Market Sucks, Expected To Suck Later Too

Midday Market Commentary For 08-29-2012

Around 11 am the markets took a moderate dip on low volume on some unsubstantiated rumor that the Bundesbank would being bonds. However, by Weidmann’s words, that the Bundesbank will not be endorsing any bond-buying program. My take from this is that the market place is primed for rumor movements and could move in either direction at a moments notice.

By noon the markets were melted back up to where they were this morning by the HFT crowd. Market looks something like most preteen lass’s with braces; flat, awkward and unattractive. So, on to more important discussions. How was your golf game this morning or are you still out on the links?

The RRR** is again very narrow by the midday mark and any trades probably will end up on the unprofitable side while this market remains flat. Swing trading is at your own risk and being the market is at a crossroads of sorts, I would prefer continuing to sit on my hands rather than risk guessing incorrectly. Any gains made will be small and insignificant and not worth the worry.

The DOW at 12:00 is at 13107 up 4.87 or 0.04%.

The 500 is at 1410 up 1.07 or 0.08%.

The $RUT is at 816.60 up 2.32 or 0.28%.

SPY is at 141.50 up 0.11 or 0.08%.

The trend is neutral and the current bias is neutral.

WTI oil is at 95.08 trading between 96.30 and 94.77 and the bias is negative.

Brent crude is at 112.39 trading between 113.30 and 111.50 and the bias is neutral.

Gold is at 1658.53 trading between 1669.60 and 1659.08 with a neutral bias.

Dr. Copper is at 3.44 down from 3.46 earlier.

Earlier the USD tumbled from 81.52 to 81.35. It then rose on the US economic data to 81.60 and is currently at 81.51.

@dailyfx:

Jackson Hole Economic Policy Symposium Trumps US GDP Amid Thin Docket The period of calm dominating global markets right now doesn’t look like it will break this week, though there are a number of significant events on the docket that could stir volatility and force breakouts in the first week of September. With two G-7 growth readings this week, key data out of Germany, and the Jackson Hole Economic Policy Symposium, a great deal of important information will be revealed that will dictate future price action significantly. As always, given the relative calm, we believe that it’s best to keep an eye on the newswires for chatter from the European Central Bank in re: bond-buying program as well as headlines from Greece and Spain about possible bailouts. Download the Full PDF Article

** RRR = Risk Reward Ratio

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Written by Gary