Closing Market Commentary For 09-21-2012
About 2:30 the market started to melt down further erasing most of the morning gains by 3:30. Just a slow methodical melting from the opening. No volume to speak of, just some light selling throughout the day.
By 4 pm had a spike of low red volume to finish off the week as the averages ended up mostly flat and mixed.
I read where the Troika says Greek mission has made good progress and the mission expects to return to Athens after about a week. Boy, nothing like kicking the can down the road. Slow things up to a crawl, maybe the ‘problems’ will solve themselves if we wait long enough. Politicians are like lawyers, drag everything out to make it look like you are doing something important; what a scam and the people have to pay for it.
The RRR** was once again very narrow at the opening bell continuing into the afternoon session and any trades will probably end up on the unprofitable side as long as this market has low volume and 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.
For those who like to guess, Monday is likely to be down; buying during the afternoon session ‘might’ lead to profits after the weekend. Unless, of course, there is a war being started in Iran, then you will lose your butt. Have a nice weekend.
The DOW at 4 pm is at 13579 down 17.31 or -0.13%.
The 500 is at 1460 down 0.11 or -0.01%.
The $RUT is at 855.52 up 4.01 or 0.47%.
SPY is at 145.77 down 0.21 or -0.14%.
The trend is neutral and the current bias is down.
WTI oil is at 93.04 trading between 92.80 and 93.83 and the bias is neutral.
Brent crude is at 111.50 trading between 110.00 and 111.68 and the bias is positive.
Gold is up today at 1773.60, trading between 1766.10 and 1787.20 with a neutral bias.
Dr. Copper is at 3.78 down from 3.81 earlier.
The US dollar fell from 79.51 earlier to 79.11 and is currently trading at 79.41.
The 500 at the close.
The DOW at the close.
In the following article they describe WHY the SP500 WILL NOT exceed the previous highs of 2000 and 2007 even though we are within 100 points and I agree fully.
In this Special Report we will attempt to explain why we believe the two major peaks in the S&P 500 of 1555 in 2000, and 1575 in 2007 will not easily be surpassed, as the severe debt burdens built up in the “financial manias” preceding those peaks still must be deleveraged.
We expect the latest move up in the S&P 500 from the March 2009 low will not exceed those peaks and will technically form a long-term triple top that will lead to the market declining to valuation levels similar to other secular bear market lows over the past 100 years.[More]
** RRR = Risk Reward Ratio
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Written by Gary