Daily US Market Comments 16 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
Continued correction in oil prices despite what has been done by OPEC so far spurred the markets on. Seeing the ineffectiveness of its actions so far, OPEC, which is responsible for 40% of the world's oil export, will be meeting to officially discuss a 1 million barrel per day cut in production in order to stablise oil prices. I would think the oil cartel will continue to pursue actions with increasing intensity to stop oil prices from falling at all cost. By the time oil prices turns around, the markets would also be in such an overbought condition that it will not be strange to see a correction.
TECHNICALS
All technical indicators scream a strong bullish battle cry. Market momentum is strong and trading atop a strong rising trendline. The only indication that the rally may slow down a little very soon is the consistently falling volume and the extreme overbought condition. Overall, it is going to take a lot more than that to turn this trend around.
Are You Missing Out This Rally Just Because You Don't Know What To Buy And When To Sell?
Continued correction in oil prices despite what has been done by OPEC so far spurred the markets on. Seeing the ineffectiveness of its actions so far, OPEC, which is responsible for 40% of the world's oil export, will be meeting to officially discuss a 1 million barrel per day cut in production in order to stablise oil prices. I would think the oil cartel will continue to pursue actions with increasing intensity to stop oil prices from falling at all cost. By the time oil prices turns around, the markets would also be in such an overbought condition that it will not be strange to see a correction.
TECHNICALS
All technical indicators scream a strong bullish battle cry. Market momentum is strong and trading atop a strong rising trendline. The only indication that the rally may slow down a little very soon is the consistently falling volume and the extreme overbought condition. Overall, it is going to take a lot more than that to turn this trend around.
Are You Missing Out This Rally Just Because You Don't Know What To Buy And When To Sell?
posted by Jason Ng at 8:20 PM
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