Daily US Market Comments 08 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Markets closed up yesterday in a surprising early rally. Even though markets closed much lower than its intraday high, it is still a move that completely surprised us. Investors are obviously optimistic that this election will result in a legislation that is unable to make any major changes to the business environment and that oil prices are not looking like its gaining any upside strength. All these are, of course, only speculations. How the election turned out and how the resulting legislation will perform is something nobody can accurately predict and oil prices are still up for a major oil inventory numbers release today.
TECHNICALS
Markets followed up to upside yesterday making new intraday highs. The Indices however retreated strongly from those highs by the end of the trading day to rest within the confines of a sideways trend. The move was backed up with increasing volume and is the kind of followup which we mentioned that will carry the market further yesterday. All indicators point towards a new run coming and until something happens to prove otherwise, this may be where investors who have missed the rally so far might wish to give it another shot. This rally is slowly building up to what is looking like a year end rally. An interesting observation turns out that over the past 5 years, 4 out of 5 year end rallies run up till the end of November and then fails from December onwards... will this year follow the same pattern?
Find Out How You Can Safely Profit From This Rally!
Markets closed up yesterday in a surprising early rally. Even though markets closed much lower than its intraday high, it is still a move that completely surprised us. Investors are obviously optimistic that this election will result in a legislation that is unable to make any major changes to the business environment and that oil prices are not looking like its gaining any upside strength. All these are, of course, only speculations. How the election turned out and how the resulting legislation will perform is something nobody can accurately predict and oil prices are still up for a major oil inventory numbers release today.
TECHNICALS
Markets followed up to upside yesterday making new intraday highs. The Indices however retreated strongly from those highs by the end of the trading day to rest within the confines of a sideways trend. The move was backed up with increasing volume and is the kind of followup which we mentioned that will carry the market further yesterday. All indicators point towards a new run coming and until something happens to prove otherwise, this may be where investors who have missed the rally so far might wish to give it another shot. This rally is slowly building up to what is looking like a year end rally. An interesting observation turns out that over the past 5 years, 4 out of 5 year end rallies run up till the end of November and then fails from December onwards... will this year follow the same pattern?
Find Out How You Can Safely Profit From This Rally!
posted by Jason Ng at 6:38 PM
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