Midday Market Commentary For 10-15-2012
Markets descended until 10:30 where the averages begun to rise with green volume higher than what the HFT computers are capable of. By noon the DOW which had reached 13,399 started to slip in a move that slaps of manipulation. Looking like a classic run it up and take your profits from the ‘sheeples’ leads me to want to be faraway from this market.
We will not how the market is going to end up today obviously until the bell rings at the close. But from looking at the big picture, I see a lot of weakness and would be surprised to see any significant gain, paticular if the averages close again the 50 day MA.
Greece’s finance minister has scotched hopes that talks with the country’s international creditors over austerity measures will be concluded in time for this week’s European Union summit. Yannis Stournaras said the negotiations will continue after Thursday and Friday’s meeting in Brussels.
Asked whether there could be a deal before that, Mr Stournaras said: “Were trying, but I don’t think so.”
Talks with representatives from the troika centre upon a new package of cuts and an agreement is crucial to Greece receiving its next tranche of aid.
Ekathimerini has the full story here.
The RRR** was very narrow at the opening bell and continued the noon hour as it has been for the past month. Any trades will probably end up on the unprofitable side as long as this market has low volume or remains flat. I have issues with some traders in that they are saying there are setups for day trading. This is true enough, but the trading range is so narrow that way too money has to be put on the table to get meager gains.
Like today, the market started up and within 15 minutes all of the gains of the opening were lost. This is not my cup of tea.
Swing trading is also 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. Guessing where the market is going to be tomorrow or next week, at this time, is a foolish endeavor.
The DOW at 12:15 is at 13389 up 63 or 0.48%.
The 500 is at 1435 up 6.59 or 0.46%.
The $RUT is at 825.07 up 1.27 or 0.24%.
SPY is at 143.60 up 0.71 or 0.50%.
The longer trend is up, the past week’s trend is bearish and the current bias is neutral.
Iran mulls causing oil spill to break embargo.
WTI oil was up today and is at 90.74 trading between 89.75 and 92.20 and the bias is positive.
Brent crude was up today and is at 114.67 trading between 113.60 and 115.36 and the bias is positive.
Gold is down this morning. Currently trading down at 1733.46, trading range is between 1753.20 and 1728.70.16 with a positive bias.
Dr. Copper is at 3.69 down from 3.71 earlier.
The US dollar fell from 80.04 earlier to 79.67 and is currently trading at 79.79.
Strong US Data is not really helping risk appetite – Barron’s bullish front cover is also a good reason to be cautions http://t.co/ynZf3blQ
** RRR = Risk Reward Ratio
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Written by Gary
