Oil Plunges Further, Energy Sector Hit, Stocks Mixed!
FUNDAMENTALS
Oil plunges further into the ditch to close at $51.40 putting severe pressure on the Energy sector as markets closed mixed. Surprisingly, OPEC still look like they don't care at all and stated that there are no need to cut production further in order to support crude oil prices. They are probably looking at the current high oil inventory level due to the warm winter as a temporary situation. Nasdaq was further hit by a lacklustre earning season and caused some investors to take some quick profits off the table. Giants like CISCO, KLA-Tenor and NOVELLUS were downgraded yesterday on valuation concerns. Even though there are some profit taking yesterday, the internals still tell us that the bull trend is still intact as advancers par decliners even on a day like this. Apple will release Q1 earnings tomorrow and will definitely be something to watch.
TECHNICALS
Markets closed mixed yesterday as the Dow continued its uptrend and Nasdaq closed marginally lower, sideways, I would say. The Dow made yet another historical high yesterday and sure looks like it should be forming another step of its staircase formation within these few days. Nasdaq closed sideways but still made a higher high which preserves its bullishness. Nasdaq is in a short term overbought position and is not strange at all to see some form of slight pullback. Such a pullback is extremely healthy as long as Nasdaq closes up tomorrow. All in all, the bull trend has just started and with upside momentum still strong, there are no signs nor reasons yet to think that the rally is over. I would see the next resistance level for Nasdaq at the 2710 level.
Oil plunges further into the ditch to close at $51.40 putting severe pressure on the Energy sector as markets closed mixed. Surprisingly, OPEC still look like they don't care at all and stated that there are no need to cut production further in order to support crude oil prices. They are probably looking at the current high oil inventory level due to the warm winter as a temporary situation. Nasdaq was further hit by a lacklustre earning season and caused some investors to take some quick profits off the table. Giants like CISCO, KLA-Tenor and NOVELLUS were downgraded yesterday on valuation concerns. Even though there are some profit taking yesterday, the internals still tell us that the bull trend is still intact as advancers par decliners even on a day like this. Apple will release Q1 earnings tomorrow and will definitely be something to watch.
TECHNICALS
Markets closed mixed yesterday as the Dow continued its uptrend and Nasdaq closed marginally lower, sideways, I would say. The Dow made yet another historical high yesterday and sure looks like it should be forming another step of its staircase formation within these few days. Nasdaq closed sideways but still made a higher high which preserves its bullishness. Nasdaq is in a short term overbought position and is not strange at all to see some form of slight pullback. Such a pullback is extremely healthy as long as Nasdaq closes up tomorrow. All in all, the bull trend has just started and with upside momentum still strong, there are no signs nor reasons yet to think that the rally is over. I would see the next resistance level for Nasdaq at the 2710 level.
Labels: fundamental analysis, investment, share market, stock market, stocks, technical analysis
posted by Jason Ng at 7:49 PM
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