Daily Market Comments 30 June 06 by MastersoEquity.com
Fundamental
What a pleasant surprise! The markets surged with great amount of exerberance yesterday in a move that recovered most of the lost ground for the month. It was an extremely broadbased move that started even before the Fed release. As anticipated, the Feds could either release a good or a bad news (it used to be only bad news) and it is a good news release hinting to a pause in rate hikes that instantly brought the market to new heights. Could this be the start of a rally? It might but lets not forget that oil prices are silently on the rise in the background and the iranian issue remains unresolved. There are still much uncertainty in the background and should oil prices stay strong, we might see the markets reacting to it like it did a couple of months ago.
Technical
The surge yesterday allowed both NASDAQ and DJIA to break out of the downwards price channel that we talked about yesterday with high volume. This is an extremely encouraging sign and with the markets not nearly at overbought state, there could be more upside to come even though a few days of consolidation may be in order at these levels. Both indexes need to find their respective support levels on top of their respective 30SMA lines in order to secure their positions and this needs to be proven over the next few days.
What a pleasant surprise! The markets surged with great amount of exerberance yesterday in a move that recovered most of the lost ground for the month. It was an extremely broadbased move that started even before the Fed release. As anticipated, the Feds could either release a good or a bad news (it used to be only bad news) and it is a good news release hinting to a pause in rate hikes that instantly brought the market to new heights. Could this be the start of a rally? It might but lets not forget that oil prices are silently on the rise in the background and the iranian issue remains unresolved. There are still much uncertainty in the background and should oil prices stay strong, we might see the markets reacting to it like it did a couple of months ago.
Technical
The surge yesterday allowed both NASDAQ and DJIA to break out of the downwards price channel that we talked about yesterday with high volume. This is an extremely encouraging sign and with the markets not nearly at overbought state, there could be more upside to come even though a few days of consolidation may be in order at these levels. Both indexes need to find their respective support levels on top of their respective 30SMA lines in order to secure their positions and this needs to be proven over the next few days.
posted by Jason Ng at 8:41 PM
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