Week Review, Whats Next...
2/25/2007 9:54:46 AM
Dynamic Trading remains in SELL MODE.
There was some big news last week, as Iran defied the world with its continuing nuclear ambitions and the Bank of Japan bumped interest rates to .50, the highest level in a decade (although still modest).
The Yen initially jumped some on the hike, but soon settled back to its previous levels as all those who are benefiting from the Yen-carry trade started their media blitz. We may not see a quick spike up in the Yen, but I still expect steady strengthening over the near to mid-term.
Also, the January CPI came in stronger than expected and we got more bad news from the sub-prime mortgage arena.
Together all these factors conspired to weaken the markets. Sentiment is slowly starting to sour and the markets have been responding with weakness. It is taking more, in the form of positive economic or earnings news, to drive the market higher, and less negative news to take it down. I expect this to amplify in the coming weeks.
The attached charts show the declining trends and momentum of the major indexes, especially the 60 minute chart. The histogram under the 60 minute chart is one of my momentum indicators on the NDX.
As always, please email me with any questions, suggestions or comments: dynamictrading@stockbarometer.com.
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Author: Jay DeVincentis
Jay DeVincentis
www.stockbarometer.com
Investment research Group,
Inc.
Jay DeVincentis is President of Investment research Group, Inc. and founder of www.stockbarometer.com. Jay worked as an executive in the financial services industry for over 21 years and left to form his own company in line with his passion, the financial markets. Jay Graduated from the University of Massachusetts, Amherst, MA with a Mechanical Engineering Degree. Jay has been advising his clients what to buy and when for over 10 years. He is a market timer, a stock trader, a day trader and a stock investor and also conducts online stock trading classes.
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