Free Stock Market Research Report by Jason Ng, the man behind The Star Trading System (one of the best option trading systems)
In this volatile market, it is always safer to exit with a good 25% profit per trade and exiting EYE yesterday with that 25% is the best move any beginners could make to pocket some money and build up trading confidence.
Yes, there are now clear signs that optimism is returning to the stock market as crude oil continues to fall and consumer confidence returning. Is this optimism now enough to beat the pessimism that ruled so far? Not just yet. This is definitely a good start and one which might signal a bottom to this bear trend but I would expect it to take a good Jobs report and ISM number this Friday to confirm (and whether investors are still taking the bait and whether oil is still falling). For now, the evening star signal formed last week continues to be effective despite today’s gain of over 200 points. If the Dow follows up tomorrow with another strong up day, the evening star signal would be totally negated and a possible trend reversal could occur in accordance with the Dow theory. So, for now things continue to look extremely uncertain.
Star Option Trader’s Thought For The Day : “Always Manage Your Trading Confidence.”
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Free Stock Market Research Report by Jason Ng, the man behind The Star Trading System (one of the best option trading systems)
Explosion of bearish stars from Star Trading System as the Dow confirms the end of its relief rally!
The Dow ended its relief rally today with a huge, beautifully set up evening star candlestick formation. An evening star formation is a candlestick formation consisting of 3 days… an up day, a neutral day and a down day. This formation is one of the strongest bearish candlestick signal especially when occurring at a strong resistance level (30MA in this case) within a bearish framework and momentum turning south. So, the Dow completed the relief rally that was long overdue, what’s next? The next thing all technical analysts are watching is whether the Dow makes a new low or not. A new low would confirm the bear trend and rebounding before making a new low would form a double bottom formation and strong possibility of a trend change. So, let’s continue to see what happens. This might be a good time for a conservative put option strategy such as the Bear Put Spread.
Star Option Trader’s Thought For The Day : “There Will Be Bad Times And Great Times.”
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