Midday Market Commentary For 03-27-2013
Markets remain in the red, but have recovered nicely from the opening session lows. The Gaps in the DOW mentioned earlier have been closed as suggested they would and have gone on to melt even higher which at this point becomes questionable as to how much higher it can go.
By noon the averages were nearing flat status as the numbers melt higher on low to moderated volume bring back hope to the bulls.
Home sales fall and the markets rise, go figure. Some investors are going to be genuinely surprised when the market bottom falls out.
U.S. pending home sales fell 0.4% in February from January, according to the National Association of Realtors. Sales were expected to decrease 0.2% for the month. Sales increased 8.4% from the same period a year ago.
As of right now, it is too late to jump in to catch the highs and still may be too early to start shorting.
As long as market volume remains light or the trading range is narrow, one can expect successful, or at least profitable, trading to remain elusive. Unfortunately 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.
The DOW at 12:00 is at 14520 down 39 or -0.27%.
The SP500 is at 1560 down 3.50 or -0.22%.
SPY is at 155.88 down 0.31 or -0.20%.
The $RUT is at 947.40 down 2.41 or -0.25%.
NASDAQ is at 3248 down 4 or -0.14%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral to bearish and the current bias is up.
WTI oil is trading between 93.50 and 96.22 today. The session bias is bullish and is currently trading up at 96.19.
Brent crude is trading between 108.10 and 109.82 today. The session bias is bullish and is currently trading up at 109.53.
Gold rose from 1591.20 earlier to 1607.75 and is currently trading down at 1603.25.
Dr. Copper is at 3.44 down from 3.47 earlier.
The US dollar is trading between 82.88 and 83.49 and is currently trading up at 83.46, the bias is currently bullish.
** RRR = Risk Reward Ratio
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Written by Gary