Closing Market Commentary For 08-14-2013
Markets slide sideways in the now familiar daily session dance, where the bulls and bears change partners every once in a while, but never getting to first base.
By 4 pm the averages took a turn down just before the session close as more and more investors are starting to take profits and seek high ground.
Half of the market ownership is definitely worried, which side is going to sell first? How about you?
The cluster of Hindenburgs is indicating a very worried market (for example 99 New Highs and 231 New Lows) and for a change a Fed speaker was unable to provide the headline-reading BTFD ammo to save us from the drop in stocks.
The 6th down day in the last 8 in stocks and red on the month-to-date screens is not something we are used to seeing. The USD was flat to slightly lower on the day (even as AUD surged and JPY leaked higher) as were Treasury yields (which took a pause after 2 days of being smashed higher).
While bonds were flatish, homebuilders and utilities stocks were jammed lower once again (as AAPL pulled Tech and the Nasdaq to outperform again). Copper and oil were also flat on the day but gold saw some improvement (over $1330) and Silver surged 2% (up over 6% on the week now – biggest week since Oct 2011).
Yesterday’s near-record steepness in VIX’s term structure that we warned about seems to have been followed by the usual short-end rip as VIX broke back above 13%.
The DOW at 4:00 is at 15337 down 113 or -0.73%.
The SP500 is at 1685 down 8.77 or -0.52%.
SPY is at 168.64 down 0.98 or -0.58%.
The $RUT is at 1047 down 4.19 or -0.40%.
NASDAQ is at 3669 down 15 or -0.41%.
NASDAQ 100 is at 3129 down 11.61 or -0.37%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been sideways with a negative slant and the current bias is bearish.
WTI oil is trading between 107.04 and 105.65 today. The session bias is bullish and is currently trading down at 106.96.
Brent crude is trading between 107.77 and 108.96 today. The session bias is bullish and is currently trading up at 108.94.
Gold rose from 1315.43 earlier to 1335.39 and is currently trading up at 1334.50.
Dr. Copper is at 3.346 rising from 3.295 earlier.
The US dollar is trading between 81.90 and 81.66 and is currently trading up at 81.77, the bias is currently sideways.
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Written by Gary