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.
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.
posted by Jason Ng at 8:53 PM
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