Welcome back from the weekends!
 
Hope you are mentally and spiritually recharged for the challenges ahead. A warm welcome goes to our new week one students too.
 
Last week has been a bullish continuation for the Dow but a terrible week for the Nasdaq Composite as it corrected back down to its 50 days moving average support level on lacklustre Q2 earnings performance outlook by tech giants. Oil also staged a slight rebound late last week as it landed on a strong $50 support level.

This week is going to be a very critical one for the Nasdaq Composite. If it drop below its 50 days moving average, it could go all the way down to test the 2400 level and failing which, it could laspe into a full scale bear trend. With people like Cramer shouting “SELL THE TECHS” everyday, its little wonder why everyone is panicking despite good Q1 earnings.
The number of evening stars versus morning stars today seems to indicate a market downturn… or at least a short term one.

Jason Ng
Founder, Masters ‘O’ Equity
mastersoequity.com
“Your Personal Stock Option Mentor”

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