This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
The wild bull shakes it’s rider off at last today as the Dow tumbles 147.74 points in a single day today, shedding off 1.11% and 5 days of gains. In fact, this is the hardest single day drop since 13 March. Well, like I have said, the longer the rally, the harder the fall… looks like it is happening at last. US trade deficit opening to a 4 years high along with import prices rising 1.3% due to a weakening dollar has once again brought inflation fears to the front stage. The earnings season is also coming to an end. With no more explosive earnings to cheer investors onwards, it may be hard for this rally to continue. This may be the correction which so many have speculated about for so long.

TECHNICAL ANALYSIS
The Staircase formation in the Dow is shattered at last with the Dow hitting the ultimatum level which I set 2 days ago. My trend indicator has also indicated a definite shift in short term trend to bearish. These are definite signs that the correction that I am anticipating is here at last. I took the opportunity to take profits off the table today but not shorting the market… yet. This is because the long term bullish trend still remains intact, for now, and I would see a possible rebound at the 13000 level.

The Star Trading System agrees with the trend shift with an explosion of evening stars today.

Thought For The Day : “Always Trust The System”

by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
The bulls are back today, pushing the Dow up to 13,362.87 points today, when the Feds decided to keep interest rates stagnant for the 7th straight time. Investors breathed a sigh of relieve and came back into the markets after being on the sidelines for the past 2 days. Falling oil prices also served as a catalyst to this bull rush. Indeed, this rally has gone on for much farther than most skeptical investors have expected. The longer the rally, the harder the correction… always keep on hand on the rein.

TECHNICAL ANALYSIS
Well, the Dow survived the 13,210 points ultimatum that I declared yesterday and faithfully made a new step in its staircase formation. Again, it is not a 100 points step that we used to see early in this rally but a relatively small 53.80 points one. Not bad considering how high this rally has gone. Volume is rising steadily, supporting the rally but I would be seriously keeping one hand on the rein of this bull as more and more of my indicators are screaming for the rally to take a break. For now, the technicals look good, the fundamentals are relatively encouraging and I do not yet see a real reason for the bull run to end… yet.

Thought For The Day : “Always Respect The Market”

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