Midday Market Commentary For 07-26-2012
I guess the elation the ‘Hopium’ injection given to investors this morning didn’t last long as it used too. The morning market advances have turned into red volume and markets declined. Profit taking gained momentum as the morning session wore on and the lower numbers halving earlier profits but that hasn’t discourage the ‘BTFD dippers’. The reality of this market is that talk is cheap and NOTHING has changed in the EU, China or the US – nothing! Some analysts are now saying Major Averages Give Back Ground But Remain Firmly Positive. That is like saying to a man stuck in quicksand, “You are O.K. So far!” Or to the Captain of the sinking MS Costa Concordia, “That big hole in the side hasn’t done much – we are still afloat!”
ECB’s Mario Draghi said a lot this morning, but he has done nothing – yet! Many investors are hoping for the best but Germany has yet to respond to Draghi’s delusional blubbering’s. Remember that politicians ARE supposed to tell you (lie) that everything is O.K. and they now have a sure fire fix in the works that will solve everything. Also remember, that this mess was caused by these inept Keynesian war lords in the first place and now do you really expect them to fix the problems?
The extreme gyrations of this morning market fluctuations may not be over just yet. At least do not let your guard down for the rest of the day for any unexpected reversal. So far the RRR** have been good, not great, but good enough for our premium subscribers to have make a profitable swing trade earlier this morning.
The issue at hand now is what do DaBoyz have for us in the remaining hours of today’s session? I think we should continue to melt down, but if the volume falls off as it has been doing in the afternoon trading session, DaBoyz will push the indexes back up. So be alert and watch the USD FOREX action for clues.
The DOW at 12:30 is at 12849 up 172 or 1.35%. (off 100 points)
The 500 is at 1364 up 16.46 or 1.23%.
The $RUT is at 773.77 up 4.47 or .58%. (lost 50% of this mornings high)
SPY is at 136.60 up 1.66 or 1.24%.
The trend is up and the current bias is up.
WTI oil is at 89.19 trading between 88.10 and 90.50 and the bias is negative.
Brent crude is at 104.83 trading between 103.50 and 106.15 and the bias is negative.
Gold is at 1612 trading between 1601 and 1621 with a negative bias.
Dr. Copper is at 3.39 up from 3.36 in premarket trading but down from 3.44 at the markets open.
The USD tumbled from 83.84 in the premarket hours to 82.67 and is at 82.92. As it dove this morning it covered the gap at 83.61 in a spectacular fashion AND reached support where it has bounced off of. Bearish for the US markets and the Euro.
Are you wondering what ECB’s Draghi really meant this morning when he spoke at an informal Investment Conference this morning? Nothing, absolutely nothing, much as I wrote in the Opening Market Commentary this morning. Nothing can really happen until the German High Court makes a decision on September 12th. regarding these issues. So now the talking down of expectations, or in this case today’s iteration of “baffle with bullshit” begins pens Zerohedge.
Read the full text of Goldman Interprets Draghi here.
** RRR = Risk Reward Ratio
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Written by Gary