September 26th, 2012
in Gary's blogging
Midday Market Commentary For 09-26-2012
Markets rose from morning lows but still exhibit bearish tendency’s and low volume. The New Home Sales was lower than expected (see graphics below) and may have had some impact in the market melting up some. But I expect the slight rise of the averages has to do more with the HFT computers than with skittish traders.
The averages at noon were still down, flat and suffering from low volume. Expect anything in this lackluster market.
Excellent article and timely.
Leonardo Fibonacci (1170-1250) may have just stuck his 'golden-ratio-based' fork in the equity market's rally. As the following chart shows, the diminishing marginal utility of Quantitative Easing's wealth effect has followed a rather remarkable pattern... and today marks the next turning point.
The RRR** was narrow at the opening bell, but better than previous sessions. That said, 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 13453 down 3.57 or -0.02%.
The 500 is at 1437 down 4.43 or -0.31%.
The $RUT is at 835.79 down 3.32 or -0.40%.
SPY is at 143.64 down 0.45 or -0.31%.
The longer trend is up, the past week's trend is neutral to bearish and the current bias is up.
WTI oil is down today and is at 89.53 trading between 91.35 and 88.90 and the bias is negative.
Brent crude is down today and is at 109.20 trading between 110.20 and 108.47 and the bias is negative.
Gold is down today at 1747.60, trading between 1764.50 and 1736.00 with a neutral bias.
Dr. Copper is at 3.71 down from 3.75 earlier.
The US dollar rose from 79.72 earlier to 80.07 and is currently trading at 79.94.
** RRR = Risk Reward Ratio
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Written by Gary