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

US market continues to sit on the fence as oil looks neither going up nor down… yet. Indeed. oil can be expected to shoot up some more if the efforts taken worldwide do not bring it down very soon. This is why the Star Trading System have been extremely non committal recently, with no good trade for days. However, such periods of dryness is common and should not be taken negatively. Its the system’s way of protecting you.

Oil seems to be the only thing that is moving stocks all over the world these days. As oil continues its threatening range trading above the $130 mark, investors are torn between speculating a breakdown in oil price due to deteriorating fundamentals or a breakout in accordance to its long term uptrend as the US stock market closed mixed near the unchanged mark. Today’s winner continues to be the energy sector while the techs and transport led the way down. Oil edged higher today within its tight trading range even as the US dollar gains on speculation that the Feds are going to hike rates on Wednesday (see economic calendar). Something is definitely brewing out there right now as the bad guys slowly take their profit out of oil while leaving the bill to the common oil traders. On the charts, today is a sideways day that changed nothing. Short to mid term trend continues to be downwards.

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

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

It is Quadruple witching day tomorrow , which is a day when Star Traders should not put on new positions.
Quadruple witching day refers to a Friday when index futures, stock futures, stock options and stock futures all expire on the same day. Such a day creates sheer turbulence as stocks swing wildly up and down as futures and options are exercised at various strike prices. Such a day makes our entry procedure totally useless as a stock going up or down within the first 45mins may not be the direction it is meant to be going.
Quadruple witching happens on the third Friday of March, June, September and December.

Stocks are slightly positive today as oil staged a huge retreat as voices against high oil prices arise from all over the world. In fact, China’s petroleum and diesel hike tomorrow would be expected to decrease worldwide oil demand dramatically, resulting in the big retreat we see today. Energy stocks were also hit today, otherwise we would have seen a bigger gain in the Dow. The fundamentals for high oil is quickly eroding all over the world since the day I posted my long anti-high-oil post. So, is this the start of a significant decline in oil price? Probably back down to $100? There are still no indications yet as crude oil prices merely traded sideways amidst all these noises. In fact, technicals still support higher oil prices as the recent price action of crude oil merely formed a bullish continuation pattern and not a reversal pattern. Well, some of my good positions have been taken out unnecessarily in the recent turbulence as well, making it extremely tricky to formulate good stop loss policies. Read more about Quadruple Witching.

Tomorrow is Quadruple Witching day and is a day where we can all expect even more turbulence. Quadruple witching is the third Friday of March, June, September and December every year where index futures, index options, stock futures and stock options all expire on the same day. Such expiration would cause stocks and indices to be transacted at all kinds of high and low prices as options and futures of different strike prices are being exercised. For conservative traders like myself, we prefer to go on a long weekend instead.

Star Option Trader’s Thought For The Day : “There are times when you should not be trading.”