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

FUNDAMENTAL ANALYSIS
The Dow closed sideways again as consumer confidence numbers turned in 10 months low. The consumer confidence index is a survey of 5,000 consumers asking them how they feel about the current economy and their spending patterns. They will also be asked how confident they are about buying expensive consumer goods. The report is split into how people feel now and their expectations over the next few months. It is not a major economic index and its results does not corelate directly into economic wellbeing. That is probably why the Dow managed to hold on sideways despite a pretty discouraging reading. Tomorrow is expected to be another dry day in the market as investors await news from the Fed on Thursday. Strangely, even though we all know that the Feds are most probably going to hold interest rates stagnant again this time round, most investors still prefers to sit on the sidelines prior to the release.

TECHNICAL ANALYSIS
The Dow closed marginally lower today as volume continues to dry up…. a good sign for the bulls. On the weekly charts, it still does seem like the Dow needs to find a way to touch the 30MA line again, either by means of a big correction to about 12780 or remain range bound until the 30MA line catches up with it again.

The Star Trading System is strangely optimistic beyond our comprehension today with a ton of morning stars. This is exactly the magic of the star trading system… its ability to preposition us before the next trend becomes clear.

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

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

FUNDAMENTAL ANALYSIS
The Dow closed sideways today as the bulls and bears wage a ferocious battle for supremacy today, ahead of tomorrow’s Consumer Confidence number. Even though the Consumer Confidence number tomorrow is not a historically market moving indicator, it still does cast some light on what to expect for the really big numbers later this week. (please see option trader hq for economic calendar)Even the total equity put/call ratio turned in almost neutral at 1.12 today, so it is hard to see any clear inclination. In the light of recent events, clearly the US economy is at the early recovery stage and the numbers turning in should support that view and lift the stock markets. I remain optimistic for now with regards to the fundamentals.

TECHNICAL ANALYSIS
The Dow has officially lasped into a dangerous neutral trend from a bull trend. A neutral trend here means that it will trade up and down within a tight sideways channel. Clearly, the Dow is now trading within a channel of between 13250 and 13670. The good thing is that such a neutral trend do not usually last very long. The bad news is, if the next trend shift should be to downside, it usually goes into a bear trend instead of just a minor correction. It is clear by now that the all important 30MA is no longer supporting this rally and looking at the weekly charts, it is also about time the Dow make a landing back onto the weekly 30MA before its rally can resume. Such a landing can be as low as 12780. The last time the Dow landed back down on its weekly 30MA is during the 27 Feb ditch. It is hard to make any predictions right now as the Dow can also remain within its neutral channel and let the weekly 30MA catch up to it instead. Such is the time to be fully

The Star Trading System also sits on the sidelines completely today with only 1 signal. Such are tough and dry times indeed and in the rest of your trading days, you shall see much of such times.

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