Stock Market Analysis

Monday, December 11, 2017

Market Back on Track Exactly How I Predicted It!

Last Wednesday, I predicted that the market is going to turn around right there from last Wednesday onwards and like a tame puppy, that was what the US Market did EXACTLY!

Here was what I said:

"... I don't see any reason why the market won't turn around from here into yet another new high especially with Trump pushing through with the tax bill..."

 And indeed the market did not have any reason not to turn around! In fact, major indices are once again on the verge of making new highs once again. In fact, me and my Master's Stock Options Picks Subscribers are once again prepositioned since last week in order to take advantage of this new bull leg! All trade no cash is no fun too so we also took a 65.5% profit on our call options position on DUST last Friday too! Yes and we did so expecting a volatile week this week and we really don't want to risk that much profit since we still have other positions on.

Yes, this week is going to be yet another volatile week.

With the FOMC meeting going on and a Quadruple Witching Friday, this week isn't going to feel like another other regular weeks. As such, I won't be surprised to see a more sideways oriented week this week before the market make the final dash for Christmas and that positive December that I have previously predicted.

For now, the market remains in a short term neutral trend within an intermediate and primary bull trend.




Wednesday, December 06, 2017

Sea State 7 in the US Market

I used to be in the Navy about 20 years ago.

Each time we go out to sea, we pay close attention to the "Sea State". It is a measurement of how "volatile" the sea is on a scale of 1 to 7, 7 being the ship is literally being tossed around mercilessly in high and tight waves. This has been how the US market felt like this week so far, hasn't it?

All the uncertainties surrounding the Trump tax bill, all the possible and catastrophic consequences of such a tax bill hitting the wire everyday has thrown the stock market into complete turmoil. Big positive openings ending in significant negative closes, tech stocks hit mercilessly... all these volatility is definitely giving a lot of people sleepless nights this week so far, hasn't it?

However, if you look at the overall pattern of the market so far, it really doesn't look at scary as it seems when you see your money being tossed around. The market has been up and up since August and has been long overdue a nice pullback like what we are witnessing right now. In fact, the pull back by the Nasdaq doesn't look any different from the pullbacks that it has done back in September, August etc, just a normal pullback along a strong and healthy bull trend.

As such, I don't see any reason why the market won't turn around from here into yet another new high especially with Trump pushing through with the tax bill. Yes, every single controversial bill Trump has pushed through so far has invited reports on how potentially catastrophic it can be but what did the stock market do on all of those reports? Just keep getting higher as long as Trump keep getting his way and I don't want to bet against that.

In fact, me and my Master's Stock Options Picks subscribers are sitting on some pretty decent gains so far on our 5 existing call options positions we put on since last week in anticipation of this rally. If you missed out profiting so far, you really really need to just join me for $1 and get it over with.

For now, the market remains in all out bull trend.

Monday, December 04, 2017

Tax Bill Passes, Welcomes in Santa Claus Rally!

Welcome back from one of the most uncertain weekends of the recent US market history, the weekend of the passing of the Trump tax reform bill!

Last Friday's market action was truly an extremely interesting one that was obviously a product of extreme fear and extreme confidence!

Extreme Fear in the form of Trump's tax reform not being passed as everything Trump has managed to push through so far has resulted in a significant rally. As such, if his idea fails to push through so far, investors fear it may be the end of the "Trump Magic".

Extremely Confidence in the form of  the certainty that Trump's tax reform is definitely going to be passed as that is something Trump has worked very hard for.

We are not here to discuss the pros and cons and the possible repercussion of such a tax bill but to understand its effect on the stock market. Its effect on the stock market will no doubt be a continuation of the almost irrational and illogical Trump Magic so far. That is why investors and traders are confident enough to take the market back up to almost par at the end of last Friday from a deep deep deep red position!

In fact, the S&P500 made a total intraday movement of about 50 points! That is almost 2% movement all within 1 day! In fact, the last time the S&P500 made such a huge intraday move was all the way back in September of 2017 and to find a longer hammer candlestick, you would have to look as far back as January of 2016!

Indeed, last Friday's move was a VERY rare move and one which suggests an extreme amount of confidence which was well paid off last weekend as the house passes the tax bill! In fact, market futures are always pointing sharply upwards in anticipation of a very positive outcome in the stock market. In fact, me and my Master's Stock Options Picks subscribers were also pre positioned with a few new call options positions since last Friday which are no doubt going to be making us some handsome bucks if the market continues upwards.

This is also no doubt going to be the start of Santa Claus Rally 2018... are you prepositioned and ready for it? If not, quit cutting yourself short and join me for just $1 miserable dollar!

For now, the market continues in all out bull trend.


Wednesday, November 29, 2017

Market Continues Upwards As Predicted!

Exactly as I have predicted on Monday, the US market continued its uptrend with a huge 0.98% close on the S&P500! In fact, this is the biggest single day close made by the S&P500 since September.

In fact, me and my Master's Stock Options Picks subscribers woke up today in Asia to a great surprise on the SPY Call Options that we put on last week in anticipation of such a move! I personally made $2950 on it... not a million but I am not complaining!



Indeed, the market behavior so far continues to affirm my outlook that this is going to be yet another positive December since 9 out of the last 10 Decembers have been positive ones as well. There are good reasons for this phenomena though.
First of all, institutions need to window dress to make their portfolios look good for year end reports and companies also want to see a higher net asset value by the end of the year (including shares of their own stocks that they own). As such, there tends to be systematic buying in December and all through to January. This was taught as the "January Anomaly" when I was studying in college and more commonly known as the "Santa Claus Rally" by the layman.

Secondly, options traders continue to keep total equities put call ratio in favor of call options which is usually a bullish confirming signal.

So far, I am not seeing anything that can suddenly put this rally at risk. Recent economic data, especially the ISM index and Jobs report, are on another upwards trend so we should not be getting any nasty surprises from these numbers this Friday.

Lets usher in Santa Claus!

For now, the market remains in all out bull trend!

Monday, November 27, 2017

Welcome Back From Thanksgiving!

Welcome back from Thanksgiving week and welcome to Cyber Monday!

Thanksgiving week closed EXACTLY how I predicted it last Monday, another positive week! No surprises there! Yes, the US market can be THAT predictable! (Did I make money from that, of course I did! And not only me but all my Master's Stock Options Picks Subscribers profited from the SPY Call options we put on last Monday!)

So, its the final week of November and December and the Christmas season is just round the corner as well!

Overall the period starting from Thanksgiving all the way through to new year tends to be more positive than negative because of good feeling stemming from these seasonal holidays as well as the need for window dressing by the institutions. I would not expect any differently this time.

So far, I am not seeing any signs that anything is going to change in any way and would therefore maintain that we should ultimately see a positive close for the year exactly how I predicted it in my first report of 2017. :)

Today is also the final day of the 50% thanksgiving discount on my Options Swing Trading 1 to 1 online mentoring course for the Star Trading System! Grab it now!

Have a great final week of November!

For now, the market remains in all out bull trend.

Monday, November 20, 2017

Thanksgiving Week!

Welcome to Thanksgiving Week!

This means that the US market is going to be closed on Thursday with a lightly traded half day Friday. As such, this is as good as a super long weekend for most US market traders.

So, how are Thanksgiving weeks like?

With the good vibes and happy feelings surrounding Thanksgiving week, this has typically been a short but positive week. Especially with the market closing negative last Friday, giving the market more room to move to upside this week.

As such, I would expect this week to be yet another typical positive Thanksgiving week. In fact, not only have me and my Master's Stock Options Picks subscribers pre-positioned ourselves with call options on SPY last Friday, most options traders seem to think that way too as total equities put call ratio trade strongly in favor of call options trading.

Here's wishing everyone a very very happy Thanksgiving ahead! How better to say thanks to all my loyal readers than a huge 50% discount off my 1 on 1 Star Trading System options swing trading system mentoring course! Check it out now at: http://startradingsystem.mastersoequity.com

For now, the market remains in all out bull trend.

Friday, November 17, 2017

Intermediate Correction Reversed?

Like a tame little puppy, the US market promptly turned around yesterday just like how I said it would yesterday morning! Again, who said the market is unpredictable? So, is this reversal for real? Is that intermediate correction out of the window? I suggest some evidence that that may be the case in my report to paid subscribers today. Receive today's report by clicking on the yellow button on the right below my profile photo! I only post my reports publicly every other day.