Market Commentary: Averages In The Red, Churning On Volatility

Written by Gary

Midday Market Commentary For 05-09-2014

Good news for traders; volatility is back with nice swings this morning. Bad news for investors trying to figure out which way the market is heading. $RUT went below the 200 DMA three days ago now the 100 DMA has crossed the 145 DMA and we are to believe the politicians that everything is OK?

By noon the averages were churning in a slightly downward trending session on moderate, but falling volume.

The short term indicators are leaning towards the hold side at the midday, but tensions in the Ukraine signal to favor risk off. The all important signs of reversal, up or down, have not been observed on the large caps so we are mostly, at best, neutral and conservatively holding. The important large cap DMA’s, volume and a host of other studies have not turned, only a past 6% correction (and recovery) and that is not enough for me to start shorting. The SP500 MACD has turned down, but remains above zero at 4.76. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 32 % buy. (Could be right, I have seen some weird markets before.) Investing.com members’ sentiments are 71 % bearish.

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The DOW at 12:00 is at 16546 down 6 or -0.04%.

The SP500 is at 1872 down 4 or -0.19%.

SPY is at 187.33 down 0.33 or -0.17%.

The $RUT is at 1099 up 1 or 0.10%.

NASDAQ is at 4047 down 5 or -0.10%.

NASDAQ 100 is at 3536 down 5 or -0.13%.

$VIX ‘Fear Index’ is at 13.47 up 0.04 or 0.30%. Neutral Movement

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

How Oil Really Gets Priced

WTI oil is trading between 101.15 (resistance) and 100.26 (support) today. The session bias is sideways and volatile and is currently trading down at 100.69.

Brent Crude is trading between 109.02 (resistance) and 107.91 (support) today. The session bias is negative and is currently trading down at 108.08.

Gold fell from 1294.50 earlier to 1286.61 and is currently trading up at 1287.90. The current intra-session trend is negative and volatile.

Analysts forecast a corrosive year for copper prices

Dr. Copper is at 3.077 rising from 3.053 earlier.

The US dollar is trading between 79.37 and 79.91 and is currently trading down at 79.87, the bias is currently positive.

Real Time Market Numbers

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Written by Gary