December 6th, 2012
in Gary's blogging
Midday Market Commentary For 12-06-2012
By noon the averages all were in the green on falling volume with the NASDAQ finally showing some life rising above most of the other averages. Still the markets remain weak, flat and lackluster while investors sort out the bull$hit coming out of Washington D.C. - what a circus and the World sits back and laughs.
The noontime highs were no higher on the average than yesterday session and I was hoping to see the markets to become bullish so my prognostication (HaHa's) of the market moving up for several days and slither down. Still could happen.
The RRR** has been narrow at the opening bell for the past several months and continued the trend again this morning. This trend makes predictions of movements during the session nearly impossible and trading becomes futile and unprofitable.
As long as market volume remains light or the trading range is narrow, one can expect successful trading to remain elusive. The RRR** has been wider on volatile sessions lately and is expected to become more so as the year ends, but a lot of guessing still remains. Correctly 'guessing', of course, is the tricky part of the successful trading equation. Any trades today will probably end up on the meager side of profitability if you are lucky as most trades have been less than optimal during this past year.
I also have issues with some pundits writing almost every day that there are setups for day trading. This may be 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. Do not fall into the trap of money burning a hole in your pocket, sit tight better days are coming. Watch for increasing volume to signal improved trading.
Swing trading is also at your own risk for all the reasons mentioned above. Because the market is at a crossroads of sorts, I would prefer to sit on my hands as the markets are currently untradable. Guessing where the market is going to be tomorrow or next week, at this time anyway, can be a foolish and costly endeavor.
The DOW at 12:15 is at 13045 up 11 or 0.08%.
The SP500 is at 1411 up 2.50 or 0.18%.
SPY is at 141.79 up 0.28 or 0.20%.
The $RUT is at 821.71 up 1.11 or 0.14%.
NASDAQ is at 2991 up 17 or 0.58%.
The longer trend is up, the past months trend is bearish and the current bias is up.
WTI oil was down today and is currently trading down at 86.12 trading between 88.22 and 85.76 and the bias is negative.
Brent crude was down today and is currently trading down at 107.11 trading between 109.15 and 106.80 and the bias is negative.
Gold was choppy this morning. Currently trading up at 1697.29, trading range is between 1702.85 and 1685.88 with a negative bias.
Dr. Copper is at 3.64 down from 3.69 earlier.
The US dollar rose from 79.73 earlier to 80.23 and is currently trading up at 80.21.
WTI crude (USO) slips further in relevance with the Energy Department dropping the use of the benchmark for its annual oil price forecast. Brent crude (BNO) - now selling for $21/barrel more - will be used instead. "WTI has become a misleading price indicator for global economic growth," says researcher Gordon Kwan.
** RRR = Risk Reward Ratio
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Written by Gary