Midday Market Commentary For 08-14-2012
By noon the markets have done absolutely nothing as the 500 moved 4 points up from the early morning lows. The volume dropped from moderately low to low and now moving on to abysmal. News from anywhere is not forthcoming and this market, if you care to call it that, looks like a patient in hospice waiting to die.
I will admit that the recent sideways market movement used to mean a stepping stone to a run for the gold ring. But with collapsing financial markets here and there, extremely high unemployment here and there, countries in recession here and there and general non-productive crooked politicians everywhere, it is a wonder we even have a market.
I have used the catch phrase ‘The Calm Before The Storm’ way too much, but it is beginning to look that way as the market stretches its directionless wanderings each day showing the same ‘ol, same ‘ol. The markets in general are poised to be susceptible to violent swings the longer this sideways goes on. I sure wish I could guess when it was going to happen. For some it is going to be a falling knife.
The RRR** signal at the opening was O.K., not good but O.K. And has since proved to be unprofitable trading once again. Still narrow at noon and potentially a profit losing situation if you guess incorrectly on swing trades. As I mentioned this morning, I am going to continue to sit on my hands until I see where the break comes in.
In this market you can not hurry things along, just wait a while longer and be patient, the trend will sooner or later reveal itself. Just read at Dailyfx, “zzzzzzzzzzzzz”, that is how I feel too.
The DOW at noon is at 13210 up 41 or 0.31%.
The 500 is at 1408 up 4.61 or 0.33%.
The $RUT is at 801.62 up 2.14 or 0.27%.
SPY is at 141.21 up 0.44 or 0.31%.
The trend is fractionally positive and the current bias is up.
WTI oil is at 93.21 trading between 92.60 and 93.94 and the bias is neutral.
Brent crude is at 113.61 trading between 113.20 and 114.29 and the bias is neutral.
Gold is down today at 1602./47 trading between 1614 and 1590 with a positive bias.
Dr. Copper is at 3.36 up from 3.38 earlier.
Earlier the USD rose from 82.61 to 82.58 and currently trading in a very choppy fashion and is at 82.55.
More headlines from Europe read, Eurozone edges back towards recession and Greek reform promises: badly behind schedule. As the US averages continue to melt up, I get the feeling the US markets seemly forgets the inexorable ties the US shares with the EU.
** RRR = Risk Reward Ratio
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Written by Gary