Market Update 1:30 pm
At mid day the overall market volume remains rather light. However, in my “reading of the tape” I see volume spikes on the sell side so this suggests that the trend to the down side is building. At least that is where it stands at this time.
George Soros, one of Wall Streets “whales” (a person with a lot of money who has made fortunes from the markets) said today…
…GEORGE SOROS: “ACUTE PHASE” OF CRISIS LARGELY BEHIND US, THOUGH IMPACT ON US ECONOMY HAS ‘ONLY BEGUN’ TO BE FELT; THIS IS ‘A BEAR MARKET RALLY’ …
 Well George, that is what we have been saying here for a very long time now. Glad to see you agree with us now. But, I will add that there is still a risk of the credit crisis reaching a systemic level, essentially seizing the economy to a grinding halt, and a bond market crisis would follow. Although that has not happened yet, it remains on the table as a potential issue.
Crude Oil is sitting at $122 and change. Gas cracks have moved towards higher gas prices at the pumps, again. Housing in the United States continues to decline (both sales and prices) and this is having an impact on the market today as those who felt the housing market was starting to turn got a slap in the face with a reality sandwich.
Welcome to our new readers! Readership here at RebelTraders continues to grow, and growth from traders from around the world continues to expand. Glad your with us! 46 Countries and growing..
Lisa –
I am glad your readership is growing. I hope your list continues to get longer.
What’s up with the market today? The volume is absolutely “anemic”. Is anyone out there trading?
Chuck,
You are the Man and the Maestro.
Your morning Commentary was absolutely
prescient!
Much of the recent run-up has been massive
short covering; a gift for the Bulls.
I feel like an idiot after I wrote yesterday;
that maybe RT should re-consider it’s
strategy. I knew when I wrote it that
the egg would be dripping down my face.
Chuck, just think you started Rebel Traders
with Lisa last Summer; now members from
48 countries.
Like I said…” You Da Man.”
Proud of you and the beautiful Ms. Lisa.
Kudos with Great Respect,
Noel
Dave,
Yes, volume is anemic, but there was selling: NYSE volume 949M shares, about 27% below its six-month average; decliners lead advancers by 4.3:1.
- NASDAQ volume 1.88B shares, about 5% above its six-month average; decliners lead advancers by 2.4:1.
Dearest Noel,
No need to feel like an idiot, because you most certainly are not one!
Lisa & Chuck,
Lisa, thank you for your kind words. It always appears
that when you want to cover (short sale) at the least
opportune time; Dawn appears in the morning and you
are vindicated. Still holding my indices shorts.
What I would enjoy offering Tonight are the Market
thoughts of my brother…Bob Thomas.
Outstanding stand up guy who graduated from
Georgetown, knew Bill Clinton, with a Business
Adm. degree and the a MBA from Northwestern
University. Bob, is also an accomplished Chartman.
Here is what he wrote to me this AM.
“Yes, this does appear to be a Bear Market Rally.
The Market has retraced about 50% of the
downmove on volume, the volume has been
light and resistance is at 1425-1430. Plus,
it has been about six weeks since the March
19 low. John Murphy (Bob subscribes to
Stockcharts.com), uses time also and he says
6-12 weeks is the period for an intermediate
rally. With the CME Housing Futures showing
weakness til Fall 2009.
I just cannot imagine the consumer can get
things going again. I heard squabbling at the
gas pump today (Chicago.) People are raiding
their 401K’s and maxing their credit cards.
I don’t think the Stimulus Checks will be
spent with discretion…rather spent on
gas, groceries, necessities, and pay down
CC Bills, etc.”
Sorry, I went so long, but just wanted to
throw a knowledgeable opinion into the
mix.
Hey, did I ever mention:
That I Love the Rebel Traders?
Be safe and loved,
Noel