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Forex · News · USMarket

NEWS / USMarket

USmarket Market has already ripened for realization of long-felt correction.

11:47 11/27/2006

Having fallen right after opening on Friday, on November, 24th, key indexes of the American stock market made then attempt to compensate weakness in the beginning of trading session.

 

The main reason of such "somersaults" became investors’ concentration on a situation in the energy market, and also on reports of retail sellers on the beginning of a season of celebratory sales.

Let's notice that after holiday the volume of the tenders at a stock exchange was insignificant, and many players on Wall Street had weekend already on Thursday.

 

It is also necessary to notice that on a background of absence of an issue of any economic parameters and reports of the large companies, the investors’ attention is focused on so-called "Black Friday", a day after celebrating of Thanksgiving Day which is considered the first day of the beginning of a season of celebratory sales.

 

From corporate news it is necessary to note decrease in shares of network of shops of retail trade Wal-Mart Stores, which on results of session were down $0.13 to $47.90.

And papers of a competing company Target decreased $0.71 to a level $57.71.

 

Home Depot shares, engaged in sale of the building and finishing goods, fell $0.38, having finished a day at a level $37.72.

And their competitor - Lowe's company lost $0.34, having decreased to $30.00. As a result, decrease in a level of capitalization of both companies made practically 1 %.

 

However, on Friday there were growing shares. So, Newmont Mining papers were up $0.67 to a level $45.55, Goldcorp - $0.81 to $28.19, Yamana Gold added $0.42 up to a mark $11.64.

Thus Federated Department Stores papers grew $0.04, having closed at a level $43.11.

 

Let's notice that on Friday oil quotations again decreased. So, January oil futures on New York commodity exchange dipped $0,93, having closed at a mark $59,24 a barrel.

After this, on results of the tenders on Friday, shares of the raw companies, including the gold and silver mining companies, showed growth.

In experts’ opinion rise of quotations on precious metals was caused by drop in a rate of the American currency. We remind that two these tools traditionally strongly influence against each other. So, for example, decrease in a dollar exchange rate more often leads to growth of appeal of such assets, as gold.

As a result future contacts on gold with delivery in December on platform COMEX of New York commodity exchange rose $0,30 and were closed at a mark $629 for ounce.

 

As a result Dow-Jones index of New York stock exchange dipped 46.78 points and was closed at a level 12280.17. NASDAQ index was down 5.72 points and is at a level 2460.26. S&P 500 index dropped 5.14 points and is at a level 1400.95.

And 30-years US Treasury notes’ yield fell 0.02 in comparison with the previous closing and makes 4.629.

 

We assume that the situation for the beginning of deep correction has already ripened. That is why we recommend, keeping position outside the market, to wait for realization of this correction.

Let's remind that the first purpose of correction of Dow-Jones index is the level 11960, and a key level of decrease should be considered a mark 11660. Similarly for S&P 500 index the first purpose is the level 1360, and the key purpose is at a level 1327.

Only after achievement of the key purposes, at presence of signals of change of the tendency, there will be an opportunity for long-term purchases of futures for Dow-Jones and S&P 500 indexes.

 

 

 

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