October 11th, 2012
in Gary's blogging
Closing Market Commentary For 10-11-2012
Markets continued to slowly melt down as the bulls have been unable to stop the days decent. Although the averages are higher than yesterday, they remain precariously near the closing numbers of yesterday. It is not unusual to see the numbers rise after watching the markets fall as they have over the last 2 sessions, but if they continue to fall tomorrow one might reconsider any long positions.
By 3 pm the markets were flat with the DOW reporting +0.04, the 500 2 and the $RUT +2.75. By 4 pm the averages were down, flat but mixed.
Interestingly this fellow is just now seeing the low volume. This low volume is becoming the ruination of this market place.
@DRodriguezFX “Incredible to see how incredibly quiet trading has gotten during US hours. Volatility is dead right now, range trading remains attractive.”
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 4:00 is at 13326 down 18.58 or -0.14%.
The 500 is at 1432 up 0.28 or 0.02%.
The $RUT is at 829.78 up 3.03 or 0.37%.
SPY is at 143.35 up 0.07 or 0.05%.
The longer trend is up, the past week's trend is neutral to bearish and the current bias is down.
The 500 at the close.
The DOW at the close.
WTI oil is up today and is at 96.44 trading between 92.75 and 91.10 and the bias is positive.
Brent crude is up today and is at 115.92 trading between 114.40 and 115.60 and the bias is positive.
Gold was up then back down this morning. Currently trading down at 1767.15, trading range is between 1759.45 and 1774.80 with a neutral 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 79.86.
About time someone did something, but from what I know, the BLS numbers are NOT fudged as many are claiming, but skewed by incoherent methods of compilation only a government statistician could appreciate.
An example is how part-time workers are evaluated, which apparently was the group that caused the numbers to fall as they did this week. A part-time worker is someone who has worked one hour or another that has worked over 30 hours. It doesn't take in account that this one hour worker has only worked one hour in the past 3 months and is still unemployed.
Congressman Darrell Issa tells Fox News he plans on holding hearings on the September employment report released last Friday. The figures from the Labor Department showed a sharp drop in the unemployment rate that many economists considered a statistical anomaly.
Isn't this what I have been saying for months now?
A new monetary era has began in the West. Its consequences will probably be very different in the United States and Europe. However, one way or the other, investors now operate under a regime of central bank asset price targeting. Everything we know about investors’ traditional reflexes and all historical points of reference are potentially invalid.
** RRR = Risk Reward Ratio
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Written by Gary