September 24th, 2012
in Gary's blogging
Midday Market Commentary For 09-24-2012
Markets reached a morning high around 11 am that generally matched Friday’s closing numbers and then started melting down under low volume. As long as we continue to see low volume, expect to see days of lackluster wandering of the averages. Only the HFT are moving the numbers around. Elvis (traders) has left the building for the day.
The RRR** was very narrow (for the umpteenth time) at the opening bell continuing into the midday 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. However, if you have a position, I would remain cautious as sudden market movements are not uncommon after long sideways movement and could be disastrous to anyone caught asleep at the wheel.
The DOW at 12:45 is at 13545 down 34 or -0.25%.
The 500 is at 1454 down 5.75 or -0.39%.
The $RUT is at 851.48 down 4.03 or -0.47%.
SPY is at 145.36 down 0.52 or -0.36%.
The longer trend is up, the past week's trend is neutral and the current bias is down.
WTI oil is down today at 91.26 trading between 93.00 and 91.00 and the bias is negative.
Brent crude is down today at 109.29 trading between 111.53 and 108.78 and the bias is neutral.
Gold is down today at 1762.93, trading between 1772.10 and 1755.85 with a positive bias.
Dr. Copper is at 3.73 down from 3.77 earlier.
The US dollar rose from 79.40 earlier to 79.82 and is currently trading at 79.69.
** RRR = Risk Reward Ratio
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Written by Gary