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

The Dow rebounded indeed last Friday following my analysis of the Dragon Tail Formation on Thursday. In fact, it was a pretty strong rebound on strong volume, one that reflected the optimism of investors and the confidence that the government will not allow the market to turn sour. Both the weekly and daily charts support the continuation of the rally and with a calm and quiet week ahead with no major releases and nothing to rock the boat, this could be the start of a healthy rally. In fact, this is a classical continuation of the primary bull trend from a major correction.

However, I had readers challenging me that no matter how good the technical indications look, the fundamentals will still prove otherwise and totally negate the technical indications. This reader (R**lan) is obviously a total amateur at market analysis. That comment is as good as saying “Even though the burnt smell is obviously in the air, one look into the burning pot will prove that the food is still well”. Too many people look at technical analysis as independant from fundamental analysis, that’s Sooooooo WRONG! Why do I perform both technical and fundamental analysis back to back daily? That’s because both are one and the same! Technical indications are produced from daily price and volume changes and such changes are the RESULT OF FUNDAMENTALS! Because something changed fundamentally, investors’ behavior produced the technical indications that we see at the end of the day! That is why when we smell something burning, we immediately head for the fire extinguisher instead of saying that nothing is going on! That indication allows us to take precautions to take advantage of the situation before it becomes obvious. Like fire, it is too late when you see it burning right in front of you, right?

Fundamental analysis and technical analysis is one and the same… 2 ways of looking at the same thing, always remember that!

The Dow followed up with a pretty weak rebound last friday and the Star Trading System obviously didn’t like that weak a rebound and turned up only 3 signals today.

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

Like I said, I have never seen a real market crash before and this is no exception. The Dow formed an extremely important signal yesterday… a dragon tail formation with SELLING CLIMAX! The problem why the dragon tail formation back on 10 Aug failed to stage a full scale rebound like it did on 14 March was that 14 March was also a SELLING CLIMAX! A Selling Climax is a huge volume surge in a single day at the bottom of a down trend. A selling climax occuring on top of a dragon tail formation makes the rebound even more possible! Want more strong support? This set of signal is occuring right on top of the 200MA, which again is a strong support line. Also, when I introduced the dragon tail formation to the world on 14 March, I mentioned that the signal is stronger as the tail is longer… now, look at the dragon tail formation today… is that a long long long tail or what???!!! Ok, there are a lot more technical indications supporting this coming rebound and I am not going to go into them one by one. In short, this is definitely a key reversal day, so, good luck to all of you who still believe the market is going to crash!

The Dow dropped slightly yesterday but the Star Trading System has begun flooding us with morning stars today in preparation of a rebound! Yes! Looks like a rebound is imminent indeed and I agree with the Star Trading System. See how the Star Trading System again attempts to put you ahead of major market shifts? That is why this is the perfect system for people who completely has no knowledge of market analysis because the Star Trading System already analyses the market for you and gives you all the right signals! Always respect the system!

Thought For The Day : “Always Respect The System!”