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

FUNDAMENTAL ANALYSIS
The Dow closed flat today as it gains a mere 0.57 points or 0.00%. Not only is the index flat, advancers also parred decliners 1 : 1 and the total equity put/call ratio also turned in 1.03 today. It is a rare day where every indication seems to sing to the same tune… Bulls and Bears ended in a draw today. The day started out with the bulls in charge for the first half of the day and the bears for the second half. Investors are struggling and balancing the prospects of a diminishing rate cut against an economy that seems to be picking up at last. This battle is likely to rage on until the CPI and PPI numbers later this week (please see http://www.mastersoequity.com/option_trader_hq.php ) and I am secretly optimistic.

TECHNICAL ANALYSIS
The Dow is now in a perfect setup for another leg in its rally. It showed strong support as it rested atop the 30days MA as the short term stochastics entered oversold region for the first time since March 2007 and started to turn up. This looks like a perfect textbook technical correction within a sustained bull trend. We should see the Dow resume its Staircase formation soon.

The Star Trading System is also optimistic as it flooded us with morning stars today. All students need only report on what qualifies will do.

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

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

The Dow dipped 243.72 points last week with last Friday staging a dramatic rebound of 157.66 points, ending the Dow above it’s 30MA support line. Much of the Dow’s action last week has been the result of fantastic economic releases that suggest that the economy is picking up at last. Trade gap also narrowed for the first time in a long time. These releases caused a 2 days ditch as the prospect of a rate cut becomes almost zilth. However, all stock markets move ahead with the economy and as economy moves, so will the market. This week’s big releases are the CPI and PPI (please see economic calendar at http://www.mastersoequity.com/option_trader_hq.php which will paint a definitive picture on inflation status.

The Star Trading System also seem to pick up to upside today too as it shows more morning stars than evening stars.

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