Closing Market Commentary For 08-12-2013
After the bear trap fiasco this morning the markets closed the gaps made on the opening and have remained in a narrow band for the entire session. Only the small caps and $RUT has shown any attempt to continue rising, however, this sideways trend has a slight negative flavor that needs to be overcome if we are going to see any more melting upwards.
By 4 pm the averages were putting forth their best side of things, but the show lacked any investor enthusiasm marked by anemic volume. At the close we show a tired, lackluster and uninspiring market place, not one ready to leap to new highs as some pundits are opining. But, and there is always a ‘but’!
Because of Dr. Ben’s free ice cream program, better know as QE∞, I suppose we will eventually see more new market highs. But I ask, “What is the eventual price we are going to pay for all of this ‘free money’? The time to short is near, but it is not today.
The U.S. stock market’s return to nominal all-time highs amid artificial zero interest rates is sending yield-hungry investors down a dangerous path, one they hope will continue to lead to quick and easy returns.
Such pursuits ignore a reality grounded in some of the oldest human wisdom, dating back 25 centuries to the Daoist sages of ancient China, who eschewed the direct in favor of the indirect – the roundabout that leads to better strategic advantage.
No matter how appealing the direct path, it will likely not best take us where we want to go. Most often it leads only to loss – the hare ultimately loses to the accelerating, roundabout tortoise.
The DOW at 4:00 is at 1420 down 5.60 or -0.04%.
The SP500 is at 1689 down 2 or -0.12%.
SPY is at 169.12 down 0.20 or -0.12%.
The $RUT is at 1053 up 5.23 or 0.50%.
NASDAQ is at 3670 up 9.84 or 0.27%.
NASDAQ 100 is at 3126 up 7.35 or 0.24%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been negative and the current bias is sideways.
WTI oil is trading between 105.15 and 106.44 today. The session bias is slightly negative and is currently trading up at 106.21.
Brent crude is trading between 108.25 and 106.29 today. The session bias is bearish and is currently trading up at 107.84. (serious gap at 108.20)
Gold rose from 1309.37 earlier to 1343.00 and is currently trading down at 1335.40.
Dr. Copper is at 3.311 rising from 3.284 earlier.
The US dollar is trading between 81.11 and 81.54 and is currently trading up at 81.41, the bias is currently negative.
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Written by Gary