October 25th, 2012
in Gary's blogging
Midday Market Commentary For 10-25-2012
By noon the averages melted on down to the last 2 sessions lows on a surprising rumor that Finch was going to lower the US's AAA to something lower, however it has been discounted by most pundits. That hasn't stopped the markets from melting even lower as I type. By 12:15 the markets seem to have reached a point and are taking a breather. Volume has dropped off and sideways movement has begun as the bulls and bears battle it out for position.
This continuing crazy market will leave you guessing, so just a reminder to keep your powder dry until we see just where this market is going. The risk-off action is not over just yet as Ritholtz Sees “Major Cyclical Correction” coming to a brokerage house near you.
“Barry Ritholtz, chief executive officer of Fusioniq, says “earnings are beginning to contract” and a recession may be ahead. Ritholtz talks with Bloomberg’s Ken Prewitt and Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance.” (Hear interview here)
The RRR** was very narrow at the opening bell and continued into the midday session, 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 12:15 is at 13055 down 22 or -0.17%.
The 500 is at 1407 down 1.00 or -0.06%.
The $RUT is at 812.27 down 1.34 or -0.16%.
SPY is at 140.94 down 0.08 or -0.06%.
The longer trend is up, the past week's trend is bearish and the current bias is bearish in sideways trading.
WTI oil was up this morning and is down at 85.85 trading between 85.25 and 86.76 and the bias is negative.
Brent crude was up today and is at 108.39 trading between 107.50 and 109.25 and the bias is negative to neutral.
Gold is up this morning. Currently trading down at 1714.63, trading range is between 1700.00 and 1717.88 with a negative bias.
Dr. Copper is at 3.55 down from 3.59 earlier.
The US dollar fell from 80.16 earlier to 79.78 then rose again to 80.12 and is currently trading at 80.06.
** RRR = Risk Reward Ratio
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary