Midday Market Commentary For 05-30-2013
Not much excitement in today’s session as volume trickles downwards to anemic status. Investors are put off by indecision of the Feds and unsure of the markets eventual direction. Black clouds have been forming for over a year, the drum beat gets louder and tension grows with each passing week. Today is no exception as we see weakness but the Energizer Bunny Market keeps melting upwards.
By noon the averages had done little as the volume reached it slowest point in months. There is a slight slant upwards due to HFT algo computers, but surprisingly the bulls have not wiped out the shorts, maybe tomorrow.
Interesting view on the present day market. This type of negative and pessimistic ‘feeling’ has been around for over a year, but the drums are beating louder today that they were yesterday. I have said for some time now as Templeton states, “We’re in a monetary fantasyland”.
Bottom line states Mr. Skarica, “I really think this bull market is doomed. It has been caused by cheap money and delusional thinking.”
May 29, 2013 Dave Skarica
I consider myself a total and utter contrarian. I think I have taken even more of a role as a contrarian and value investor in the past 4 years since the bottom of the financial crisis. I love what others hate.
It is important to see pessimism and embrace it. To as my mentor Sir John Templeton said “Buy at the point of maximum pessimism”. This has saved us in the past year.
Additional Reading From This Morning:
U.S. pending home sales ticked up 0.3% in April from March to the highest level in three years, according to the National Association of Realtors. Sales were expected to climb 1.1%. The gauge was up 10.3% from the same month in 2012.
The DOW at 12:00 is at 15382 up 81 or 0.56%.
The SP500 is at 1660 up 12 or 0.71%.
SPY is at 166.39 up 1.14 or 0.68%.
The $RUT is at 993.13 up 6 or 0.62%.
NASDAQ is at 3497 up 29 or 0.85%.
NASDAQ 100 is at 3020.50 up 25 or 0.85%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been mixed and the current bias is positive.
WTI oil is trading between 93.29 and 91.70 today. The session bias was bearish and then jumped up to 93.97 and is currently trading up at 93.65.
Brent crude is trading between 102.82 and 101.08 today. The session bias was bearish and now bullish and currently trading up at 102.53.
Gold rose from 1396.55 earlier to 1417.58 and is currently trading up at 1412.45.
Dr. Copper is at 3.317 rising from 3.258 earlier.
The US dollar is trading between 83.76 and 83.03 and is currently trading up at 83.13, the bias is currently bearish.
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary