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

What a turbulent market tomorrow is going to be with the GDP number as well as the FOMC release all in one day! (see economic calendar)

The market has been preparing for this day with two sideways days so far. Both releases are extremely uncertain and can change the course of the market. One of the signs of the bottom that I have been listing for the past 3 weeks was that GDP has not turned negative despite widespread talk of recession. However, if GDP turns negative tomorrow, one of the biggest reason why the market is holding up could be negated and the bulls could give up. Investors are also expecting a final 25 basis point cut to fed fund rate tomorrow afternoon. If we get it, the market could continue its way higher. If not… well, what do you think? I would certainly go delta neutral on my biggest positions today.

Remember that there are times we should not trade as Star Traders? Yes, today is one of those days. The FOMC release today at 2pm can potentially change the market direction so violently that the conditions during the first hour, which we use for entry, can be totally negated. So, today, we stay out.

Thought For The Day : “There is a time for attack and time for defense.”

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

WELCOME BACK!

It is going to be an extremely heavyweight week ahead with the GDP, FOMC decision, ISM index and the Job report ALL IN ONE WEEK! (see economic calendar) Such a heavyweight week can only mean one thing… Volatility. No matter how the numbers read and what decision the Fed makes, the market is going to move strongly.

On the weekly charts, the Dow is also up against its 30MA resistance level of about 13000. The Dow is already slightly overbought on a weekly basis right now, making it doubtful if the 13000 will be broken within the next few days. So said, I am maintaining my mid term bullish outlook on the market. Let’s see what adventure the rest of the week brings.

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