November 5th, 2012
in Gary's blogging
Midday Market Commentary For 11-05-2012
Morning markets slid upward on low volume which is not at all surprising with the HFT algo computer at work. By 11 am the tide turned and the downward melting began turning the green numbers back to red. The ISM non-manufacturing report didn't seem to have moved the marketplace when it was announced. The markets moved up on their own accord after the announcement it appears.
So far, today is fast becoming another lackluster day in a recent line of previous non-performing sessions. More after the close.
The high rated financial US ISM Non-Manufacutring Composite (OCT) was reported at 54.2. I said this morning, “while the expected 54.5 in my opinion is a tad optimistic my indications are for the 53.9 area” and now most economists expect it to be revised down even further as has been the case lately.
The Institute for Supply Management’s gauge of service-sector activity fell to 54.2 in October from 55.1 in September, suggesting the sector is expanding at a slower pace. Economists were expecting a reading of 54.7.
The RRR** was very narrow at the opening bell and even more narrow at the midday mark, 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 as the markets are currently untradable. 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 13082 down 11.33 or -0.09%.
The 500 is at 1413 down 1.12 or -0.08%.
The $RUT is at 818.06 up 3.72 or 0.46%.
SPY is at 141.45 down 0.10 or -0.07%.
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 85.17 trading between 84.35 and 85.36 and the bias is neutral.
Brent crude was down early then went up and is now down at 106.56 trading between 106.60 and 104.50 and the bias is positive.
Gold was down earlier then went up to the early morning highs. Currently trading up at 1682.20, trading range is between 1684.32 and 1672.71 with a neutral bias.
Dr. Copper is at 3.47 down from 3.50 earlier.
The US dollar rose from 80.59 earlier to 80.92 and is currently trading at 80.85.
** RRR = Risk Reward Ratio
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Written by Gary