Daily US Market Comments 30 Oct 2006 by MastersoEquity.com
FUNDAMENTALS
Markets closed last Friday in the greatest one day drop for the month of October. US GDP rose at the slowest pace in 3 years by only 1.6%. This is not a surprising event as the drop in GDP hs been forewarned by Big Ben during the recent Fed release. However, that did not stop the market from reacting negatively to it. Oil continued to move sideways along its support level with no real sign of staging a come back yet. Overall, despite lower GDP, US economy continue to look promising with inflation coming to a soft landing.
TECHNICALS
Markets continue to move sideways last Friday despite the huge drop. It sure looks like the market is at last willing to yield to a short term consolidation after spending much of its time in its grossly overbought condition. Like I have mentioned early in the month, the market has been extremely bullish and such bullishness can give way anytime and that we have to stare hard at the first signs of such happening. Last Friday's drop sure look like the first signs that the market is coming to a halt, at least a short term one, and if followed up today, could officially spell the end of one good run. NASDAQ is looking weaker while the Dow still looks mighty strong, if strength persists today and their trend line is being respected, as it still is right now, the markets could continue on for a short while more. All that needs to be decided by how the market performs today.
See How I Made 24.75% Profit Last Week!
Markets closed last Friday in the greatest one day drop for the month of October. US GDP rose at the slowest pace in 3 years by only 1.6%. This is not a surprising event as the drop in GDP hs been forewarned by Big Ben during the recent Fed release. However, that did not stop the market from reacting negatively to it. Oil continued to move sideways along its support level with no real sign of staging a come back yet. Overall, despite lower GDP, US economy continue to look promising with inflation coming to a soft landing.
TECHNICALS
Markets continue to move sideways last Friday despite the huge drop. It sure looks like the market is at last willing to yield to a short term consolidation after spending much of its time in its grossly overbought condition. Like I have mentioned early in the month, the market has been extremely bullish and such bullishness can give way anytime and that we have to stare hard at the first signs of such happening. Last Friday's drop sure look like the first signs that the market is coming to a halt, at least a short term one, and if followed up today, could officially spell the end of one good run. NASDAQ is looking weaker while the Dow still looks mighty strong, if strength persists today and their trend line is being respected, as it still is right now, the markets could continue on for a short while more. All that needs to be decided by how the market performs today.
See How I Made 24.75% Profit Last Week!
posted by Jason Ng at 7:06 PM
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