Midday Market Commentary For 08-03-2012
Boy this is a great setup in the making with the DOW rising 250 points in one day is a ticket to short over the weekend as Draghi is sure to say something stupid and cause another market reverse. If no one has told you, I will. Today’s market rise is not sustainable. Not to say we won’t have more market gains, but they won’t be on Monday.
I thought for sure the high for the day was reached at 10:30 when some red volume started to gain a footing, but it didn’t last. Watch out as the potential for a falloff today is a real threat and the only players in this game are DaBoyz and the HFT crowd. None of my friends are playing this market today as we see it for what it is and that is BS!
Baffle With BS Continues: Non-Manufacturing ISM Better Than Expected As Employment Drops To Lowest Since 2011
The strategy to keep everyone utterly confused and merely chasing momentum and trends continues.
After the surge in this morning’s NFP report, driven entirely by statistical fudging and part-time jobs, which has sent the market higher by well over 1%, we next get a Services ISM update for July according to which the US non-manufacturing sector improved modestly, to 52.6, on expectations of an unchanged print at 52.1, making the case for NEW QE even more distant.
But wait, just to keep everyone totally baffled with BS, the ISM says that the employment index dipped below 50 for the first time since 2011, printing at 49.3 from 52.3: in other words, the employment in the US services sector is now contracting, something which the NFP number roundly denied. Confusion? Mutual exclusivity? It doesn’t matter to algos, who are confident that the Fed will certainly launch more QE with the S&P at 2012 highs no matter what the facts say.
The DOW at noon is at 13128 up 250 or 1.94%.
The 500 is at 1393 up 28.67 or 2.10%.
The $RUT is at 790.31 up 21.67 or 2.82%.
SPY is at 139.54 up 2.91 or 2.13%.
The trend is up and the current bias is up.
WTI oil is at 91.65 trading between 87.32 and 91.68 and the bias is positive.
Brent crude is at 109.01 trading between 105.84 and 109.10 and the bias is positive.
Gold is up today at 1604.29 trading between 1586 and 1606.50 with a neutral bias.
Dr. Copper is at 3.37 up from 3.30 earlier.
Earlier the USD tumbled from 83.60 to 82.35 and recovered to 82.38.
Other headlines this morning.
The RRR** was good early this morning if you had the guts to gamble on it. Hind-sight is always 20-20 isn’t it?
** RRR = Risk Reward Ratio
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Written by Gary