Stock Market Analysis

Wednesday, June 20, 2007

Enery Sector Hit On Falling Oil Price

Option Trading MentorFUNDAMENTAL ANALYSIS
Energy sector led the way down today as a 2.9% drop in that sector pulled the Dow 1.09% lower today. Crude oil prices took a plunge today by more than a dollar as the crude inventory reports a larger than expected crude buildup. This is really an unusual phenomena as falling oil prices usually means a rising market but this time, it does seem like the energy sector has taken too hard a hit. I would expect this effect to be temporary as it provided some excuse for investors to take some profit off last week's gains and that falling oil prices and falling inflation are fundamentals necessary for this market to grow for now. I remain optimistic and so should you.

TECHNICAL ANALYSIS
Surprise surprise surprise. The Dow surprised us again with a ditch when it is supposed to make another new step in the staircase formation. It is hard to tell if it is just another fake out like it did back in 11 April and 10 May as the technicals on these days all sing to the same tune. If this is just another fake out, then tomorrow should see a rebound of at least 0.5%, if not, the market could way laspe into a dangerous neutral trend which will inevitably lead to a major correction.


Dow Technical Chart By Best Charting Software TC2007!

0 Comments:

Post a Comment

<< Home