Opening Market Commentary For 06-04-2013
Premarkets were up +0.10% and without any important US financial reports this morning direction was again difficult to determine. The first report ISM New York dropped to 54.4 (rated low) from the last report of 58.3. It seems more bad financial news doesn’t bother Mr. Market. Mr. Market’s excuse now is that we are waiting for the jobs report, but wasn’t that the excuse last week? In the meantime let’s melt upwards.
By 10 am the markets had melted up on relatively low volume leading one to believe that today’s session was going to be another lackluster sideways waste of time.
The RRR** has was narrow at the opening bell today and it doesn’t look like it is going to expand any in today’s session with volume being low. It has been like this for the past several months, over a year actually, and it looks like it is going to be this way all week, like last week. This continuing trend of low volume and narrow trading sessions makes predictions of session movements nearly impossible, thus making trading futile and unprofitable.
I also have continuing issues with some pundits, writing continually, that there are good setups for day trading. Best Stock Market Indicator Ever: Slips To 93% Down From 95% and Secondaries Confirm “Tradable” This might be true, but still above ~60% where I think it should be! Hard to believe and challenging to deal with considering ‘not so good’ current events. There is a wedge between perception and reality going on right now where the reality doesn’t match this bull run.
The trading range has been so narrow that way too much 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.
The DOW at 10:15 is at 15275 up 20 or 0.13%.
The SP500 is at 1642 up 2 or 0.10%.
SPY is at 164.60 up 0.27 or 0.16%.
The $RUT is at 990.08 down 0.45 or -0.04%.
NASDAQ is at 3474 up 9 or 0.27%.
NASDAQ 100 is at 3001 up 10 or 0.35%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been sideways and the current bias is positive.
WTI oil is trading between 93.55 and 92.48 today. The session bias is bearish and is currently trading down at 92.65.
Brent crude is trading between 102.52 and 101.47 today. The session bias is bearish and is currently trading down at 101.60.
Gold fell from 1414.55 earlier to 1398.00 and is currently trading down at 1396.85.
Dr. Copper is at 3.349 rising from 3.303 earlier.
The US dollar is trading between 83.41 and 82.45 and is currently trading up at 82.94, the bias is currently bullish.
** RRR = Risk Reward Ratio
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Written by Gary