Closing Market Commentary For 11-06-2012
Markets closed up nicely but pulled back from the day’s high. All of this on very low volume and I suspect that the algo computers had much to do with this action. We will just have to wait and see how the election turns out and what the traders have to say.
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 as the markets are currently untradable. 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 13245 up 133 or 1.02%.
The 500 is at 1428 up 11.11 or 0.78%.
The $RUT is at 825.62 up 6.08 or 0.74%.
SPY is at 142.99 up 1.14 or 0.80%.
The longer trend is up, the past week’s trend is bearish and the current bias is down.
WTI oil was up today and is at 88.37 trading between 85.45 and 88.96 and the bias is positive.
Brent crude was up today and is at 110.97 trading between 107.12 and 111.30 and the bias is positive.
Gold is up this morning. Currently trading up at 1716.70, trading range is between 1684.05 and 1720.00 with a positive bias.
Dr. Copper is at 3.51 down from 3.52 earlier.
The US dollar fell from 80.91 earlier to 80.65 and is currently trading at 80.70.
** RRR = Risk Reward Ratio
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Written by Gary