Written by Gary
Closing Market Commentary For 09-26-2013
Markets closed up respectively after a quiet trading day that sea-sawed throughout the session. The BTFDers had the last say towards the end of the session by posting some impressive heavy buying that resulted in significant green volume.
The SP500 closed below 1700 for the past 3 session and that is considered by some as a bearish signal of a classical correction in the making.
I have said all along the the end result concerning a disaster in the financial market place is only going to get progressively worse the longer the pumping of money into the ‘system’ goes on. The ‘taper’, or end of the QE needs to happen sooner rather than later.
Almost 4 years ago, The FT’s Mike Mackenzie penned a very prophetic article explaining exactly the dilemma the Fed is now facing: “No matter how bulled up the equity market becomes, should data improve, the Fed is likely to remain very cautious, mindful that it needs to keep the bond market happy.
Becoming the buyer of last resort in the past year resulted in the Fed crossing an important line in the bond market.”
The full piece is well worth a read as a reminder that plenty of people saw this coming, Mackenzie concludes: “the eventual end of QE will be a messier affair than perhaps many investors care to think. And one that bodes ill for the dollar and US fiscal policy down the road.”
Today, despite the massive swings, doesn’t represent much of a trading day as the trading range is narrow and not profitable. Indicators remain for the short term at 70% to 80% sell and 15% to 20% buy.
The DOW at 4:00 is at 15328 up 55 or 0.36%.
The SP500 is at 1698 up 5.90 or 0.35%.
SPY is at 169.75 up 0.65 or 0.38%.
The $RUT is at 1078 up 4.90 or 0.46%.
NASDAQ is at 3787 up 26 or 0.70%.
NASDAQ 100 is at 3234 up 25 or 0.79%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bearish and the current bias is positive.
WTI oil is trading between 102.20 and 103.28 today. The session bias is bearish and is currently trading down at 102.95.
Brent Crude is trading between 107.88 and 109.24 today. The session bias is bearish and is currently trading down at 109.22.
Gold fell from 1339.62 earlier to 1319.32 and is currently trading up at 1323.60.
Dr. Copper is at 3.300 rising from 3.261 earlier.
The US dollar is trading between 80.40 and 80.76 and is currently trading down at 80.65, the bias is currently negative.
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Written by Gary