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

Ok, the Dow’s only 0.39% up, no big deal, but hey, this is the very first up week in 2008! That’s what’s making it so significant!

Is this the bottom? Near… but just not yet, especially with the Fed coming up again next Wednesday. The market is pricing in a further 50 basis point cut, which is another way of saying, “If the Fed doesn’t cut more than 50 points, we are going to throw tantrum and SELL!!”. Well, that’s the market talking there. Does it even make sense for the Fed to cut 125 basis points within 7 days???? Think for yourself! Monday’s going to be a cautious day, probably pull back a little bit on moderate volume across the board as investors take some more ka-ching into their pockets before the Fed on Wednesday. All eyes are on the Fed next week and the ISM numbers. Its gonna be a heavy week!

If you still don’t know how to profit no matter which way the market goes to, its time you pick up Options Trading

The Dow has acted crazy since 2008 begun and the Star Trading System has faithfully kept us out much to the dismay of the eager traders. But always remember this… it takes 2.5 times the win to erase the pain on 1 loss (research from behavioral finance).

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

FUNDAMENTAL ANALYSIS
You know what? Core CPI numbers came in inline with expectations at 0.2% while headline rate came in 0.3% and hey, no news from Uncle Ben! What does this mean? Even though the inflation number is inline with expectations, analysts expectations is clearly not what the Fed is expecting to justify an early cut! We all know by now that if inflation numbers turn in favorable that the Fed will throw in a rate cut almost immediately following the release but hey, NOTHING! That threw the market into a complete disarray that ended the day right about where it begun. Does that mean that the Fed is not going to cut rates afterall? MAYBE! If there is any intention to cut rates under the present pressure on the dollar and surge in gold and inflation number, Uncle Ben would have cut… TODAY!

The market continue to go crazy yesterday with stocks flying all over the shop up and down in complete disarray. Star traders should be glad that the Star Trading System help us to keep our money’s in harbor instead of out there in that storm…and yes, I know because I still have some money out there weathering the storm and its pretty scary.

Well, the next big thing would be what Uncle Ben says in congress Tomorrow. BUT, IMO there is too much talk! Its time for some action! Price multiples have been severely depressed with the multiples compression so far and it does look ridiculous to see multiples compressed further across the board. If the Fed does please the market, we could see a really huge rebound. That’s a really BIG “if”. So, what exactly is “Multiple Compression”? This is a term coined up by popular finance describing a situation where Price Earning Ratios of stocks are took down across the board in a broad bear market.

TECHNICAL ANALYSIS
Huge doji formed today in the Dow with after market futures pointing upwards. All indications suggests that the relief rally or more technically known as a reaction rally is going to happen over the next few days… nothing to cheer about as all technical patterns and indications are starkly bearish. In fact, patterns formed over the past year looks like how it looked just before the 2001 crash! Well, I continue to be wary and continue to balance call options with put options in order to react quickly to any degradation.

Thought For The Day : “Better safe than sorry.”