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

FUNDAMENTAL ANALYSIS
The Dow gained 92.84 points today in a spectacular come back, kicking off the week on a high note. Much of the gains has been due to a sharp 1.2% rebound in the extremely influential Finanical sector. The Financial sector was beaten down last week amidst fears of possible credit crunch. Helping the market along is a slight retreat in crude oil prices too. Apart from these, there wasn’t much significant events driving the market, which brings us to the technical aspects.

TECHNICAL ANALYSIS
Today’s market action didn’t come as a surprise as I mentioned yesterday that the Dow should start to level off and trade sideways a bit for the weekly 30MA line to catch up and then stage a full scale rebound. Looks like it is happening at last and more significantly, it is happening right on top of the 13250 support level, which has been a significant support level since June 07. I will be watching for a possible entry soon.

Well well well, the dry spell has ended at last!! Today, we are rewarded for all our patience with a waterfall of morning stars as the Star Trading System prepares us for the rebound! Patience always pays off.

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

http://www.myoptiontradingroom.com/star-trading-system.html

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

Welcome back from the long weekend! Hope you are mentally and spiritually recharged for the challenges ahead.
My take is that it’s drop is almost, if not already, done. Remember the weekly 30MA line that I have been talking about for weeks? Last week’s drop of 585.61 points has brough the Dow very close to its weekly 30MA line and ready for a rebound. This is also supported by a huge surge in the VIX and the Dow touching the 13260 short term support level while it’s short term stochastics entered overbought region. All indications seems to support a rebound at this level. However, as we all can see, the weekly 30MA level is somewhere around the 13000 level… does it mean that the Dow needs to visit 13000 in order to rebound? Yes and No. The Dow can start to trade sideways for a few days in order for the weeklyu 30MA to catch up before staging a rebound or, yes, it could just go straight down to 13000 before rebounding. Both scenarios warrant a hold if you are long on the market and a hold if you have not entered yet. Traders should see a definite rebound before entering.

The Dow has been ditching for the past weeks but does it look like it is going to recover soon? Maybe, because the Star Trading System is starting to flood us with morning stars.

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