by Jason Ng, Founder, Master ‘O’ Equity

The Star Trading System (option trading strategy) seems to agree with a bullish outlook with only morning stars signal today.

FUNDAMENTAL ANALYSIS
Stock market rallied strongly for a third trading day today as upbeat news and a halting oil price injects a good dose of optimism into the market. Investors headed into this new earnings season with a lot of pessimism which was quickly eliminated as most earnings still checked in higher than expected. Seriously, I haven’t seen this much optimism in one day for a while. Clearly, the bulls have been in charge since the market turned around on 14 March and are now roaring and rearing to go.

TECHNICAL ANALYSIS
Market rallied today as expected and today, we might see a new high made if the Dow breaks above the 12750 resistance level. Our ADX trend indicator has also turned up bullish for the first time since the 27 Feb dive. What I see now is a healthy correction completed followed by a strong recovery of the previous bull trend… Classic. The Dow and the Nasdaq composite are now back up in the short term overbought region and would not be surprising to see a couple of small pullback days before. Hang on for the ride to the stars.

Thought For The Day : “Every Morning Marks A Brand New Beginning”

by Jason Ng, Founder, Master ‘O’ Equity

The Star Trading System seems to agree with a bullish outlook with significantly more morning stars than evening stars.

After one and a half month of steady and hard climbing, major indices have almost completely recovered the one day loss of the 27 Feb dive. This shows that the bulls are very much back in charge right now. The 27 Feb dive have been the direct result of the 27 Feb China market dive. Take that day away and we will see that the overall uptrend pattern is almost completely intact. Investors returned to their steady buying pattern immediately after that dive turned out to be nothing but a fake out. With the government also pouring money secretly into the stock markets, there is hope of new highs in the near horizon. The weekly charts also displayed a nice bounce off the 30MA with bullish momentum growing and stochastics still a mile from being overbought. There seems to be a lot of room to upside now and I do speculate a new high coming up soon.

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Thought For The Day : “Every Morning Marks A Brand New Beginning”