| 08/14/2002 Wed 06:35 am Wed The Dow and NASDAQ were down sharply after the Fed kept interate unchanged. Wall Street talked itself into believing that the Fed would cut rate and even Morgan went ahead of 22 primary dealers to predict a rate cut. Now that it did not take place, there is a price to pay for climbing up the wrong tree. Here, some early weakness may follow but selling pressure may ease later in the day as GDP numbers released recently suggest the economic health is improving, albeit flaterred by the sharp gains in the the chemical sector. Tech stocks are still neutral to weak but the oversold picture on heavyweights suggest bounce may be sooner rather than later. Creative closed at US$9.02=S$15.80, Chartered at US14.27=S$2.51 and Stats at US9.86=S1.73. Wed Dow and NASDAQ soared on hopes of Fed rate cut in Aug and news that CISCO posted better than expected results for Q4. So, the choppy trend continues and volatilty may be seen in Datacraft, Venture, Stats, Chartered as well as tech stocks today. Creative closed at 9.33= 16.50, Chartered closed at 15.78=2.79, Stats at 10.39 = 1.77. In all a better day is likely given wall street performance and the fact that we are deeply oversold, President Chen Shui-Bian's party made an about-turn in their stance of pro independence and also Cisco's astounding results despite weak market conditions in telco sector. Tuesday With the Dow crashing 269 and NASDAQ down 41 points, it would take a brave heart to try to stem the bears from raiding the stores. Cisco System is downgraded a day before its results are out, the pressure on Datacraft and other tech stocks may be felt today. JP Morgan, Citicorp and Disney had price targets slashed or downgraded and the impact is felt across the Dow components as well. Over our northerly directions, China and Taiwan are sabre rattling, although this time around, the problem looks more serious unless Chen of Taiwan retracts his statement soon. Taiwan's crash of 5% may send stock markets around Asia quivering. Previous commentaries |
| Tanker's Elliott Wave Free Site |
|
| Free E-Mails are sent to those on mailing list. For those who are interested to be on mailing list, please provide full name, age and occupation to tanker333@hotmail.com |