Market Commentary: Markets Melt Fractionally Down On Low Volume

September 12th, 2014
in Gary's blogging, midday post

Written by

Midday Market Commentary For 09-12-2014

Noontime numbers are melting down as is the volume. The markets remain in the red, down -0.3% and may recover fractionally before the closing bell.

By 12 pm the averages were relatively quiet this Friday facing unknown issues around the World that could continue to drive the markets down.

Follow up:

Week is going to end poorly.

Stocks fall as utility companies slip; S&P 500 heads for 1st weekly loss since early August

NEW YORK (AP) - U.S. stocks are falling at midday as declines in utility companies weigh on the market. The Dow Jones industrial average dipped below 17,000. It fell 53 points, or 0.3 percent, to 16,994 as of noon Eastern time Friday.

The Standard & Poor's 500 index slipped nine points, or 0.5 percent, to 1,988. The index is headed for its first weekly decline since the start of August. Dividend-rich utility stocks fell the most among the 10 industry groups in the index.

The yield on the 10-year Treasury note rose to 2.59 percent, from 2.55 percent late Thursday, after news that August U.S. retail sales rose faster than economists predicted.

That reinforced expectations that the Federal Reserve could start hiking interest rates sooner than expected.

The medium term indicators are leaning towards the hold side at the midday and the short-term market direction meter is bearish. 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, but now I am very concerned. The SP500 MACD has turned flat, but remains above zero at +10.59. I would advise caution in taking any position during this uncertain period although some technical indicators have starting to turn bearish. members' sentiments are 70 % Bearish and when it switches over to bullish, as it did on Tuesday 8-5, watch for the market bottom to fall out some are saying as the markets usually go against 'Sheeple' buying high and selling low. So the markets should go higher - right?

Investors Intelligence sets the breath at 60.0 % bullish with the status at Bear Confirmed. (Chart Here ) NYSE Bullish Percent Index ($BPNYA) is at 65.90. (Chart Here) Very close to resistance and now flattening. S&P 500 Bullish Percent Index ($BPSPX) is at 75.00. (Chart Here) Remains below resistance and now flatting. 10 Year Treasury Note Yield Index ($TNX) is at 25.85. (Chart Here) Treasury Yield Curve Approaches Flattest Since 2009. Overbought / Oversold Index ($NYMO) is at -23.30. (Chart Here) (Need to type in $NYMO) It is now around the area where it turns and starts to descend, but any thing below -30 / -40 is a concern. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. Wednesday, 8-20-2014, $NYMO climbed to 58.24 is signaling a market reversal and it has started - which is short term bearish. Consumer Discretionary ETF (XLY) is at 68.36. (Chart Here)

Chris Ciovacco says, "As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy." This chart clearly shows that dropping below 65.50 should be of a great concern to bullish investors. Wednesday, 9-3-2014, XLY edged up to 69.25 and was a signal that we might have another reversal as were are witnessing. Protect thyself!

The DOW at 12:15 is at 16994 down 55 or -0.32%.

The SP500 is at 1988 down 9 or -0.45%.

SPY is at 199.35 down 0.95 or -0.47%.

The $RUT is at 1160 down 12 or -1.03%.

NASDAQ is at 4573 down 19 or -0.42%.

NASDAQ 100 is at 4075 down 18 or -0.43%.

$VIX 'Fear Index' is at 13.33 up 0.53 or 4.06%. Neutral Movement

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

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

How Oil Really Gets Priced

WTI oil is trading between 93.66 (resistance) and 92.36 (support) today. The session bias is neutral, volatile and is currently trading down at 93.08. (Chart Here) There is a very large gap at 97.06 and these types of gaps are usually filled sooner rather than later. It would not surprise me to see the oils move back up in the very near future. (Chart Here)

Brent Crude is trading between 98.79 (resistance) and 96.96 (support) today. The session bias is negative and is currently trading down at 97.42. (Chart Here)

Why Gold Will Rise When The Dollar Falls

- and -

The general consensus is that gold prices will actually fall in the next twelve months (Sept to Aug. 2015). Goldman Sachs estimates that gold will fall to $1,050 an ounce, a drop of nearly 19%.

Gold fell from 1240.58 earlier to 1228.64 and is currently trading up at 1234.30. The current intra-session trend is negative, but trending higher. (Chart Here)

Dr. Copper is at 3.098 rising from 3.079 earlier. (Chart Here)

The US dollar is trading between 84.56 and 84.22 and is currently trading down at 84.27, the bias is currently negative and very volatile. (Chart Here) >>>> There is a gap below between 83.92 and 83.79, watch out below as any rise is expected to be temporary.<<<<<<


The markets are still susceptible to climbing on 'Bernankellen' vapor, use caution!

"Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation inequities, they should try to be fearful when others are greedy and greedy only when others are fearful." - Warren Buffett

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Written by Gary


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