Written by Gary
Midday Market Commentary For 06-03-2014
Markets continued to melt off the morning highs down to test the morning lows on low volume.
By noon the averages remain depressed with light volatility. The $RUT continues to fall and is currently resting on the 200 DMA.
The bears are still at trying to convince investors that there are some buying opportunities in the near future. One of these 2 camps is incorrect – time will tell. This coming weekend report will have the bulls side of the story, don’t miss it.
This week, Chris talks with Steen Jakobsen, Chief Investment Officer of Saxo Bank. We wanted to see through the eyes of a professional economist, which Steen kindly allowed us to do.
Steen agrees that central banks have largely failed in their misguided attempts to boost growth via trickle-down programs. Pretty much all the benefits of the recent years of money printing have gone to the upper echelons, with the true engines of growth and jobs — small to medium sized enterprises (SMEs) — getting very little.
As a result, financial asset prices have been driven up too high, which Steen anticipates will correct at some point in 2014; likely by 30% or so.
Despite the near term likelihood of a major correction, Steen remains quite optimistic. He believes that the correction will be a clearing event not just for overly-elevated prices, but also will serve as a wake-up call about the net energy situation that will lead to better policy decisions.
We sure hope he’s right, but we sadly think it will take a major price shock or supply shortage of key commodities to get the attention of our leaders. Read More >>
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 13.22. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 16 % sell. (down from 24% sell this morning) Investing.com members’ sentiments are 68 % bearish.
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The DOW at 12:00 is at 16707 down 36 or -0.22%.
The SP500 is at 1921 down 4 or -0.20%.
SPY is at 192.51 down 0.31 or -0.20%.
The $RUT is at 1121 down 8 or -0.74%.
NASDAQ is at 4224 down 14 or -0.32%.
NASDAQ 100 is at 3724 down 9 or -0.24%.
$VIX ‘Fear Index’ is at 11.97 up 0.39 or 3.37%. Neutral Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past months trend is positive, the past 5 sessions have been positive and the current bias is down and sideways.
WTI oil is trading between 102.79 (resistance) and 102.23 (support) today. The session bias is sideways, volatile and is currently trading up at 102.43.
Brent Crude is trading between 108.99 (resistance) and 108.34 (support) today. The session bias is sideways, volatile and is currently trading up at 108.59.
Maybe I’m Wrong – Justifying $2,000+ Gold by Jeffrey Dow Jones
Gold fell from 1247.81 earlier to 1241.47 and is currently trading up at 1244.00. The current intra-session trend is sideways and volatile.
Dr. Copper is at 3.136 falling from 3.168 earlier.
The US dollar is trading between 80.71 and 80.48 and is currently trading up at 80.59, the bias is currently negative, but now climbing.
Real Time Market Numbers
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Written by Gary