Markets Continue To Melt Up On Low Volume

Midday Market Commentary For 11-09-2012

Markets continue to melt up recovering half of yesterday’s session. Not much to add at this point except to be ready for a quick reversal of unknown proportions. I suspect that the HFT computers are pushing the averages higher as there is no news except the U. of Michigan Confidence is up to 84.9 higher than the expected 83.0.

The RRR** was almost tradeable at the opening bell, but not as wide as it was the past 2 sessions. Still with the ever present worry that a reversal could come at any time is worrisome. Any trades today will probably end up on the unprofitable side as long as this market remains flat or continues to have low volume. Currently, it is the low volume that makes trades problematic as the HFT computers can reverse the market trend into something else which may not be to your liking.

I also 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. Be patient as the time to jump in may be around the corner.

The DOW at 10:15 is at 12877 up 66 or 0.51%.

The 500 is at 1390 up 12.76 or 0.92%.

The $RUT is at 800.35 up 6.69 or 0.84%.

SPY is at 139.27 up 1.24 or 0.90%.

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

How Oil Really Gets Priced

WTI oil was down today and is now trading up at 86.03 trading between 84.10 and 86.20 and the bias is positive.

Brent crude was down today and is now trading up at 108.82 trading between 109.00 and 106.25 and the bias is positive.

Gold was down this morning, now up. Currently trading up at 1733.15, trading range is between 1726.00 and 1738.80 with a neutral bias.

Dr. Copper is at 3.44 down from 3.49 earlier.

The US dollar rose from 80.69 earlier to 81.17 and is currently trading at 81.06.

** RRR = Risk Reward Ratio

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Written by Gary