September 7th, 2012
in Gary's blogging
Closing Market Commentary For 09-07-2012
The entire afternoon went sideways on anemic volume and getting thinner as time marched on. The DOW remained in the red if only by a few points while the Russell 2000 remained in the green up 4 points at its highest this morning.
Going into the weekend should be a scary thought for swing traders holding during this slack time. In my way of thinking, if something is so damn good like this rally, EVERYONE should be buying in and no one is. Buying this rally should be a slam dunk if it really is the real thing don't you think? Obviously a lot of investors feel the way I do and are sitting this one out.
The large caps are in the red and the small caps are barley in the green today, not a good omen for an upward continuing path.
The market closed just about where it opened. The trading range was narrow accompanied by anemic volume. The bullish investors are still holding out for QE3 thinking that it will be ushered in to help unemployment. The QE's before didn't help boost employment why should another stimulus be of any help? The only thing left if for Congress to do what they were elected to do and clean up the fiscal mess THEY created. (You don't want to get me started on this topic.)
Just read and I feel that this is something the German people will NEVER approve. Next week is going to be interesting.
An Italian newspaper claims to have got hold of a draft European Commission proposal on the European Central Bank, saying the body will have full supervisory power over all eurozone banks from January 1, 2014.
The RRR** continues to be very narrow and any trades will probably end up on the unprofitable side as long as this market remains flat and 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 1306 up 14.64or 0.11%. (Went up during th last minute)
The 500 is at 1437 up 5.80 or 0.40%.
The $RUT is at 842.27 up 4.32 or 0.52%.
SPY is at 144.38 up 0.61or 0.42%.
The trend is up and the current bias is neutral.
WTI oil is at 96.39 trading between 94.12 and 96.70 and the bias is neutral.
Brent crude is at 114.45 trading between 112.32 and 114.68 and the bias is neutral.
Gold is up today at 1735.50, trading between 1689.20 and 1742.00 with a neutral bias.
Dr. Copper is at 3.64 up from 3.51 earlier.
The US dollar fell from 81.45 earlier to 80.15 and is currently trading at 80.23.
The 500 at the close.
The DOW at the close.
U.S. employers added 96,000 jobs in August, a tepid figure that points to the economy's persistent weakness and slowing prospects for the unemployed. The unemployment rate fell to 8.1 percent from 8.3 percent in July.
But that was only because more people gave up looking for jobs. People out of work are counted as unemployed only if they're looking for a job. The sluggish job growth could slow the momentum President Barack Obama hoped to gain from his speech Thursday night to the Democratic National Convention.
It could also make the Federal Reserve more likely to unveil a new bond-buying program at its meeting next week. The goal would be to lower long-term interest rates to encourage borrowing and spending.
Hourly pay fell in August, manufacturers cut the most jobs in two years and the number of people in the work force dropped to its lowest level in 31 years. The government also said 41,000 fewer jobs were created in July and June than first estimated.
** RRR = Risk Reward Ratio
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Written by Gary