by Jason Ng, Founder, Master ‘O’ Equity

The Star Trading System seems to be hinting at a pullback for a few days already, even today, as it continued to flood us with evening stars.

FUNDAMENTAL ANALYSIS
The Dow mustered enough energy to break the 12800 point at last to new highs as we have expected to close at 12803.84 points! The primary mover behind this surge is again the great earnings season as giants like JPMorgan Chase beat analyst expectations. Even though the stock market continue to rise steadily on rising volume, advancers are already secretly retreating in the background. Today, decliners beat advancers in a show of fatigue. I think it is high time the Dow joined the Nasdaq composite in a little pullback after 5 straight days of gains.

TECHNICAL ANALYSIS
Yes, the Dow broke historical high as expected… the question now is, what’s next? The Nasdaq composite has already begun its pullback and the Dow also looks like a pullback is already imminent. Its advance has been slowing down over the last few trading days with daily gains narrowing down even though volume is rising. Short term stochastics is also in the deeply overbought region. I would expect a couple of days of pullback as far down as the 12700 region before resuming the bull trend.

Thought For The Day : “Master Yourself Then Master The Market”

by Jason Ng, Founder, Master ‘O’ Equity

The Star Trading System seems to think otherwise. Strangely, despite all that bullishness, the Star Trading System flooded us with evening stars as if to prepare us for something to come.

FUNDAMENTAL ANALYSIS
The Dow broke above the critical 12750 point today and is now just a small leap from making a new high. Already the S&P 500 has made a new high as more candies fed the bulls today. Core consumer price index rose lower than expected, increase in housing start and permits and great earnings release from Coka Cola and Johnson & Johnson that topped wall street estimates. All that being said, advancers and decliners were at par today indicating a slight retreat of the bullishness that we saw yesterday… which, of course, is natural. Nothing in the world goes all out and up but in same surges and stages. This earnings season looks like its going to be a good one afterall and that the old wall street adage of profiting in April and going away in May seems like it is going to happen.

TECHNICAL ANALYSIS
The Dow continue to rise on systematic buying as expected. Just look at the volume today and we can see that it is nearly equal yesterday’s volume. Even though such large systematic buying can definitely lift the market, I do hope to see evidence of the mass public jumping in and supporting the rally. For now, the bulls look neatly in charge and that we can expect to see a new high tomorrow.

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