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

Papa and Mama continue to argue but this time, something changed… Mama obviously thinks its a great idea to go to the beach but wants credit for it as well! So the argument continues to the eagerness of the little beach going kids. In fact, kids from other neighborhoods also joined in the wait to the beach. Bond traders have exited the bond market big time over the past 2 days resulting in a huge surge in bond yields across the board (see bond yield curve). This may be the biggest financial disaster in history but its effects on the stock market isn’t all that historical, thanks to the greater market efficiency brought about by the internet. Until Papa and Mama come to an agreement, the Dow continues to be in a primary bear trend and a short term neutral trend.

Star Option Trader’s Thought For The Day : "Staying out is as much an art as getting in"

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

Yes, we definitely witnessed a historically volatile week last week! In fact, that was the most volatile week that I have ever seen in my 13 years of trading and the biggest mess that many well known economists and investors have ever seen. Such a volatile week definitely benefited volatile trading strategies such as my Ride The Flow System as we closed the trading month with an overall portfolio profit of over 8%!

The Dow totally reversed its bearish breakout and is now back into its neutral trend on the "Papa Go-To-The-Beach" promise and it seems like "mama" is casting a lot of objection on the beach going plan. This mess is going to take many more years to clear up in the economy, that’s for sure. However, the stock market, being a discounting mechanism, will certainly move much earlier than it takes for the economy to recover (we saw that back in 2003 when the stock market has moved up way over 10% before the economic numbers start coming in slightly favorable). I am already seeing the capitulations which usually signal the end of a bear market and will continue to look for more precise signals in the daily charts as this develops.

This week is going to be digestion week for all the news produced last week and will not doubt be a volatile week with little chance of any breakouts.

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