Written by Gary
Midday Market Commentary For 11-13-2013
Markets have melted up nicely since the opening bell to where the opening gaps have been covered and the small caps are up a half a point. The DOW still lags behind and the rest are flat on low volume.
By noon the averages were melting, albeit slowly, upwards. By 12:30 it appeared investors were tired and the markets were too as the HFT computers took over.
The short term indicators are still leaning slightly towards the sell side at the midday mark, but I would advise caution in taking a position because of the Fed’s reluctance to give any hints of when the taper will begin. I would also take chart and other technical indicators with a grain of salt for the time being and watch what the Fed does.
The longer 6 month outlook remains 40-60 sell until we can see what the Fed is going to do, simple as that. If we get Fed tapering in December the markets will certainly react in a negative fashion. If the tapering begins in March 2014, like many believe it will, the markets are going to price that in by declining sooner. I am expecting weak to negative markets for the foreseeable future. Also, many pundits have stated that we may have seen the top – but I wouldn’t count it as long as the Fed continues to hand out ‘Market Viagra’! I would like to see a blowout candle to verify a top along with heavy volume.
Also, institutional selling has been in an up-trend further developing this market into a high risk place to be.
The DOW at 12:45 is at 15744 down 6 or -0.04%.
The SP500 is at 1772 up 4 or 0.23%.
SPY is at 177.39 up 0.43 or 0.24%.
The $RUT is at 1105 up 3.26 or 0.30%.
NASDAQ is at 3939 up 19 or 0.49%.
NASDAQ 100 is at 3382 up 17 or 0.51%.
The longer trend is up, the past months trend is bullish, the past 10 sessions have been sideways and the current bias is positive.
WTI oil is trading between 93.09 and 94.50 today. The session bias is positive and is currently trading up at 94.31.
Brent Crude is trading between 105.74 and 106.98 today. The session bias is positive and is currently trading down at 106.63.
Gold rose from 1269.16 earlier to 1278.77 and is currently trading down at 1272.80.
Here’s why copper has lost its indicator role
Dr. Copper is at 3.162 falling from 3.222 earlier.
The US dollar is trading between 80.94 and 81.33 and is currently trading down at 81.00, the bias is currently negative.
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Written by Gary
