Was it just a quick storm?
July 30th 2007 15:02
The outlook is too rosy to be locked out of equities completely, it seems, even after US subprime and credit crunch brought us back to reality of risks and bits of rationality.
After two consecutive days of losses last week that wiped out USD 2.1 trillion off global markets, the ASX S&P 200 index closed Monday by higher of 0.4% ahead of US market open.
Questions of whether the markets are turning bearish are far fetched at the moment as there are still many bulls waiting to pounce on some good values. Some believe the US subprime implosion comprise only a small fraction of the global equity valuation that is not enough to warrant a serious downturn.
Technically, the relative strenght index and moving averages are indicating a probable rebound whereas the fundamentals are showing some bargain values. Sideways and some volatility could be the common actions for the short term but moving on an upward projection.
Nonetheless, the local market still have to factor out RBA's rate decision next week. It is still early of the week.
After two consecutive days of losses last week that wiped out USD 2.1 trillion off global markets, the ASX S&P 200 index closed Monday by higher of 0.4% ahead of US market open.
Questions of whether the markets are turning bearish are far fetched at the moment as there are still many bulls waiting to pounce on some good values. Some believe the US subprime implosion comprise only a small fraction of the global equity valuation that is not enough to warrant a serious downturn.
Technically, the relative strenght index and moving averages are indicating a probable rebound whereas the fundamentals are showing some bargain values. Sideways and some volatility could be the common actions for the short term but moving on an upward projection.
Nonetheless, the local market still have to factor out RBA's rate decision next week. It is still early of the week.
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