Opening Market Commentary For 08-20-2012
Premarket was down fractionally and appeared we were going to test the highs at the opening with a fake run up that quickly fell. Minutes later another run-up with a bit more green volume bringing the markets up to a ‘flat’ position. The US Chicago Fed national Activity Index fell to -0.13 from an expected -0.05.
Other weekend thoughts lead me to believe that the Outlook concerning the Euro turns increasingly bearish with the Central Bank arguing with its counterparts.
Zerohedge posted and article on the possibilities of a continuing market gridlock where I completely agree that NOTHING will happen until the market is FORCED to do something. From the opening action today is going to be more of the same we saw all last week I am afraid.
The RRR* again is very narrow and any trades may end up on the unprofitable side as this market is known to make unannounced swings. Swing trading is at your own risk and being the market is at a crossroads of sorts, I would prefer to sit on my hands.
The DOW at 10:00 is at 13255 down 20 or -0.15%.
The 500 is at 1414 down 3.69 or -0.26%.
The $RUT is at 815.29 down 4.61 or -0.56%.
SPY is at 141.83 down 0.33 or -0.28%.
The trend is neutral and the current bias is negative.
WTI oil is at 95.51 trading between 96.55 and 95.40 and the bias is negative.
Gold is up today at 1616.29 trading between 1619.40 and 1609.65 with a positive bias.
Dr. Copper is at 3.36 down from 3.42 earlier.
Earlier the USD tumbled from 82.82 on Friday to 82.43 this morning and is currently at 82.66.
** RRR = Risk Reward Ratio
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Written by Gary