Opening Market Commentary For 01-07-2013
Premarket was down as summarized after closing on Friday. In an unusual sell off in the Friday’s aftermarket there was every indication we would see at least a small downward movement at today’s opening
Today’s session opened down close to Thursday’s low mark setting the limits for a sideways track for several sessions before Mr. Market’s next move, which I believe will be upwards. By 10 am the averages settled down and the dippers moved in for a bit of bear sandwich melting the averages off their morning lows.
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 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 although guessing overnight trades would have been most profitable. Again, 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 13382 down 53 or -0.40%.
The SP500 is at 1461 down 6 or -0.38%.
SPY is at 146.83 down 0.51 or -0.37%.
The $RUT is at 876.00 down 3 or -0.36%.
NASDAQ is at 3092 down 10 or -0.31%.
The longer trend is up, the past months trend is bullish and the current bias is up.
WTI oil was down this morning and is currently trading up at 92.89 trading between 93.24 and 92.40 and the bias is positive.
Brent crude was down earlier and is currently trading down at 110.71 trading between 111.52 and 110.54 and the bias is negative.
Gold was down this morning. Currently trading down at 1645.72, trading range is between 1662.55 and 1644.00 with a negative bias.
Dr. Copper is at 3.67 down from 3.71 earlier.
The US dollar down from 80.80 earlier to 80.58 and is currently trading down at 80.59.
** RRR = Risk Reward Ratio
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Written by Gary
