August 22nd, 2012
in Gary's blogging
Opening Market Commentary For 08-22-2012
The 500 ended up at 1413 yesterday and the futures eased down to 1406 by 7 am today and have generally moved sideways after the low rated financial reporting for the MBA Mortgage Applications came in lower at -7.4% even lower than the -4.5% on the last report.
The medium rated Housing report was released 90 minutes early this morning and was better than the prior rising to 4.47 million, but worse than forecast of US Existing Home Sales in July at 4.51 million. This news melted the markets down further at the opening but stayed in a choppy zone of fractional up and down movements.
By 10:15 the markets seemed to have received some good new and the 500 rose 3 points. That is a significant move considering the low volume markets of late and any move greater than 2 points is noticed. This mornings volume is still low, just like the previous opening volleys and market movements are muted and choppy. This market is really screwy, unpredictable and mostly untradeable as the HFT, DaBoyz and the 'Fumbling Egocentric Financiers' manipulate the market numbers.
When the Fed Releases its Minutes from the August 1 FOMC Meeting at 2 pm today, it may have some effect on the markets, but not much is expected except a repeat of past speeches
The RRR** is very narrow again this morning and any trading looks to be unprofitable. Swing trading is at your own risk and since the market is at a crossroads of sorts, I would prefer to sit on my hands rather than risk guessing incorrectly.
The DOW at 10:00 is at 13194 down 9 or -0.07%.
The 500 is at 1411 down 1.63 or -0.12%.
The $RUT is at 813.08 down 2.28 or -0.28%.
SPY is at 141.56 down 0.20 or -0.14%.
The trend is neutral and the current bias is bearish.
WTI oil is at 96.72 trading between 97.10 and 96.25 and the bias is positive.
Brent crude is at 114.39 trading between 114.90 and 113.55 and the bias is positive.
Gold is at 1642.55 trading between 1636.60 and 1644.98 with a neutral bias.
Dr. Copper is at 3.45 up from 3.43 earlier.
Earlier the USD tumbled from 82.13 to 81.87 and is currently down at 81.92.
Greek Prime Minister Antonis Samaras has made the strongest indication yet that he plans to ask euro-zone leaders this week for more time in implementing further austerity measures. With patience wearing thin, however, the answer is likely to be "NO". more...
** RRR = Risk Reward Ratio
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Written by Gary