Daily US Market Comments 06 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Markets opened strongly last Friday on favorable employment numbers but yield to the short term correction that is now evident by the end of the day. After a fantastic bull run last for slightly more than 3 months, the Dow finally yielded to a short term correction as we have expected. This correction looks extremely healthy as there were no panic selling evident in the markets and could allow investors to take some profits off the table and perhaps help investors who missed the bull run to take some positions at this level. Markets are unlikely to stage anything surprising until the election results are clear. Investors are looking for a government that is business oriented and that could help the market stage a second run. Oil continues to trade sideways while waiting for this Wednesday's oil inventory numbers. It will be quite surprising if oil inventories can beat estimates this time after so much action by OPEC. However, if oil inventories do indeed turn up to be favorable this time round, that could take oil prices lower.
TECHNICALS
The Dow is now officially in a short term technical correction as it continues to make lower lows for 6 consecutive days. NASDAQ looks slightly more resilient as it continues to trade sideways with no clear indication of going into a short term correction. NASDAQ continues to look held strongly by its 30MA as it has been so far. The Dow has broken its trendline to downside but that has also helped it move down towards the short term oversold region for the first time since August. This will definitely give the Dow the potential to go up further should it find a support soon. Oil prices look like it is trading sideways, but in reality, it is actually following a lowering trendline. Overall, markets are consolidating after a good 3 months run and are now mustering more energy to move further ahead.
We Made 44.75% Profit Last Friday! Find Out How We Did It Now!
Markets opened strongly last Friday on favorable employment numbers but yield to the short term correction that is now evident by the end of the day. After a fantastic bull run last for slightly more than 3 months, the Dow finally yielded to a short term correction as we have expected. This correction looks extremely healthy as there were no panic selling evident in the markets and could allow investors to take some profits off the table and perhaps help investors who missed the bull run to take some positions at this level. Markets are unlikely to stage anything surprising until the election results are clear. Investors are looking for a government that is business oriented and that could help the market stage a second run. Oil continues to trade sideways while waiting for this Wednesday's oil inventory numbers. It will be quite surprising if oil inventories can beat estimates this time after so much action by OPEC. However, if oil inventories do indeed turn up to be favorable this time round, that could take oil prices lower.
TECHNICALS
The Dow is now officially in a short term technical correction as it continues to make lower lows for 6 consecutive days. NASDAQ looks slightly more resilient as it continues to trade sideways with no clear indication of going into a short term correction. NASDAQ continues to look held strongly by its 30MA as it has been so far. The Dow has broken its trendline to downside but that has also helped it move down towards the short term oversold region for the first time since August. This will definitely give the Dow the potential to go up further should it find a support soon. Oil prices look like it is trading sideways, but in reality, it is actually following a lowering trendline. Overall, markets are consolidating after a good 3 months run and are now mustering more energy to move further ahead.
We Made 44.75% Profit Last Friday! Find Out How We Did It Now!
posted by Jason Ng at 7:11 PM
<< Home