Thursday, May 17, 2007

Futures are WEAKER...WHY ???

Futures are weaker this AM @ 9AM...........

This is a NORMAL meandering before it starts its another FIRM close.

Worldwide markets were UP including Shanghai.

Chinese regulatory authorities are TIGHTENING the listing requirements for A index....to eliminate weaker companies for getting listed on this major exchange.

China is also allowing Chinese to invest 50% of their savings in foreign equities in world exchanges...to deal with balooning foreign exchange reserves.

OIL is flattish after being down for several days.....good for future inflation.

GOLD is in a MAJOR downward spiral...may continue till it finds its SUPPORT around $650 area.

OE will push all indices to its HIGHEST close today.

Lot of private equity chasing beaten down companies.

Lot of strong companies are buying back their equities in a BIG way......which is reducing supply of FLOATS.

Takeovers are also eliminating supply of equities and giving lot of Dollars to reinvest in other companies.

Now that is a HEALTHY conditions for an ongoing BULL market around the world......of course with SHARP corrections along the way.

Position in stronger stocks in a diversified manner.

Please continue doing your own due diligence.

BLOG does not give buy or sell.

Saleem

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