Midday Market Commentary For 08-08-2012
I hope the HFT and DaBoyz are having fun this morning driving up the averages, because I am not. In fact, once again, I am bored out of my mind wondering why I even bothered to come into the office. Well, the coffee is good, excellent in fact. I usually pass up the gourmet and Danish cart making its rounds around the Econintersect Building, but this morning I had my feet on the desk nibbling at a cinnamon Danish delight and contemplating what the rest of the financial world was doing. By noon I was seriously thinking of doing Italian for lunch . . . Oh yes, the markets are green again.
How can a market move up 85 points with no one trading? That is what happened this morning as I sit back and watch this casino market in action. I can hardly wait until the traders, what is left of the cash crowd, try to sell when the crap hits the fan and believe me it is going too. Boy are they going to be screaming at their losses when they find out you have to have someone to buy and there is no one willing to take on a bad bet. Look, the HFT are mostly cash as they are in and out in milliseconds so they won’t be any part of the selling when it comes. The funds can’t do much as any selling trade they make will move the markets in a undesirable manner; so why should they even consider selling? Mr. Trader is going to be in a world of hurt.
The EU is going to hell in a hand basket, China’s positive financial records are a farce of deception and the US is ready to fall off a financial cliff. The employment situation here and elsewhere is no where close to being resolved as millions are still out of work. Drought conditions prevail over much of the US and stupid Federal laws are making distressed corn growers to convert what there is of the editable crops into ethanol influencing livestock feed markets and meat prices. Yet, the markets have a way in continuing to climb with no volume to speak of. Are you also wondering when this fairy tale is going to end?
You know that 95% of the pundits and TV personalities do not actively trade because they would be talking about the difficulties dealing with the low volume and DaBoyz messing things up. Then you have Dr. Ben Banana and his Monkey’s confusing the economy with the stock market, pledging to save the banks and screw the people. Oh, that’s right, the QE, or whatever you want to call it, is to make more jobs. These Keynesian pinheads really believe more spending is going to help the economy, put more people to work and generally make things better! For whom, I ask as it is certainly not for the man on the street? (Except the banker who just got out of his Bentley.)
Oh well, the RRR** is still very narrow and anorexic volume is not conducive for trading.
The DOW at 12:15 is at 13186 up 18 or 0.14%.
The 500 is at 1402 up 1.75 or 0.12%.
The $RUT is at 802.03 up 0.69 or 0.09%.
SPY is at 140.55 up 0.22 or 0.16%.
The trend is neutral and the current bias is down.
WTI oil is at 93.96 trading between 92.83 and 94.60 and the bias is negative.
Brent crude is at 112.61 trading between 110.80 and 113.28 and the bias is negative.
Gold is up today at 1612 trading between 1604 and 1617 with a neutral bias.
Dr. Copper is at 3.42 up from 3.40 earlier.
Earlier the USD rose from 82.29 to 82.56 and settled at 82.38.
** RRR = Risk Reward Ratio
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Written by Gary