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.
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.
posted by Jason Ng at 10:00 PM
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