Slow Melting Eases Markets Downward

January 10th, 2013
in Gary's blogging

Midday Market Commentary For 01-10-2013

Exactly like yesterday's session the markets today have generally melted down to the last 6 sessions mid range. The volume has been a 'tad' heavier than usual, but still regarded as low. Mostly red volume has evidently sparked renewed interest in profit taking as many traders are unsure just what the future has for them, particularly over the next few months.

By noon the averages were flat and mixed.

Follow up:

The RRR** has been narrow at the opening bell for the past several months and continued the trend into the midday 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 2013 begins, but a lot of guessing 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 the past several years.

I also have continuing 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. I keep hoping for increasing volumes to signal improved trading.

Swing trading is also at your own risk for all the reasons mentioned above although guessing overnight trades would have been most profitable. Again, 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 11:45 is at 13401 up 11 or 0.09%. (Early lunch)

The SP500 is at 1463 up 3 or 0.19%.

SPY is at 146.22 up 0.30 or 0.20%.

The $RUT is at 877.30 down 2.20 or -0.20%.

NASDAQ is at 3104 down 0.87 or -0.07%.

The longer trend is up, the past months trend is bullish and the current bias is up.

How Oil Really Gets Priced

WTI oil was up this morning and is currently trading down at 93.99 trading between 92.40 and 94.70 and the bias is negative.

Brent crude was up earlier and is currently trading down at 112.28 trading between 110.49 and 113.28 and the bias is negative.

Gold was up this morning. Currently trading up at 1676.73, trading range is between 1644.00 and 1678.52 with a positive bias.

Dr. Copper is at 3.70 up from 3.66 earlier.

The US dollar fell from 80.79 earlier to 79.96 and is currently trading down at 79.99.

** RRR = Risk Reward Ratio

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Written by Gary

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