Free Stock Market Research Report by Jason Ng, the man behind The Star Trading System (one of the best option trading systems)

The Dow made a one day ditch yesterday, giving our bearish stars a chance at it. Even though one day ditches almost means nothing in the stock market and may just rebound back up the very next day, it could also be a setup for more downside to come… nobody can tell and nobody can make a prediction with any certainty when money is on the line. That is why as a Star Trader, we don’t attempt to make any predictions but rather just follow the system as the Star Trading System have been proven over the years to be intelligent enough to preposition us ahead of major trend changes.

Financials led the way down today as some investors took profit, resulting in the Dow losing 180.51 points. The good news is, the sell off has fairly light volume and is very concentrated in the financial sector, which means that it is no indication of broadbased pessimism in the market. Indeed, the drop today did nothing to change the strong short term bull trend and as we have seen so many times recently, one day drops usually pave the way for an explosive breakout. Will it happen this time round? Chances are good but, being the stock market, one should never completely erase the possiblity of a breakdown at such critical junctures. Tomorrow’s Housing Starts and PPI (see economic calendar) would be the focus as investors look for evidences of a recovering housing sector and indications that future CPI is going to ease off. Indeed, the past few months have seen a huge rush to buying properties in the USA from Middle Eastern and Chinese investors (particularly from Shanghai). Such recognition of value is the catalyst needed to end any kind of capital crisis.

Star Option Trader’s Thought For The Day : “Do it the easy way, follow the system.”

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