Opening Market Commentary For 03-20-2013
Premarkets were up (SPY +0.55%) suggesting a gap up for the cash crowd and a waning concerns over Cyprus. FedEx turned in worse than expected earnings and investors are still concerned over the markets future.
Markets opened with a burst of green volume quickly followed by the bears doing some profit taking on following volume. Generally the major averages were up a half a percentage and the DOW squeezed out a new high at14542. Several gaps were made on the opening bell, but I suspect they will be closed before this session is over when the averages melt down.
By 10 am the markets melted off the highs as predicted and were coasting sideways on falling volume. The HFT computers might push the averages higher, but nothing that the FOMC can’t correct later today.
The RRR** has been narrow at the opening bell for the past several months, over a year actually, and has continued the trend again today. This continuing trend makes predictions of session movements nearly impossible making trading futile and unprofitable. As of right now, it is too late to jump in to catch the highs and still may be too early to start shorting.
The DOW at 10:15 is at 14537 up 20 or 0.64%.
The SP500 is at 1558 up 9 or 0.61%.
SPY is at 155.56 up 0.95 or 0.61%.
The $RUT is at 948.98 up 6 or 0.65%.
NASDAQ is at 3250 up 21 or 0.65%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral and the current bias is sideways.
WTI oil is trading between 92.02 and 93.18 today. The session bias is bullish and is currently trading down at 92.64.
Brent crude is trading between 106.98 and 108.09 today. The session bias has turned bearish and is currently trading down at 107.62.
Gold fell from 1615.10 earlier to 1607.00 and is currently trading up at 1608.96.
Dr. Copper is at 3.44 rising from 3.39 earlier.
The US dollar is trading between 83.31 and 82.78 and is currently trading down at 82.79, the bias is currently bearish.
** RRR = Risk Reward Ratio
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Written by Gary