Midday Market Commentary For 11-08-2012
Following a very brief run up of lessor portions the averages melted down to yesterday’s lows and have leveled out in a lightly trade session. This session is headed for a headline title of lackluster and boring.
The major averages are in the red and flat and unless the HFT computers jerk the markets around we may see the rest of the day continue in a sideways motion.
The RRR** was very narrow at the opening bell continuing to the midday point, 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 12:15 is at 12903 down 30 or -0.24%.
The 500 is at 1390 down 4 or -0.30%.
The $RUT is at 800.38 down 4.13 or -0.51%.
SPY is at 139.28 down 0.44 or -0.31%.
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 trading at 85.42 trading between 84.50 and 85.69 and the bias is positive.
Brent crude was up today and is at 107.36 trading between 106.80 and 108.16 and the bias is positive.
Gold is choppy this morning. Currently trading up at 1725.05, trading range is between 1713.15 and 1726.00 with a positive bias.
Dr. Copper is at 3.47 up from 3.44 earlier.
The US dollar fell from 81.10 earlier to 80.88 and is currently trading at 80.97.
** RRR = Risk Reward Ratio
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Written by Gary
