Daily US Market Comments 16 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Market continued its rally yesterday as the lower than expected crude inventory gave oil prices a slight boost and consequently, a boost in the energy sector. It has been observed lately that the first day of rise in oil price usually gives the energy sector a boost but will yet affect the rest of the sectors. This usually give rise to a gain to the overall market. However, we all know what happens if oil prices should stage a prolonged rally again, don't we?
TECHNICALS
Markets continue to climb to new highs yesterday. This has taken the Dow back into a short term overbought position or the first time this month. Even though it is slightly overbought, the degree of which is still far behind the levels we saw back in October. This could suggest that there is still more potential to topside before it do another of its staircase formation. Oil continue to trade sideways around its $59 - $60 support level with no clear indication of whether it will go up or down. Oil has been in a strong neutral trend since early October despite all the efforts put in by OPEC to turn things around for themselves. Overall, markets still point to upside until we see some changes in the future.
Probably The Most Accurate Stock Pick / Option Pick Service...Ever...
Market continued its rally yesterday as the lower than expected crude inventory gave oil prices a slight boost and consequently, a boost in the energy sector. It has been observed lately that the first day of rise in oil price usually gives the energy sector a boost but will yet affect the rest of the sectors. This usually give rise to a gain to the overall market. However, we all know what happens if oil prices should stage a prolonged rally again, don't we?
TECHNICALS
Markets continue to climb to new highs yesterday. This has taken the Dow back into a short term overbought position or the first time this month. Even though it is slightly overbought, the degree of which is still far behind the levels we saw back in October. This could suggest that there is still more potential to topside before it do another of its staircase formation. Oil continue to trade sideways around its $59 - $60 support level with no clear indication of whether it will go up or down. Oil has been in a strong neutral trend since early October despite all the efforts put in by OPEC to turn things around for themselves. Overall, markets still point to upside until we see some changes in the future.
Probably The Most Accurate Stock Pick / Option Pick Service...Ever...
posted by Jason Ng at 7:24 PM
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