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

There are little or no fundamental to talk about that contributed directly to the market action today. In my opinion, market movement these few days are purely technical. Remember I speculated that the Dow would retreat back down to the weekly 30MA line before staging a real rebound? The Dow went to a low of 13132.65 today, 132.65 points to the weekly 30MA line and then rebounded to end the day higher. Our momentum indicators revealed a definite reversal of bearish momentum to bullish momentum today, again, strongly suggesting that a rebound is imminent. Even though it is hard to pin point the exact day, I would say within these couple of days. So, some of you are asking me, hey, what happens if the Dow breaks below the weekly 30MA line? Well, such a break may not also indicate a full scale bear trend as we saw happened back in 13 June 06 and 19 April 05. When it happens, we need to take into consideration a lot of other fundamental and technical factors surrounding it in order to arrive at a conclusion as to what is going on, therefore, there is no way to answer that question intelligently. Anyone who tells you what will happen if such a break happens are merely speculating.

A third straight day with morning stars! The Star Trading System seems to scream out that a rebound is round the corner! Let’s see if something works out today.

Thought For The Day : “Always Respect The Market”

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

Much to our surprise, the Dow failed to stage a rally yesterday but instead lasped into a sideways day as it traded and closed within the trading range of the last 2 days. It was really surprising especially with such a strong opening and pre opening futures. What wasn’t surprising was the fact that the Dow remains a feet away from its weekly 30MA line, which we expect the Dow to reach before it can stage a credible, sustainable rally. It looks like it is happening. The next few days will be critical… the Dow is still at a strong support level and has traded sideways for 2 days. Will it continue to trade sideways while waiting for the weekly 30MA line to catch up (which isn’t very far away now) or will it ditch further in an attempt to reach the line faster?

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