Daily US Market Comments 29 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Markets closed marginally lower yesterday even though investors were treated to a barrage of positive news releases. With consumer confidence and Chicago PMI checking in stronger than before, investors in the Inflation Fear camp started to worry that the Fed will not be cutting interest rates anytime soon. Volume in the markets continue to be very thin as most investors choose to sit on the sidelines, enjoy the holidays, before coming back next year to see if there is any change in market sentiments.
TECHNICALS
Markets continued to move sideways yesterday on a very thinly traded market. The NASDAQ composite continues to display more bearishness as the QQQQ continues to lead the composite index to downside. When the NASDAQ composite rose 0.73% the day before, QQQQ rose a mere 0.51% but when the NASDAQ composite fell 0.23% yesterday, QQQQ fell by 0.48%. The QQQQ is a good sentiment indicator of the NASDAQ composite because it is traded by more small and medium investors that formed the majority of the pool of investors. The resultant move in the QQQQ can therefore be interpreted as the collective sentiment of small and medium investors toward the NASDAQ composite. Investors should cover shorts on technical stocks by now.
Best Option Trading Books
Markets closed marginally lower yesterday even though investors were treated to a barrage of positive news releases. With consumer confidence and Chicago PMI checking in stronger than before, investors in the Inflation Fear camp started to worry that the Fed will not be cutting interest rates anytime soon. Volume in the markets continue to be very thin as most investors choose to sit on the sidelines, enjoy the holidays, before coming back next year to see if there is any change in market sentiments.
TECHNICALS
Markets continued to move sideways yesterday on a very thinly traded market. The NASDAQ composite continues to display more bearishness as the QQQQ continues to lead the composite index to downside. When the NASDAQ composite rose 0.73% the day before, QQQQ rose a mere 0.51% but when the NASDAQ composite fell 0.23% yesterday, QQQQ fell by 0.48%. The QQQQ is a good sentiment indicator of the NASDAQ composite because it is traded by more small and medium investors that formed the majority of the pool of investors. The resultant move in the QQQQ can therefore be interpreted as the collective sentiment of small and medium investors toward the NASDAQ composite. Investors should cover shorts on technical stocks by now.
Best Option Trading Books
Labels: fundamental analysis, investment, share market, stock market, stocks, technical analysis
posted by Jason Ng at 8:29 PM
<< Home