As discussed in my earlier post, Asian market will rally after Mr. Ben cut rates .75%. The rally was extended until end of the week and it made FTSE ST index rose to 3159.59. However, there are many analysts said that the decision to cut rate has come a bit late. Remember "Better Late than Never". $150 billion stimulus package is also on the way and hopefully it can boost consumer confidence.
After two day rally, Dow dropped 171.44 pts on Friday as Investors locked in profit. The two day FED meeting (29-30 January 2008) will be the focus for next week. I believe people hope FED will cut rate by another 25 basis point. Will FED do it again to please investor? I don't think this is important as long as FED can assure that US can avoid recession, that would be sufficient. :)
I love the idea that Bush may call for more measures to ease credit crunch and cut corporate tax rates. They need to boost the slowing economy in order to avoid recession.
FTSE ST INDEX NExT WeEk???
We can expect the index will open lower due to US market dropped on Friday and slowly but sure I believe market will rebound and possible to close higher. As mentioned earlier, the main focus for next week is 2 day FED meeting. Therefore, a range trading for FTSE ST index (3,000-3,200) is expected. It's very VOLATILE, right???? :)
I will also post STEADYBULLL stocks recommendation with detail analysis soon.
HUAT ARH!!!!!!!!!!!!!!!!!!!!!!!!
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