Opening Market Commentary For 09-27-2012
Premarket up slightly, financial reporting bad and the markets didn’t react. The same ‘ol, same ‘ol again with low volume and the HFT computers moving the markets where ever they want them to be. Today’s session is not going to be any different. Jim Fink wrote The Market: Down, Up, Down and I agree this market is going anywhere anytime soon.
The opening bell didn’t change things from the premarket and the green volume was miniscule. Hard to tell which way things are going to go at the opening as there are few clues to inspect. I see the bears in the hallways, but so far no one has made a move. The 10 o’clock hour rolled around and the markets turned bearish although still in the green. Red volume dominated the past 30 minutes, but is lacking for any meaningful interpretation.
Even Bad news can not be counted to move markets.
Final Q2 GDP Disaster: 1.25% Growth Comes Below Lowest Estimate
Durable Goods Orders Cliff-Dive Most Since Jan 2009 But Initial Claims Beat
Weak orders point to sharp slowdown in manufacturing
Netanyahu to set “clear red line” for Iran in U.N. speech
The RRR** was very narrow at the opening bell 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.
The DOW at 10:15 is at 13427 up 16 or 0.13%.
The 500 is at 1436 up 3.17 or 0.22%.
The $RUT is at 834.13 up 0.20 or 0.02%.
SPY is at 143.54 up 0.29 or 0.20%.
The longer trend is up, the past week’s trend is neutral to bearish and the current bias is down.
WTI oil is up today and is at 91.12 trading between 90.00 and 91.77 and the bias is neutral.
Brent crude is up today and is at 111.54 trading between 109.70 and 112.30 and the bias is neutral.
Gold is up today at 1763.51, trading between 1750.62 and 17678.00 with a neutral bias.
Dr. Copper is at 3.72 up from 3.71 earlier.
The US dollar rose from 79.73 earlier to 79.95 and is currently trading at 79.83.
“The Fed will destroy the world,” writes SocGen professional bear Albert Edwards (channeling Marc Faber). The man who in 2005 labeled Alan Greenspan “an economic war criminal” thinks Bernanke’s policies will prove even more ruinous. Lowering his equity weighting to the minimum possible – 30% – he says the last time he did such was May 2008.
** RRR = Risk Reward Ratio
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Written by Gary
