December 13th, 2012
in Gary's blogging
Closing Market Commentary For 12-13-2012
The averages made a 'dippy-doo' after heading for the basement which saved the day from a complete disaster. The major averages are obviously very weak and we are likely to see a continuation of the bears tromp all over the bulls tomorrow.
The BTFD dippers stepped in towards the closing and MAYBE picked up some bargains, but I wasn't one of them. Not much to report in the way of charts as they could go either way at this point.
Follow up:The RRR** has been narrow at the opening bell for the past several months and continued the trend into the clossing session. This continuing trend makes predictions of session movements nearly impossible making trading 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 4 pm is at 13170 down 74 or -0.56%.
The SP500 is at 1419 down 9.03 or -0.63%.
SPY is at 142.59 down 0.92 or -0.64%.
The $RUT is at 824.20 down 5.19 or -0.63%.
NASDAQ is at 2992 down 21 or -0.72%.
The longer trend is up, the past months trend is bullish and the current bias is down.
WTI oil was choppy this morning and is currently trading up at 85.26 trading between 83.75 and 86.98 and the bias is positive.
Brent crude was also very choppy this morning and is currently trading down at 108.17 trading between 109.50 and 107.81 and the bias is negative.
Gold was down this morning. Currently trading sideways at 1696.30, trading range is between 1710.63 and 1689.50 with a negative bias.
Dr. Copper is at 3.67 down from 3.71 earlier.
The US dollar slipped from 80.10 earlier to 79.87 and is currently trading up at 80.00.
The 500 at the close.
The DOW at the close.
** RRR = Risk Reward Ratio
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Written by Gary