Drums Still Rolling......
FUNDAMENTAL ANALYSIS
The Fed injected another 20billion into the banking system at lower than discount rate, the AMT tax is abolished at last and... did absolutely nothing for the markets. The market is definitely waiting for something in the GDP numbers tomorrow (see stock market calendar). I expect the GDP number to be slightly weaker tomorrow but what I cannot predict is the market's reaction to it. In fact, the market seems to be more technically than fundamentally driven lately.
TECHNICAL ANALYSIS
What I expected to be a critical day today ended sideways again BUT the drums are still rolling. The Dow can still make a giant break to a giant rally if it rise and beat the 17 Dec high within the next few days. Of note, the Dow actually made a higher high and a higher low today, which makes it a bullish day instead of a bearish day! Right now, stock options traders will be in a great advantage with a straddle or strangle on the market right now.
The Fed injected another 20billion into the banking system at lower than discount rate, the AMT tax is abolished at last and... did absolutely nothing for the markets. The market is definitely waiting for something in the GDP numbers tomorrow (see stock market calendar). I expect the GDP number to be slightly weaker tomorrow but what I cannot predict is the market's reaction to it. In fact, the market seems to be more technically than fundamentally driven lately.
TECHNICAL ANALYSIS
What I expected to be a critical day today ended sideways again BUT the drums are still rolling. The Dow can still make a giant break to a giant rally if it rise and beat the 17 Dec high within the next few days. Of note, the Dow actually made a higher high and a higher low today, which makes it a bullish day instead of a bearish day! Right now, stock options traders will be in a great advantage with a straddle or strangle on the market right now.
Labels: fundamental analysis, gdp, technical analysis
posted by Jason Ng at 4:00 PM
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