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

This is the first full trading week of the lunar year of the rat. The Rat in chinese mythology is an extremely clever and kind creature which often gets overlooked but produces stunning results. This is also why it is the very first creature in the chinese zodiac. The stock market was brutally beaten, especially in that final week of the lunar year of the pig (yeah, and you are wondering why the market was so sluggish whole year). Will we see new signs of life starting this week with the rat on our side?

At last it seems like we are going to get an entry today from the Star Trading System at last with both a morning and an evening star qualifying to watch for entry.

The Dow took back all the gains of the previous week (which was also the only significant up week since 2008 began) in one fell sweep last week as I have expected. With an extremely quiet week ahead (see economic calendar), I don’t see anything that will stop the Dow from visiting and testing the January lows as anticipated. Could the Dow form a double bottom from which a rally could shape up? With plenty of ammunition in both the bull camp and bear camp, it is anybody’s guess. The only important thing technical traders need to take note is a possible support at the Jan lows and not get carried away with the shorts. Most analyst take the lowest CLOSE as the Jan low (Jan low 1 in the pic), but prudent technical traders should take the lowest LOW as the Jan low instead (Jan low 2 in the pic). Remember, technical analysis is all about 2 principles: “Prudence” and “Significance”.

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

Talk about a volatile market…

Bulls came back in a BIG way despite mixed economic indicators. I heard that many hedge funds are taking positions these few days, taking advantage of every single sign of weakness in the market to establish positions. Sometimes it takes weeks to put on a single position when you have that kind of money. This is also in line with the recent surge in institution sentiments as indicated by my proprietary Institution Sentiment Index which you can see at OptionTradingPedia.com. They are obviously trying to take bullish positions today in expectation of an optimistic Job Report tomorrow. So far, the market is still in a general bear trend and the surge today certainly cannot be taken as the start of a rally until I see a definite move from bonds back into equities.

This is the VERY FIRST TIME the Star Trading System qualified no trades over an entire month! I am sick and tired of this volatility and I hope the market calm down soon.

Thought For The Day : “Have A Great Weekend!”