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

FUNDAMENTAL ANALYSIS
The Dow gained 99.50 points today in a nice attempt to break out of 5 days of sideways trading. Many analysts attributed today’s small rally to the GM and Bear Stearns news. However, if the good news is this localised to just 2 companies, why did the market stage a broad based gain instead of just a small gain based on the mega gains of just 2 companies (and their associates)? From what I noticed, the market continued to be bullish due to more and more reasons assuring investors that more rate cuts are coming our way. The recent bout of bad economic data not only failed to bring the Dow down, but eventually resulted in a small rally today! This shows that investors are optimistic and expecting something… another rate cut next month?

TECHNICAL ANALYSIS
The Dow broke out of sideways trading today and good thing it is to upside. However, the bad news is, this move is made on declining volume, didn’t manage to reach a significant height, and prevented the Dow from digesting more of the short term overbought sentiment prior to challenging the all time high level. This is going to make it EXTREME difficult for the Dow to make a break. This is time again to be extremely cautious.

The Dow broke out of its sideways trading trend yesterday and is about to challenge the new high resistance level. Challenging a resistance level is always dangerous and uncertain no matter how much analysis you do. That is why the Star Trading System has tried to keep us out so far.

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

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

The Dow continued to trade sideways for a fifth straight day after the Fed release day. In fact, the Dow seemed to be inclined to downside today as it made a new 5 days low. This action is hardly surprising as the Dow faces the daunting all new high resistance level at 14000 right when it is in short term overbought position. Even after today’s action, the Dow remains short term overbought. It seems like the only way to digest that overbought sentiment is for the Dow to pullback a little in order to attract investors who missed entered before the Fed release day (which was a dangerous move by the way).

The Dow continued to trade sideways yesterday and it does seem like the Fed rally is starting to lose energy in the face of the all time high resistance level. The Star Trading System continue to be non-committal today.

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