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

As I have expected, the 14000 points resistance level proved to be a strong one and one that caused a huge 149.33 points depression in the Dow. Looking at the internals last Friday, individual stocks fell by a greater magnitude. As I have mentioned before, trading this high above the weekly 30MA makes the Dow extremely short term overbought and will only lead to a correction back down to it and it looks like it is happening now. Immediately support level is probably at the 13650 level, which looks like a shallow decline. This week’s prime mover will be the GDP numbers. Will the numbers indicate a growing or slowing economy this time round? Only this Friday will know.

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

It has been a pretty bullish trading day whole day today as the Dow opened high and maintained its pace throughout the trading session despite all kinds of lacklustre releases that didn’t satisfy anyone. Sure, initial claims are at 2 months low (2 months, what kind of comparison time frame is that??), payroll is rising steadily (and so is the de-valuation in the US dollars…so, which is quicker than which?), some companies are turning in great earnings (does that mean the rest of the earnings will be great?), such news serves only to tickle, not satisfy. On the down side, Crude oil continued its rally as it breaks $75 per barrel and Bernanke with all his hawkish and overly political comments (man, when did our econs teacher teach us to talk like that???) continue to keep the full passion of investors outside the flood gates. Overall, this is a day which the bulls claimed victory but in the face of no concrete, satisfying news and a strong 14000 resistance level that has stopped the Dow’s advance for a 4th straight day, it may take more than we think to keep this rally going.

Today, again The Star Trading System produces more morning stars than eveing stars… does it mean that the rally is going to continue afterall?

Thought For The Day : “All Traders Must Enjoy Weekends.”