Written by Gary
Closing Market Commentary For 11-05-2013
Markets closed on time – that is about the best we can report on today. Volume was low and any gains were mostly because of the HFT computers. Today investors were still sitting on their hands trying to figure out what the Fed has up its sleeve.
By 4 pm the averages had slipped a little from the sessions highs completing another session sliding sideways and going nowhere. Looked like a traffic jam in Los Angeles, going nowhere fast.
A lot of folks are going to get caught with their pants down simply because they are being complacent and not paying attention. As more and more ‘sheeples’ enter the market, as they have been, it will be 2008 all over again when the big fall comes – and it will!
Barry Sternlicht Warns “Everyone Is Holding Cash Because They Know When It Ends It’s Gonna Get Ugly”
“The Fed is playing a very dangerous game,” Starwood Capital’s Barry Sternlicht warns,”and they need to stop.” Sternlicht has quadrupled his firm’s net worth in this time and, to the incredulity of the CNBC anchors, warns, “this is bad, this is a heroine addiction. . . and now they are printing more money than the deficit.”
The outspoken CEO of the $29 billion fund, noted “all my friends who are money managers.. are much closer to the sell button than they ever were before,” adding that “everyone’s holding cash,” since if they start to get nervous “volatility will come back instantly.”
Simply put, he concludes, “you know when this ends, it’s gonna get ugly.”
The session indicators are still favoring the sell side and I wouldn’t terribly surprised to see a small 5% correction starting this week. If we get Fed tapering in December the markets will certainly react in a negative fashion and could fall in the range of a 20% decline. If the tapering begins in March 2014, like many believe it will, the markets are going to price that in by declining sooner, but not resulting in a waterfall. I am expecting weak to negative markets for the foreseeable future.
The DOW at 4:00 is at 15618 down 21 or -0.13%.
The SP500 is at 1763 down 5 or -0.28%.
SPY is at 176.17 down 0.56 or -0.32%.
The $RUT is at 1104 down 5 or -0.42%.
NASDAQ is at 3940 up 3 or 0.08%.
NASDAQ 100 is at 3389 up 4 or 0.12%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been sideways and the current bias is negative.
WTI oil is trading between 94.82 and 93.13 today. The session bias is bearish and is currently trading down at 93.42.
Brent Crude is trading between 106.53 and 105.20 today. The session bias is bearish and is currently trading down at 105.32.
Gold fell from 1319.11 earlier to 1306.05 and is currently trading down at 1310.70.
Dr. Copper is at 3.262 falling from 3.276 earlier.
The US dollar is trading between 80.57 and 80.89 and is currently trading down at 80.79, the bias is currently positive.
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Written by Gary