Opening Market Commentary For 08-24-2012
Premarket’s were down fractionally and moved back up to yesterday’s closing numbers at the opening bell on very low green volume. The morning financial reporting had little effect on trading as it appears once again the only trading today is going to be the High Frequency Trading crowd. Markets are unusually subdued for an opening with signs of continued bearishness. Most averages at the 15 minute mark were down and generally flat having made little movement in the first few minutes of today’s session.
Not much to report as the US investors continue to sit on the sidelines watching and waiting. Today’s ‘HaHa’ will be seeing the markets melt down a bit further and then rise during the afternoon. This is after some politician makes noise that he has some ‘hopium’ deal that you can’t refuse. Naturally, the uninformed ‘sheeples’ will flock to be first in line to buy the ‘hopium’ hook, line and sinker.
Orders for long-lasting U.S. goods rose 4.2% in July from June, blowing past estimates of a 2.4% increase. Excluding the transportation segment, orders were down 0.4%, missing estimates of a 0.5% gain.
The RRR** looks to be very narrow this morning and any trades probably will end up on the unprofitable side as this market continues to have low volume. 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 rather than risk guessing incorrectly.
The DOW at 10:00 is at 13040 down 16 or -0.12%.
The 500 is at 1399 down 2.69 or -0.19%.
The $RUT is at 803.34 down 2.60 or -0.32%.
SPY is at 140.45 down 0.23 or -0.16%.
The trend is sightly bearish and the current bias is neutral.
WTI oil is at 96.43 trading between 95.40 and 96.70 and the bias is positive.
Brent crude is at 114.40 trading between 114.08 and 115.25 and the bias is negative.
Gold is at 1667.08 trading between 1662.50 and 1670.50 with a neutral bias.
Dr. Copper is at 3.47 up from 3.46 earlier.
Earlier the USD rose from 81.22 to 81.73 and is currently at 81.59.
** RRR = Risk Reward Ratio
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Written by Gary