Daily US Market Comments 09 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
Well, after a few great months in the markets, OPEC has at last made a direct response to the sliding oil prices with 6 members agreeing to cut oil production by 1 million barrel per day. This move should at least be able to stop oil prices from falling at further or better still, in OPEC's view of course, raise oil prices. But the golden question remains; How will this affect the stock markets? Will it bring a stop to the rally so far?
TECHNICALS
Markets have done extremely well for the past 3 months in a rally that almost completely shadows the inverse of the oil prices. The impact that the cut in production has on the markets will definitely overshadow any technical forecast.
Well, after a few great months in the markets, OPEC has at last made a direct response to the sliding oil prices with 6 members agreeing to cut oil production by 1 million barrel per day. This move should at least be able to stop oil prices from falling at further or better still, in OPEC's view of course, raise oil prices. But the golden question remains; How will this affect the stock markets? Will it bring a stop to the rally so far?
TECHNICALS
Markets have done extremely well for the past 3 months in a rally that almost completely shadows the inverse of the oil prices. The impact that the cut in production has on the markets will definitely overshadow any technical forecast.
posted by Jason Ng at 6:02 PM
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