Daily US Market Comments 07 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
A surprising day at the markets as stocks rallied broadly across the board. Just when we thought we should not see strong action until either the election results or the oil inventory numbers are out. The Dow rallied above its 12,000 point resistance level once again and NASDAQ move up above the critical 2350 level once again. This move is primarily due to optimistic speculation on the outcome of the elections as well as some big private equity buyouts. Oil prices are also back up above the $60 level ahead of oil inventory numbers. All in all, the underlying current of news, factors and sentiments are extremely mixed and the surf on the surface is not be taken as the general direction of flow.
TECHNICALS
Markets roared and thundered upwards powerfully yesterday bringing NASDAQ above the 2350 resistance level and the Dow back up above the 12,000 level. Surprisingly, even though the gain is tremendous, there didn't seem to be a lot of volume behind the move. This could mean that the gain is participated by only an elite, pace making, industrial player. Looking the overall trend, however, reveals that the markets are still moving sideways. The Dow has not made a new high nor has NASDAQ moved higher than the high on 26 Oct. On the optimistic side, we see that short term stochastics has begun to turn up from an almost oversold position and mid term trendlines established by the last bull run has upheld its integrity. If we see a followup today on good rising volume, we might be witnessing the beginning of a new bull run.
Better Investment Knowledge, Lesser the Risk!
A surprising day at the markets as stocks rallied broadly across the board. Just when we thought we should not see strong action until either the election results or the oil inventory numbers are out. The Dow rallied above its 12,000 point resistance level once again and NASDAQ move up above the critical 2350 level once again. This move is primarily due to optimistic speculation on the outcome of the elections as well as some big private equity buyouts. Oil prices are also back up above the $60 level ahead of oil inventory numbers. All in all, the underlying current of news, factors and sentiments are extremely mixed and the surf on the surface is not be taken as the general direction of flow.
TECHNICALS
Markets roared and thundered upwards powerfully yesterday bringing NASDAQ above the 2350 resistance level and the Dow back up above the 12,000 level. Surprisingly, even though the gain is tremendous, there didn't seem to be a lot of volume behind the move. This could mean that the gain is participated by only an elite, pace making, industrial player. Looking the overall trend, however, reveals that the markets are still moving sideways. The Dow has not made a new high nor has NASDAQ moved higher than the high on 26 Oct. On the optimistic side, we see that short term stochastics has begun to turn up from an almost oversold position and mid term trendlines established by the last bull run has upheld its integrity. If we see a followup today on good rising volume, we might be witnessing the beginning of a new bull run.
Better Investment Knowledge, Lesser the Risk!
posted by Jason Ng at 6:25 PM
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