Closing Market Commentary For 10-18-2012
Markets remained flat and unexciting most of the day except for GOOG trading halted until 3:20 this afternoon. Other than that and more BS coming in from the EU, it has been the same ‘ol, same ‘ol. I wish the charts were of some use as $RUT, SPY and the DOW are signaling a possibility of a reversal of the current trend with spinning top candles. (See charts below)
The market finally closed flat and in the red. The market did descend on the issues with GOOG, but climbed back up to nearly the opening point this morning. It is very difficult to discuss stupid, dumb and manipulated markets. There are so many fingers playing this piano it is impossible to hear a tune.
Here Is Why GOOG Has Plunged By 10% (So Far)
While everyone knows that GOOG is halted and may or may not resume trading before market close (and no, RRD merely reported the facts, if only early, and as everyone knows the market has a revulsion to reality peeking during trading hours), few are aware just why it is that everyone dumped the stock which soared to all time highs a few short weeks ago.
Here it is, in its full visual splendor – Google’s Operating Income, which was expected to come in at $3.536 billion printed at $2.736 billion, a 23% miss!
The market also dropped on the news that Google missed it mark and I find that fact interesting because I have suspected this market is getting tired and this is a good sign that it is happening.
“Google posted 3Q results at midday Thursday that were sharply below Wall’s Street’s expectations. The search-engine giant earned $9.03 an adjusted share versus expectations of $10.65. Revenue came in at $11.3 billion while Wall Street was looking for $11.8 billion. The results were expected to be reported after the bell, and the shares are off nearly 9%.”
The RRR** was very narrow at the opening bell continuing to the closing bell, just as it has been for the past month. Any trades today will probably end up on the unprofitable side as long as this market remains flat or continues to have low volume.
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 just to get back meager gains.
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 anyway, is a foolish endeavor.
The DOW at 4:00 is at 13549 8 or -0.06%.
The 500 is at 1457 down 3.57 or -0.24%.
The $RUT is at 837.12 down 5.40 or -0.64%.
SPY is at 145.70 down 0.52 or -0.36%.
The longer trend is up, the past week’s trend is neutral to bearish and the current bias is down.
Oil Falls For First Time In Three Days
WTI oil is down today and is at 91.96 trading between 92.60 and 90.73 and the bias is neutral.
Gold is down this morning. Currently trading up at 1740.85, trading range is between 1752.00 and 1738.08 with a negative bias.
Dr. Copper is at 3.73 down from 3.76 earlier.
The US dollar rose from 78.96 earlier to 79.46 and is currently trading at 79.40. The gap at 79.40 has been covered and the USD bias is now bearish.
The 500 at the close.
The DOW at the close.
The $RUT at the close.
The SPY at the close.
Growth in China’s economy continues to slow
Chinese Growth has slowed for a seventh consecutive quarter, leading to fears that the world’s second largest economy is nearing the end of an unsustainable age of rapid expansion. (Read More)
** RRR = Risk Reward Ratio
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Written by Gary
