Written by Gary
Midday Market Commentary For 08-30-2013
Markets at noontime have been sliding, more or less, downwards on relatively low volume. Much uncertainty prevails among investors and traders alike after the UK withdrew it support for the United States unilateral actions on Syria in protest against its use of military weapons on civilians. The prospect of the Fed withdrawing stimulus and the geopolitical tensions lead the market worries and indices are likely to be confined to recent trading ranges.
By noon we have a lackluster, low volume go-home early market that promises to be more of the same.
However, watch out for the closing 5 minutes, that could be a show in itself. Oh yes, then there are the banks.
“In the spring, the risks to growth seemed to be fading. The economy was weathering the fiscal shock.
Politicians decided to delay battles over the budget and the debt ceiling, passing a continuing resolution to fund the budget through September and postponing the debt ceiling drop-dead date to some time in the fall.
Meanwhile, financial markets in Europe had settled down, the European economy showed signs of improvement, and commodity prices were stable.
In their June directive the FOMC made it official: “The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished since the fall.”
Unfortunately, we seem to be entering another of those periods of elevated risk. Three concerns are emerging.“
The DOW at 12:45 is at 14797 down 43 or -0.29%.
The SP500 is at 1633 down 5 or -0.30%.
SPY is at 163.72 down 0.44 or -0.27%.
The $RUT is at 1015 down 12 or -1.18%.
NASDAQ is at 3594 down 26 or -0.72%.
NASDAQ 100 is at 3074 down 19 or -0.61%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been down and the current bias is sideways.
WTI oil is trading between 106.78 and 108.76 today. The session bias is positive and is currently trading down at 107.53.
Brent Crude is trading between 113.64 and 115.41 today. The session bias is positive and is currently trading down at 115.00.
Gold fell from 1410.95 earlier to 1392.19 and is currently trading up at 1398.70.
Dr. Copper is at 3.230 falling from 3.276 earlier.
The US dollar is trading between 81.93 and 82.31 and is currently trading up at 82.17, the bias is currently negative.
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Written by Gary