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

The Dow has completed a classic rebound last week on great economic releases (Please See http://www.mastersoequity.com/option_trader_hq.php For Weekly Market Calendar) and looks good to continue its rally.

The Dow made the classic, text book, rebound that I mentioned and rallied a total of 215.09 points last week in a spectacular come back. With the Dow’s short term stochastics still off the overbought region and a growing bullish momentum, this rally be expected to continue through this quiet week. Let’s look forward to a rewarding trading week ahead!

The Star Trading System continues to point to upside with a whole gang of morning stars.
Thought For The Day : “Every Morning Marks A Brand New Beginning”

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

FUNDAMENTAL ANALYSIS
The Dow gained another 71.37 points today after core PPI matched analysts expectations, giving more signs of an abating inflation. The Producer Price Index (PPI) is a measure of the average level of prices of a fixed basket of goods received in primary markets by producers. The monthly PPI reports are widely followed as an indication of commodity inflation. The CPI numbers tomorrow is certainly more important than the PPI numbers as it reflects the change in prices at the consumer’s end directly and is a much more important inflation indicator than the PPI. Stay tuned.

TECHNICAL ANALYSIS
We witnessed the first real bullish followup today since the correction started on 5 June. This follow up has allowed the Dow to rebound off its 30MA support line. However, it is still a little lacking in volume and doesn’t make it a very strong rebound. Unless I see a strong hundred point candle tomorrow, or very soon, along with growing volume, I cannot convince myself that the Dow’s staircase formation has resumed. However, our momentum indicators are definitely flashing a growing and steady bullish momentum and short term stochastics are also rising steadily. Both tells me that the bulls have definitely woke up on the Dow and is just awaiting the right moment to strike.

The Star Trading System is now definitely bullish on the market with another rush of morning stars and has also prepositioned us for another possible rally yesterday.

Thought For The Day : “You Are Not A Real Trader Yet If You Don’t Enjoy Weekends.”