October 24th, 2012
in Gary's blogging
Opening Market Commentary For 10-24-2012
Premarket was up slightly and the World financial reporting looked good for all intent and purpose. Market opened up under low volume ans quickly turned red and has been easing down since. The US financial Housing reports were good and it appears the market is going to sell the news, at least this morning.
The RRR** was very narrow at the opening bell, 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. Eric Parnell said it correctly “all of the prevailing economic forces today point to a stock market that should be in decline” and “unstable economic and market conditions are becoming increasingly tumultuous”. He goes on to say in his article, 50 Shades Of Stock Market Grey, “How can you best participate in any further upside while keeping things as clean and risk controlled as possible?”.
Guessing where the market is going to be tomorrow or next week, at this time anyway, is a foolish endeavor.
The DOW at 10:15 is at 13121 up 20 or 0.15%.
The 500 is at 1414 up 1.13 or 0.08%.
The $RUT is at 813.74 down 2.43 or -0.30%.
SPY is at 141.60 up 0.16 or 0.11%.
The longer trend is up, the past week's trend is bearish and the current bias is down.
WTI oil was up today and is at 86.33 trading between 87.46 and 86.10 and the bias is negative.
Brent crude was down today and is at 108.25 trading between 109.34 and 108.00 and the bias is negative.
Gold is down this morning. Currently trading down at 1705.71, trading range is between 1713.95 and 1705.04 with a negative bias.
Dr. Copper is at 3.56 down from 3.59 earlier.
The US dollar fell from 80.24 earlier to 79.24 and is currently trading at 80.04 just about where we left it at the close yesterday.
** RRR = Risk Reward Ratio
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Written by Gary