August 27th, 2012
in Gary's blogging
Closing Market Commentary For 08-27-2012
Unbelievable low volume today and the HFT crowd seems to be having a ball. Obviously, no human trader would even consider investing in this pig slop of a market.
By the close, on abysmal volume, the markets melted down to the lows of the day. There is really nothing to report, no one is trading, except the algo computers and no news. I guess I could pretend like they do on MSNBC and make up crap. This market is the worse I have seen in years and not one I would want to invest in.
Seriously, somewhere along the line all hell is going to break loose, but you are going to watch it in slow motion as few will sell. What will happen is that the 1%, as the Dems like to call them, will start to shift out of equities and seek safe shelter elsewhere. The funds are likely to do the same and you will see a gradual decent. What happens after that is a good question and we will just have to wait and see.
The RRR** was very narrow all day and any trades probably ended up on the unprofitable side as this market remains flat plagued with low volume. Swing trading is at your own risk and being the market is at a crossroads of sorts, I would prefer to sit on my hands rather than risk guessing incorrectly.
The DOW at 4:00 is at 13124 down 33.30 or -0.25%.
The 500 is at 1410 down 0.65 or -0.05%.
The $RUT is at 810.40 up 1.25 or 0.15%.
SPY is at 141.47 down 0.05 or -0.04%.
The trend is neutral but within an rising channel and the current bias has a bearish slant on low volume.
WTI oil is at 95.57 trading between 97.76 and 94.45 and the bias is positive.
Brent crude is at 112.27 trading between 115.50 and 111.60 and the bias is neutral.
Gold is at 1664.36 trading between 1676.80 and 1664.20 with a negative bias.
Dr. Copper is at 3.47 down from 3.50 earlier.
Earlier the USD tumbled from 81.72 to 81.50 and then rose and is currently at 81.71.
The 500 at the close.
The DOW at the close.
After weeks of anticipation, we may get the answer to a key question:
Will the Fed launch another round of Quantitative Easing?
Since the decision for QE II is linked to Fed Chair Bernanke's 2010 speech to the annual Economic Symposium at Jackson Hole, some expect a similar outcome this time. There is obvious confusion.
Written by Steven Hansen
Yes, July durable good's new orders are up - but the growth is all civilian aircraft. Everything else was soft to contracting this month. Whatever takeaway from this data set will be based on the color of glasses you want to put on. For those who are looking for economic expansion or recession - there are pieces to satisfy every camp.
** RRR = Risk Reward Ratio
To contact me with suggestions or deserved praise:
Written by Gary