by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
Markets continue its bullishness this week as oil prices continue to drop and Fed official’s comments that the housing slump could be bottoming soon and will therefore not drag the economy down. Along with these great market moving news, a couple of great earnings release today also helped the market along. A bullish tone continue to persist in the markets as the earnings season nears its end and that is definitely a great thing. The Consumer Price Index due this Wednesday is going to validate what Uncle Ben has said about controlled inflations and all that optimistic talk last week. If this number fails to impress, it would definitely have a negative impact on the market as everything Uncle Ben said will become doubtful. Analysts are expecting 0.1% versus a 0.5% last month.

TECHNICAL ANALYSIS
Nasdaq made the all important 2500 break today at last! Even though the break was not supported by a very strong voume, it was at least done on rising volume. A steadily rising volume still does speak a lot about a strong trend. I would like to see at least a follow up to this break tomorrow on rising volume to confirm the change in trend. As for the Dow, there was again no surprises as it continues to move sideways with a bullish inclination, completing yet another step in its staircase formation. I would say we should see yet another new high in the Dow by end of this week or early next week.

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by Jason Ng, Founder, Master ‘O’ Equity

Happy Chinese New Year To All Chinese And All Other Folks Who Celebrates Spring Festival.Unknown to most, Chinese New Year is celebrated over a 15 days period from the First dayof the Lunar calendar to the 15th day of the lunar calendar. This is unlike any other festivalsin the world.

Last week has been an extremely bullish week in the markets with the Dow and the Nasdaq Compositecoincidentally gaining 1.48% each. The bullishness was contributed largely by an overly simplisticand optimistic testimony by Fed Chairman, Uncle Ben. Investors were largely caught up with inflationworries and rate hikes more than an economy that is losing its competitiveness and slowing down. Similarly, Uncle Ben seems more concerned with inflation reports than anything else too. Is this ispaper that is attempting to cover up the fire beneath?

The number of evening stars versus morning stars today seems to indicate a market downturn… or at least a short term one.

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