January 14th, 2013
in Gary's blogging
Opening Market Commentary For 01-14-2013
Premarket was flat about where the averages closed on Friday. Towards the opening a lot of red was being displayed on active equities indicating a opening movement to melt down.
Markets opened flat and mixed but mostly green volume. By the 15 minute mark the averages broke out of the sideways trough, down with moderate red volume, but remained in a flat status. In other words not a damn thing was really happening. By 10 am the averages were still in the trough that was started 7 sessions ago and just below Friday's lows. I do not know what to say about today's session except that it isn't looking good for trading.
Interesting analysis of the projected 10 ten earners for 2013.
Each January, 24/7 Wall St. forecasts the publicly traded U.S. companies that will have the highest profits in the year ahead. This year, Apple almost certainly will keep first place, well ahead of number two Exxon, as the most profitable corporation in America. It already passed the oil giant in market capitalization.
However, while the market appears to anticipate continued rapid growth from Apple, its prospects have dimmed somewhat. These are 2013’s Most Profitable Companies.
The RRR** has been narrow at the opening bell for the past several months and continued the trend again this morning. 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. Best Stock Market Indicator Ever: Unchanged at 79% and Secondaries Confirm "Tradable" 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 10:00 is at 13466 down 23 or -0.17%.
The SP500 is at 1467 down 5 or -0.33%.
SPY is at 146.61 down 0.47 or -0.32%.
The $RUT is at 879.00 down 1.77 or -0.20%.
NASDAQ is at 3110 down 17 or -0.54%.
The longer trend is up, the past months trend is bullish and the current bias is down.
WTI oil was down this morning and is currently trading down at 93.38 trading between 94.29 and 93.53 and the bias is negative.
Brent crude was up earlier and is currently trading down at 110.79 trading between 110.52 and 111.36 and the bias is negative.
Gold was up this morning. Currently trading down at 1665.83, trading range is between 1660.05 and 1674.84 with a negative bias.
Dr. Copper is at 3.65 down from 3.67 earlier.
The US dollar rose from 79.45 earlier to 79.70 and is currently trading down at 79.65.
** RRR = Risk Reward Ratio
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Written by Gary