Closing Market Commentary For 08-13-2013
Interesting day. The oil’s are going up, so is the US dollar along with the stock market, only gold has descended so what gives here. By the close there were a lot of human traders and investors that are totally confused with Mr. Market’s shenanigans.
At 4 pm the markets had completed their daily sideways ‘dance’ called the market slide. If you want a clear picture of what manipulation looks like, today’s session chart is it. It is too bad investors can’t be sure we will have another session tomorrow like the past 3 or 4 as the profit cash registers would be ringing for sure.
Maybe we are retracing a market peak, but as I have said so many times, as long as Dr. Ben continues to hand out free ice cream, the longer the markets will exhibit market euphoria among the HFT computers, BTFDers and the sheeples.
It is perhaps too soon to tell if the market is beginning a topping process or just pausing during the current advance. The bulls will argue valuations, Fed interventions and low interest rates.
They could be right for a while longer but not for the reasons expressed as much as the continued push of panic buying driven by current price momentum.
However, given the current set of circumstances, most investors fail to realize about the current market environment is that with stocks already stretched to extremes, trading driven by computerized programs and near record levels of leverage – a break in the market could lead to a very fast, unprecedented and unanticipated plunge in asset prices…
“Still, we know that the same strenuously overvalued, overbought, over bullish syndrome observed in 1972, 1987, 2000, 2007 and even 1929 (on imputed sentiment data) is already in place here, and that the losses from such extremes have been spectacular.”
The DOW at 4:00 is at 15451 up 31 or 0.20%.
The SP500 is at 1694 up 4.69 or 0.28%.
SPY is at 169.65 up 0.54 or 0.32%.
The $RUT is at 1052 down 1.69 or -0.16%.
NASDAQ is at 3684 up 14 or 0.39%.
NASDAQ 100 is at 3141 up 15 or 0.48%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been negative and the current bias is bullish.
WTI oil is trading between 107.18 and 105.60 today. The session bias is neutral and is currently trading down at 106.53.
Brent crude is trading between 108.70 and 107.74 today. The session bias is neutral and is currently trading up at 108.17.
Gold fell from 1340.69 earlier to 1318.18 and is currently trading down at 1321.20.
Dr. Copper is at 3.313 falling from 3.342 earlier.
The US dollar is trading between 81.44 and 81.92 and is currently trading down at 81.79, the bias is currently bullish.
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Written by Gary