Another Day Of Struggle...

FUNDAMENTAL ANALYSIS
Well, nobody ever said the stock market is a smooth ride. This is another day of struggle in the stock market as advancers par decliners. What seemed like a promising opening ended with the Dow down marginally by 3.01 points. Stocks opened strongly today as banks all over the world started taking measures to ensure smooth credit operation, soothing fears that the credit crunch might overflow to the overall economy. However, that optimism was steadily digested by profit takers throughout the trading session, ending the day lower. Even though the index did not amazed anyone, many of the individual stocks like HPQ has started to make huge recovery rebounds. Retail sales numbers has also rebounded, giving further evidence to the strengthening economy. With the numbers coming in favorable so far, we can expect the PPI and CPI numbers due this week (please see economic calendar at http://www.mastersoequity.com/option_trader_hq.php ) to also be favorable. I remain optimistic with the fundamentals. Yes, there are some problems here and there but these are not problems which cannot be solved.

TECHNICAL ANALYSIS
A sideways day today as the Dow remained uncommitted. Also, nothing has happened to cast doubt on the Dragon Tail Formation of yesterday. For now, let's sit tight and watch. I maintain my view of an imminent rebound.


Dow Technical Chart By Best Charting Software TC2007!