October 16th, 2012
in Gary's blogging
Closing Market Commentary For 10-16-2012
Markets continued their morning climb starting out with low volume that turned into anemic volume and gained some momentum during the last hour. Green was the color but basically made a double top for the major averages. What happen tomorrow is anyone's guess at this point. I am not all that convinced that today's run up is totally valid as the small caps are having a problem keeping pace. The Russell 2000 gaped up this morning and that surly means it will back down to cover that gap as it always does.
The RRR** was very narrow at the opening bell and continuing to the closingbell, just as it has been for the past month. Any trades today will probably end up on the unprofitable side as long as this market remains flat or continues to have low volume.
I have issues with some traders in that they are saying there are setups for day trading. This is true enough, but the trading range is so narrow that way too money has to be put on the table just to get back meager gains.
Swing trading is also 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, at this time anyway, is a foolish endeavor.
The DOW at 4:00 is at 13551 up 127.55 or 0.95%.
The 500 is at 1454 up 14.79 or 1.03%.
The $RUT is at 835.44 up 7.16 or 0.86%.
SPY is at 145.51 up 1.44 or 1.00%.
The longer trend is up, the past week's trend is bearish to neutral and the current bias is up.
WTI oil has been up and down today and is at 92.10 trading between 91.30 and 92.30 and the bias is neutral.
Brent crude was down today and is at 115.07 trading between 116.15 and 114.50 and the bias is negative.
Gold is up this morning. Currently trading down at 1747.21, trading range is between 1734.48 and 1748.48 with a negative bias.
Dr. Copper is at 3.71 down from 3.72 earlier.
The US dollar fell from 79.90 earlier to 79.36 and is currently trading at 79.41.
The 500 at the close.
The DOW at the close.
The $RUT at the close. Notice the gap on today's opening, most likely to be closed tomorrow.
** RRR = Risk Reward Ratio
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Written by Gary