Closing Market Commentary For 04-12-2013
Markets closed down but above morning lows thanks to the HFT algo computers. Most investors sat on their hands today worried about the weak economics in the US, Cyprus and the Eurozone in general.
By 4 pm volume picked up as the bulls and bears battled it out with the BTFD ‘dippers’ getting the upper hand.
Economic data today is weak enough for one to sit up and take notice.
Judging by the stock markets the last two weeks have been one of the best periods ever but the reality – hidden behind a smoke-screen of central bank liquidity and jawboning mirrors is dire.
The last ten days have seen miss-after-miss in macro economic data – in fact this is the biggest plunge in macro data in 10 months. Despite the stock market’s exuberance (at all-time highs), macro data has rolled over dramatically to 4-month lows. Of the major economic data points we have missed 18 of the last 20.
With sentiment sagging, GDP revising lower, and earnings season disappointing, we can only imagine the BTFD opportunities that await.
The DOW at 4:00 is at 14865 down 0.08 or -0.00%.
The SP500 is at 1589 down 4.52 or -0.28%.
SPY is at 158.65 down 0.54 or -0.57%.
The $RUT is at 942.85 down 4.20 or -0.44%.
NASDAQ is at 3295 down 5.21 or -0.16%.
NASDAQ 100 is at 2856 down 2.59 or -0.09%. (A lot of analysts are currently watching the 100.)
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is up.
WTI oil is trading between 93.50 and 91.20 today. The session bias is bearish and is currently closed at 91.18.
Brent crude is trading between 106.25 and 102.01 today. The session bias is bearish and is currently closed at 102.21.
Gold fell from 1591.18 earlier to 1482.96 and is currently closed at 1487.53.
Dr. Copper is at 3.35 down from 3.43 earlier.
The US dollar is trading between 82.17 and 82.57 and is currently trading down at 82.28, the bias is currently negative.
The 500 at the close.
The DOW at the close.
The chickens WILL come home to roost eventually as this interesting read suggests. If you did not have the chance to read it this morning, I have left it up because it is an eye opening article.
The chart [shown in the article] may be the best one-chart summary of all that is wrong with the US financial system. It is a very simple chart – it shows total JPMorgan deposits, loans and the excess difference of deposits over loans.
And that is precisely the jist of all that is broken in the US financial system, and why the Fed is in fact making things worse, not better, and is progressively destroying the wealth of the middle class, stunting any growth opportunities the US may have, and all the residual wealth is pumped into the hands of those benefiting solely from rising asset prices.
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Written by Gary