Market Commentary: Large Caps Close To New Highs, Small Caps Are Not Buying It

June 2nd, 2014
in Gary's blogging, market close

Written by

Midday Market Commentary For 06-02-2014

SP500 made a new high at 1925.88 and the DOW did the same at 16756.64 on very low volume begging the question, how does the price increase when no one is buying?

By 4 pm the $RUT was off a half-point and the other small caps never fully recovered from this mornings fall. Volume was anemic to low all session and is concerning to investors and traders alike. Traders will buy in a volatile market, but if they can't sell, why buy?

Follow up:

I believe, like many other do, that we are in a danger zone cause in part by exorbitant quantities of QE being pumped into the World financial systems. There are so many people with their heads stuck in the sand will someday wonder what happened as the financial rubber-band is being twisted tighter and tighter. When is it going to snap?

Coasting Towards Zero

In just about any realm of activity this nation does not know how to act. We don't know what to do about our mounting crises of economy.

We don't know what to do about our relations with other nations in a strained global economy. This is a society in deep danger that doesn't want to know it.

Question asked above on who is selling or buying on such low volume brings us to this piece on Who Selling?

Who's Selling?

We know there is one indiscriminate non-economic buyer in the US equity markets - the entirely ignorant of valuation concerns, funded with record high leverage, corporate buyback machine.

But who is selling to them? Once again, as BofAML notes, institutional clients are net sellers of US equities since Mid-April (and are cumulative net sellers year-to-date). So do you chase the non-economic float-shrinkers... or the large professional investors?

As stocks soared last week, professional investors were dumping huge amounts of stock into the strength as retail/private clients bought with both hands and feet.

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 up, but remains above zero at 12.26. I would advise caution in taking any position during this volatile transition period although shows a 48 % sell. members' sentiments are 69 % 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 16744 up 26 or 0.16%.

The SP500 is at 1925 up 1.40 or 0.07%.

SPY is at 192.79 up 0.22 or 0.11%.

The $RUT is at 1129 down 5.60 or -0.49%.

NASDAQ is at 4237 down 5 or -0.13%.

NASDAQ 100 is at 3733 down 4 or -0.10%.

$VIX 'Fear Index' is at 11.58 up 0.18 or 1.58%. Neutral Movement

(Follow Real Time Market Averages at end of this article)

The longer trend is up, the past months trend is positive, the past 5 sessions have been positive and the current bias is elevated and sideways.

How Oil Really Gets Priced

WTI oil is trading between 103.33 (resistance) and 102.11 (support) today. The session bias is negative and is currently trading down at 102.44.

Brent Crude is trading between 109.84 (resistance) and 108.62 (support) today. The session bias is negative and is currently trading down at 108.80.

Gold rose from 1241.17 earlier to 1250.98 and is currently trading down at 1244.60. The current intra-session trend is Negative, and somewhat volatile.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.167 rising from 3.120 earlier.

The US dollar is trading between 80.71 and 80.43 and is currently trading up at 80.68, the bias is currently elevated, sideways and 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