Daily US Market Comments 19 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
The markets have been pretty strange lately in that it usually respond very strongly to good news early in the trading session and then end up mixed or down. Markets opened strongly yesterday on favorable CPI numbers indicating that inflation is under control. By the end of the day, markets were mixed with the Dow up slightly but NASDAQ down 0.33%. By recent observation, the real effect of any news on the markets lately, only surfaces about 2 to 3 days after. With inflation under control and oil prices continue to trade lower, the markets have all the fundamental reasons it needs to go further up.
TECHNICALS
The Dow continues to trade higher yesterday slightly to our surprise. This made its trendline grow ever steeper and steeper. We expected the markets to correct a little before continuing higher on the same trendlines that brought them up so far. NASDAQ and the S&P500 seems to be follow that game plan well. Steep rising trendlines like what we see in the Dow will no doubt collaspe one day into a severe correction and we should be on the vigilance should indications of such a movement becomes imminent.
Want A Fail Safe Way To Trade The Market?
The markets have been pretty strange lately in that it usually respond very strongly to good news early in the trading session and then end up mixed or down. Markets opened strongly yesterday on favorable CPI numbers indicating that inflation is under control. By the end of the day, markets were mixed with the Dow up slightly but NASDAQ down 0.33%. By recent observation, the real effect of any news on the markets lately, only surfaces about 2 to 3 days after. With inflation under control and oil prices continue to trade lower, the markets have all the fundamental reasons it needs to go further up.
TECHNICALS
The Dow continues to trade higher yesterday slightly to our surprise. This made its trendline grow ever steeper and steeper. We expected the markets to correct a little before continuing higher on the same trendlines that brought them up so far. NASDAQ and the S&P500 seems to be follow that game plan well. Steep rising trendlines like what we see in the Dow will no doubt collaspe one day into a severe correction and we should be on the vigilance should indications of such a movement becomes imminent.
Want A Fail Safe Way To Trade The Market?
posted by Jason Ng at 8:11 PM
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