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

FUNDAMENTAL ANALYSIS
319.54 points up in a single day! This is the biggest single day surge since 18 Sep 07. This rally is a really suspicious one because there really wasn’t anything big in the releases today. Dow futures was pointing sharply higher all morning before market open, coincidental on the upbeat earnings of Walmart. Why would I regard it as coincidental? Because the earnings on one company do not move the market! Wouldn’t the upbeat Walmart earnings point to an optimistic earnings season ahead, justifying a price in right now? Of course not! The biggest mover of the financial markets continue to be the Financial Sector and we all know that the earnings for the Financial Sector is going to be lousy with the subprime mess magnifesting across the board! My take? I see the PPI and CPI figures to really move the market in some definite directions. Investors want to see more evidence of a rate cut magnifesting in the form of a slightly higher PPI and CPI driven by higher energy. Hang on to your seat belts… this is just another magnifestation of the volatility in the market. (Yes, volatility means violent up and downs, not just down and down!)PPI will be released tomorrow (see economic calendar).

TECHNICAL ANALYSIS
So, what do we have today? A 319.54 points surge with moderately high volume. Conclusion? No real conviction as a key reversal day. In volatile market conditions, I don’t want to base analysis on single day moves but rather take it to a 2 days time scale and see what happens tomorrow. Volatile market moves in sets of 2 days: Big up + big up = real up. Big up + big down = we all expected it. Big down + big down = real down. So, let’s see what happens to the goldilocks tomorrow before deciding.

The Star Trading System really went crazy with optimism today! 50 signals! All students need only report on what qualifies will do.

Thought For The Day : “Patience Pays Off”

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

The Dow took a hit in the face last week, correcting to the 50WMA level. Asian markets are lower across the board right now on subprime concerns. It does seem like the real effects of the subprime fallout are just beginning to show up. This is definitely not the time to participate in the market as more volatility is expected in the market this week with a ton of heavy weight releases (economic calendar) as well as the November options expiration this Friday. How about going short? I wouldn’t bet on that either… it is not easy to pin point the beginning of a real bear trend… short term corrections like this one usually rebounds so strongly that most short sellers will eventually lose money.

The market outlook continue to be extremely uncertain and the Star Trading System has faithfully kept us out of trading so far. Today, it seems like there are no qualified trades too. This is going to be a week full of heavy weight economic releases as well as options expiration this Friday which means more volatility… hang on for the ride.

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