Remember the Isaac Newton’s law of gravity? Well, it’s happening to the U.S. interest rates now – the series of rate reductions since Sept 2007 is about to make a U-turn. Federal Reserve held interest rates steady Wednesday and hinted that the next direction for rates could be up. Investors and economists think Bernanke would probably start boosting rates as early as 5th Aug 2008, its next meeting. If not then the next possible calendar date would be 16th Dec meeting, which is most likely given the housing market is still bleeding and needs time to recover.
The sign could be short-term but the report that showed U.S. stockpiles of oil and fuel were larger than expected was taken as evidence that soaring gasoline prices have crimped demand in the U.S. thus the stabilization in oil prices. Prices were also influenced by another EIA report that predicted oil production will increase in Azerbaijan, Brazil, Canada, Kazakhstan and the United States in coming years. It also predicted such effect will pull oil prices down to around $70 a barrel by 2015. Since such prediction is as good as consulting fortune teller, it’s wise not to take it as the Holy Grail.
Nevertheless managed to scalped Baidu.com, Inc. (Nasdaq: BIDU, stock) for some pocket money. It’s hard to let your positions run as most of the stocks zig-zag almost on daily basis. Hence, when your buy signal triggered for day-trade just go in, scalp it and run with your money. It’s not the time yet to become a hero. It’s guerilla warfare out there.
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June 26th, 2008 by financetwitter
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