Markets Begin Consolidation Awaiting Syrian News

Written by Gary

Opening Market Commentary For 08-28-2013

Premarkets were about even with yesterday’s closing numbers lacking any overnight market moving news.

The markets opened with a brief melting downward and then began melting upward on moderate volume best described as churning. The BTFDers were out and buying what they conceived as the bottom of the dip while the bears struggled to control those bulls. Investors are obviously still not sure what Mr. Market is going to do when the missiles start to fly over Syria.

By 10 am the market structure changed.

The Pending Home Sales (YoY) was reported at 10 am and came in at 8.6%, higher than what was expected at 7.9%, but lower than the previous 9.1%. The month of July came in at -1.3% while economists were expecting 0.0% change from the previous report of -0.4% (June).

The bottom line here is the markets reversed its upward climb and started melting downward with brief green spikes of volume from the not convinced BTFDers. Volume is falling off as the excitement of the morning action starts to wear off and the markets have settled in for what appears to be a consolidation as the averages begin a sea-saw session.

The DOW at 10:15 is at 14803 up 11 or 0.31%.

The SP500 is at 1633 up 3 or 0.19%.

SPY is at 163.73 up 0.40 or 0.25%.

The $RUT is at 1016 up 2.76 or 0.27%.

NASDAQ is at 3592 up 14 or 0.39%.

NASDAQ 100 is at 3072 up 12 or 0.39%.

The longer trend is up, the past months trend is bullish, the past 5 sessions have been bearish and the current bias is bullish.

How Oil Really Gets Priced

WTI oil is trading between 112.23 and 109.32 today. The session bias is negative and is currently trading up at 109.97.

Brent Crude is trading between 117.34 and 114.84 today. The session bias is neutral with a negative slant and is currently trading up at 115.62.

Gold fell from 1433.52 earlier to 1415.50 and is currently trading up at 1419.50.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.316 falling from 3.354 earlier.

The US dollar is trading between 81.13 and 81.64 and is currently trading down at 81.55, the bias is currently positive.

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Written by Gary