Daily US Market Comments 21 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
The Dow closed down marginally on profit taking and FEDEX's $2.15 drop. With almost no more news release or economic news, markets remain lacklustre. The Energy sector also failed to follow up on its rebound as Crude oil fell from its 3 weeks high to close at $63.19. A warmer winter is expected to cut demand for heating oil thereby relieving the pressure on oil inventory. At this point of time, many analysts are quick to agree that this is no longer a fundamental driven market.
TECHNICALS
Markets continued to move sideways yesterday as the Dow continues a series of doji like candles and the NASDAQ Composite forming a doji with a higher high and a higher low. The candlestick formation we see on NASDAQ today is very interesting. Even though it dropped 0.08% yesterday, it formed a formation I call the "Black & White Brothers". It is a formation consisting of 2 candles (one open candle and the other a close candle) with relatively small candle bodies, lined up horizontally side by side. There are many names given to this kind of formation addressing the specific arrangement of these 2 candles, but the effects to be expected are the same. That is why I gave it a different name, encompassing all the variants. It doesn't matter which candle comes first; The black candle can come before the white candle or the white candle before the black candle. This formation occurs commonly after a big down or a big up day and usually signals a reversal. We saw a similar formation in BBBY on 3 Nov 2006, lifting BBBY up by more than $2 after a $1.01 drop on 1 Nov. With the Black & White Brothers knocking in after NASDAQ's 0.88% ditch 3 days ago, it may signal a rebound back up into its neutral channel. This is a very fast formation. If it should be accurate, we should see the action by today.
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The Dow closed down marginally on profit taking and FEDEX's $2.15 drop. With almost no more news release or economic news, markets remain lacklustre. The Energy sector also failed to follow up on its rebound as Crude oil fell from its 3 weeks high to close at $63.19. A warmer winter is expected to cut demand for heating oil thereby relieving the pressure on oil inventory. At this point of time, many analysts are quick to agree that this is no longer a fundamental driven market.
TECHNICALS
Markets continued to move sideways yesterday as the Dow continues a series of doji like candles and the NASDAQ Composite forming a doji with a higher high and a higher low. The candlestick formation we see on NASDAQ today is very interesting. Even though it dropped 0.08% yesterday, it formed a formation I call the "Black & White Brothers". It is a formation consisting of 2 candles (one open candle and the other a close candle) with relatively small candle bodies, lined up horizontally side by side. There are many names given to this kind of formation addressing the specific arrangement of these 2 candles, but the effects to be expected are the same. That is why I gave it a different name, encompassing all the variants. It doesn't matter which candle comes first; The black candle can come before the white candle or the white candle before the black candle. This formation occurs commonly after a big down or a big up day and usually signals a reversal. We saw a similar formation in BBBY on 3 Nov 2006, lifting BBBY up by more than $2 after a $1.01 drop on 1 Nov. With the Black & White Brothers knocking in after NASDAQ's 0.88% ditch 3 days ago, it may signal a rebound back up into its neutral channel. This is a very fast formation. If it should be accurate, we should see the action by today.
Want A Systematic Way Of Looking For Trading Opportunities?
posted by Jason Ng at 7:24 PM
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