Daily US Market Comments 26 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Today marks the start of the traditional "Santa Claus Rally". There is a better than 2 to 1 chance over the last 50 years that the Dow rise on Christmas week. This is usually led by the retail sector as post-christmas sales take center stage. This year, will Santa Claus beat recessionary fears? One census showed that only about 24% of investors are confident of a Santa Claus Rally this year. With bonds at skyhigh levels and a ton of weak economic news, a recession does seem to be just round the corner. Let's see if the ton of new releases this week can create a change in sentiments. In my opinion, investors are once again divided into 2 camps... the Inflation Fear camp and the Recession Fear camp. Traders in the Inflation fear camp interprets all strong economic numbers as inflationary pressure while traders in the Recession fear camp will interpret the same numbers as an economy that is still growing and alive. Until the market sentiments flow in one direction, markets might be moved in the direction of the stronger camp.
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Today marks the start of the traditional "Santa Claus Rally". There is a better than 2 to 1 chance over the last 50 years that the Dow rise on Christmas week. This is usually led by the retail sector as post-christmas sales take center stage. This year, will Santa Claus beat recessionary fears? One census showed that only about 24% of investors are confident of a Santa Claus Rally this year. With bonds at skyhigh levels and a ton of weak economic news, a recession does seem to be just round the corner. Let's see if the ton of new releases this week can create a change in sentiments. In my opinion, investors are once again divided into 2 camps... the Inflation Fear camp and the Recession Fear camp. Traders in the Inflation fear camp interprets all strong economic numbers as inflationary pressure while traders in the Recession fear camp will interpret the same numbers as an economy that is still growing and alive. Until the market sentiments flow in one direction, markets might be moved in the direction of the stronger camp.
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Labels: fundamental analysis, investment, share market, stock market, stocks, technical analysis
posted by Jason Ng at 6:34 PM
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