June 4th, 2012
in Gary's blogging
Opening Market Commentary For 06-04-2012
As expected the 'dippers' moved in and opened the markets up a few points under heavy green volume. Within a few minutes the profit taking, or more likely covering ones losses, took over with heavy red volume melting the markets down slightly and trading in a very narrow range. The $VIX is acting strangely in that it shot up to 27.42 and fell suddenly to 26.02 while the markets were still descending. Mr. Market could very well move the markets up to the supports and 200 day MA lines and ease back down after that. The SP500 came withing 2 points of its 200 day MA and SPY came within 0.07 of it 200 day Ma. Both backed off, so this scenario is not far fetched and could be a bull trap in the making. Follow up:
The Markets are weak and vulnerable signaling caution in today's news driven environment. My proprietary trading indicators are just about flat with a bearish slant, certainly not enough swing to have any confidence in trading. Making maters worse this mornings report on US April factory orders, fell 0.6% in stark contrast to the 0.2% expected. The USD has fallen to 82.58 from 82.85 earlier this morning. The USD ISM New York (MAY) fell to 49.9 below the last report of 61.2.
WTI oil remains in the 82.00 area with Brent still in the high 97's. Gold is trading between 1621 and 1618 and Dr. Copper has climbed a bit to 3.34. The markets have remained in a narrow range and are showing a melting up under heavy pressure from the bears.
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Written by Gary