October 11th, 2012
in Gary's blogging
Midday Market Commentary For 10-11-2012
Markets melted down slightly coming into the noon hour for no apparent reason except the HFT computers thought it might be a good idea. The volume has been mostly red and trading has remained in a tight narrow range so far in today's session.
Impossible to guess what the remainder of the session hold for us, but I suspect there won't be any big surprises one way or the other and market action will be business as usual. Sideways for the most part and once again turning in another lackluster performance.
European stocks erase sizable early losses to close with solid gains, ignoring S&P's 18 month after-the-fact downgrade of Spain. Stoxx 50 +1.3%, Germany +1%, France +1.4%, Italy +1.2%, Spain +0.9%, U.K. +0.9%. The euro +0.4% to $1.2928. The Spanish 10-year note yield declines 4 bps to 5.76%.
The RRR** was again very narrow at the opening bell and remained narrow through out the morning session. Although a bit wider at the opening, it didn't last long and by the midday mark it was untradable. Any trades will probably end up on the unprofitable side as long as this market has low volume or 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. Guessing where the market is going to be tomorrow or next week is a foolish endeavor at this point in time.
The DOW at 12:15 is at 13376 up 33 or 0.25%.
The 500 is at 1439 up 6.56 or 0.46%.
The $RUT is at 832.09 up 5.35 or 0.65%.
SPY is at 143.96 up 0.68 or 0.47%.
The longer trend is up, the past week's trend is neutral to bearish and the current bias is down.
WTI oil is up today and is at 96.26 trading between 92.75 and 91.10 and the bias is negative.
Brent crude is up today and is at 115.28 trading between 114.40 and 115.60 and the bias is negative.
Gold was up then back down this morning. Currently trading down at 1768.84, trading range is between 1759.45 and 1774.80 with a negative bias.
Dr. Copper is at 3.75 up from 3.70 earlier.
The US dollar fell from 80.30 earlier to 79.80 and is currently trading at 79.84.
** RRR = Risk Reward Ratio
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Written by Gary