Daily US Market Comments 10 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Markets took a slight setback after 3 straight days of gains on a surprise oil price rally to above $61 in one day. OPEC's measures seem to be taking effect right now and if oil prices continue to rally, it could put some pressure on the markets and perhaps even end the rally so far. Energy prices affects everything... higher energy prices means higher corporate cost and that translates to higher consumer prices and therefore inflation. Inflation can then lead on to higher interest rates. Oil prices should therefore be the focus to watch for the next few trading days.
TECHNICALS
Markets took a slight ditch yesterday and is hardy surprising given the strong gains over the past 3 days. NASDAQ continue to make higher high and high low even though it closed below the close of 2 days ago. The Dow lasped into another sideways movement with yesterday's move. Overall, all indicators continue to point to more upside to come with trend lines being held and with short term stochastics still much lower than it was at during the whole of October. Of concern is the change in oil prices. Oil prices took a change in trend yesterday from a slow downtrend to a neutral trend. Such a move to upside from a strong support level of $59 - $60 could spell more upside to come if followed up today.
Need A Good Option Trading Book For Beginners and Veterans?
Markets took a slight setback after 3 straight days of gains on a surprise oil price rally to above $61 in one day. OPEC's measures seem to be taking effect right now and if oil prices continue to rally, it could put some pressure on the markets and perhaps even end the rally so far. Energy prices affects everything... higher energy prices means higher corporate cost and that translates to higher consumer prices and therefore inflation. Inflation can then lead on to higher interest rates. Oil prices should therefore be the focus to watch for the next few trading days.
TECHNICALS
Markets took a slight ditch yesterday and is hardy surprising given the strong gains over the past 3 days. NASDAQ continue to make higher high and high low even though it closed below the close of 2 days ago. The Dow lasped into another sideways movement with yesterday's move. Overall, all indicators continue to point to more upside to come with trend lines being held and with short term stochastics still much lower than it was at during the whole of October. Of concern is the change in oil prices. Oil prices took a change in trend yesterday from a slow downtrend to a neutral trend. Such a move to upside from a strong support level of $59 - $60 could spell more upside to come if followed up today.
Need A Good Option Trading Book For Beginners and Veterans?
posted by Jason Ng at 7:49 PM
<< Home