Closing Market Commentary For 05-28-2013
Markets closed up after a brief scare that appeared at first to be the start of a sell off. The Averages rose from the afternoon lows to a respectable place in the green column but the session slant was bearish.
Scary market when volumes are not high and the averages are. Investor sentiment is that we are in for a correction. The problem being no one knows when.
As I mentioned before investors are very suspicious about extending long positions as the market climb looks tired. Dailyfx wrote, “Depending on what the last 35 minutes of trade offers, we are on track for the lowest volume day for the S&P 500 since April 8”.
While this morning’s explosion higher in Treasury bond yields (the largest in 9 months) was ‘evidence’ for many of the ‘great rotation’ as stocks rallied; it seems that now the ‘crowd’ is selling everything. Stocks, commodities, bonds, and credit are all offered (while the USD and precious metals are bid).
The end of POMO appears to have stalled the exuberance and cracked the JPY collapse of the day (for now – since it is Tuesday). With the 10Y yield now well above the S&P 500 yield, we wonder what ‘measure of cheapness’ will be wheeled out next to justify buying stocks again.
The DOW at 4:00 is at 15409 up 106 or 0.69%.
The SP500 is at 1660 up 10 or 0.63%.
SPY is at 166.05 up 0.74 or 0.45%.
The $RUT is at 997.35 up 13.08 or 1.33%.
NASDAQ is at 3489 up 30 or 0.86%.
NASDAQ 100 is at 3012 up 21 or 0.70%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral and the current bias is negative.
WTI oil is trading between 93.53 and 95.91 today. The session bias is bullish and is currently trading down at 95.11.
Brent crude is trading between 102.48 and 104.70 today. The session bias is bullish and is currently trading up at 104.49.
Gold fell from 1396.00 earlier to 1373.25 and then spiked to 1400.77 and is currently trading down at 1380.65.
Dr. Copper is at 3.314 rising from 3.268 earlier.
The US dollar is trading between 83.71 and 84.32 and is currently trading down at 84.30, the bias is currently sideways.
The 500 at the close.
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Written by Gary