Daily US Market Comments 17 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Markets continue its rally yesterday as CPI grew at record slow pace and oil prices taking a surprising plunge to settle around $56. All economic indicators so far points towards a strong fact, and that is, inflation is successfully under control with no notable side effects. This will further eliminate the need for the fed to increase interest rates at the coming fed meeting... the only question remains, when will it be justifiable for the feds to start CUTTING rates?
TECHNICALS
Markets continue growing at a very steady pace pushing into record highs. Energy companies took a hard hit yesterday as oil price plunge below its neutral $57 - $61 channel. USO saw this plunge taken on the strongest one day volume ever witnessed. A channel break on strong volume can only mean one thing... a high probability turn to a down trend. This could give the market more fuel to move higher as it enters yet another short term oversold position. I also noticed that both the Dow and the Nasdaq Composite is closing nearer to its opening level over the past 2 days. This could mean that some level of profit taking is occurring and that this part of the rally might running out of energy. It won't be surprising to see both indices go into their signature staircase behavior at this point before moving higher.
Want To Know How You Can Make Up To 10 Times The Profit By Option Trading?
Markets continue its rally yesterday as CPI grew at record slow pace and oil prices taking a surprising plunge to settle around $56. All economic indicators so far points towards a strong fact, and that is, inflation is successfully under control with no notable side effects. This will further eliminate the need for the fed to increase interest rates at the coming fed meeting... the only question remains, when will it be justifiable for the feds to start CUTTING rates?
TECHNICALS
Markets continue growing at a very steady pace pushing into record highs. Energy companies took a hard hit yesterday as oil price plunge below its neutral $57 - $61 channel. USO saw this plunge taken on the strongest one day volume ever witnessed. A channel break on strong volume can only mean one thing... a high probability turn to a down trend. This could give the market more fuel to move higher as it enters yet another short term oversold position. I also noticed that both the Dow and the Nasdaq Composite is closing nearer to its opening level over the past 2 days. This could mean that some level of profit taking is occurring and that this part of the rally might running out of energy. It won't be surprising to see both indices go into their signature staircase behavior at this point before moving higher.
Want To Know How You Can Make Up To 10 Times The Profit By Option Trading?
posted by Jason Ng at 6:26 PM
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