November 12th, 2012
in Gary's blogging
Midday Market Commentary For 11-12-2012
By noon not much has happened since the opening bell. Trading with very low volume and within a narrow trading range. We will have to look at the rest of the week for any pertinent changes to the averages. Right now the outlook is not that good and the current conditions for a continued bearish outlook is raising concerns for some portfolio holders.
The one issue that will play a predominate part in the Mr. Markets attitude for the next 10 days or so will be towards the shifting concerns regarding the Greece aid.
Greece's parliament last night passed the country's 2013 austerity budget, which the government hopes will clear the way for the Troika to release the latest €31B tranche of its bailout. Eurozone finance ministers are due to discuss the issue at a meeting today, although they're not expected to approve the funds as they first want to agree on how to make Greece's debt more sustainable. The agony continues.
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 12787 down 27.75 or -0.22%.
The 500 is at 1377 down 2.40 or -0.17%.
The $RUT is at 793.03 down 2.00 or -0.25%.
SPY is at 138.01 down 0.14 or -0.10%.
The longer trend is up, the past month's trend is bearish and the current bias is bearish.
WTI oil remained neutral from Friday’s close and is trading down at 85.49 trading between 85.45 and 86.46 and the bias is bearish.
Brent crude was up today and is now trading down at 108.90 trading between 108.55 and 109.99 and the bias is negative.
Gold also remained in a tight neutral zone after Friday's close this morning. Currently trading down at 1728.15, trading range is between 1728.10 and 1737.50 with a negative bias.
Dr. Copper is at 3.46 up from 3.43 earlier.
The US dollar fell from 81.16 earlier to 81.01 and is currently trading up at 81.12.
** RRR = Risk Reward Ratio
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Written by Gary