Opening Market Commentary For 12-17-2012
Premarket started off down early in the morning and then when the markets opened they started to melt up as investors are feeling bullish that a compromise is further along regarding the US fiscal cliff.
By 10 am the markets appeared to reached a point of taking a breather. The BTFD Dippers have so far ruled the markets this morning in light of ‘not so good’ US financial financial’s this morning. This week may some what volatile, but next week is expected to be relativity quiet with Christmas falling on Thursday.
The RRR** has been narrow at the opening bell for the past several months and continued the trend again this morning. This continuing trend makes predictions of session movements nearly impossible making trading futile and unprofitable.
As long as market volume remains light or the trading range is narrow, one can expect successful trading to remain elusive. The RRR** has been wider on volatile sessions lately and is expected to become more so as the year ends, but a lot of guessing still remains. Correctly ‘guessing’, of course, is the tricky part of the successful trading equation. Any trades today will probably end up on the meager side of profitability if you are lucky as most trades have been less than optimal during this past year.
I also have issues with some pundits writing almost every day that there are setups for day trading. This may be 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. Do not fall into the trap of money burning a hole in your pocket, sit tight better days are coming. Watch for increasing volume to signal improved trading.
Swing trading is also at your own risk for all the reasons mentioned above. Because the market is at a crossroads of sorts, I would prefer to sit on my hands as the markets are currently untradable. Guessing where the market is going to be tomorrow or next week, at this time anyway, can be a foolish and costly endeavor.
The DOW at 10:15 is at 13209 up 73 or 0.56%.
The SP500 is at 1422 up 9 or 0.63%.
SPY is at 142.94 up 0.82 or 0.58%.
The $RUT is at 828.67 up 4.90 or 0.59%.
NASDAQ is at 2984 up 13 or 0.45%.
The longer trend is up, the past months trend is bulish and the current bias is up.
WTI oil was up today and is currently trading up at 87.56 trading between 86.48 and 87.59 and the bias is positive.
Brent crude last report was at 109.15.
Gold has been mixed this morning. Currently trading up at 1696.71, trading range is between 1686.00 and 1699.90 with a positive bias.
Dr. Copper is at 3.66 down from 3.69 earlier.
The US dollar fell from 79.78 earlier to 79.56 and is currently trading up at 79.59.
** RRR = Risk Reward Ratio
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Written by Gary