Opening Market Commentary For 09-26-2012
Premarkets were down a tad this morning and first appeared the downtrend from yesterday was going to be reversed when a bunch of ‘BTFD dippers’ started jumping in. Didn’t last long and when the opening bell sounded the downward trend started slowly and gathered steam. The red volume is still measured low, but substantial higher as compared to previous sessions of late.
The bears are out this morning and the ‘BTFD dippers’ are doing their best to keep the markets from falling further. Volume had fallen off by 10 am and the action for the morning is done. Noe the HFT can come in and do their thing, which means the market can go either way.
8 days after the rapturous calls of all-in ‘Ben’s got yer back’ so buy-everything (coz retail will support you now and don’t forget the beta chase?), the S&P futures have fully retraced the 40 points of S&P spikeworthiness that Ben’s FOMC QEternity statement provided.
Treasury yields are already notably below pre-FOMC levels, as is Oil; and the USD is higher – as Gold holds gains too but is fading.
The RRR** was narrow at the opening bell, but better than previous sessions. That said, 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.
The DOW at 10:30 is at 13438 down 19.30 or -0.14%.
The 500 is at 1435 down 5.99 or -0.42%.
The $RUT is at 836.17 down 2.96 or -0.35%.
SPY is at 143.48 down 0.63 or -0.44%.
The longer trend is up, the past week’s trend is neutral to bearish and the current bias is down.
WTI oil is down today and is at 89.89 trading between 91.35 and 89.72 and the bias is negative.
Brent crude is down today and is at 109.06 trading between 110.20 and 108.50 and the bias is negative.
Gold is down today at 1746.99, trading between 1764.50 and 1739.70 with a neutral bias.
Dr. Copper is at 3.70 down from 3.75 earlier.
The US dollar rose from 79.72 earlier to 80.03 and is currently trading at 79.99.
** RRR = Risk Reward Ratio
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Written by Gary