September 21st, 2012
in Gary's blogging
Midday Market Commentary For 09-21-2012
By noon the markets remained in flat territory with a bearish slant. Having coming off the morning highs the traders do not seem to be engaged in buying or selling although the low volume is still higher than it was the same time yesterday.
Advfn says, “The initial strength on Wall Street was partly due to a report from the Financial Times indicating that European Union officials are working behind the scenes to pave the way for a new Spanish rescue program and unlimited bond buying by the European Central Bank. Citing officials involved in the discussions, FT said the talks are focused on ensuring that the measures that will be required by international lenders as part of a new rescue program are in place before a bailout is formally requested.”
I have come to the conclusion that nothing is going to happen in this market until AFTER the November elections. Just more low volume and HFT controlled action.
An EU-IMF report into whether Greece's debt is manageable looks set to be delayed until after Nov. 6 because policymakers want to avoid any shock to the global economy before the U.S. election, EU officials and diplomats say.
The RRR** was once again very narrow at the opening bell continuing into the afternoon session 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.
For those who like to guess, Monday is likely to be down; buying during the afternoon session 'might' lead to profits after the weekend. Unless, of course, there is a war being started in Iran, then you will lose your butt.
The DOW at 12:15 is at 13629 up 33 or 0.24%.
The 500 is at 1464 up 3.86 or 0.26%.
The $RUT is at 858.08 up 6.58 or 0.77%.
SPY is at 146.30 up 0.36 or 0.25%.
The trend is neutral and the current bias is bearish.
WTI oil is at 93.05 trading between 92.80 and 93.83 and the bias is positive.
Brent crude is at 111.04 trading between 110.00 and 111.58 and the bias is positive.
Gold is up today at 1773.91, trading between 1766.10 and 1787.20 with a negative bias.
Dr. Copper is at 3.78 down from 3.81 earlier.
The US dollar fell from 79.51 earlier to 79.11 and is currently trading at 79.41.
** RRR = Risk Reward Ratio
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Written by Gary