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

The Dow gained over 300 points in one day as the Fed continue to hold rates steady and oil continues to tumble. See how dangerous fed release day can be? It is one day that can totally turn sentiments around. That is why we, Star Option Traders never put on new positions on Fed day.

The Dow rocketed upwards by more than 300 points today as the Fed decides to keep rates steady. Adding to the optimism was oil continuing its way to the abyss. This is obviously the outcome investors are looking for, putting neither the economy nor the dollar into further danger for now as they sit by and watch the economy pick itself up. The real question now is a technical one. The Dow is once again at its 11600 resistance level. This is a strong resistance level which the Dow has made 2 previous attempts to break in vain. Tomorrow would be critical. If the Dow follows up with a strong resistance level breakout, we could see a reversal into an intermediate bull trend. Lets watch and see.

Star Option Trader’s Thought For The Day : “Always Follow The System.”

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

Its FOMC ANNOUNCEMENT DAY today! This is the day the Fed tell the world whether they will cut rate, hold rate or raise rates. No matter what the decision is, the fact that it will cause market to react significantly in a direction that nobody can predict before hand means that any stock that qualifies for entry in the morning before the release could be caught in an unexpected swing should the announcement turn the market against it. That is why we NEVER trade on FOMC announcement days. Lets take a break today.

Yes, its FOMC day again tomorrow, what can we say?
The market behaved as it should behave before every such release; uncertainty with a little skepticism, ending in a largely bearish inclined sideways day. No matter how you look at it, FOMC does change some things in the stock market. With the Dow sideways for nearly a month now, it could be the catalyst needed for the stock market to choose where it wants to go at last. One thing is for sure, investors seem to be comfortable with where oil is at and heading right now so much so that huge drops in oil price doesn’t really affect stock market sentiments anymore. Well, that’s investment psychology; only factors of immediate concern push investors to action. With oil this tame for this long, its easy for investors to no longer think about it too much. So, is this a good time for the Fed to RAISE RATES and rescue the dollar or is the government already planning on a new combined currency? There’s no way to know for sure but I would expect forex, currency swaps and forwards to go into the history books in the long term future as globalization would no doubt eventually result in a single global currency. For now, the Dow remains neutral with a bearish inclination.

Star Option Trader’s Thought For The Day : “Always Respect The Market”