What to Expect on Easter Week?

Welcome to Easter Week!

The market found a bottom and reversed itself following the huge 25 March dip last week, exactly how I said it would. This means that instead of selling (something you would probably have done in a panic if you have not read my analysis), you should actually have cost averaged or putting on new positions in anticipation of the next leg up (just like you would if you have joined my Master's Stock Options Picks service).

So far, the market isn't surprising us. Even though everything in the charts do suggest a good week ahead and that we should see a solid rebound from this area, Jobs Report is going to be released on Friday as scheduled even though markets will be closed. This means alot of investors might take profit on Thursday or Wednesday ahead of the long weekend, so expect some volatility.

Now, some of you might be expecting the market to go back into a volatile sideways channel between 2060 and 2110. If that is the case, you could also consider using neutral options strategies like the Iron Condor Spread.

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

Market Ditched... Start of Downturn?

Market ditched strongly and unexpectedly today as a weaker than expected Durable Goods Orders hit the news. Indeed, with the recent volatility in the market along with the fact that the market has indeed come a long way already, it is not unusual to see traders take short term profit off the table. However, it is also interesting to note that instead of falling, bond yields actually rose across the board! This tells me that even though traders are selling out and taking profit, serious institutional investors are actually exiting bonds and entering on the weakness. The VIX soaring 13% in one day along with an overdone signal on my Star Trading System both tells me that this sell off isn't the start of a significant downturn and is most likely a one day thing. Indeed, such a huge reaction to such a volatile economic indicator is clearly an over-reaction. However, we will be watching the SP-500's 2040 support level closely. As long as that level holds, this bull trend is in no danger. However, yesterday's drop still took our short term trend indicator down to Neutral.

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

Classic Bullish Breakout Pattern... Did you miss it?

After a brief and healthy retreat, the US market continued upwards as the US economy continues to recover at the speed of the recovering US dollar. In fact, there were so little doubt two weeks ago that this is going to be nothing more than a healthy pullback that we took the opportunity to help our Masters Stock Options Picks subscribers place call options on the QQQ right before its recovery. Looking at the QQQ chart shows a classic bullish pennant breakout with a retreat and rebound right at the top of the pennant ceiling. It is so classic its a no brainer (If you missed this, you really should join our Masters Stock Options Picks service!). Looking forward, there leaves little doubt that the market is going to make a new high.

For now, the market resumes short term bull trend, intermediate bull trend within a primary bull trend.

Why Three Down Days?

Since my last post, the US market has rallied exactly as and when I have predicted and my Master's Stock Options Picks subscribers have been prepositioned and have profited from the move, have you?

So, economic data is looking good and the US dollar strengthening, it seems like this market continues to look to upside, so what happened the past few trading days? Why three down days?

Well, every rally needs a breather, it seems like the market is simply taking a breather after such a strong month long rally. This is when we want to strategically take short term profits on short term bullish positions and also watch the 30MA line in case of any failure which will warrant a reassessment.

For now, here's a very happy Chinese New Year of the Goat for all Chinese readers and wishing everyone a very prosperous year ahead!