Written by Gary
Midday Market Commentary For 05-22-2014
Morning market continued to melt upwards with the help of BTFDers, but when there was a decline (dip) it came naturally and building even more concerns regarding market stability.
By noon the averages appeared to be rolling over and technical indicators agree that the markets push to the top may be waning.
Are you getting nervous about the stability of the stock markets yet? So far, all the negative news has generated positive results over the past few sessions, but then again, maybe this is where the ‘Fat Lady’ steps in.
There was a lot of gloom, a little doom, and certainly no boom in Marc Faber’s latest appearance on CNBC. The uber-bear said from Singapore on Thursday that he doesn’t find the equity markets to be healthy right now, and that he’s concerned about a sharp fall.
The five-year old bull market in U.S. stocks is “relatively expensive,” said the high-profile investor, who publishes the Gloom, Boom and Doom report.
He said European stocks represent better value, but that he would pick emerging markets if forced to choose.
Nonetheless, recent sharp drops in momentum stocks like social media and biotech firms are raising red flags for him.
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 important DMA’s, volume and a host of other studies have not turned and that is not enough for me to start shorting. The SP500 MACD has turned up, but remains above zero at 5.45. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 24 % sell. (Looks right.) Investing.com members’ sentiments are 66 % bearish.
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The DOW at 12:00 is at 16553 up 20 or 0.12%.
The SP500 is at 1894 up 6 or 0.34%.
SPY is at 189.77 up 0.64 or 0.34%.
The $RUT is at 1116 up 12 or 1.10%.
NASDAQ is at 4157 up 25 or 0.61%.
NASDAQ 100 is at 3652 up 16 or 0.45%.
$VIX ‘Fear Index’ is at 11.82 down 0.09 or -0.76%. Bullish Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past months trend is sideways, the past 5 sessions have been positive and the current bias is elevated and volatile.
WTI oil is trading between 104.18 (resistance) and 103.78 (support) today. The session bias is negative and is currently trading down at 103.82.
Brent Crude is trading between 111.01 (resistance) and 110.29 (support) today. The session bias is negative and is currently trading down at 110.36.
Gold rose from 1290.24 earlier to 1303.95 and is currently trading down at 1299.30. The current intra-session trend is negative.
Dr. Copper is at 3.142 rising from 3.120 earlier.
The US dollar is trading between 80.10 and 80.32 and is currently trading up at 80.32, the bias is currently positive and volatile.
Real Time Market Numbers
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Written by Gary