Market Ahoy, This Ship Has Holes In It

Closing Market Commentary For 10-01-2012

Interestingly the markets didn’t close in the red, but they didn’t set the World on fire either. After the nice rise this morning on good PMI news it went to hell in a hand basket. Shortly after that it started to decline and ended down and almost flat. There were several spikes of red volume reflecting my view that now is the time to cash in on any ‘dogs’ if you haven’t done so already. I have several longs that are no longer performing like they used too and they may become candidates very soon. Notice I didn’t yell abandon ship, but I am getting closer.

The 500 at the close.

The DOW at the close

The RRR** was very narrow at the opening bell, opened up briefly after the 10 am announcement, but almost immediately closed itself off again slapping any traders hand who went long. If you gambled and chose short, you would have gained less than a point. My advice, keep your hands in your pockets for now.

Today 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 4:00 is at 13515 up 78 or 0.58%.

The 500 is at 1444 up 3.82 or 0.27%.

The $RUT is at 840.31 up 2.86 or 0.34%.

SPY is at 144.27 up 0.30 or 0.21%.

The longer trend is up, the past week’s trend is neutral and the current bias is down.

WTI oil is up today and is at 92.29 trading between 91.30 and 93.30 and the bias is neutral.

Brent crude is up today and is at 112.14 trading between 111.53 and 113.30 and the bias is neutral.

Gold is up today at 1776.84, trading between 1764.00 and 1790.50 with a neutral bias.

Dr. Copper is at 3.78 up from 3.72 earlier.

The US dollar rose from 79.66 earlier to 79.93 and is currently trading at 79.88.

Wall Street is still excessively bearish, and that this remains a reliable contrarian indicator say bullish pundits, but I do not have much faith in it. As they say, this time it is different.

@thebigpicture:_____

Sell Side Indicator Still Shows Extreme Bearishness

“Money can’t buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.” —David Lee Roth

** RRR = Risk Reward Ratio

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Written by Gary