Bulls & Bears In Hybernation Today...
FUNDAMENTAL ANALYSIS
Markets did a scary and surprising ditch mid day before recovering to close marginally higher today. By the end of the day, the mid day ditch proved to be nothing as advancers still led decliners 2 : 1. Bernanke gave his speech today and made no committment nor comments on things that really matter... as expected again in my post yesterday. The prime mover of the tech sector tomorrow will no doubt be the extremely good earnings by Cisco (CSCO). Cisco was already trading up 4.8% in after hours trading after its announcement at about 5pm! With no new economic release to drive the market, great earnings like these certainly takes center stage. There are still more great market moving earnings releases coming up this week like Bank Of America tomorrow and Eastman Kodak on Friday. Earnings are expected to be optimistic throughout the week on holiday spending. Stay tuned!
TECHNICAL ANALYSIS
Markets closed sideways today in lethargy again. The Dow continues to move sideways in order to form another step in its staircase formation and the Nasdaq Composite moved sideways as it moved into a short term overbought condition. I have expressed the same concern yesterday that the Nasdaq Composite is going into short term overbought so quickly and so far away from its resistance level.This, along with unmistakable loss of upside momentum from most momentum indicators, tells me that the Nasdaq composite is not ready for an all out topside break yet. Unless the CSCO rally do something to help the Nasdaq composite tomorrow, I would say that the Nasdaq composite should stay within a 2450 / 2500 trading channel until it wears off some short term overbought sentiments and then stage another rally. My sentiments therefore remains the same... Up for the Dow and Sideways for Nasdaq.
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Markets did a scary and surprising ditch mid day before recovering to close marginally higher today. By the end of the day, the mid day ditch proved to be nothing as advancers still led decliners 2 : 1. Bernanke gave his speech today and made no committment nor comments on things that really matter... as expected again in my post yesterday. The prime mover of the tech sector tomorrow will no doubt be the extremely good earnings by Cisco (CSCO). Cisco was already trading up 4.8% in after hours trading after its announcement at about 5pm! With no new economic release to drive the market, great earnings like these certainly takes center stage. There are still more great market moving earnings releases coming up this week like Bank Of America tomorrow and Eastman Kodak on Friday. Earnings are expected to be optimistic throughout the week on holiday spending. Stay tuned!
TECHNICAL ANALYSIS
Markets closed sideways today in lethargy again. The Dow continues to move sideways in order to form another step in its staircase formation and the Nasdaq Composite moved sideways as it moved into a short term overbought condition. I have expressed the same concern yesterday that the Nasdaq Composite is going into short term overbought so quickly and so far away from its resistance level.This, along with unmistakable loss of upside momentum from most momentum indicators, tells me that the Nasdaq composite is not ready for an all out topside break yet. Unless the CSCO rally do something to help the Nasdaq composite tomorrow, I would say that the Nasdaq composite should stay within a 2450 / 2500 trading channel until it wears off some short term overbought sentiments and then stage another rally. My sentiments therefore remains the same... Up for the Dow and Sideways for Nasdaq.
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Psychometric Test!
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Labels: dow, fomc, fundamental analysis, fundamentals, investment, nasdaq, share market, stock market, stocks, technical analysis, technicals, us market, usa
posted by Jason Ng at 5:19 PM
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