On 11 August 2008, Nymex Crude oil price has fallen more than $30 from its recent peak. Crude is currently at $113.12 rebounded from the lowest priced at $112.79. Oil price has been causing a lot of negativity and impact on both economy and global markets. A drop in oil indeed has become a very prominent and powerful catalyst as compared to earning reports and what news have you.
Another factor that starting to drives oil price lower is believable the strengthening greenback. Wall Street’s DJI, Dow Jones Industrial Index is broadly up. Buying sentiment is back with fallen oil price coupling with stronger greenback.
Looking forward, the main focus is on Shanghai Composite Index, SSE, Straits Times Index, FTSE STI and Hang Seng Index, HSI following the positive closure of Wall Street. We may see a very sudden, strong bull coming up with the Asia market following the consecutive rise on DJI. Naked and shortist which attributed mainly to the already volatile market will be greatly disturbed by the aftermath the following trading session going to move.
The above are of personal opinion and is not at all an inducement to trade.
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