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

Its Friday again on a week of EXTREME volatility. In fact, the market is so volatile that it did intra day ranges never before seen in the history of the US market. It is such extreme volatile conditions that the Star Trading System has kept us out of. Therefore, we shall repeat your respective week of training for free again next week.

Some of you so eager to trade signed up for other services out there giving picks almost on a daily basis and lost almost all your money this week. I truly pity you. See how your eagerness and your greed has caused you your fortune? See why the Star Trading System is the ONLY system in the world today capable of keeping you safe when conditions are not right? Let this be a lesson to you that the stock market is not a place where money can be made at will all the time. Only through a sensible system can you ever hope for consistent profit.

The Dow gained 189 points today in a heated battle against the bears even though US GDP turned negative at last. Under normal market conditions (2004 to 2006?) a 189 points rise is certainly a significant bullish day but under the recent volatile market condition, 189 points gains look like a measly sideways day. Indeed, the average daily range over the past 16 trading days have been well above 4%, which is why nobody should be too excited about a 2% gain day. It is clear that investors are totally lost now with bond traders and options traders showing no significant change in sentiments (according to the VIX, Put Call Ratio and Bond Yield Curve).

Investors are clearly worried about the negative GDP number announced today (-0.3%) but are also secretly optimistic that the GDP number will show a recovery in the next quarter (or even during the revisions itself) due to the rate cut and all that’s been done so far. In fact, stock markets have historically turned when GDP hits its best and worst levels. The real question is, there is no way anyone can tell when the level is at its best or worst months until it has happened. This means that an entry depending on such data is a little bit of a gamble unless a sensible portfolio building program is adhered to. My take? Brace for at least one more negative GDP number next quarter… not only in the US but in major economies all over the world. In fact, the coming revisions might even take the number lower as disposable income in the US hit an all time low. This thing’s not ending without some real recessionary numbers that even academics can agree on.
On the technical front, the Dow seemed to have regained its 8500 support level once again and being in grossly oversold condition, it is certainly not surprising to see a dead cat bounce from this level. So, is this the bottom? Well, I am sorry but I have to say no. I am still expecting that final capitulation that should come with some real recessionary numbers in the months ahead.

Star Trading System’s Thought For The Day : "Every Morning Marks A Brand New Beginning"

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

The Star Trading System got it right again that the market is going to resume a bear trend. Indeed, the market have been dropping since the day the Star Trading System begun producing bearish stars again. This is the predictive nature of the system and very often contradicts what we think about the market. Today, the Star Trading System continues to produce more bearish stars… it looks like the US market needs to go down at least one final leg before a bottom can be found.

Stocks attempted a weak rally today when higher new home sales suggest that consumerism may be recovering. However, that little bit of good news cannot stop investors from worrying about a global recession as world markets continue making multi-decade lows. The Dow ended the day lower by over 200 points, following up on the triangle formation bearish breakout. Investors are going to continue being jitterish all week due to the Fed decision and consumer data (see economic calendar). The Fed is going to cut rates and provide new solutions to this financial mess while consumer data is probably going to recover a little. Will all these help the market get back up a little this week? Not according to the technicals. With a strong short and primary bear trend still in place after being tested slightly, odds are we should see a new October low. In fact, the Nasdaq Composite already made that new low yesterday.

Star Trading System’s Thought For The Day : "Always Respect The Market"