Midday Market Commentary For 09-20-2012
By noon the averages climbed higher from the morning lows, but remained in the red and flat. Little news on the wires, volume is falling off and the HFT crowd is trying to melt the markets up.
Dailyfx reports, “U.S. household net worth dropped by $322 billion in second quarter” and had a slightly positive effect on the averages.
The RRR** had narrowed by the opening bell and continued into the midday session and any trades will probably end up on the unprofitable side as long as this market has low volume and remains flat. A overnight trade would have produced a nice profit this morning, but then again who knew. Swing trading continues to be at your own risk as the market is STILL at a crossroads of sorts, I would prefer to sit on my hands rather than risk guessing incorrectly. (I was asked if I had to guess what would my choice be for the next month? Ans. Bearish)
The DOW at 12:15 is at 13572 down 7.24 or -0.06%.
The 500 is at 1457 down 3.11 or -0.21%.
The $RUT is at 851.79 down 4.29 or -0.50%.
SPY is at 146.45 down 0.25 or -0.17%.
The trend is neutral and the current bias is up.
WTI oil is at 92.25 trading between 92.30 and 90.65 then rose back to 92.33. The bias is positive.
Gold is up today at 1768.17, trading between 1771.65 and 1756.00 with a positive bias.
Dr. Copper is at 3.77 down from 3.80 earlier.
The US dollar rose from 79.07 earlier to 79.74 and is currently trading at 79.59.
Stocks have shown a notable recovery attempt over the course of the trading day on Thursday after coming under pressure early in the session. The rebound was partly due to the release of relatively upbeat manufacturing data.
The major averages have climbed well off their worst levels of the day but currently remain stuck in the red. The Dow is down 8.09 points or 0.1 percent at 13,569.87, the Nasdaq is down 10.18 points or 0.3 percent at 3,172.44 and the S&P 500 is down 3.22 points or 0.2 percent at 1,457.83.
The early weakness on Wall Street came on the heels of the release of a Labor Department report showing that jobless claims came in above estimates in the week ended September 15th.
While jobless claims edged down to 382,000 from the previous week’s revised figure of 385,000, economists had expected jobless claims to drop to 373,000 from the 382,000 originally reported for the previous week.
** RRR = Risk Reward Ratio
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Written by Gary