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

The Dow formed a triangle formation lately which suggests that it is going to breakout of the current short term neutral trend very soon and the Star Trading System seems to think that it is going to breakout to downside, giving us 2 bearish stars today. I would also agree that this market takes a lot more than what has happened lately to rebound.

The Dow completed a short term triangle formation today. A triangle formation is a technical formation with declining channel line and rising trend line, consisting of candlesticks getting smaller each day, forming a triangle shape. Triangle formations suggest that a breakout in the direction of the previous trend (bearish) is about to happen (triangles do sometimes breakout the other way but odds are that they are continuation patterns and not reversal patterns). I would be monitoring the intraday trading action closely over the next 2 days for early indications of the direction of breakout. At this point, prudent options traders who wish to take advantage of this breakout might consider a delta neutral position on the DIA.

Star Trading System’s Thought For The Day : "Always Respect The Market"

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