Another Heavy Weight Week Ahead...
Weekends always feel short. :)
The Dow continues to look good as long as it continue to digest more of its short term overbought sentiment by trading atop the 14000 line for perhaps another few more days. On the weekly scale, the Dow is trading reasonably higher than the 30WMA but not high enough to cause an immediate concern. As long as the 30WMA continues to catch up, the bull run can be expected to continue healthily. (Please see comments to my post on 10 Oct to understand why the gap between the Dow and its 30WMA matters.)
It is going to be another heavy weight week ahead with the CPI (consumer price index) coming up on Wednesday (see economic calendar). The Consumer Price Index is one of the 4 super market moving indexes (the other 3 being the Employment Report, ISM index and PPI). The Consumer Price Index, along with the PPI are closely watched inflation indicators by the Fed and will definitely give investors an indication of the possibility of a rate cut at the end of the month. Certainly, investors are looking forward to a lower than expected inflation number.
So, would my readers care to comment to this post about what your market expectation for the coming week is please? :)
posted by Jason Ng at 5:40 AM
7 Comments:
I do expect a small corrction this week.
Well, I'm expecting a bit of a downer this week if the sub prime fallout has an impact on company results for this quarter reporting season...
Hi Jason,
Trying to understand your system.. At this stage, it seems that you are waiting for a sideway move or a pullback from the market... however, if your star system now throw out a swing trade candidate, are you likely take it nevertheless or would you want for market to align? Thanks!
Rav
Hi Rav,
The Star Trading System that I teach is a highly complex system that is able to tell the market better than any of us here can. :) So, if it says go, go I will because it has proven over 5 years to always be right whenever it contradicts my view. :)
The market will still be in an up trend but not as strong as last month, unless Bernanke make another rate cut on the next meeting which is nearly impossible.
Hi e-trader,
how high would you gauge the possibility of another rate cut? how much of that has already been priced in the market? :)
Jason,
A fairly solid retail sales report which was announced last friday convinced investors the consumer sector could remain a bulwark against a more pronounced economic slowdown driven by the housing slump. That's why I said that the expectation of another rate cut is nearly impossible.
I don't know how much of the rate cut already priced in the market, but I think if unexpectedly FED reduce the rate for another 0.25% to 4.50%, it will further ease the economy, and create a bullish impact on the stock market as well.
How do you think ?
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