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

FUNDAMENTAL ANALYSIS
Just when we thought oil is going to gradually settle down to more sensible levels, crude oil price came back in a big way, making an intraday new high of over $120! This put immediate pressure on the stock market as the Dow retreats slightly by 88.6 points or 0.68%, barely even 1%. This shows one simple fact and that is, investors are increasingly bullish on the market and is not about to allow one or two bad things to spoil the day significantly. Being the final straw that needs to drop before a full scale market rally can happen, oil have been hanging in there with geopolitical factors forcefully holding its price high. In fact, the fundamentals and technicals of crude oil price does support higher prices to come. However, one important factor that may contribute to lower oil prices in the forseeable future is the rebound of the US dollar since 23 April 2008. The US dollar has strengthened significantly and could be depended upon to continue strengthening with no more rate cuts to be expected in the near term. Other than oil, all my 15 reasons for the market recovery remains strong and investor sentiments grow more and more optimistic by the day.

Not surprisingly, the Dow pulled back a little today. Could this set up some good trades for us today the Star Traders?

TECHNICAL ANALYSIS
As expected, the Dow begun to pullback today in order to muster more energy for a significant breakout of the 13000 resistance zone. In fact, a retreat back down to as low as 12650 could still be reasonable and does not shake the short term uptrend of the Dow. So far, the short to mid term bullish channel of the Dow has been established and supported so there are no reasons to doubt the validity of this rally.

Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”

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

The Dow was up 3 weeks in a row last week! This is the first time the Dow is up 3 weeks in a row in 2008! So, anyone still thinking we are in a bear market? The Dow has accumulated a total gain of 5.87% since this rally begun 3 weeks ago and anyone who still cannot recognize this as what it is should retire from the capital markets.

All in all, the heavyweight week last week went well and almost all the numbers turned in supporting a market recovery. This is going to be a quiet week ahead, a good week for investors to properly digest the data from last week and to make a move this week. With a mere 200 points away from turning this year from negative into positive, I am more certain than ever than 2008 is going to be a great year. Do not be surprised if the Dow pullback a little from here due to the 13000 resistance zone. However, if the Dow followed up to upside again tomorrow, we can kiss the 13000 resistance goodbye. Never been a better time to be in the market!

Walking the talk, I made over 40% profit riding the market upturn using call options on JBHT. Check it out on the front page of MastersoEquity.com. (Click “Home” from the webpage)

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