November 7th, 2012
in Gary's blogging
Closing Market Commentary For 11-07-2012
Not a pretty day for the averages and I can't even begin to guess what is in store for tomorrow. The outlook for the markets is dismal to unbelievable poor and it is just a matter of time now before the markets head further down now that we know the reelected US administration is going to be hell-bent on spending our way out of this mess.
Markets closed down but slightly up from the day's low and I am guessing we will see more of this tomorrow.
The RRR** was very narrow at the opening bell, just as it has been for the past month but expanded somewhat into the closing bell. However,any trades today could end up on the unprofitable side as long as this market remains flat or continues to have low volume. Watch out for quick reversals as that is going to be the traders Achilles heel. Today would have been a good setup for some shorts, but to have gotten in you would have to 'guess' yesterday what was going to happen today. I suspected we would have a somewhat down day if Obama was reelected, but wasn't willing to gamble.
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. The real gains are guessing at the overnight holds.
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 4:00 is at 12932 down 313 or -2.36%.
The 500 is at 1394 down 33.86 or -2.37%.
The $RUT is at 804.52 down 21.29 or -2.58%.
SPY is at 139.65 down 3.31 or -2.30%.
The longer trend is up, the past week's trend is bearish and the current bias is down.
WTI oil was down today and is at 84.10 trading between 88.80 and 84.80 and the bias is negative.
Brent crude was down today and is at 106.73 trading between 111.60 and 106.53 and the bias is negative.
Gold was up this morning and then took a turn for the worse. Currently trading up at 1718.30, trading range is between 1703.00 and 1730.00 with a positive bias.
Dr. Copper is at 3.45 down from 3.54 earlier. (Ouch!)
The US dollar rose from 80.37 earlier to 81.02 and is currently trading at 80.88.
The 500 at the close. Closed below support.
The DOW at the close. Closed below support.
The $RUT at the close. Notice the well defined channel but closed below 200 day MA.
Click on chart for larger view.
** RRR = Risk Reward Ratio
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Written by Gary