Sunday, August 06, 2006

Weekly Review (7/31/06-8/4/06)

Would the Fed Increase the Rate?

The Dow had the weekly gain to 0.18 percent. The SP increased 0.06 percent on the week. The Nasdaq managed the weekly loss of 0.43 percent. The market is not clear for the past week.

Many people bet the Fed would not increase the interest rate again this week. If so, the market will definitely be encouraged by this “good news”. The questions are:

1. Has this expectation represented in the current market already?
2. How long can it support the market up to against the contra bad news such as oil price or the Middle East crisis?

I have no idea!

We even have not talked about the possibility that the Fed decides to keep raising the interest rate yet.

My technical analysis results are ambiguous and conflicting. The only thing I can say is: the market will be volatile for this week.

Again, from my philosophy, if you are not sure about the market direction, stay away from it.