Midday Market Commentary For 01-11-2013
Midday markets haven’t changed from earlier and are flat and quiet. Volume has been falling off as we head into the afternoon session. Unless there is some lifestyle changing news expect the rest of the session to look the same. There could be some buying towards the last 5 minutes, but other than that is is going to be another lackluster day.
The RRR** has been narrow at the opening bell for the past several months and continued the trend again going into 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 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 several years.
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. I keep hoping for increasing volumes 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 12:30 is at 13470 up 0.30 or 0.00%.
The SP500 is at 1469 down 2 or -0.18%.
SPY is at 146.82 down 0.27 or -0.18%.
The $RUT is at 878.36 down 2.88 or -0.33%.
NASDAQ is at 3118 down 3 or -0.09%.
The longer trend is up, the past months trend is bullish and the current bias is sideways.
WTI oil was down this morning and is currently trading up at 93.27 trading between 94.60 and 92.64 and the bias is negative.
Brent crude was down earlier and is currently trading sideways at 110.26 trading between 113.28 and 110.05 and the bias is negative.
Gold was down this morning. Currently trading down at 1655.65, trading range is between 1676.12 and 1653.70 with a negative bias.
Dr. Copper is at 3.66 falling from 3.71 earlier.
The US dollar fell from 80.53 earlier to 79.50 and is currently trading down at 79.56.
** RRR = Risk Reward Ratio
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Written by Gary
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