November 13th, 2012
in Gary's blogging
pening Market Commentary For 11-13-2012
Premarket was down and continued to melt down as the opening bell approached. News on the Greek 'issues' remain sketchy and appears that the banks are going to implode before the week ends. That and other US financial uncertainties have given Mr. Market the jitters providing a declining backdrop for the major averages.
The markets opened down and almost immediately the 'BTFD Dippers' jumped in on relatively heavy green volume to melt the markets up a bit. By the 15 minutes mark the averages were still in the red and flat, but with a positive slant to the up side. By 10 am the averages were still mixed, flat and falling volume.
My feelings exactly.
Sometimes a picture paints a thousand words. In the case of this chart, it paints an expectation of around 300 S&P points (to the downside). The strange symmetrical exponentiality of the last four years can only be marveled at in its reflection of greed and fear catalyzed by the machinations of an increasingly impotent central banking cartel. Trade accordingly.
The RRR** was very narrow at the opening bell, just as it has been for the past month. I just wish my crystal ball would give me a glimpse into what the next day would be. 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 10:00 is at 12829 up 15 or 0.12%.
The 500 is at 1380 up 0.09 or 0.01%.
The $RUT is at 793.05 down 0.74 or -0.09%.
SPY is at 138.28 up 0.05 or 0.04%.
The longer trend is up, the past months trend is bearish and the current bias is down.
WTI oil was down today and is trading up at 85.05 trading between 85.50 and 84.58 and the bias is positive.
Brent crude was up today and is at 107.72 trading between 108.90 and 107.38 and the bias is positive.
Gold is down this morning. Currently trading up at 1724.45, trading range is between 1730.56 and 1718.04 with a positive bias.
Dr. Copper is at 3.44 down from 3.47 earlier.
The US dollar fell from 81.31 earlier to 81.04 and is currently trading down at 81.19.
With traders expressing continued concerns about the looming fiscal cliff, stocks moved to the downside at the start of trading on Tuesday. The major averages all slid into negative territory after ending the previous session nearly flat.
The major averages have recently climbed off their lows for the young session but remain in the red. The Dow is down 22.12 points or 0.2 percent at 12,792.96, the Nasdaq is down 16.06 points or 0.6 percent at 2,888.20 and the S&P 500 is down 4.32 points or 0.3 percent at 1,375.71.
The initial weakness on Wall Street was partly due to concerns about whether lawmakers will be able to reach an agreement that will avoid the significant tax increases and government spending cuts currently set to take effect at the end of the year.
While members of both parties have called for compromise on the issue, recent statements suggest that a continued disagreement over taxes on the wealthy could lead to continued gridlock on Capitol Hill.
** RRR = Risk Reward Ratio
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Written by Gary