Written by Gary
Opening Market Commentary For 09-03-2013
Premarkets were up +1.00% recovering from the previous week of Syrian war scare. Markets are very fragile and most investors wouldn’t consider moving one way or the other.
Markets opened up and the DOW moved up to +1.11%, SP500 +1.09% and the NASDAQ +1.27%. Most of the major indices left significant opening gaps representing a bearish outlook. MSFT took a 2 point hit this morning edging down to 31.62 approaching a support around 31.25.
By 10 am the markets had turned very slightly and were melting down, but this is most likely going to be a sea-saw action at this level.
The news for the morning from Zerohedge.
Mediterranean ‘Ballistic Targets’ Were Part of Israeli Test – Defense Ministry (RIA)
Microsoft to Buy Nokia’s Devices Unit for $7.2 Billion (BBG)
Long-Term Jobless Left Out of Recovery (WSJ)
Swiss banks apologize for assisting tax cheats (Reuters)
As Obama pushes to punish Syria, lawmakers fear deep U.S. involvement (Reuters)
India Looking to Expand Rupee-Payment System (WSJ)
Citigroup Dialing Back Its ‘Alternative’ Holdings (WSJ)
Libya Seeks New Solutions to Oil Crisis (WSJ)
Lenovo Chief Yang Shares Bonus With Workers a Second Year (BBG)
As of right now, it is too late to jump in to catch the market highs, assuming there are going to be some, safely anyway. Traders 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 I feel you will not have to wait much longer.
The RRR** has been wider on some volatile sessions lately unfortunately a lot of guessing remains which way Mr. Market is going to go.
Correctly ‘guessing’, of course, is the tricky part of the successful trading equation.
I also have continuing issues with some pundits, writing continually, that there are good setups for day trading but that whining seems to have turned the other way. Best Stock Market Indicator Ever: Confirm “Untradeable”. This article, a wedge between perception and reality, conceptualizes the fantasy that has that has been going on for some time now where the reality doesn’t match this continued bull run. Maybe we have seen the top – but don’t count it just yet.
Swing trading is also at your own risk although guessing overnight trades would have been most profitable over the past year. 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 10:00 is at 14887 up 78 or 0.53%.
The SP500 is at 1647 up 14 or 0.87%.
SPY is at 165.15 up 1.50 or 0.90%.
The $RUT is at 1023 up 13 or 1.24%.
NASDAQ is at 3631 up 42 or 1.17%.
NASDAQ 100 is at 3108 up 34 or 1.10%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bearish and the current bias is bullish.
WTI oil is trading between 106.56 and 107.74 today. The session bias is positive and is currently trading down at 107.37.
Brent Crude is trading between 113.78 and 115.67 today. The session bias is positive and is currently trading up at 114.75.
Gold rose from 1184.31 earlier to 1404.48 and is currently trading up at 1403.80.
Dr. Copper is at 3.295 falling from 3.316 earlier.
The US dollar is trading between 82.27 and 82.52 and is currently trading up at 82.51, the bias is currently bullish.
** RRR = Risk Reward Ratio
To contact me with questions, comments or constructive criticism is always encouraged and appreciated:
Written by Gary