September 19th, 2012
in Gary's blogging
Midday Market Commentary For 09-19-2012
By 10:30 the averages turned around and started melting down. Remember we are talking about miniscule point changes in a lackluster session. These intraday moves are almost not important enough to report. The low volume is the culprit in viewing any market movement with suspicion. Until we have some 'real' volume any changes of direction henceforth are questionable and should be regarded as unreliable in detecting trends.
By noon the averages had melted up for new session highs where the DOW reached 13615 and then began to melt down on low, diminishing volume.
The clueless pundits are at it again. The headline reads in part, “Don't fight the Fed, go along for the ride”. Maybe no one has noticed, but there hasn't been much of a ride since the QE3 announcement as the slump levels off. In fact the trend is starting to look bearish while the economic train to nowhere is starting to slow down. Almost a quarter of the QE3 bounce has been erased and I wouldn't call this a pause or a breather before advancing further.
The RRR** has been very narrow since the opening bell and any trades will probably end up on the unprofitable side as long as this market has low volume and 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 12:15 is at 13605 up 42.21 or 0.31%.
The 500 is at 1463 up 3.88 or 0.27%.
The $RUT is at 856.53 down 0.41 or -0.05%.
SPY is at 146.94 up 0.32 or 0.22%.
The trend is neutral and the current bias is up.
WTI oil is at 92.65 trading between 96.10 and 92.02 and the bias is negative.
Gold is down today at 1769.58, trading between 1779.00 and 1762.68 with a neutral bias.
Dr. Copper is at 3.81 down from 3.84 earlier.
The US dollar rose from 79.15 earlier to 79.48 then fell to 79.10 and is currently trading at 79.14.
** RRR = Risk Reward Ratio
To contact me with suggestions or deserved praise:
Written by Gary