Midday Market Commentary For 08-28-2012
Up, down, up, down and so goes the morning activity on the usually low volume. The SP500 moved within a 9 point span this morning of 4.5 points up and 4.5 points down. The news is thin and apparently the markets are indeed waiting for Bernanke’s speech on Friday and U.S. stock indexes near unchanged.
Noontime action sees some green low volume, but higher than the morning numbers as several of the averages moved withing striking distance of the highs of the morning. Notably lagging were the DOW and SPY resulting in a continued flat and mixed market place.
Which way is the market going? Dow Theory?
The RRR** is again very narrow at noontime and any trades probably will end up on the unprofitable side if this market remains flat. 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 12:15 is at 13136 up 11.12 or 0.08%.
The 500 is at 1412 up 1.87 or 0.13%.
The $RUT is at 813.39 up 3.47 or 0.43%.
SPY is at 141.67 up 0.13 or 0.08%.
The trend is neutral and the current bias is up.
WTI oil is at 96.07 trading between 95.15 and 96.45 and the bias is neutral.
Brent crude is at 112.19 trading between 111.70 and 113.10 and the bias is negative.
Gold is at 1669.96 trading between 1656.80 and 1672.30 with a positive bias.
Dr. Copper is at 3.46 down from 3.47 earlier.
Earlier the USD tumbled from 81.84 to 81.27 and is currently at 81.36.
With inflation expectations soaring and jobs plentiful relative to hard-to-get falling slightly, Consumer Confidence plunged its most in 10 months to a level not seen since November of last year.
As Robin might say “Riddle me this Batman”: how can an country, supposedly growing its economy at over 7%, with factory output up over 9%, manage all of this superlative production while rail traffic is shrinking at almost 5.4% annually?
Stocks Continue To Show A Lack Of Direction
After showing a lack of direction throughout the previous session, stocks continue to turn in a lackluster performance during trading on Tuesday. The major averages have spent the morning bouncing back and forth across the unchanged line.
The choppy trading on Wall Street comes as traders remain reluctant to make any significant moves ahead of remarks by Federal Reserve Chairman Ben Bernanke.
** RRR = Risk Reward Ratio
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Written by Gary