Midday Market Commentary For 05-22-2013
Right after I posted the morning commentary suggesting that now is the time to be vigilant and cautious, the markets started a melting off the highs in what can be best described as a gotcha. There were a bunch of angry investors that were taken out at the knees when their ‘to close’ trailing stops were triggered on the fall. But then the BTFD dippers jumped in and stopped the decent at about yesterdays highs.
By noon the averages had climbed back to ¾ of the morning decent on seriously falling volume. The HFT computers are suspect in the current melting up.
The markets are in a state of jitters as investors are unsure where Mr. Market is going to take them.
MOAR Orderly… oops… Bernanke: “Fed could reduce bond purchases in the next few meetings if data supports it” and perhaps most disturbing is that reality is finally seeping into the corner offices of the Marriner Eccles building when Bernanke says that concerns about “frothiness” and “bubbles” has increased?
Was it the sub-5% yield in high yield that tipped them off?
The DOW at 12:15 is at 15503 up 115 or 0.74%.
The SP500 is at 1681 up 12 or 0.71%.
SPY is at 168.38 up 1.21 or 0.72%.
The $RUT is at 1005.83 up 7 or 0.70%.
NASDAQ is at 3520 up 18 or 0.51%.
NASDAQ 100 is at 3042 up 15 or 0.51%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is neutral to negative.
WTI oil is trading between 96.19 and 94.39 today. The session bias is negative and is currently trading down at 94.72.
Brent crude is trading between 103.81 and 102.70 today. The session bias is mixed but negative and is currently trading up at 103.03.
Gold rose from 1356.56 earlier to 1412.99 and is currently trading down at 1369.75.
Dr. Copper is at 3.385 rising from 3.334 earlier.
The US dollar is trading between 84.46 and 83.52 and is currently trading up at 84.44, the bias is currently positive.
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Written by Gary