September 5th, 2012
in Gary's blogging
Midday Market Commentary For 09-05-2012
From this morning just the algo computers have been trading and moving the flat market sideways in a very narrow channel. At noon the markets were barely green and going nowhere.
No news of any importance and what investors are around they are sitting, watching and waiting for Friday's financial reporting especially considering the important news to be released by the ECB and the extremely important employment report.
The RRR** was extremely narrow at the opening bell and remains so at noon. 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 500 is at 1406 up 1.41 or 0.10%.
The $RUT is at 823.04 up 0.90 or 0.11%.
SPY is at 141.19 up 0.15 or 0.11%.
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 95.44 and the bias is positive.
Brent crude is at 113.66 trading between 114.35 and 113.35 and the bias is neutral.
Gold is at 1693.23 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 81.22.
More on the ISM Manufacturing numbers being below 50 for the the third month in a row. It doesn't give one a good warm fuzzy feeling for the US economy to make any giants leaps in the recovery game.
ISM mfr’g for Aug at 49.6 was a touch below expectations of 50 and thus remains slightly below 50 for a 3rd straight month. New Orders fell to the lowest since Apr ’09 at 47.1 from 48 in July. Backlogs dropped a 1/2 pt to 42.5.
Export Orders remained below 50 for a 3rd month but rose .5 to 47. Employment fell to 51.6 from 52.0, the weakest since Nov ’09. Inventories at the mfr’g level rose 4 pts to 53 but fell slightly at the customer level to 49. Prices Paid rose 14.5 pts to 54, a 4 month high. Of the 18 industries surveyed, 8 reported growth, 8 contraction and 2 saw little change.
The ISM summed up the report by saying this, “Comments from the panel generally reflect a slowdown in orders and demand, with continuing concern over the uncertain state of global economies.” The quote sums up things well as many businesses are not only dealing with a moderation in order growth, led by weakness overseas but also very little visibility on how things will turn out economically particularly in Europe and with the US election.
** RRR = Risk Reward Ratio
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Written by Gary