Midday Market Commentary For 07-19-2012
The markets didn’t do a waterfall after the bad news this morning as I have pointed out in various articles that it wouldn’t. I said drastic drops greater than 2% should not be expected with poor news as the panic prone ‘cash crowd’ is mostly absent. By 11 am the markets started a recovery, of sorts, melting back up on very low volume. That too should be expected as DaBoyz like to melt things up. Why? Because they can.
It is important to note that the small caps HAVE NOT participated in the rally this morning and have remained in the red. For this market to continue to climb, the small caps have to jump on the band wagon, and from 35,000 feet it doesn’t look like they will. The Russell 2000 has just made the upside at 1pm. It shows weakness in the market as a whole and I suspect the dark side of the market will rear its ugly head next week.
The RRR** is negative – be cautious today.
The DOW at 1:00 is at 12933 up 24.48 or 0.20%.
The 500 is at 1376 up 4.00 or 0.29%.
The $RUT is at 805.10 up 0.03 or 0.00%. It has to do better than this for the markets to continue upward.
SPY is at 137.79 up 0.44 or 0.32%.
The trend is moderately positive and the current bias is neutral.
WTI oil is at 92.52 trading between 89.80 and 92.90 and the bias is positive.
Gold is up today at 1585 trading between 1572 and 1591 with a negative bias.
Dr. Copper is at 3.53 up from 3.47 earlier.
As reported earlier the USD rose from 82.80 to 83.24 settling at 82.99.
** RRR = Risk Reward Ratio
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Written by Gary
