Free Stock Market Research Report by Jason Ng, the man behind The Star Trading System (one of the best option trading systems)

Yesterday, week 2 , 3 and 4 students watched 5 stocks for entry and would have noticed the importance of adhering to the 1.2% gap up / down rule. CSUN and SOLF gapped up more than 1.2% upon opening and was disqualified by the rules despite “looking strong”. Now, look at where they are by the end of the day. The 1.2% rule is designed to avoid this exact situation because stocks that open gap up/down that strongly tend to reverse on itself towards the end of the trading day. So, once again, Star Traders stick to rules!

Despite crude oil and the US dollar going largely sideways, the energy sector and basic material sector were the only BIG winners while the rest of the market go dismal with the disappointing PPI and housing start numbers. Both greed and fear were given full play in recent markt conditions. Today’s PPI number showed only one thing, that food and energy inflation has reached a point where it can no longer be ignored as some economists cheat themselves using only the “Core Rate” which is ex food and energy. Inflation is a severe problem all over the world right now that can only be resolved when crude oil prices are brought back to sanity again. Until that happens, the craziness can be expected to continue…

Star Option Trader’s Thought For The Day :”Always Follow The System.”

Free Stock Market Research Report by Jason Ng, the man behind The Star Trading System (one of the best option trading systems)

Strangely, the Star Trading System continues to bath us in bullish stars even though the market is so turbulent. Does this mean that below the turbulent surface, there is another bullish current coming up? It could be. The Star Trading System has been an excellent predicting tool so far and does a lot better job at knowing what the next trend would be than any of us. Lets stick to the rules no matter what.

FUNDAMENTAL ANALYSIS
Oil staged an early rally again today as the Saudi’s pledge to increase oil production by 200,000 barrels a day barely offset the effect of a sudden drop in the US dollar. The Empire State Index also turned in worse than expected as it declined to -8.7% in June from -3.2% in May. The Empire State Index tracks manufacturing activity in New York and is gaining importance recently as it seemed to be a leading indicator for the heavy weight ISM index. In fact, we have seen the ISM index struggle over the past few months as the Empire State index went negative. The declining Empire State index once again put economic worry on the center stage but that didn’t seem to stop the techs from staging a relatively huge rally. So, we have oil gone crazy and a market gone crazy too as a possible self defeating process starts filtering through the ranks as reality fails to catch up with expectations. How long will the last of the bulls stand? Until reality catches up and turns this into a self reinforcing process? Only time will tell.

TECHNICAL ANALYSIS
What a way to start a new week. The Dow closed sideways, failing to follow through on last Friday’s rally. Such a failure totally negates last Friday’s rally as a key reversal day and opens up the possibility of more downside to come. In fact, if the Dow doesn’t get up significantly over the next 2 days, we could see a visit to the 12000 level. And yes, George Soros may have “predicted” this decline but my analysis are based on pure facts without suspicion of manipulation. “Predictions” always carries a sense of manipulation through the process of self-fulfilling prophesy. I never predict. I only analyse market action through objective indications and facts. So, i am not late at the party… I am just not the one who called the party together.

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