Written by Gary
Closing Market Commentary For 11-04-2013
The averages slowly melted up from this mornings doldrums through the efforts of the HFT algo computers and not because of human traders. The markets could very easily fall apart tomorrow because today’s gains are nothing more than thin air. Savvy investors are far from getting their hopes up for a new and invigorating bull rally.
By 4 pm the markets closed up with the $RUT leading the way at +1.15% and with a very minor sell-off at 3:59. Volume has been anemic all session and news is lacking lending itself to a lackluster session.
Volume has been following off for some time and that is of concern.
Nov 01, 2013 Michael Lombardi
Examples of this are many, but to name a few of these instances: Black Tuesday, or often referred to as the Wall Street Crash of 1929; the Stock Market Crash in 1973; Black Monday in 1987; the “Dot-Com” Bubble in 2000; and the most recent financial crisis starting in 2007.
The short term indicators are leaning heavily towards the sell side but because of the Fed’s reluctance to give any hints of when the taper will begin, I would not take anything I hear with a grain of salt. Again, should we get Fed tapering in December the markets will certainly react in a negative fashion. If the tapering begins in March 2014 the markets are going to price that in by declining sooner. I am expecting weak to negative markets for the foreseeable future particularly at the beginning of January.
A ‘Santa Clause’ rally is still a possibility, but financial numbers out there are still pointing to a weak economy that could be derailed easily and send the markets plunging.
The DOW at 4:00 is at 15639 up 24 or 0.15%.
The SP500 is at 1768 up 6 or 0.36%.
SPY is at 176.86 up 0.62 or 0.35%.
The $RUT is at 1108 up 13 or 1.15%.
NASDAQ is at 3936 up 14 or 0.37%.
NASDAQ 100 is at 3385 up 5 or 0.15%.
The longer trend is up, the past year trend is bullish, the past 5 sessions have been sideways and mixed and the current bias is positive.
WTI oil is trading between 94.08 and 95.10 today. The session bias is mixed and is currently trading down at 94.47.
Brent Crude is trading between 106.57 and 105.12 today. The session bias is sideways with a positive slant and is currently trading up at 106.08.
Gold rose from 1310.86 earlier to 1322.17 and is currently trading down at 1313.16.
Dr. Copper is at 3.258 falling from 3.308 earlier.
The US dollar is trading between 81.01 and 80.60 and is currently trading down at 80.63, the bias is currently negative.
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Written by Gary