September 18th, 2012
in Gary's blogging
Opening Market Commentary For 09-18-2012
Premarket was at yesterdays close and remained flat up to the opening bell. The opening volume was low and the averages melted down slightly to stay in the red. As of 10 am there is isn't any direction, volume or movement.
Looking like another quiet session in the making and we will have to wait out the equatorial market doldrums and hope the winds pick up soon.
The financial reporting earlier this morning seemingly had little effect.
U.S. Net long-term tic flows(Jul) rose $67.0b vs. $27.5b expected. Prior $9.3b.
U.S. Total net tic flows(Jul) rose $73.7b vs. $15.1b previous revised from $16.7b.
Due to the Rosh Hashanah holiday, it was a slower than normal day for the markets.
Results from the Empire Manufacturing Index, which is a manufacturing gauge for New York State, were negative, falling from -5.85 to -10.41. Weakness was prevalent all day as equity breadth (advancers vs. decliners) registered 3:1 in negative territory all day.
Around 2 p.m. ET, crude oil suffered a major shock, falling over 3% in a matter of minutes. Some attributed this plunge to rumors that the US would release oil from the Strategic Petroleum Reserve (SPR), but these rumors proved to be unfounded.
Inflation gauges declined for the first day in quite some time as traders had pushed bets to the limit before the Fed announced QE3.
The RRR** was very narrow at the opening bell and any trades will probably end up on the unprofitable side as long as this market remains flat. 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 10:00 is at 13549 down 3.48 or -0.03%.
The 500 is at 1457 down 3.49 or 0.24%.
The $RUT is at 856.20 down 2.70 or -0.31%.
SPY is at 146.42 down 0.33 or -0.22%.
The trend is neutral and the current bias is down.
WTI oil is at 96.18 trading between 97.20 and 95.38 and the bias is negative.
Gold is up today at 1769.36, trading between 1751.00 and 1771.10 with a positive bias.
Dr. Copper is at 3.76 down from 3.78 earlier.
The US dollar rose from 79.05 earlier to 79.30 and is currently trading at 79.22.
Sort of a shot across the bow with FedEx not doing as well as last year.
** RRR = Risk Reward Ratio
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Written by Gary