Midday Market Commentary For 03-25-2013
Some good news and some bad news. First, the gaps made this morning have been covered so more upside can happen, that is the good news. The bad news is that more gaps, significant ones, remain below current market numbers and the averages need to cover them before rising.
By noon time the averages were reporting negative numbers, but mostly flat and volume falling off. If the volume falls off more we can expect to see the HFT computers push the numbers a bit higher. This business in Cyprus is not helping the bulls a bit.
Other bad news is the reaction to the outright stealing of depositors monies in Cyprus and the outright rejection of the market’s new highs this morning. I was also wondering when the markets would react and they have.
FX, bond, and stock markets in Europe are not happy. As the EURRUB sees it biggest drop this year (Ruble buying), it appears whatever confidence-inspiring Dijsselblom believed in last night has faded rapidly as Italian and Spanish stocks plunge to the lows of last week (after opening gap higher).
Italian and Spanish bank stocks are on-and-off halted. EURUSD is getting hammered. Italian and Spanish bond spreads are blowing wider from gap tighter openings. This is not good… The reason appears to be: Cyprus a Template For EU, Reuters Says, Cites Dijsselblom
The DOW at 12:30 is at 14450 down 61 or -0.42%.
The SP500 is at 1552 down 5 or -0.30%.
SPY is at 154.95 down 0.66 or -0.42%.
The $RUT is at 944.50 down 2 or -0.21%.
NASDAQ is at 3230 down 14 or -0.44%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral to bullish and the current bias is down.
WTI oil is trading between 93.70 and 95.65 today. The session bias was bullish and is currently trading down at 94.61.
Brent crude is trading between 107.20 and 108.65 today. The session bias was bullish and is currently trading down at 107.39.
Gold fell from 1612.70 earlier to 1589.68 and is currently trading down at 1603.59. (It was bullish in the morning and has since turned bearish)
Dr. Copper is at 3.44 down from 3.49 earlier.
The US dollar is trading between 82.29 and 83.05 and is currently trading up at 83.00, the bias is currently bullish.
** RRR = Risk Reward Ratio
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Written by Gary