This is The Wall Street Digest Hotline Update for Friday, March 17, 2006, at 6:00 p.m. EST.
There was the expected heavier-than-usual volume on this quadruple-witching Friday, but not the usual volatility. At the close, the Dow gained 26 points, closing at 11,279; the Nasdaq added 7 points, to close at 2,306; and oil closed down $0.81 at $62.77 per barrel.
Despite today’s expiration of multiple futures and options contracts, the markets were quiet following yesterday’s lackluster CPI report and this morning’s flat consumer sentiment reading and soft manufacturing numbers in February’s industrial production report.
By the end of the month, we expect the Fed to signal whether it will be ending its incremental rate hikes. The Fed has been raising the short-term Fed funds rate for almost two years and, with a booming economy and controlled inflation, there is no need to continue raising rates.
The stock market is still undervalued by 30 percent, while liquidity is at record levels. Shares of stock available for purchase continue to shrink because of cash corporate buybacks, mergers and acquisitions. In addition, the M3 supply jumped $28 billion last week to a record high of $10.36 trillion dollars.
All of this is bullish and points to higher stock prices ahead. With liquidity at record levels, we continue to expect a substantial move-up in stock prices between now and August.
We will continue to focus our recommendations in the technology sector, and the small- and mid-cap stocks and indices. Stay close to our telephone/e-mail/website Hotlines as we refine our recommendations for the great bull market ahead.
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There was the expected heavier-than-usual volume on this quadruple-witching Friday, but not the usual volatility. At the close, the Dow gained 26 points, closing at 11,279; the Nasdaq added 7 points, to close at 2,306; and oil closed down $0.81 at $62.77 per barrel.
Despite today’s expiration of multiple futures and options contracts, the markets were quiet following yesterday’s lackluster CPI report and this morning’s flat consumer sentiment reading and soft manufacturing numbers in February’s industrial production report.
By the end of the month, we expect the Fed to signal whether it will be ending its incremental rate hikes. The Fed has been raising the short-term Fed funds rate for almost two years and, with a booming economy and controlled inflation, there is no need to continue raising rates.
The stock market is still undervalued by 30 percent, while liquidity is at record levels. Shares of stock available for purchase continue to shrink because of cash corporate buybacks, mergers and acquisitions. In addition, the M3 supply jumped $28 billion last week to a record high of $10.36 trillion dollars.
All of this is bullish and points to higher stock prices ahead. With liquidity at record levels, we continue to expect a substantial move-up in stock prices between now and August.
We will continue to focus our recommendations in the technology sector, and the small- and mid-cap stocks and indices. Stay close to our telephone/e-mail/website Hotlines as we refine our recommendations for the great bull market ahead.
THIS IS FREE INFO AND NOT COPYWRITED. ENJOY!
