Midday Market Commentary For 06-03-2013
Interesting morning watching Mr. Market start the session off in the green after a huge Manufacturing ISM miss and the lowest print since June 2009. This is the first below 50 report since November 2012 and Mr. Market had difficulty seeing this as negative.
By noon the averages move slightly to the red side and the volume dropped to very low, almost anemic.
The first column is what was reported. The second column is what economists were expecting and the third is the last print.
The market could just melt down here. If you find yourself negotiating with the market for higher prices so you can exit underwater positions, you’re best off just getting out. It’s the kiss of death for a trader to allow a small loss to turn into a big loss, and that’s what happens more times than not when you hope for one more bounce.
There are reasons to be bearish…some breadth indicators acting different than they have, talk of Fed winding down QE, bonds rallying.
There are reasons to be bullish…long term trend is still solidly up, tapering QE doesn’t mean shutting it off cold turkey, so there’ll still be accommodation going forward, there was lots of bearish talk this weekend, too much bearish talk.
The DOW at 12:30 is at 15171 up 55 or 0.37%.
The SP500 is at 1628 down 3 or -0.18%.
SPY is at 163.16 down 0.28 or -0.17%.
The $RUT is at 980.07 down 4 or -0.41%.
NASDAQ is at 3430 down 25 or -0.74%.
NASDAQ 100 is at 2960 down 22 or -0.73%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been sideways and the current bias is mixed with a negative slant.
WTI oil is trading between 91.37 and 93.53 today. The session bias is bullish and is currently trading up at 93.53.
More Widening For The Brent/WTI Spread ahead?
Brent crude is trading between 99.69 and 102.40 today. The session bias is bullish and is currently trading up at 102.25.
Gold rose from 1384.54 earlier to 1416.00 and is currently trading up at 1414.15.
Here’s why copper has lost its indicator role
Dr. Copper is at 3.324 falling from 3.347 earlier.
The US dollar is trading between 83.41 and 82.46 and is currently trading down at 82.58, the bias is currently bearish.
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Written by Gary
