by Jason Ng, Founder, Master ‘O’ Equity

Markets fell yesterday following the Star Trading System’s continuous production of evening stars over the past week. Many of you are wondering why the Star Trading System keep giving us evening stars when the market looked like it is going up. Well, the truth is, the Star Trading System seems to know where the market is really going to be heading next and will preposition us for those moves. So, as Star Traders, always stick to the qualified trades regardless of what you see in the market.

Again, today, we see an avalanche of evening stars. All students need only tell me what qualifies will do. There is no need to send in your analysis for those that did not qualify.

FUNDAMENTAL ANALYSIS
With the Energy sector slowing its advance, it loses its offsetting effect against the home sector which continues to fall today like an avalanche. Many REITs, which are barely holding its nose above the water so far, fell like rocks from the sky. Leading indicators are also pointing to a slowdown in employment (not surprising there with enterprises moving overseas), a grim outlook for the upcoming earnings season and oil prices pushing $64, all contributed to a slightly negative sentiment in the market. You can find all the reasons to be pessimistic right now with not much, if any, reasons to be optimistic in the markets today.

TECHNICAL ANALYSIS
Not surprisingly, my picture of the Tower Formation setup yesterday has came to be today. With the Dow failing at the 12500 resistance level, the Tower Formation is completed and I see a correction back down to its support level at 12100. But will it laspe into a sustained bear trend? That truly is the golden question. I do not yet see a sustained bear trend coming, especially when the weekly charts have such strong support levels. I do speculate that the market will oscillate between these 2 critical points, 12500 and 12100 for at least another cycle before it decides where it wants to go.

Thought For The Day : “Discipline and Patience is the hallmark of all successful traders.”

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by Jason Ng, Founder, Master ‘O’ Equity

Another neutral day at the market yesterday. Today, the Star Trading System continues to pour evening stars at us.

FUNDAMENTAL ANALYSIS
New home sales fell by 3.2% in February while oil price nears the $63 mark amidst tension in the middle east. Obviously the home market continues to be weak and expectedly so as real estate investors continue to be cautious in this very sensitive and weak sector. As for the rising oil price, I do not see it as a serious threat to the stock market yet as it has been expected to rise ahead of a higher demand summer. Tomorrow, we shall recieve the consumer confidence numbers and is again likely going to be a market mover.

TECHNICAL ANALYSIS
The Dow and the Nasdaq composite continue to close sideways today as they struggle to break their respective resistance levels. The 12500 level has proved to be a pretty strong resistance level as the Dow has failed that that level for 4 consecutive days. Most sideways movements following a surge should still see an inclination to upside should the trend be a strong one. Until more evidence points to the contrary, my take remains Baby bull (neutral with inclination to upside).

Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”

Discover how I made 183% profit from Star Trading System in one month and how you can too.
Click HERE to find the secret!