Midday Market Commentary For 09-17-2012
By noon I was ready for my afternoon nap after watching the market do absolutely nothing. Flat, low volume and going sideways; HFT playground. Not exactly an exciting place to trade when considering that the excitement level created on Thursday when QE3 was announced. Markets went up nicely, but the spreads on the 3X ETF’s were narrow indicating to me that no one was going to take a chance and jump on this train.
The problems that were here BEFORE QE3 are still here today and do not look like they are going away anytime soon. If anything the news coming out of the EU is that European woes are getting worse and that the ECB can’t do anything about solving the crisis.
Has the ‘sugar’ from QE3 already worn off or was it already priced in? By the looks of today’s market no one is very interested in buying, but on the same hand no one is interested in selling either. Very interesting chart depicting the rise and fall for each QE and OT.
You can study this picture and come to your own conclusions, but it is especially interesting to see the previous gains prior to the “sugar” wearing off. Will we get a comparable pop this time? Or has much of it already been priced into the S&P 500 at the current level. Stay Tuned!
The RRR** was very narrow at the opening bell and continuing through the noon hour and any trades will probably end up on the unprofitable side as long as 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 13563 down 28.60 or -0.21%.
The 500 is at 1463 down 2.65 or -0.18%.
The $RUT is at 958.71 down 5.95 or -0.61%.
SPY is at 149.96 down 0.29 or -0.20%.
The trend is up and the current bias is sideways.
WTI oil is at 99.28 trading between 98.55 and 99.50 and the bias is positive.
Gold is down today at 1770.00, trading between 1776.00 and 1765.98 with a neutral bias.
Dr. Copper is at 3.79 down from 3.81 earlier.
The US dollar fell from 79.14 earlier to 78.84 and is currently trading at 79.00.
** RRR = Risk Reward Ratio
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Written by Gary