September 5th, 2012
in Gary's blogging
Closing Market Commentary For 09-05-2012
Today was one of those days that you wish would just go away. Literally nothing today was remarkable even the averages traded within narrow ranges that mimicked yesterday's close.
Actually a disappointment in that only the HFT computers did anything and the rest of us sat on our hands waiting for the Governments to once again manipulate the numbers to suit their fancy. It is like a house of cards in the making, one little shake and they come tumbling down. Only the DOW showed green at the closing bell, otherwise it closed flat.
The RRR** was extremely narrow at the opening bell and remained so at noon. Numbers didn't fair well at all during the afternoon session. Trading is not advised until volume increases substantially in my opinion. Swing trading remains at your own risk and being the market is flat and 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 13047 up 11.54 or 0.09%.
The 500 is at 1403 down 1.50 or -0.11%.
The $RUT is at 821.23 down 0.91 or -0.11%.
SPY is at 141.01 down 0.02 or -0.01%.
The trend is neutral and the current bias is neutral.
WTI oil was trading at 94.70 and rose to 95.65 and fell to 95.25 after the opening. It is now trading at 95.67 and the bias is positive but continues to linger around its 3 months low.
Brent crude is at 113.35 trading between 114.35 and 113.35 and the bias is neutral to bearish.
Gold is at 1692.91 trading between 1687.40 and 1694.60 with a neutral to bullish bias.
Dr. Copper is at 3.52 up from 3.45 earlier.
Earlier the USD tumbled from 81.67 to 81.13 and is currently at 81.23.
The 500 at the close.
The DOW at the close.
For the past year, at least, everyone has been discussing the possibilities of the US, Europe and China either going into or out of a recession. The combinations are endless and confusing when trying to put all of the players into a cognitive perspective. Virtually all economic data is singing the same song. A gradually decelerating economy.
The chart David uses in his chart in the article below is quite enlightening and informative. For those who do not have the time to follow the numbers and form a clear picture of where the players stand this chart does an excellent job of portraying where we are and where everyone is going. His next chart shows the U.S. and Japan remain in the mid-cycle expansion phase, while China is contracting.
Recession Risk In U.S. Rising But Still Low by David I. Templeton
The US equity averages traded rangebound ahead of the ECB meeting. Global growth concerns were back in focus, after FedEx cuts its outlook and global services PMI contracted.
** RRR = Risk Reward Ratio
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Written by Gary