Opening Market Commentary For 07-10-2013
Premarkets were down enough to make investors believe that we were going to have a down day. When the market opened the averages slowly started to melt upwards, but on anemic volume which looks like HFT computers at work.
By 10 am the markets stabilized near yesterday’s highs and began a sideways movement that will likely prevail over the morning hours until the FOMC minutes are released later today. By 10:15 there was a negative slant to the markets promising an interesting day ahead.
The RRR** was narrow at the opening bell today and especially confusing because the premarket numbers were below yesterday’s closing and then rising some 0.15% after the opening. Volume was light at the session beginning and remained that way for the first half hour.
As of right now, it is too late to jump in to catch the highs, if in fact there are more to be seen. Traders also need to be especially cautious how close you set your stops as we have seen lately several corrections that unnecessarily wiped out a lot of investment profits. As for shorting, it still may be too early to start picking out your best candidates but be ready for any flash correction.
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.
The trading range has been so narrow lately 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. 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 15299 down 1 or -0.01%.
The SP500 is at 1651 down 1 or -0.06%.
SPY is at 165.01 down 0.12 or -0.08%.
The $RUT is at 1018 up 0.44 or 0.04%.
NASDAQ is at 3509 up 4 or 0.10%.
NASDAQ 100 is at 2986 up 2 or 0.09%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bullish and the current bias is neutral.
WTI oil is trading between 104.22 and 105.62 today. The session bias is positive and is currently trading down at 105.17.
Brent crude is trading between 107.71 and 108.68 today. The session bias is positive and is currently trading down at 109.18.
Gold rose from 1242.36 earlier to 1258.00 and is currently trading down at 1253.65.
Dr. Copper is at 3.085 rising from 3.031 earlier.
The US dollar is trading between 84.92 and 84.43 and is currently trading down at 84.46, the bias is currently bearish.
** RRR = Risk Reward Ratio
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Written by Gary