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

FUNDAMENTAL ANALYSIS
The Dow closed down by a thin thin thin 0.25 points yesterday as investors take a short breather after Thursday’s gain. On the bright side, Bank of America stepped in and took a huge stake in the ailing mortgage lender, Countrywide Financial. Country Financial is the biggest mortgage lender in the country and has went into a bear trend since Feb 2007, shredding over half of it’s share price since! This gave further evidence that the banking system is not about to just let the credit crunch take as many “lives” as we all think it will. There is still a lot that can be done to salvage the housing market and prevent a recession. One such thing is a cut in the Fed Fund rate… we all know it is coming.. but when?

TECHNICAL ANALYSIS
The Dow traded sideways today, beginning another step in the staircase formation. Bullish momentum on our short term indicators continue to build up healthily and I see the staircase formation going up to the 13500 resistance level where we need to reassess if there is enough strength in the market to break the resistance level.

Not surprisingly, the Dow formed moved sideways yesterday and the Star Trading System spawned quite a number of evening stars. Let’s see if any qualified for entry today.

Thought For The Day : “Real Traders Love Weekends!”

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

The Dow gained 145.27 points today amidst more M&A news and completed one step in the Staircase Formation. If you do not know what the Staircase formation is, you should read back on my posts in June where the Dow gained steadily on the staircase formation. Short term momentum indicators continue to show bullish momentum gaining as volume gained slowly and steadily too. I see the staircase formation going much further and it will not be strange to see another couple of days of sideways trading before another big up day. That is the staircase formation. Anyone who went long on the market on my dragon tail formation comment on 16 Aug would have made money by today.

Looks like the market has decided to go up afterall! The Star Trading System also followed up on this with a ton of morning stars today. A few of those morning stars that fully qualified but without qualified options has also performed well. Let’s see if we get any qualifiers today…

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