Market Commentary: Markets Open Down 0.85%, Investors Very Concerned

Written by Gary

Opening Market Commentary For 10-07-2013

Big drop in the premarket action when it opened this morning, mostly because Boehner commented over the weekend that a US default is possible if Obama doesn’t negotiate over spending.

By 10 am the averages were down -0.80% on heavy volume, but the BTFDers were jumping in buying up all the bargains. However, many investors remain concerned about what the US Congress is going to do about this fiscal mess as many threw in the towel this morning.

Several gaps were left on the charts when the markets took the plunge this morning and that is short term bullish. Other than that, there isn’t much else that would want you to place a bet in today’s casino market.

Indicators are mostly sell on the short term and the longer term moved recently from the 50-50 to 40-60 sell.

I also have continuing issues with some pundits, writing continually, that there are good setups for day trading which has only been true for swing trading, but the Best Stock Market Indicator Ever: Confirms “Untradeable”. Maybe we have seen the top – but I wouldn’t count it as long as Dr. Ben continues to hand out ‘Free Ice Cream”!

The DOW at 10:15 is at 14990 down 81 or -0.53%.

The SP500 is at 1683 down 7 or -0.43%.

SPY is at 168.17 down 0.72 or -0.43%.

The $RUT is at 1071 down 7 or -0.63%.

NASDAQ is at 3796 down 12 or -0.30%.

The longer trend is up, the past months trend is mixed, the past 5 sessions have been negative and the current bias is positive.

How Oil Really Gets Priced

WTI oil is trading between 103.65 and 101.87 today. The session bias is negative and is currently trading up at 102.17.

Brent Crude is trading between 109.37 and 107.94 today. The session bias is negative and is currently trading up at 108.39.

Gold rose from 1308.41 earlier to 1328.73 and is currently trading up at 1323.70.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.278 falling from 3.312 earlier.

The US dollar is trading between 80.00 and 80.22 and is currently trading up at 80.20, the bias is currently positive.

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Written by Gary