Daily US Market Comments 01 August 2006 by MastersoEquity.com

FUNDAMENTALS
A sideways day yesterday with the markets going pretty much no where. The event for the week is definitely Mr B's interest rate decision in 2 days time. Volume have been low yesterday indicating that some investors are beginning to sit on the sidelines and those that think the rate hike will not happen have been almost fully priced in. In this case, if rates do take a pause, there may be little upside left due to all the early optimism but should the rate take another hike, there will be plenty of downside to come.

TECHNICALS
A neutral day yesterday as the market failed to commit to either a topside break or a downside correction into their respective channels. It sure looks like the markets are going to be slightly fundamental driven this week with Mr B's decision round the corner.

Daily US Markets Comments 31 July 2006 by MastersoEquity.com

FUNDAMENTALS
The US markets had a slight boost last week from falling oil prices and the decreasing likelihood of another rate hike on the next Fed meeting on 3 Aug. The crisis in the middle east continues but let's not start to view the US markets as controlled by the middle east conflict... it is NOT. The impact on the middle east conflict is primarily on oil as far as the US markets is concerned for now. These impact would have been analysed and reflected in the daily oil prices by the markets. That is why the primary concern for fundamental traders should be just the oil prices and not how the middle east conflict is developing. There are so many variables affecting oil prices that it is insufficient and inaccurate to just keep your eyes on the middle east.

TECHNICALS
The US markets continue its broadbased move up as oil prices continue to fall. Looking at both the NASDAQ Composite index and the Dow, tells us that these two trading days are critical to where the market might head towards for perhaps an intermediate trend. We see NASDAQ at the top of the downwards channel that it has so faithfully been in for the last 2 months. If it should fail at this level, we might see NASDAQ moving into new lows. Looking at the Dow shows us that it is also at the top of its sideways price channel. If it fails to break decisively to downside, we might see it correcting back down to continue its sideways trend. So, indeed, these 2 days will be critical, so let us watch in eager anticipation.

Daily US Market Comments 27 July 2006 by MastersoEquity.com

FUNDAMENTALS
Markets collaspe during the last hour in what looked like the third day of rise. With the positive bias earnings reports and further indications of a slow down in the US economy, the markets look good to continue its rally through the Fed announcement next week but for some reasons, it failed to hold up in the end.

TECHNICALS
We saw a sideways market yesterday with both the Dow and NASDAQ making new highs against the day before. Breadth reading is neutral and both indexes are near or at short term resistance levels. If there are no break outs today, we may see the markets going sideways for a while.

Daily US Market Comments 26 July 2006 by MastersoEquity.com

FUNDAMENTALS
An up day in the markets yesterday bolstered by steep correction in oil prices with the middle east crisis looking to come to an end. This may also be a show of confidence that the present oil reserves are more than sufficient in the US. Nonetheless the markets moved up late and unexpectedly showing a strong bullish sentiment towards the end of the day.

TECHNICALS
Markets were up yesterday in a follow through on the rally of 2 days ago. Breadth reading is healthy eventhough the move have been backed by a lesser than desired amount of volume. The dow is showing a lot more promise as it made a higher high and a higher low breaking the high of the Bernanke Bounce. This definitely gives the dow more reason to go up than NASDAQ which is at best still just trading sideways. This is completely understandable as the Techs have been reporting in with less than ideal earnings so far. Should the markets follow through today, we may see the Dow testing the June highs soon. NASDAQ needs to show a committed break to top side before it has any hopes of going any higher.

Daily US Market Comments 25 July 2006 by MastersoEquity.com

FUNDAMENTALS
It seems like some of the good earnings release along with RICE's intervention on the Isreali conflict has proven to be quite a booster for the markets as markets rallied yesterday. You do not want to be caught in a short if and when good news come along from the middle east right now. It also look evident that the present oil price has been priced into the market at last as the rebound in oil price didn't seem to dampen investor sentiments yesterday.

TECHNICALS
A broadbased advance in the markets yesterday despite rising oil prices. Even though it looks like a strong session, the markets had merely moved sideways. The markets have dropped into a deep oversold position and is going sideways right now. Unless we see a substantial follow up today, this may be just another Bernanke Bounce.

Daily US Market Comments 24 July 2006 by MastersoEquity.com

FUNDAMENTALS
The US markets continue to drop further last Friday on rising oil prices and mixed earnings. The Bernanke Bounce seems to have completely lost momentum and have given in to down side. What the market really needs now is for the middle east crisis to settle down and the Feds to not raise interest rates this coming meeting.

TECHNICALS
Both the Dow and Nasdaq looks decisively weak last Friday with the correction continuing into the second day. NASDAQ has taken a more severe hit as the 2040 support level was broken on high volume. The 2040 / 2050 level have proven critical and strong as it held the index up last July and October. NASDAQ should see another support at 2000 where it must prove itself or take a journey to the center of the earth...

Daily US Market Comments 21 July 2006 by MastersoEquity.com

FUNDAMENTALS
Another surprising day yesterday. NASDAQ obliterated its gain of 2 days ago with a 1.98% drop and the Dow edged down 0.76%. This drop was following some really bad earnings report from giants such as Microsoft even as oil prices continue to fall. It does seem like the market is going to experience a great deal of day to day volatility due to a very mixed earnings season. Let's brace for the ride.

TECHNICALS
It was a bad day in the markets but was it bad enough to completely reverse the effects of the Bernanke Bounce? Looking at the price action, we see that NASDAQ was pretty hard hit but managed to stay above the low of the Bernanke Bounce, preserving some bullish integrity. The Dow edged down slightly but held way up the Bernanke Bounce too. There seems to be some bullish under current left in yesterday's price action and the markets must prove its strength in today's trading before any further upside can be confirmed.

Daily US Market Comments 20 July 2006 by MastersoEquity.com

FUNDAMENTALS
What a surprising turn of events! The Dow ended up in an extremely strong 1.96% and NASDAQ was slightly less than impressive at 1.83%. Fed Chairman's testimony that inflation is slightly higher than expected but is under control and that we should see it coming down soon along with dropping oil prices have been the primary fuel for the rally today or what the press calls a Bernanke Rally. It does seem that investors are more concerned about further rate hikes than anything else and a slight hint to its pause does have critical effects on the markets.

TECHNICALS
Yesterday truly was a key reversal point in an oversold market. Indexes moved up with great bullishness and volume forming a nice J hook formation on NASDAQ and the Dow. Techincals have reversed completely overnight with the bearish momentum completely obliterated and stochastics moving off the oversold region.



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Daily US Market Comments 19 July 2006 by MastersoEquity.com

FUNDAMENTALS
An almost encouraging day with a good run towards the end of the trading day. The Dow gained marginally by 0.48% and NASDAQ gained 0.27%. Oil prices was extremely volatile yesterday going up and down as much as $1 throwing most investors who are trading based on oil prices off their feet completely. Earnings are also mixed with some companies doing better than others. Tomorrow's CPI numbers should be able to give a boost to the markets should it confirm inflation is under control.

TECHNICALS
A sideways market with very little commitment to upside. There isn't enough breadth to suggest a key reversal day as advancers and decliners were almost on equilibrium. Instead, the markets continue to make new lows yesterday without so much as to beat the high of 2 days ago. This is a key area for the markets right now where a reversal can indeed take place should a key reversal day turn up today setting a new week high on good breadth.

Daily US Market Comments 18 July 2006 by MastersoEquity.com

FUNDAMENTALS
Oil prices took a breather at last. This has given some relief to an extremely tight strung market. The DOW ended up 0.07% and NASDAQ ended up 0.02%. The question now is whether or not oil prices will stay down with Isreal declaring full scale war on two fronts. Sentiments remain bearish in the markets as indexes are mixed for the most part of the day.

TECHNICALS
It is definitely not strange to see a slight rebound today even if oil wasn't the factor. Such an accumulation usually set pace for more downside rather than a sign of a reversal. The markets are not grossly oversold yet and could set up more downside to come.

Daily US Market Comments 17 July 2006 by MastersoEquity.com

FUNDAMENTALS
We all know the big news by now, don't we? Isreal continues to enforce its military might on Syria and Lebanon which resulted in oil prices making record highs. In fact, it was at one time trading at $78.40 last Friday! Analysts are looking at a possible $100 per barrel coming up soon and should put quite a bit of pressure on the stock markets as corporate profitability comes under pressure. All indicators are also pointing toward a slow down in the US economy due to consumers cutting back on spending. Consumers now have to put up with higher living expenses as gas and power costs rises. This along with a slow down in corporate earnings made it less possible to see broad based pay rises. This forms a vicious cycle which increases the risk of recession to nearly 50% according to some analysts. The CPI numbers and Mr B's testimony at the end of the week needs to cast some optimism into the markets. The last straw that could truly kill the camel right now is the prospect of another rate hike.

TECHNICALS
The markets continued through its drop with resolve. NASDAQ has broken its price channel to downside and the Dow is fast approaching its June lows. All in all, there are no indications whatsoever that hints at a bottom as there is still a great deal of momentum to downside. NASDAQ should start to accumulate at 2000 and form a support level, if not, then there is really no telling how low it can go. The Dow still does look hopeful should it accumulate at the June Lows.

Daily US Market Comments 14 July 2006 by MastersoEquity.com

FUNDAMENTALS
Markets slump under continuous pressure from record breaking oil prices and continued middle east unrest. The Dow avalanched 1.52% and NASDAQ collasped 1.73%. Oil prices continue to hold above a record $78 per barrel with continued pressure from the middle east. The second quarter earnings have not been great so far with companies reporting in lower than estimates and more releasing warnings beforehand. This might indicate that the interest rate hikes have been overdone and have affected corporate profitability. With no upbeat factors in the environment, we might have to look forward to next week's CPI numbers for some shade of bullishness.

TECHNICALS
Unquestionably a down day in the markets as NASDAQ push to new lows. Momentum to downside continue to be strong as NASDAQ breaks its 2100 support level in this tech led drop. Stochastics indicate that the markets are not at oversold levels yet suggesting more downside to go, continuing the intermediate down trend so far. Unless the markets prove otherwise quickly, this trend is set and here to stay.

Daily US market comments 13 July 2006 by MastersoEquity.com

Fundamentals
Markets have made a decision at last to move to downside. In view of the largely bearish sentiments so far, this move is really not surprising. This must be good news for swing traders though as a sideways market is really bad for swing traders like us. The Dow corrected 1.09% and NASDAQ 1.81% in an extremely broadbased move. Decliners beat advancers more than 2 : 1 and twice as many stocks made new lows yesterday than new highs. Oil prices continue to push record highs and more companies lower their earnings estimates. There is simply no significantly positive news to count on today.

Technicals
The Dow broke to downside following the leadership of NASDAQ at last. The Dow has managed to hang on to their FOMC day rally low for a very long time now and with today's close this near to the low of FOMC day rally, we can see that it will probably break that level should NASDAQ continue its weakness. NASDAQ broke its important 2100 psychological support level yesterday with a lot of strength closing at the low of the day. The downward momentum is definitely strong and I doubt we are seeing a bottom as yet.

Daily Market Comments 12 July 2006 by MastersoEquity.com

Fundamentals
The markets were up slightly yesterday with the Dow rising 0.28% and NASDAQ rising 0.56%. The markets were down the bulk of the day on rising oil prices and heavy profit taking. A late rally started after heavy accumulation began in the semi conductor sector. There is little to suggest an upbeat 2nd quarter earnings season so far as companies such as a slew of profit warnings were released over the last 2 days.

Technicals
NASDAQ continue to form a lower low and a lower high suggesting a bearish sentiment in the day's market action as the Dow continues to trade sideways. With NASDAQ quickly reaching a short term oversold position, it is not strange to see it take a slight breather at this point. Again, we should be seeing NASDAQ test its 2100 support level soon and that will be critical eventually to where the entire market will head knowing that all indexes eventually follow the direction of the leader.

Daily Market Comments by 11 July 2006 by MastersoEquity.com

Fundamentals
Markets closed mixed with a slight bearish sentiment. The Dow was up 0.12% and NASDAQ was down 0.62%. This was following a downgrade of the tech sector by Merrill Lynch and quick profit taking on Alcoa underpinning great profit taking anticipation for the coming releases. Oil prices fell for a 3rd consecutive day but have held up above $72 definitely, suggesting that oil prices may see more upside to come than downside.

Technicals
NASDAQ continues its downward trend breaking the low of the FOMC rally as the Dow continues its journey sideways. There is a great deal of momentum in the NASDAQ retreat and we should see a testing of the 2100 support level very soon. The Dow continues to struggle at its 50 days moving average proving it to be a strong resistance level. If we do not see a break to upside soon, then we might really have another intermediate downtrend on our hands.

Daily US Market Comments 10 July 2006 by MastersoEquity.com

Fundamentals
A disappointing day last Friday with the market giving up all of its gains so far. This is probably due to high oil prices and a slew of economic data suggesting that the US economy is slowing down. Could this also be a pricing in of a bearish sentiment surrounding the coming second quarter earnings season?

Technicals
The markets have been moving largely sideways since the FOMC rally. The lows of the rally have held strong and we should see it being tested by today. If the lows hold, it might be a good support level from where the markets might stage a comeback. For now, the downside momentum is still strong with stochastics trailing down steadily with the market from an overbought position.

Daily Market Comments 07 July 2006 by MastersoEquity.com

Fundamentals
Markets were down marginally yesterday. DJIA dropped by 0.66% and NASDAQ dropped by 0.08%. The drop, however, was marginal with no leadership. Advancers and decliners are almost equal with more stocks making new highs than lows. This might be attributed to the service industry reports pointing to the effectiveness of the interest rate hikes so far. Crude oil fell for a 2nd consecutive day on an unexpected rise in oil inventory and could have contributed to the slight optimism. The job reports will be out tomorrow and that could cast the definitive lot on the short term market direction.

Technicals
Markets are sideways at best yesterday. That marginal move failed to make any change in sentiments in both indexes. We see, however, that the low established on the rally of 29 June is still well in place and in force, preserving the bullish inclination that have been established. Looking at DJIA, we see a typical consolidation pattern developing that can result in either a big upwards or downwards move within the next 2 days. With markets inclined to upside, I would think the chances are pretty good to upside.

Daily Market Comments 06 July 2006 by MastersoEquity.com

Fundamentals
Markets gave all investors a nasty surprise again yesterday. When all things are looking bullish, an unexpected missile test from North Korea, a series of economic data that gave rise to worries of an over slowing in the economy and rising oils prices came up. DJIA gave up 0.68% and NASDAQ was hard hit with 1.69%. We will have to wait for employment figures on Friday to give a shade of hope to the markets.

Technicals
Markets consolidate further into the red yesterday. Note worthy is that there are still a significant number of stocks making new highs versus new lows yesterday thereby creating a secretive bullish under current to this wave of bearishness. We need to see a definite break to upside today or tomorrow if not, we may be settling into a sideways price channel.

Daily Market Comments 05 July 2006 by MastersoEquity.com

Fundamentals
Markets continue to rally through the short trading day on Monday. It is again a broadbased move with advancers beating decliners by a wide margin and more stocks are making new highs than lows. Overall, it is an extremely bullish sentiment eventhough there was no big move. This is the start of a new quarter and usually, the markets do take well to it. The only fundamental question in mind is oil. Oil prices have been maintained at above $72 per barrel and might put some strain on the market.

Technicals
Markets were in a neutral day on Monday with both index moving sideways at best. It is pretty normal to see the markets go into up to 5 days of sideways consolidation after a big one day move and it is encouraging indeed to see that prices did not ditch like it did so many times after a big one day move in June. We will need to see another rise quickly, breaking new highs, in order to confirm the rally.

Daily Market Comments 3 July 2006 by MastersoEquity.com

Fundamentals
Last week have been truly quite a ride for most traders and a good relieve for traders who have been averaging down for a while now. Markets rallied strongly on a favorable Fed release hinting to a pause in interest rate rise at last. Along with a spruce of great economic data like a higher CPI and PCE deflator, we can almost expect the rally to follow through into this Independance Day week. One silent evil persists in the background as oil prices continue to trade secretly higher throughout the week and have led to a rally in its ETF (USO) by over 4% in a week.

Technicals
DJIA and NASDAQ has done extremely well in breaking out of their price channels last week. NASDAQ has formed a new support level at the 2100 point and DJIA has formed a support level off the 10,900 point. Both indexes are showing a higher high and a higher low on Friday indicating more strength to upside. We can expect this rally to sustain if significant strength follows up this week.