Midday Market Commentary For 04-25-2013
Markets continued the melt up and filled in the most glaring gaps made on previous declines. Many previous historical highs are also within rock throwing distance setting up a possible scenario of a real correction. Now would be the time to start thinking about seeking shelter.
By noon the markets had leveled off trading sideways in a narrow zone and on falling volume. As the volume falls it would be expected to see the averages fall due to some profit taking during the final minutes today.
(NOTE: Gary will be on an assignment and will not have a closing commentary at 4 pm today)
When tin-foil-hat wearing digital dickweed blogs first suggested that Central Banks were actively buying stocks, the mainstream media scoffed at the idiocy and un-independence of such an idea.
However, it is clear the central banks themselves are now not only actively buying stocks but are activley encouraging it and propagandizing their efforts to lever this last policy tool left in the toolbox.
As Bloomberg reports, 23% of central bankers surveyed said the bank owns shares and plans to buy more. From the Bank of Japan to the Bank of Israel and with the SNB and the Czech National Bank now at over 10% allocation of reserves to stocks, is it any wonder there is an inexorable bid under the ‘free’ markets.
Rick Santelli is rightly concerned that, “there is a danger that everyone is loaded in the same direction,” asking what happens if all the Central Bank pump-priming does not work, given these equity valuations, “who gets caught holding the bag? What chairs are left when the music stops?”
The DOW at 12:30 is at 14745 up 69 or 0.47%.
The SP500 is at 1589 up 10 or 0.66%.
SPY is at 158.90 up 1.02 or 0.65%.
The $RUT is at 942.73 up 8.63 or 0.92%.
NASDAQ is at 3296 up 27 or 0.82%.
NASDAQ 100 is at 2854 up 20 or 0.71%. (A lot of analysts are currently watching the 100 for a heads and shoulder formation.)
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is neutral.
WTI oil is trading between 90.63 and 92.56 today. The session bias is bullish and is currently trading up at 92.50.
Brent crude is trading between 100.96 and 102.80 today. The session bias is positive and is currently trading up at 102.67.
Gold rose from 1425.80 earlier to 1457.00 and is currently trading up at 1454.15.
Dr. Copper is at 3.242 rising from 3.158 earlier.
The US dollar is trading between 83.17 and 82.49 and is currently trading up at 82.92, the bias is currently bullish.
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Written by Gary