Market Commentary: Averages Tank After Obama Speaks

Written by Gary

Midday Market Commentary For 10-08-2013

The SP500 did break down and out of the chart triangle this morning as predicted and most of the other indices mostly on low volume. But that was because the White House says that Obama told Boehner (again) he will negotiate after the debt ceiling is raised and then the SP500 tanked

By noon the markets were racking up some serious losses with the NASDAQ 100 leading the way at -2.10% off. Today is not going to be one of those setting sunsets in the Caribbean when I see the small cap leading the way down.

One thing we need to understand is when the two political sides agree and put the Government back together, I think we are going to see one big gigantic move upward setting the charts on fire. Then expect a huge bearish gap that will snap the averages back. If you can guess the timing on this you will make a bundle.

The DOW at 12:30 is at 14841 down 96 or -0.66%.

The SP500 is at 1662 down 14 or -0.86%.

SPY is at 166.05 down 1.37 or -0.82%.

The $RUT is at 1049 down 16 or -1.52%.

NASDAQ is at 3703 down 67 or -1.78%.

NASDAQ 100 is at 3161 down 69 or -2.13%.

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

How Oil Really Gets Priced

WTI oil is trading between 104.06 and 102.86 today. The session bias is neutral and is currently trading up at 103.74.

Brent Crude is trading between 109.09 and 110.79 today. The session bias is neutral and is currently trading up at 110.31.

Gold rose from 1316.07 earlier to 1330.16 and is currently trading up at 1324.90.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.291 falling from 3.321 earlier.

The US dollar is trading between 80.16 and 79.92 and is currently trading down at 80.05, the bias is currently positive.

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Written by Gary