- 22
- Feb
This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity
FUNDAMENTAL ANALYSIS
The case for STAGFLATION, which I have been talking about for months, recieved all the facts it needed today. Philly Fed Survey turned in terrible along with leading indicators, suggesting that the economy continues to do badly and is expected to continue to be lousy. This, along with yesterday’s high inflation numbers, suggests slow growth or zero growth along with rising inflation = STAGFLATION! Investors woke up to this fact after the Philly Fed Survey numbers are released and brought down the market which looked rather strong on the open. I am more and more inclined to believe that this is going to last for a while…
Its scary trading under such market conditions, isn’t it? (and some of you guys were sooooo eager to get into the fray)
Our first qualifier in more than a month looks like its taking a roller coaster ride as well. In fact, it could end up as a 2 touch signal (see lesson 2 - 5 of the Star Trading System). As a star trader, you should not imagine the worst before it actually happens. Imagination does nothing for your position except to fire your emotions and give you plenty of reasons to break the rules. It is scary trading during such times and we need to accept that fact. It is also periods such as this that prepares you for the challenges in the market later on in your lives.
TECHNICAL ANALYSIS
The Dow looked like its going to break the 30MA to upside upon opening but ended way down suggesting that the 30MA resistance is still too strong to be broken. I think a visit to the Jan lows continue to be inevitable.
Thought For The Day : “Imagination Triggers Emotions.”
