Daily US Market Comments 12 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Markets rose slightly yesterday in range bound trading yesterday. Volume was also significantly lower than the 15 days average. Traders are sitting on the sidelines yesterday while waiting for the Fed release today. Although it is almost 100% sure that it is going to be an interest rate pause with a dovish promise to lower interest rates in the future, it is still customary for investors to feel edgey about it. Institutes will also be covering their positions for the year this month and will probably do it some time after the Fed release. Such a move will definitely give a definite tone to the market.
TECHNICALS
Markets continued sideways yesterday with no surprises. The Dow remains overbought throughout this consolidation, which is very different from its previous behavior. However, being overbought does not necessarily mean there are no further upside to come. Trendlines and support levels remain intact, showing no signs of a correction in the making...yet. Oil continued to correct as it fall down another step to $61.20. That drop also took it out of the short term overbought condition made by the end of November rally while still maintaining a strong support level at $61. This may give it a reason to go up sometime in the near future.
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Markets rose slightly yesterday in range bound trading yesterday. Volume was also significantly lower than the 15 days average. Traders are sitting on the sidelines yesterday while waiting for the Fed release today. Although it is almost 100% sure that it is going to be an interest rate pause with a dovish promise to lower interest rates in the future, it is still customary for investors to feel edgey about it. Institutes will also be covering their positions for the year this month and will probably do it some time after the Fed release. Such a move will definitely give a definite tone to the market.
TECHNICALS
Markets continued sideways yesterday with no surprises. The Dow remains overbought throughout this consolidation, which is very different from its previous behavior. However, being overbought does not necessarily mean there are no further upside to come. Trendlines and support levels remain intact, showing no signs of a correction in the making...yet. Oil continued to correct as it fall down another step to $61.20. That drop also took it out of the short term overbought condition made by the end of November rally while still maintaining a strong support level at $61. This may give it a reason to go up sometime in the near future.
Ever Wondered What Kind Of Trader You Are? Take Our Free Trader's Psychometric Test Now!
posted by Jason Ng at 8:01 PM
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