Tuesday, June 05, 2007

Newsletter dated 5th June,2007

U.S. stocks rose on Monday, with the Dow and the S&P 500 eking out closing records, as higher energy shares and a fresh round of takeovers offset concerns about a sharp sell-off in Chinese stocks. Energy stocks led the S&P higher as oil climbed above $70 in London on news that a cyclone was headed toward the oil-producing Arabian peninsula with the potential to disrupt supply.

China's domestic stock market fell 8 percent, its fourth straight losing session, following last week's hike in the tax on stock trades. Even so, major Asian markets ended higher, and European markets were only slightly lower on Monday. U.S. stocks fell in early trading, but clawed their way back.

The Standard & Poor's 500 Index <.SPX> gained 2.84 points, or 0.18 percent, to 1,539.18, finishing at a record for the fourth straight session. The Dow Jones industrial average <.DJI> rose 8.21 points, or 0.06 percent, to end at a record 13,676.32.The Nasdaq Composite Index <.IXIC> advanced 4.37 points, or 0.17 percent, to close at 2,618.29.

- The Nikkei rose 0.50 percent on Tuesday with investors buying home builder Sekisui House Ltd. The Nikkei gradually added gains as investors started buying on dips on individual news, pushing up a broad range of stocks. the blue-chip Hang Seng Index <.HSI> was up 0.3 percent, brushing off steep losses in mainland equities <.SHSZ300>.

It would be a difficult day for traders today. We are not finding any direction for the market. As a result it would be a stock specific movement in the market. Sensex might open 30 POINTS +/-. Crude is trading higher. So oil marketing PSUs might trade lower. Rupee is trading at 40.48. So dont trade long on Tech stocks, especially blue-chips tech.
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