Daily US Market Comments 05 Jan 2006 by MastersoEquity.com
Crude Oil Prices Collasped Below $56 Spurring Tech Up!
FUNDAMENTALS
Crude oil prices collasped further into the ditch as it closed below $56 yesterday! That spurred the tech sector up significantly as cheaper crude oil means cheaper capital cost. The Dow, on the other hand, was up marginally as it comes under pressure from falling share prices of oil giants like Exxon. This is a market that will readily respond to every bit of positive news like a thristy desert traveller will readily drink every drop of water in an oasis, however, the bigger picture still tells a different story... with the economy slowing down faster than expected and the housing sector uncertain of a soft landing, this is still a very dangerous place to be in. You are still in a desert even though you are standing beside an oasis.
TECHNICALS
Crude oil is once again in a full blown down trend. After spending about 3 months in neutral trend, crude oil has decided to move lower and has helped the market move up significantly. This rally has been the direct inverse of crude oil price so far since August 2006 and should continue to show promise as crude oil price move further down. The Dow closed sideways as it continue to trade in a tight range in a fashion that almost qualifies as a neutral trend. Yesterday's surge also brought the NASDAQ composite back up into its neutral channel. So, to summarise, yesterday's surge has resulted in the Dow and NASDAQ going into a neutral trend with slight bearish inclination. This kind of market can still go anywhere.
Probably The Most Accurate Stock Picks... EVER!
FUNDAMENTALS
Crude oil prices collasped further into the ditch as it closed below $56 yesterday! That spurred the tech sector up significantly as cheaper crude oil means cheaper capital cost. The Dow, on the other hand, was up marginally as it comes under pressure from falling share prices of oil giants like Exxon. This is a market that will readily respond to every bit of positive news like a thristy desert traveller will readily drink every drop of water in an oasis, however, the bigger picture still tells a different story... with the economy slowing down faster than expected and the housing sector uncertain of a soft landing, this is still a very dangerous place to be in. You are still in a desert even though you are standing beside an oasis.
TECHNICALS
Crude oil is once again in a full blown down trend. After spending about 3 months in neutral trend, crude oil has decided to move lower and has helped the market move up significantly. This rally has been the direct inverse of crude oil price so far since August 2006 and should continue to show promise as crude oil price move further down. The Dow closed sideways as it continue to trade in a tight range in a fashion that almost qualifies as a neutral trend. Yesterday's surge also brought the NASDAQ composite back up into its neutral channel. So, to summarise, yesterday's surge has resulted in the Dow and NASDAQ going into a neutral trend with slight bearish inclination. This kind of market can still go anywhere.
Probably The Most Accurate Stock Picks... EVER!
Labels: fundamental analysis, investment, share market, stock market, stocks, technical analysis
posted by Jason Ng at 7:43 PM
<< Home