Midday Market Commentary For 12-28-2012
Not much has happened since this mornings report and the markets continue to trade sideways in a narrow, low volume session. I am sure the ‘dippers’ will come into play as the day wears on betting the Washington politicians come up with something. They may, but guaranteed it won’t be more than kicking the can down the road.
Again watch out for fake bull and bear runs the HFT computers love to start.
The RRR** has been narrow at the opening bell for the past several months and continued the trend again continuing to the midday session. 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 2012 ends and 2013 begins, but a lot of guessing 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 the past year.
I also have continuing 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 12:15 is at 13029 down 67 or -0.51%.
The SP500 is at 1411 down 6.60 or -0.47%.
SPY is at 140.94 down 0.65 or -0.46%.
The $RUT is at 836.59 down 0.81 or -0.10%.
NASDAQ is at 2976 down 9 or -0.31%.
The longer trend is up, the past months trend is bullish and the current bias is neutral.
Crude Rallies Despite Potential Fall Off The “Fiscal Cliff”
WTI oil was down this morning and is currently trading up at 90.597 trading between 91.49 and 90.79 and the bias is negative.
Gold was down this morning. Currently trading up at 1654.85, trading range is between 1665.70 and 1653.78 with a negative bias.
Dr. Copper is at 3.59 down from 3.62 earlier.
The US dollar is falling from 80.04 earlier to 79.71 and is currently trading down at 79.77 after gaping down at 79.88.
** RRR = Risk Reward Ratio
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Written by Gary
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