Daily US Market Comments 19 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Markets suffered the first setback in 4 days as crude oil prices plummetted by more than a dollar within a day. The already weak and sensitive energy sector brought NASDAQ down by 0.88% as the Dow followed it down by a marginal 0.03%. Crude oil sent shares of Dow component ExxonMobil down $1.79, or 2.3 percent, to $75.51. Rival Chevron Corp. shed $2.05, or 2.7 percent, to $73.33. British Petroleum PLC declined $1.13 to $66.75. Other giants affected by the year end sell off are Google and Yahoo, both dropping by 3.65% and 2.23% respectively. All eyes continue to be on crude oil action with the complete lack of any major release anytime soon. It will certainly be of benefit to the market in the mid term should oil price remain constant within a $60 - $63 range.
TECHNICALS
A sideways day at the markets yesterday despite great drops in NASDAQ. The Dow closed a completely neutral day while NASDAQ fell back down into its sideways movement. NASDAQ has remained neutral since 27 Nov and still do not look like it's mustering the strength needed to go further up. Unlike the Dow, NASDAQ has failed to complete its staircase formation and is now forming a flat top neutral trend. Such a neutral trend usually spells the end for a rally as it needs to make a new decision soon whether to go up or down or simply stay sideways like it did during the first 5 months of the year. The Dow continues to look strong and if it continues its bullishness, it can also help NASDAQ break to upside. Oil slipped back down into its neutral $60 - $63 channel yesterday surprisingly. Let's see if it follows up today.
Markets suffered the first setback in 4 days as crude oil prices plummetted by more than a dollar within a day. The already weak and sensitive energy sector brought NASDAQ down by 0.88% as the Dow followed it down by a marginal 0.03%. Crude oil sent shares of Dow component ExxonMobil down $1.79, or 2.3 percent, to $75.51. Rival Chevron Corp. shed $2.05, or 2.7 percent, to $73.33. British Petroleum PLC declined $1.13 to $66.75. Other giants affected by the year end sell off are Google and Yahoo, both dropping by 3.65% and 2.23% respectively. All eyes continue to be on crude oil action with the complete lack of any major release anytime soon. It will certainly be of benefit to the market in the mid term should oil price remain constant within a $60 - $63 range.
TECHNICALS
A sideways day at the markets yesterday despite great drops in NASDAQ. The Dow closed a completely neutral day while NASDAQ fell back down into its sideways movement. NASDAQ has remained neutral since 27 Nov and still do not look like it's mustering the strength needed to go further up. Unlike the Dow, NASDAQ has failed to complete its staircase formation and is now forming a flat top neutral trend. Such a neutral trend usually spells the end for a rally as it needs to make a new decision soon whether to go up or down or simply stay sideways like it did during the first 5 months of the year. The Dow continues to look strong and if it continues its bullishness, it can also help NASDAQ break to upside. Oil slipped back down into its neutral $60 - $63 channel yesterday surprisingly. Let's see if it follows up today.
posted by Jason Ng at 6:12 PM
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