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

FUNDAMENTAL ANALYSIS
Well, nobody ever said the stock market is a smooth ride. This is another day of struggle in the stock market as advancers par decliners. What seemed like a promising opening ended with the Dow down marginally by 3.01 points. Stocks opened strongly today as banks all over the world started taking measures to ensure smooth credit operation, soothing fears that the credit crunch might overflow to the overall economy. However, that optimism was steadily digested by profit takers throughout the trading session, ending the day lower. Even though the index did not amazed anyone, many of the individual stocks like HPQ has started to make huge recovery rebounds. Retail sales numbers has also rebounded, giving further evidence to the strengthening economy. With the numbers coming in favorable so far, we can expect the PPI and CPI numbers due this week (please see economic calendar at http://www.mastersoequity.com/option_trader_hq.php ) to also be favorable. I remain optimistic with the fundamentals. Yes, there are some problems here and there but these are not problems which cannot be solved.

TECHNICAL ANALYSIS
A sideways day today as the Dow remained uncommitted. Also, nothing has happened to cast doubt on the Dragon Tail Formation of yesterday. For now, let’s sit tight and watch. I maintain my view of an imminent rebound.

The Dow continued to trade neutral yesterday. The Star Trading System continues to sit on the sidelines today with only 3 signals. Indeed, I rarely see such turbulent market conditions and nice to bear testimony to how the star trading system protect us by keeping us out of any major committment so far.

Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”

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

Well, last week’s market action really did scare the wits out of many small time, amatuer investors who flooded major investment forums with questions like “Is this the start of a market crash”. First of all, let’s put the record straight… the Dow RARELY crashes! In fact, over its history of over 90 years, it has only “crashed” twice! And that 2 crashes ALWAYS rebounds and ends up higher! So, I really cannot understand why every investor is so worried about market crashes. If you are worried about losing and market crashes, then you should think long term investing instead of short term trading.

The Dow was down marginally on a week to week basis and has halted it’s decline atop its weekly 30MA line. The Dow also formed a dragon tail formation last Friday on the daily scale and that usually led to a good rebound. The last time a dragon tail formation occurred was back on 14 March 2007, which literally started a 4 months rally. I remain optimistic and I hope all of you will too.

The market has been extremely turbulent last week… in fact, it was more turbulent than many of us long time traders has ever seen and the Star Trading System stood on the sidelines today with only 4 signals.

Thought For The Day : “Every Morning Marks A Brand New Beginning”