Market Commentary: Averages Fail To Keep Highs For The Day And Sinks Lower

Written by Gary

Closing Market Commentary For 10-15-2013

Markets closed down as US law makers failed to make the comprises necessary to settle the debt issue. The averages continued melting downward when it became abundantly clear that a compromise was not in today’s cards.

By 4 pm the US law makers ‘middle finger negotiations’ was over for the day and the SP500 once again closed below 1700.

It is not looking good for the markets and heaven help us if we go into default. The good news is that Janet Yellen has a big can full of market Viagra.

Stocks, BIlls Tumble, Gold Soars After Senate Suspends Negotiations, Feinstein Says Budget Talks “Fall Apart”

It would appear the sad reality priced into T-Bills and USA CDS is starting to creep into stocks…

U.S. SENATE FISCAL NEGOTIATIONS SUSPENDED UNTIL HOUSE REPUBLICANS WORK OUT PLAN TO PROCEED ON DEBT LIMIT, GOVT FUNDING-SEN. DURBIN

SEN. FEINSTEIN SAYS ‘IT’S ALL FALLEN APART’ ON BUDGET TALKS

Bills are being sold (bonds now snapping lower in yield), the USD and stocks are offered (at lows of the day) and gold and silver are well bid (at highs of day).

The DOW at 4:00 is at 15168 down 133 or -0.87%.

The SP500 is at 1698 down 12 or -0.71%.

SPY is at 169.85 down 12 or -0.71%.

The $RUT is at 1080 down 11 or -0.98%.

NASDAQ is at 3794 down 21 or -0.56%.

NASDAQ 100 is at 3245 down 11 or -0.35%.

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

How Oil Really Gets Priced

WTI oil is trading between 102.45 and 100.90 today. The session bias is negative and is currently trading up at 101.08.

Brent Crude is trading between 110.48 and 108.87 today. The session bias is negative and is currently trading up at 109.18.

Gold rose from 1251.17 earlier to 1287.52 and is currently trading up at 1281.00.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.307 rising from 3.281 earlier.

The US dollar is trading between 80.33 and 80.79 and is currently trading down at 80.59, the bias is currently sideways.

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Written by Gary