Market Commentary: Averages Still High, But Enthusiasm Is Waning

Written by Gary

Midday Market Commentary For 10-22-2013

Markets have fallen off their morning highs but continue to remain in positive territory.

By noon volume has remained moderate to heavy but declining from the morning activity. What happens next remains to be seen.

As noted this morning the ‘Sheeples’ are in full buying mode.

Panic Buying Continues

Despite NFLX giving back half its after-hours gains, the NASDAQ is surging to new 13-year highs, the S&P cash crosses 1750 (to new all-time highs), and the Dow Transports explodes higher (to yet another record) for the ninth of the last 10 days.

All of this as the USD is monkey-hammered and the EUR surges to 2-year highs… Treasury yields are dropping fast (down 5-7bps across the curve). As we noted last week, US equities have caught up entirely to the Fed balance sheet.

Gold (back above its 100DMA) and silver are surging and oil is pressing back up towards $100. The reason for all this exuberance: the jobs number was sufficiently horrible it has moved the tapering consensus to March 2014 of beyond…

The DOW at 12:15 is at 15436 up 40 or 0.26%.

The SP500 is at 1751 up 7 or 0.38%.

SPY is at 175.13 up 0.72 or 0.42%.

The $RUT is at 1114 up 2 or 0.16%.

NASDAQ is at 3924 up 4 or 0.10%.

NASDAQ 100 is at 3363 up 2 or 0.07%.

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

How Oil Really Gets Priced

WTI oil is trading between 98.68 and 100.29 today. The session bias is bearish and is currently trading down at 99.09.

Brent Crude is trading between 109.56 and 110.90 today. The session bias is bearish and is currently trading down at 109.89.

Gold rose from 1310.16 earlier to 1344.86 and is currently trading up at 1341.50.

Here’s why copper has lost its indicator role

Dr. Copper is at 3.339 rising from 3.296 earlier.

The US dollar is trading between 79.85 and 79.27 and is currently trading up at 79.31, the bias is currently negative.

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Written by Gary