Closing Market Commentary For 06-27-2013
Looks like the markets got tired around noon when I suggested today would be a good time for a round of golf and it was. Starting around noon the markets started sliding sideways on low volume with the HFT algo computers keeping the averages from melting further down. The trading zone this afternoon was narrow offering little to traders and investors alike making it a lackluster session.
By 4:00 pm it appears the Gold Bugs are moving to ??? (stocks / bonds) as the yellow precious metal drops below $1,200 lending more credence to the markets moving upwards in the following weeks.
What happens tomorrow is a guess, but if pressured into a ‘guess’, I would say we might have a down day or at best a flat one. Unless, of course, tomorrow morning’s financial’s are positive then we could have sell off or a buying frenzy, but of course that is just a guess.
Monday might be flat with Tuesday melting upwards towards that ‘gap in the sky’ (SP500 @ 1629) marking a completely new trading strategy or guessing game I like to call it.
The bounce off the 100DMA has been quite remarkable as a plethora of Fed heads have jawboned the S&P 500 up by as much in the last 3 days as the market rose in the first few days of the year.
An almost 4% gain (amid collapsing volumes) has pushed the S&P 500 up to its 50DMA and for now (despite Dudley’s best efforts) it is stalling at this technical support level (whuch just happens to coincide with a 61.8% retracement of the plunge from the FOMC).
In other news, credit markets (having compressed/normalized the technical skews we have discussed) are selling off rather notably. Treasury yields are lower on the day though leaking higher into the European close and the USD is continuing to rise (led by JPY weakness for now).
The DOW at 4:00 is at 15024 up 114 or 0.77%.
The SP500 is at 1613 up 10 or 0.62%.
SPY is at 161.07 up 1.23 or 0.58%.
The $RUT is at 979.92 up 16 or 1.67%.
NASDAQ is at 3402 up 25 or 0.76%.
NASDAQ 100 is at 2907 up 13 or 0.45%.
The longer trend is up, the past months trend is bullish, the past 3 sessions have been positive and the current bias is sideways.
WTI oil is trading between 95.35 and 97.39 today. The session bias is bullish and is currently trading down at 96.75.
Brent crude is trading between 101.62 and 103.33 today. The session bias is bullish and is currently trading down at 102.64.
News Flash: Gold Breaks Below $1200
Gold fell from 1243.78 earlier to 1196.58 and is currently trading down at 1198.15.
Dr. Copper is at 3.048 falling from 3.077 earlier.
The US dollar is trading between 83.01 and 83.43 and is currently trading down at 83.16, the bias is currently negative.
If you like to play the gaps, this is the market for you.
The 500 at the close. (Green support line is another gap.)
The DOW at the close.
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Written by Gary