Daily US Market Comments 28 Nov 2006 by MastersoEquity.com
FUNDAMENTALS
Markets had the worst single day drop in 4 months yesterday as investors who has made money so far begin to liquidate their position in preparation of the Christmas season. Mutual funds also experienced a barrage of drawouts. That is why we see a huge volume supporting yesterday' drop even though there was no significant news nor were there the same impact in the treasury and oil market. December has been a soft month for most of the years and it is not surprising for an overbought market like this one to go into a December correction.
TECHNICALS
Markets literally jumped of the cliff yesterday on extremely strong volume. Interesting to note here is that it has helped all major indices to get off their short term overbought condition in a single day and yet did not compromise the 30 Days moving average support level that has been pushing the markets higher and higher all these while. In fact, it looks like it has completed a multi-days staircase formation in a single day and may lead the markets higher, sooner. Today will be a critial day for the markets. If the markets rebound from this level, respecting their respective trendlines, then we will see the market higher. If markets fail again today and break their trendlines to downside, we may be witnessing the beginning of a short term correction, at last.
Who Would Have Thought That Anyone Could Also Profit Confidently If The Market Drops?
Markets had the worst single day drop in 4 months yesterday as investors who has made money so far begin to liquidate their position in preparation of the Christmas season. Mutual funds also experienced a barrage of drawouts. That is why we see a huge volume supporting yesterday' drop even though there was no significant news nor were there the same impact in the treasury and oil market. December has been a soft month for most of the years and it is not surprising for an overbought market like this one to go into a December correction.
TECHNICALS
Markets literally jumped of the cliff yesterday on extremely strong volume. Interesting to note here is that it has helped all major indices to get off their short term overbought condition in a single day and yet did not compromise the 30 Days moving average support level that has been pushing the markets higher and higher all these while. In fact, it looks like it has completed a multi-days staircase formation in a single day and may lead the markets higher, sooner. Today will be a critial day for the markets. If the markets rebound from this level, respecting their respective trendlines, then we will see the market higher. If markets fail again today and break their trendlines to downside, we may be witnessing the beginning of a short term correction, at last.
Who Would Have Thought That Anyone Could Also Profit Confidently If The Market Drops?
posted by Jason Ng at 6:37 PM
<< Home