- 12
- Dec
This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity
Many investors are shocked that the market sold off today even when the Fed cut 25 basis points… these people obviously are not following my blog like you are.
Like I mentioned a few days ago, the market has already priced in more than 25 basis points cut! In fact, it has priced in a 50 basis points cut! That is why 25 basis point cut disappoints and spurs a selloff! In fact, I am surprised that the Fed cut at all knowing that 25 basis points is not going to help and that they risk loading a shaky inflation number.
The Fed disappoints with only 25 basis point cut! In fact the Star Trading System have been warning us about this by turning out more evening stars than morning stars whole week long! Today, the Star Trading System further confirms that the market is back on the way down with a huge avalanche of evening stars.
With the sell off today, a few sideways days can be expected before the market continue its way down. Hey, hold on! “WAY DOWN”??? Yes! Today’s selloff marked the end of the reaction rally that started on 27 Nov, which failed to break the high of the last reaction rally on 31 Nov! This transformed the “rally” so far into a bearish continuation setup, making a lower lower and lower high. With the 200MA support line at the doorstep, we would love to see it hold up and push the Dow back up. Fingers Crossed.
Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”
