by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
Markets were sideways today ahead of the FOMC release as usual on below average volume. This is a tradition all investors seems to obey so far, no matter how predictable the actions by the Feds may be. Not even the drop in oil price manage to pump the markets up. Well, tomorrow is going to be another thinly traded sideways day until the Uncle Ben announce another rate pause this Wednesday. The economic data so far still suggests a balance between inflation and economic growth. This makes it extremely hard for Uncle Ben to raise or cut rates. Let’s continue to wait and see.

TECHNICAL ANALYSIS
Markets are sideways today on low volume. This suggests that the 5 days rise is coming to an end. In relation to the secret bullish channel as shown in the picture below, it seems a little early to start a retreat back down to the bottom of the channel but it can happen as such channel analysis are never a precise science. Technical traders always read what the market is doing now instead of sticking to prediction. If the Dow should correct slightly now, it would test the bottom of the channel at about 12400, failing which, we should see a testing of the 12250 support level next. Markets remains uncertain but slightly inclined to upside.

by Jason Ng, Founder, Master ‘O’ Equity

The Star Trading System stood on the sidelines today with only 2 signals, one each from Morning Star & Evening Star. The Morning Star signal look good based on the chart analysis.

The Dow has been secretly and quietly crawly upwards along a short term bullish channel even though volume remains very thin. A look at the weekly charts revealed that the Dow is climbing steadily along a rising 30MA with rising momentum. If the Dow makes yet another higher high and higher low this week, I would be convinced that the market is ready to come back. This is going to be a heavy weight week again with a couple of heavy weight releases including the Fed Release. (Please See Option Trader HQ For Weekly Market Calendar)The pressure on oil prices has also been alleviated with the release of the British sailors and that certainly puts another point of optimism to the market. As more and more good news comes into the market, so will more and more bullish participation and that is certainly what a good bull trend needs. Will we get these good news this week?

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