Written by Gary
Midday Market Commentary For 03-27-2014
By 11:30 the large caps were headed for the ‘line-in-the-sand’ support level that if crossed and more importantly closing below, will be the start of a negative correction. The SP500 support is at 1839. The small caps are already there and their trend is down. The question will be the percentage of correction?
By noon the large caps had reversed direction twice and were headed downwards again. Caution is the watchword for investors this afternoon.
Steven Bauer has a simple way of determining bullish and bearish conditions.
Believe it or not, this is one of my very best ways to Identify – Bullish and
It is basic mathematics with no gimmicks or formulas to learn to interrupt in order follow with precision. It is a matter of having the patience and discipline to monitor these BIG (Blue) GUNs, and as they endlessly Cycle from Bullish to Bearish and back again to Bullish ad-nauseas over time.
I simple keep the Dow 30 – Industrials “Count” in perspective and believe me consistently profit from the ever-changing cycles.
It is important to understand that the Dow Jones Industrial Average is a (weighted) average. For example: The numeric influence of Visa is ten times that of Verizon.
I believe I have the credentials to more than suggest that — this is Manipulation Beyond ANY Acceptable Level by Wall Street – and they just keep taking advantage of a sanguine investing public.
The short term indicators are leaning towards the hold side at the midday. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The 50DMA, volume and a host of other studies have not turned, only a 6% correction (and recovery) and that is not enough for me to start shorting. The MACD has turned down slightly, but remains above zero. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 88 % sell.
In looking at the 50 DMA the current SP500 is above that line, but way above the 200 DMA and on 02-06-14 crossed above the 100. I can not see, as of right now where the MA’s are rolling over to indicate any permanent bear run in fact quiet the opposite. However, the NASDAQ has gone below the 50 DMA and is a few point away from crossing the 200 DMA.
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The DOW at 12:15 is at 16229 down 37 or -0.22%.
The SP500 is at 1845 down 8 or -0.44%.
SPY is at 184.23 down 0.78 or -0.41%.
The $RUT is at 1148 down 7 or -0.63%.
NASDAQ is at 4142 down 31 or -0.75%.
NASDAQ 100 is at 3557 down 26 or -0.71%.
$VIX ‘Fear Index’ is at 15.34 up 0.40 or 2.68%. Bearish Movement
The longer trend is up, the past months trend is positive, the past 5 sessions have been mixed and the current bias is trending down.
WTI oil is trading between 100.03 and 101.68 today. The session bias is positive and is currently trading down at 101.33.
Brent Crude is trading between 106.77 and 107.75 today. The session bias is sideways and is currently trading down at 107.56.
Gold fell from 1307.52 earlier to 1292.05 and is currently trading up at 1296.70. The current intra-session trend is sideways.
Dr. Copper is at 2.993 rising from 2.962 earlier.
The US dollar is trading between 80.34 and 80.17 and is currently trading up at 80.33, the bias is currently positive.
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Written by Gary