- 30
- Aug
This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity
WHAT A COMEBACK INDEED!
I mentioned yesterday that a slight pullback is expected at the 30MA resistance level and that 1 day plunges are never reliable and then today, we see the Dow come back almost all the way. In fact, if you look at the DIA, which is the ETF trading the DOW (or what I call the DOW sentiment indicator as most commoners tend to trade the DIA and not the DOW, giving an insight on what investors sentiments), it has more than recovered yesterday’s plunge and has gone into the green!
While all these may be exciting, please try to remember that I mentioned yesterday that “these 2 days are critical”. Yes, tomorrow remains critical and if we do not see the Dow break above the 30MA resistance level tomorrow, then the Dow can still laspe downwards into a bear channel. This is going to be a bumpy ride with the VIX making a new 4 years high recently. Expect volatilty to continue.
Has anyone seen market conditions more volatile than it is now??? Up and down more than 200 points daily! Man, I have never seen such volatility since the late 90s! Yesterday’s a flood of evening stars and today’s a full list of morning stars… what has protected us so far is the Star Trading System’s entry procedure. Without an entry procedure, you can imagine how much money a trader can lose.
Thought For The Day : “Discipline and Patience are the hallmarks of every successful trader.”
