Daily US Market Comments 5 Dec 2006 by MastersoEquity.com
FUNDAMENTALS
Stocks staged a small rally yesterday with oil price falling by almost a dollar. OPEC is about to convene another meeting in order to discuss the cutting of yet another more than a million barrel per day, giving a strong dose of optimism to oil and crude traders. Of course, the more optimistic the oil traders are, the more pessimistic the equity traders become. Oil also benefits from a drastically falling US Dollar. The lower the dollar, the more oil will cost per dollar henceforth. All the factors seems in place for a rebound in oil price.
TECHNICALS
Markets continue to move sideways yesterday with no significant break to upside. The continuation of the staircase formation will depend largely on how the markets behave today. If we see a significant break to upside, the staircase is complete and the market continues togo up. If not, the markets will continue to move sideways in consolidation until another testing of the 30MA. Oil seems to be up against a short term resistance level of about $63. It should consolidate at this level for a while before deciding to break upwards or correct back down. There are plenty of room to upside for oil and an extremely strong support level from where it bounced, so I am personally bullish on oil.
Who Would Have Believed That One Of My Student Can Make 607.06% Profit Last Month?
Stocks staged a small rally yesterday with oil price falling by almost a dollar. OPEC is about to convene another meeting in order to discuss the cutting of yet another more than a million barrel per day, giving a strong dose of optimism to oil and crude traders. Of course, the more optimistic the oil traders are, the more pessimistic the equity traders become. Oil also benefits from a drastically falling US Dollar. The lower the dollar, the more oil will cost per dollar henceforth. All the factors seems in place for a rebound in oil price.
TECHNICALS
Markets continue to move sideways yesterday with no significant break to upside. The continuation of the staircase formation will depend largely on how the markets behave today. If we see a significant break to upside, the staircase is complete and the market continues togo up. If not, the markets will continue to move sideways in consolidation until another testing of the 30MA. Oil seems to be up against a short term resistance level of about $63. It should consolidate at this level for a while before deciding to break upwards or correct back down. There are plenty of room to upside for oil and an extremely strong support level from where it bounced, so I am personally bullish on oil.
Who Would Have Believed That One Of My Student Can Make 607.06% Profit Last Month?
posted by Jason Ng at 6:30 PM
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