Opening Market Commentary For 06-28-2012
Markets opened down a few points as expected on very low volume suggesting investors were not willing to jump in to buy or sell. While my overall market outlook for the next 3 months remains very bearish I expect we could still see room for short-term upside before a fresh lower top is sought out in the November December area.
Right now the immediate issues of Obamacare and the EU meetings are taking a front row seat and will dictate the direction of the markets on a daily basis for the foreseeable future. Everyone is hoping for something different and that mentality has the markets trading in a relatively narrow range bound zone. The RRR** fluctuates from very negative to ‘toe-dipping’ if you can stand the chilly market waters.
From a conservative market investor, I see the ‘signals’ of further weakness coming down the pike but moving like molasses in January. The question remains on what percentage of cash funds and I willing to commit under these variable market trends. On 6-0 I shorted 3% and they are doing well, but going forward remains an enigma as even this current market rise confirms my original suspicions that we could see more bullish actions.
Crude oil may rise as S&P 500 index futures point to a pick-up in risk appetite while gold prices are at risk as firmer US economic data dents Fed stimulus hopes
The DOW is at 12525 down 102 or -0.83%.
The 500 is at 1322 down 9.12 or -0.67%.
$RUT is at 774 down 2.06 or -0.27%.
SPY is at 132.30 down 0.85 or -0.63%.
The trend is down and the current bias is down.
European markets are down on the uncertainties of solving the EURO crisis today. The FTSE 100 in London is down –1.12% while the German DAX is down -2.15%. The CAC 40 in France is down –1.61%.
WTI oil is at 79.67 trading between 79.52 and 80.55 and the bias is negative.
Brent crude is at 92.94 trading between 92.40 and 93.80 and the bias is negative.
Gold is down today at 1563 trading between 1577 and 1556 with a negative bias.
Dr. Copper is at 3.34 up from 3.30 earlier.
According to Advfn, “traders seem reluctant to make any significant moves ahead of an upcoming summit of European leaders.”
** RRR = Risk Reward Ratio.
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Written by Gary