Daily US Market Comments 13 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
The Feds left a trail of disappointed traders yesterday as there were no indications as to when a rate cut might take place. Markets ended flat on mixed sentiments as to the sustainability of the current rally. With no real indications of a rate cut coming up, there is therefore no real cause for optimism.
TECHNICALS
Markets continued to move sideways on rising volume yesterday. This is a stalemate situation where more participation did not result in a significant change in direction. Major indices are once again near their respective trendlines, especially NASDAQ, and would have to muster the strength to bounce from this level in order to sustain the rally. Failing which, we could see a correction, testing the 50SMAs. All momentum indicators are showing definite signs of fatigue to this rally and is commonly a point from which the markets turn around to the opposite direction. We saw a similar example in the August 2004 rally where a complete turnaround to downside occurred in December 2004 with similar signs of lose of momentum. Let's get ready to cover longs.
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The Feds left a trail of disappointed traders yesterday as there were no indications as to when a rate cut might take place. Markets ended flat on mixed sentiments as to the sustainability of the current rally. With no real indications of a rate cut coming up, there is therefore no real cause for optimism.
TECHNICALS
Markets continued to move sideways on rising volume yesterday. This is a stalemate situation where more participation did not result in a significant change in direction. Major indices are once again near their respective trendlines, especially NASDAQ, and would have to muster the strength to bounce from this level in order to sustain the rally. Failing which, we could see a correction, testing the 50SMAs. All momentum indicators are showing definite signs of fatigue to this rally and is commonly a point from which the markets turn around to the opposite direction. We saw a similar example in the August 2004 rally where a complete turnaround to downside occurred in December 2004 with similar signs of lose of momentum. Let's get ready to cover longs.
Why Pay Thousands To Learn Option Trading When You Can Learn Option Trading For FREE?
posted by Jason Ng at 8:21 PM
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