Midday Market Commentary For 04-08-2014
Today is the continuation of the Pump-in-Dump now Dump-in-Pump day as the HFT algo computers party on.
By noon the sea-sawing was making most investors seasick as the numbers jumped back and forth raising expectations and then dashing them. Traders like the volatility, but there doesn’t seem to be very many to take the risk. The bears appear to be rolling over, but I have said that before and was wrong. The volume has reached anemic proportions, yet the numbers melt upwards, smells like a bear trap.
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, 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 8 % sell. (Remember this has been negative for weeks.)
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The DOW at 12:15 is at 16286 up 41 or 0.25%.
The SP500 is at 1852 up 7 or 0.40%.
SPY is at 185.11 up 0.79 or 0.43%.
The $RUT is at 1144 up 8 or 0.71%.
NASDAQ is at 4114 up 34 or 0.83%.
NASDAQ 100 is at 3589 up 32 or 0.90%.
$VIX ‘Fear Index’ is at 15.00 down 0.58 or -3.73%. Bullish Movement
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The longer trend is up, the past months trend is sideways, the past 3 sessions have been negative and the current bias is elevated, but sideways.
