Closing Market Commentary For 11-14-2012
Today was not the day for the bulls as the bears kicked their butts. Soundly, I might add. The Russell 2000 showed the way down and it is not a good sign when the small caps take it in the chin. I expect more of the same in the coming sessions. Better buckle your seat belts as it is going to get rough.
The RRR** was very narrow at the opening bell, just as it has been for the past several months and the started to widen going to the closing bell. Any short trades made in the morning will have been on the profitable side if you were lucky to guess today’s outcome.
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, not today, 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.
While it ‘appears’ the trend is down, this market could explode one way or the other and selling now to avoid ‘possible’ increase taxes is full of hidden issues for the unwary and uninformed.
The DOW at 4:00 is at 12571 down 185 or -1.45%.
The 500 is at 1355 down 19 or -1.39%.
The $RUT is at 773.20 down 15.81 or -2.00%. (The really big looser.)
SPY is at 136.02 down 1.78 or -1.29%.
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 now trading up at 86.30 trading between 86.60 and 84.90 and the bias is positive.
Brent crude was up today and is now trading up at 109.73 trading between 110.30 and 107.80 and the bias is positive.
Gold was down this morning then rose to 1731.24. Currently trading down at 1725.72, trading range is between 1733.30 and 1720.44 with a negative bias.
Dr. Copper is at 3.45 down from 3.49 earlier.
The US dollar rose from 80.98 earlier to 81.20 and is currently trading up at 81.61.
The 500 at the close. This is quite a drop and I would expect a slight recovery tomorrow, but that is just a guess.
The DOW at the close.
Stocks’ drop intensifies on worries over fiscal cliff
“U.S. stocks tumble toward multimonth lows with budget negotiations to avert more than $600 billion in automatic spending cuts and tax hikes taking center stage. Dow is off more than 180 points.”
** RRR = Risk Reward Ratio
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Written by Gary