Thursday, December 18, 2008
The Start Of Something Good?
Stocks saw losses Wednesday, but these losses were a fraction of Tuesday’s gains. The Dow fell 99.80 points to close at 8,824.34. The SPX lost 8.76 points to finish at 904.42.
You will recall markets rallied sharply Tuesday following news that the Fed had cut rates to nearly zero percent. During this rally, these indices broke above resistance at their 50-day moving averages. Despite losing ground Wednesday, losses were mild and the break of resistance held. This is seen by many as a bullish sign.....especially with considering earnings news in the financial sector have disappointed and the Benard Madoff’s $50 billion Ponzi scheme!!!!
Gold has been on the rise again...which could be ominous and Crude prices fell sharply despite the view that OPEC will cut production quotas by more than 2 million barrels a day. Overall, with all the cuts announced, OPEC is set to cut production by 4.2 million barrels a day starting in January. Nonetheless, falling demand for the commodity due to the global recession pushed oil to a price of $40.06 a barrel down $3.54.
Economic news was quiet Wednesday, but there will be some key reports on Thursday. Data on jobless claims will get plenty of attention with the leading indicators index and the Philly Fed survey on tap as well.
We will get our play on this week!
Until next time.
You will recall markets rallied sharply Tuesday following news that the Fed had cut rates to nearly zero percent. During this rally, these indices broke above resistance at their 50-day moving averages. Despite losing ground Wednesday, losses were mild and the break of resistance held. This is seen by many as a bullish sign.....especially with considering earnings news in the financial sector have disappointed and the Benard Madoff’s $50 billion Ponzi scheme!!!!
Gold has been on the rise again...which could be ominous and Crude prices fell sharply despite the view that OPEC will cut production quotas by more than 2 million barrels a day. Overall, with all the cuts announced, OPEC is set to cut production by 4.2 million barrels a day starting in January. Nonetheless, falling demand for the commodity due to the global recession pushed oil to a price of $40.06 a barrel down $3.54.
Economic news was quiet Wednesday, but there will be some key reports on Thursday. Data on jobless claims will get plenty of attention with the leading indicators index and the Philly Fed survey on tap as well.
We will get our play on this week!
Until next time.
# posted by Paul @ 4:16 AM 
