Market Watch
Now that we have completed our third 10% correction for the year, sector rotation
back into tech stocks should continue. The index has reconfirmed
support at the 4450 level and bounced up off the bottom of its long
term ascending channel. 4800 should not be a big obstacle but we
can expect the index to stall at 100 point increments (4900, 5000,
etc..).
Chart of the NASDAQ
stockbottom.com
To predict a conciliatory week in the markets would most likely be
foolish on my part, though following a week such as last, not all
that unreasonable. I look at last week's wild ride as being a
temporary climactic reaction to many variables. The recent and
upcoming economic events, a possible peak in the oil (price)
crisis, and profit taking to the NASDAQ's recent breakthrough of
the 5000 level. You get the idea. I will be surprised if we do not
see some kind of a pullback in the Dow next week, though I do not
expect it to be all that dramatic. The NASDAQ seems to have no
problem enticing investors to climb back on board. Remember, it
was just two weeks ago that everyone was placing his or her bets on
how quickly the NASDAQ would make it to 6000. Those days aren't
over. Things should settle down and return to "normal", with the
NASDAQ powering to new heights on a seemingly daily basis and the
Dow, meandering its way along.
With the Ides of March behind us, traders will soon be looking
towards the April earnings season as a reason to buy stocks. Beware
any latent earnings warnings as we are not out of the woods yet.
Ah, the good old days. Enjoy the ride; remember your stops.
Bottoms Up!
C. Peters
Asst. Editor
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[B] BRIDGE TOP NEWS NOW: Taiwan to ease rules on China-bound investment
Mar 20--0055 GMT/1955 ET
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TOP STORIES:
New Taiwan govt to ease rules on China-bound investment
Taipei--Mar 20--The new Taiwan government will abolish the current "no
haste, be patient" policy regarding investment in China by the local
corporate sector, the Chinese-language Economic Daily News reported
Monday, citing remarks made by a Democratic Progressive Party (DPP)
official. (Story .8238)
Iraq will consider increasing oil production
Baghdad, Iraq--Mar 19--Iraq will consider increasing oil production
when the issue is discussed at the OPEC meeting later this month, the
Iraqi oil minister said Sunday, easing the country's tough stand on
maintaining production levels.
(Story .11700)
US' Richardson sees lower oil prices in late spring/early summer
Washington--Mar 19--US energy secretary Bill Richardson said Sunday he
expects to see lower oil prices in "late spring to early summer". He also
said President Bill Clinton had not ruled out the use of the US Strategic
Petroleum Reserve (SPR) but said he hoped surging oil prices would be
brought under control by "energy diplomacy". (Story .10798)
news.ino.com
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Sunday March 19, 9:47 pm Eastern Time
HK's Hang Seng Index falls over one pct at open
HONG KONG, March 20 (Reuters) - Hong Kong's benchmark Hang Seng Index (^HSI - news) lost more than one percent at the open on Monday, following China and Taipei markets down after a pro-independence party won presidential elections in Taiwan.
The Hang Seng dropped 1.20 percent or 204 points to 16,878.81.
By 1015 local time (0215 GMT) Hong Kong stocks had erased some of their early losses and were trading down 0.31 percent or 52.92 at 17,030.07.
China-play red chips were boosted by news that Morgan Stanley Capital International (MSCI) had added 15 red chips to its China Free Index.
Banks and utilities, which have gained in recent days following a strong performance in U.S. markets, were sharply lower.
Warning: part of the article may be missing at this point.
After briefly turning positive and jumping to 17,087.22, the Hang Seng retreated back into negative territory as trade continued to be volatile.
At 1040 local time (0240 GMT) March index futures were down 500 points at 16,820.
Only 72 issues were in positive territory, compared to 441 falling on total turnover of HK$2.9 billion.
biz.yahoo.com |
