November 14th, 2012
in Gary's blogging
Midday Market Commentary For 11-14-2012
Supports were broken on 'relatively' heavy red volume and now the question is where will the major indexes close. Appears to have been the Israel attack on Hamas Army Chief of Staff and some saber rattling that set off the oil climbing and the markets declining.
Markets have since reclaimed some of the earlier losses but the major averages are still below the support that was broken earlier. Markets are generally in the red showing moderate losses.
In case you missed the financial reports this morning here is a graphical presentation. The first column is what was reported. The second is what was expected and the third is the last reporting.
The RRR** was very narrow at the opening bell, just as it has been for the past several months and didn't change going into the midday mark. 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.
While it 'appears' the trend is down, this market could explode one way or the other and selling now to avoid 'possible' increase taxes is full of hidden issues for the unwary and uninformed.
The DOW at 12:00 is at 12700 down 57 or -0.44%.
The 500 is at 1370 down 4.47 or -0.33%.
The $RUT is at 783.17 down 5.84 or -0.74%.
SPY is at 137.34 down 0.45 or -0.33%.
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 now trading up at 86.25 trading between 86.55 and 84.90 and the bias is positive.
Brent crude was up today and is now trading down at 109.83 trading between 110.30 and 107.80 and the bias is positive.
Gold was down this morning then rose to 1731.24. Currently trading down at 1731.00, trading range is between 1733.30 and 1720.44 with a positive bias.
Dr. Copper is at 3.46 down from 3.49 earlier.
The US dollar rose from 80.98 earlier to 81.20 and is currently trading up at 81.14.
** RRR = Risk Reward Ratio
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Written by Gary