November 6th, 2012
in Gary's blogging
Opening Market Commentary For 11-06-2012
Premarket was up this US Presidential Election day and the markets opened likewise on low green volume. Early trading wasn't exactly exciting but that may change as the day wears on. But then again, Greece may discover 800 billion in gold buried by the ancient Romans too.
The DOW opened up 72 points and the 500 was up 6 points and by 10:00 the averages started trading sideways as the volume fell to anemic levels signaling another exciting lackluster session. Whatever happens today is going to be in the hands of the algo computers and will not be indicative of any real change in the charts.
Interesting article in that we should not forget that the EU's problems are still front and center.
Don't Forget About Europe by Wall Street Sector Selector
With all of the excitement surrounding the U.S. Presidential election and the rapidly approaching fiscal cliff, the media have lost sight of the problems in Europe, particularly Greece and Spain, but that is about to change.
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 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 10:15 is at 13192 up 79 or 0.60%.
The 500 is at 1423 up 5.84 or 0.41%.
The $RUT is at 824.12 up 4.55 or 0.56%.
SPY is at 142.41 up 0.57 or 0.40%.
The longer trend is up, the past week's trend is bearish and the current bias is neutral.
WTI oil was up today and is at 86.30 trading between 85.45 and 86.80 and the bias is negative.
Brent crude was up today and is at 109.04 trading between 107.12 and 109.65 and the bias is negative.
Gold is up this morning. Currently trading down at 1691.26, trading range is between 1684.05 and 1693.70 with a negative bias.
Dr. Copper is at 3.48 down from 3.50 earlier.
The US dollar fell from 80.91 earlier to 80.69 and is currently trading at 80.75.
** RRR = Risk Reward Ratio
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Written by Gary