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

Our entry procedure protected us from some really terrible losses yesterday when the market opened up and then ended up. Indeed, this is one of the most important aspect that makes the Star Trading System different from other technical based systems. We do not rely 100% on signals produced the day before but confirms it on the day of entry itself using an entry procedure, making sure that the dynamics that created the signal yesterday is still valid today. The entry procedure is the most important aspect to fully master in this course.

It is important that you check the bid ask spread of your chosen options again if any qualified for entry because bid ask spread can opened up very suddenly in this volatile market.

The Star Trading System continue to produce a flood of bearish stars today, anticipating a downside breakout. Let’s see if we get an entry today.

The Dow was up by 172 points today as investors accumulate around the 8500 support level. However, that did not stop today’s candlestick from skewing the triangle formation into a Descending Triangle Formation. A descending triangle formation is the bearish version of the triangle formation with breakout expectation to downside and is characterized by a descending channel line and a flat trend line, forming a right angle triangle. If the pattern holds, we should see an all out bearish breakout within the next 5 trading days. Can this pattern be reversed? Certainly! If the market finds enough strength to at least get back above 9000 points.

The economic data pouring in today continues to be bearish and we all know that the data are going to be bearish for months to come. So, if the stock market is a discounting mechanism, when will the stock market price in a bottom for the recession? Well, based on historical references, the stock market should find a bottom and reverse about 3 to 6 months before the economy recovers (at least in terms of unemployment rate). So, if you think unemployment rate is going to come back down in 3 to 6 months time, you should believe in the current support level. For me? I think this mess isn’t going away in just 3 to 6 months time, so I am not about to believe that the 8500 support level is the bottom.

Star Trading System’s Thought For The Day : "Check and Double Check"

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

The Star Trading System gave us a flood of bearish stars today in expectation of a bearish breakout. In fact, this is going to be the first time in a few weeks that we have anything to watch for entry at all. Let’s go!

The Dow slumped decisively by over 5% today but does it signal the bearish breakout that we have been waiting for? Not yet. Today’s slump only put the Dow down to the bottom of the triangle formation and atop the 8500 support level. This not yet a breakout. To qualify as a bearish breakout, the Dow need to slump below 8500 significantly (another 5%?) and on strong volume. This is why I would not be surprised to see the Dow actually rebound a little tomorrow. The Dow remains in a short term neutral trend and a primary bear trend with breakout inclination to downside.

That aside, the economy does seem poised for recovery even though this quarter’s earnings and the coming GDP is going to be nasty. Oil and commodities price is once again at very low levels and would definitely help stimulate aggregate supply when banks start lending money to companies again. Consumers still look very healthy especially with the way they are snapping up the new Google phone today. Consumers are looking for good value right now and that would definitely help to improve use of resources in the economy through the elimination of low quality and low value for money products. The invisible hand is once again at work clearing trash from all industries from the economy and would definitely help the global economy in the long run.

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