hand, you know, just in case.

Follow up:

Interesting question on who is buying this stock market?

Here Is The Mystery, And Completely Indiscriminate, Buyer Of Stocks In The First Quarter

With the Fed having tapered its liquidity injections into the stock market from $85 billion to "only" $45 billion per month, retail investors getting burned by the recent high beta and momentum stock flame out.

. . . and "greatly unrotating" into the renewed safety of bonds, not to mention a churning market that until last week was unchanged for the year, and hedge funds ever shorter into this latest ramp, many are asking themselves:

who is buying? Here is the answer.

The short term indicators are leaning towards the hold side at the close. 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 up, but remains above zero at 7.93. I would advise caution in taking any position during this volatile transition period although shows a 64 % buy. members' sentiments are 70 % 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 4:00 is at 16676 up 69 or 0.42%.

The SP500 is at 1912 up 11 or 0.60%.

SPY is at 191.49 up 1.17 or 0.61%.

The $RUT is at 1142 up 16 or 1.42%.

NASDAQ is at 4237 up 51 or 1.22%.

NASDAQ 100 is at 3723 up 46 or 1.24%.

$VIX 'Fear Index' is at 11.51 up 0.15 or 1.32%. 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 up and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 104.49 (resistance) and 103.57 (support) today. The session bias is sideways and is currently trading up at 104.14.

Brent Crude is trading between 110.80 (resistance) and 109.71 (support) today. The session bias is sideways and is currently trading up at 110.08.

Gold fell from 1293.48 earlier to 1264.59 and is currently trading up at 1265.70. The current intra-session trend is negative.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.171 falling from 3.191 earlier.

The US dollar is trading between 80.52 and 80.22 and is currently trading up at 80.42, the bias is currently sideways and volatile.

Real Time Market Numbers



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Written by Gary


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