300
11th January 2008, 07:39 AM
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The Dow Jones finished the day higher for the second day running, up 120 points. The news that Bank of America is rumoured to be buying struggling lender Countrywide Financial Corp. It shows that investors are starving for good news and that they will start a party at the first ray of good news. The Fed had their speech and they will be cutting rates on November 30. The next horse race will be how big the cuts will be, either a 25 points or 50 points cut. If there is a 50 point cut, expect to see a large reaction which should spill over into the ASX :hithere:. However, there should be a warning post-it note that we are now in the reporting season in the US and the bad news is on it's way.
The ASX spent most of the day yesterday in the red, however it managed to recoup some of it's losses and finally moved up to finish down only 5 points.
The RA Portfolio rode the stormy weather yesterday to reach new grounds with positive territory in PRE and good volume too. Good volume suggests that there is interest in the stock witch allows holders to sell off if needed. Results are expected soon for drilling samples from WA which should have a positive effect on the share price. PRE is close to hitting the 30% ceiling which will mean an automatic sell and the way it has been behaving, that might just be today!
IMI has dropped and has almost hit the stop loss level which will mean that we can either jump on board another stock (any thoughts crew?? and reasons please as to why) or take a look at IMI and get back in. More dicussion on that when the time comes.
The Dow Jones finished the day higher for the second day running, up 120 points. The news that Bank of America is rumoured to be buying struggling lender Countrywide Financial Corp. It shows that investors are starving for good news and that they will start a party at the first ray of good news. The Fed had their speech and they will be cutting rates on November 30. The next horse race will be how big the cuts will be, either a 25 points or 50 points cut. If there is a 50 point cut, expect to see a large reaction which should spill over into the ASX :hithere:. However, there should be a warning post-it note that we are now in the reporting season in the US and the bad news is on it's way.
The ASX spent most of the day yesterday in the red, however it managed to recoup some of it's losses and finally moved up to finish down only 5 points.
The RA Portfolio rode the stormy weather yesterday to reach new grounds with positive territory in PRE and good volume too. Good volume suggests that there is interest in the stock witch allows holders to sell off if needed. Results are expected soon for drilling samples from WA which should have a positive effect on the share price. PRE is close to hitting the 30% ceiling which will mean an automatic sell and the way it has been behaving, that might just be today!
IMI has dropped and has almost hit the stop loss level which will mean that we can either jump on board another stock (any thoughts crew?? and reasons please as to why) or take a look at IMI and get back in. More dicussion on that when the time comes.