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

I am not a person who easily say “Bear Trend”, much less “Crash”. The market has proven to be extremely resilient over it’s history of more than 90 years. Over the past 90 years, we have only since a couple of real bear trend instances and all of those instances eventually got up and got higher! It is not an easy market to crash at all but from the action today, I see some problems as I mentioned yesterday… if the Dow breaks below the 12800 level tomorrow, we could be in for some trouble. I shall say no further today and I hope I am wrong. The Dow has dropped 3.62% on a weekly basis. The last time it dropped 3.62% on a weekly basis was back at 19 April 2005, which of course ended with the Dow in a rally. Yes, the market usually comes back when hope seems the thinnest.

The Dow dropped by more than 100 points again yesterday but the Star Trading System is still not giving us a flood of evening stars… this is very very strange indeed. Usually, when the market changes trend strongly, the Star Trading System would confirm the new trend with a lot of evening stars. Does this mean that the bear trend is actually a bear trap?

Thought For The Day : “Always Respect The Market.”

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

The Dow gave ground at last… we have never seen such a turbulent market condition since 2004! Such turbulent market conditions made the Star Trading System stand on the sidelines too as there is only 1 signal today.

Investors totally lost their guts today in a coordinated exodus. The Financial sector was again bombarded by a mass panic sell off, resulting in a 2.5% ditch. Fundamentally, I can only say that investors totally lost their guts, compounded by hedge fund drawouts. Decliners led advancers by a huge huge margin, in a market action which can only be described as a “Beating”. Technically, the Dow ditched and formed a huge down candle when it should have completed the rebound by closing up today. This action has not only formed a new 4 months low, but has also totally negated the previous rebound signals, including the dragon tail formation. Trend indicators has turned a definite bearish signal and the Weekly 30MA is barely holding its ground. It may indeed be time for a bigger correction than we initially expected. Short term support level is at 12780, breaching which, the Dow would see much more downside to come. Even though the market looks extremely weak now, it is still hard to imagine a direct and committed ditch from this point onwards. Looking back at the recent corrections over the past 4 years, there was never one correction which goes so deeply down and continues down. So is this the start of a bear market or a market crash? I would not think so yet. It is not easy for the market to crash and from the volume today, I would think that point has not been reached yet. It is still an extremely uncertain market, so don’t be too quick to make a decision to go short yet.

The mark of a professional is that a pro knows when to trade and when not to trade. Since most beginners don’t know how to make such a decision, the Star Trading System makes it for all of us and this behavior is the real secret of the Star Trading System… it seems to think for you! This is so revolutionary that no other trading systems in the world has ever achieved it.

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