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

The epic battle between the bulls and the bears have gone on for weeks now without a clear resolution. Even last Friday’s one day bear victory due to GE’s disappointing earnings does not ensure the bear’s success. I think this is going to be the week that marks the final bout between the bulls and the bears due to the number of heavy weight releases coming forth this week (see economic calendar). The CPI, Housing Stars, Jobless Claims as well as the Leading Indicators are all going to be moving the market. If they turn out lousy, the bears will win and if they turn out great, the bulls will win. We are now at a period of time where investor expectations are building up to upside and any signs of a real recovery will start an unstoppable self-reinforcing process called a rally. If the numbers still does not catch up this week, those expectations may turn and start a self-defeating process feeding on those numbers. Stock Options expiration this Friday is definitely going to add some volatility to the market as well. The rounded bottom reversal on the Dow weekly chart that I presented last weekend (please go see it again) remains intact suggesting that a turn around remains a high possibility. Happy trading ahead!

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

The Bulls pushed the Bears back from their critical 12500 defense line today… ON RISING VOLUME! Rising volume shows that more and more investors are signing up to the bulls camp at last. So far this week, the Bulls and the Bears have been deadlocked for control, making a record 7 sideways days for the Dow. The market action today are attributed to the fact that both the bull camp and the bear camp recieved some additional ammunition, with the bulls having slightly more than the bears.

Another sideways day with the bulls winning a little bit yesterday. If today’s market continue to be sideways, which is highly possible, then we would have gone through a totally sideways week. Well, no problem as long as our position is still making money, which, of course, it still is.

On the Bear Camp, the widening trade gap widens unexpectedly and is expected to affect the future GDP numbers as exports is one of the most significant contributor to GDP lately due to the weak dollar. The real question is, is it enough to push GDP into negative territory in order to start an academic recession? On the Bull Camp, jobless claims collasped today, indicating a recovering job market. A recovering job market is definitely a leading indicator for a recovering economy. Oil and Gold also retreated today with gold clearly forming a distribution pattern which could lead lower. So, the Bulls did get more ammunition than the Bears today.

I am surprised that some readers are still asking me if the Dow will visit the Jan lows again today when that is now such a distant possibility that I don’t bother to talk about it anymore. The bulls are clearly resilient and in control of the situation and nobody should want to bet against them. There are clearly only 2 choices for investors right now… 1, stay out of the market until this battle gets resolved, which of course means that you would have missed the big moves. 2, risk just a small portion of your money on the market using stock options so that you can capture the gains without excessive risk.

EXTRA : Read the most complete tutorial on Jim Cramer’s Stock Replacement Strategy for FREE now!

Thought For The Day : “Traders Love Weekends”