Market Takes a Hit Exactly As Predicted...

So it starts exactly on time and exactly when I said it would...

The US market took punishment this week as it made two consecutive negative days this week so far. In fact, it was the most bearish two days of 2018 so far, with the S&P500 clocking a total retreat of -1.76% or about 50 points. In fact, it was the biggest two days retreat since August of 2017!

But is this enough?

Is this enough of a retreat to bring the US market out of short term overbought condition and back onto a level which encourages healthy buying and therefore new highs?

Well, not quite yet as it seems. I won't be surprised to see a period of bearish / sideways inclined trading for the rest of the week for the 30MA line to catch up a bit before this market is healthy again.

The Feds will be making their announcement this afternoon and once again, with little more bullets on their plates, it is not expected that they will be doing anything today. However, at this point of time, under such economic conditions, any rate hikes by the Fed will only be construed as a vote of confidence in the growth and strength of the economy and end up being a positive thing for the market anyways. As such, this is no longer an event to be negatively concerned about for now.

Even though the market did take a plunge (not surprisingly since I have largely expected it), my Ride the Flow options residual income strategy continues to stay on track to making about 15% this month without any form of adjustments!

Yes, thats the power of this trading system that I have created. Learn about it at http://mastersoequity.com/MOE_ridetheflow.htm

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

Final Week of January 2018

Welcome to the final week of January 2018!

Before we knew it, the first month of the new year has come to an end.

How was everyone's first month of 2018?

So far, January 2018 is ending exactly the way I predicted it to in my 2018 prediction and outlook report. (read it here if you hadn't: http://sharemarketcomments.blogspot.kr/2018/01/my-2017-review-and-2018-predictions.html )

The US market survived going into the intermediate correction that I expected last week as the US government ended a government shut down that could have gave the market the reason to take a breather across the weekend.

However, like I mentioned last week, that doesn't change the fact that the market is in an extreme short term overbought condition with the timing and position well placed for an intermediate correction this week or the next.

Supporting my opinion is the rising implied volatility in the market which usually precedes periods of volatility.

So, lets look forward to a great close to Jan 2018 and be cautious going forward.

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

Danger Building Up...

US market continues to power upwards so far despite my very gloomy outlook for this week.

In fact, even though the market did close just a tad negative yesterday, it was still a largely positive day which made a new historical high intraday. The bullish undercurrent was supported by rising bond yields and put call ratio staying strongly in favor of call options trading. Both signals are strong bullish supporting signals.

However, this continues to be a condition in which I would continue to favor profit taking over putting on new positions as the market persists in grossly short term overbought condition which makes every single new high ever more dangerous and the resulting pull back more severe. Indeed, danger is just building up with every such days...

As such, I continue to maintain my outlook that this week or the next is going to see a very dangerous intermediate pull back.

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

The Final Bull Leg?

Welcome to the final week of January 2018!

How time flies and last Friday, the very first regular options of 2018 expired, making me and my Ride the Flow strategy (options residual income strategy aiming to make an average of 10% profit a month) students an average profit of about 14 to 20% in a single month! In fact, one of my students, who is a college student, made over $14,000 last month alone! Take a look:

 

(Check out my Ride the Flow strategy training course)

 So, it has been an awesomely rewarding month so far! In fact, my Star Trading System (directional aggressive options swing trading methodology) also took profits on 4 positions with average profit of 48% per trade, maintaining a 100% winning rate for 2018 so far!

(Check out my Star Trading System training course)

So, things look rosy now, doesn't it?

Does that mean this is going to be just one smooth ride upwards?

I am afraid not. In last week's report to paid subscribers, I identified a key market crash signal that has been triggered. This trigger usually precedes a market crash by about a year and usually leads to an extremely strong final bull leg just like what we saw back in 2007.

Yes, FINAL BULL LEG.

I expect this year to be very similar to 2007 where the bulls just rage on before everything starts going to H towards the end of the year, tying into my predictions in my 2018 outlook report.

The S&P500 has also been extremely strong lately, moving about 1.5% last week alone and posting a huge 4.68% over the past 3 weeks! This brought the S&P500 into a gross short term overbought condition that should lead to a significant intermediate pullback, most likely starting this week.

Supporting this outlook is a rise in market volatility, lifting the extrinsic values of both long term call and put options strongly over the past one week..

All of these happening while the market crash signal that I identified last week continued to worsen, reminding me exactly of what I saw back in 2007.

Yes, this is exciting times. This is dangerous times.

But these are the kind of times through which my trading systems have proven to be profitable over the past 13 years. Are you prepared and armed with the ability to profit from such conditions?

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

Intermediate Correction Next Week?

Could next week be the start of a significant intermediate correction in the US market?

As I have mentioned at the start of the week, this is going to be one dangerous week with next week almost certainly a significant bearish one.

So far, the market made its biggest single negative day of 2018 two days ago but recovered all lost grounds yesterday. That set up a great exit point for our profitable call options positions in PTEN and HBI as we took a combined 72.4% profit on both positions. (Join  me for just $1 if you missed profiting from this rally so far! Click on http://mastersoequity.com now!)

However, looking closely, even though the market still look very bullish today, the VIX is actually secretly edging upwards, foretelling imminent short term volatility, agreeing with my outlook of an almost certain significant negative week next week. In fact, next week could be the start of the kind of healthy intermediate correction that the market badly needed in order to wear off some of its current short term overbought condition in order to set up for better entry points and therefore more new highs.

Yes, more new highs.

I mentioned in yesterday's report for paid subscribers that the signal for an imminent market crash has appeared and it seems like this could be the final bull leg, just like back in 2007, before the bears take over fully.
(to receive that report, please subscribe for just $25 a month by clicking on the yellow button on the right, below my profile photo)

As such, I won't be surprised to see the rest of the year rallying powerfully before things get VERY dangerous towards the end of the year.

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

Bulls Raged On Exactly As Predicted...

Welcome to Week 3 of January 2018!

EXACTLY as I have predicted in last Monday's report, the US market continued to make another big strong positive week last week following the 7th positive week the week before! (yes, soooooo many "experts" thought the market was going to crash last week! LOL!) Here was what I said:

"In fact, it seems like from this point forward, the market tended to put up yet another couple of good weeks as the herd starts getting into the rally late before a pullback happens."

And that was exactly what the market did!

The S&P500 closed 1.57% higher last week in an extremely strong week as the herd jumps in on a late rally.

However, this is when it will start to get quite dangerous...

Like I mentioned before, the market tends to make another couple of positive weeks following 7 positive weeks but that also tend to put the market into such a deep short term overbought condition that in the couple of weeks to follow, we should see quite a significant negative week as the market take a breather before moving higher.

As such, I continue to favor profit taking over putting on new position at this point in time. Especially since my  Master's Stock Options Picks subscribers and I are sitting on over 100% profit on our call options in PTEN and HBI so far... its time to find a good exit point now! (if you never made any profit during this period, join me now for just $1 at http://mastersoequity.com )

This is also January options expiration week.

In according to the "options expiration week effect", a known anomaly in the stock market, big cap stocks tend to do well during options expiration week. As such, this could lift the overall market, setting up good exit points for our existing positions before things start getting VERY dangerous from next week onwards.

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

Welcome to Week 2 of 2018!

Week 1 of 2018 closed EXACTLY how I predicted it to, strongly to upside!

Even though I continue to maintain my strong positive January 2018 outlook, last week's market action has been so strong that the market is now in a short term overbought condition.

In fact, the S&P500 made its 7th straight positive week last week!

This is something that hadn't happened since 2013! Yes, once in almost half a decade!

Even though this is usually when I call caution and a high probability intermediate pullback, it doesn't seem to be the typical behavior of the market. In fact, it seems like from this point forward, the market tended to put up yet another couple of good weeks as the herd starts getting into the rally late before a pullback happens.

Yes, since you are reading this, you aren't part of the herd anymore. This is when I would like to make very short trades and also to start looking for opportunities to exit my profitable call options positions so far.

This tendency to close another couple of good weeks after 7 positive weeks also means that my prediction for a strong positive January 2018 is still very much on track!

Week 2 of each month is usually digestion week for all the excitement of week 1 when all the heavyweight economic numbers such as the ISM index and the Jobs Reports are released. Last week's numbers didn't quite turn in as well as expected by the market continued to rally all the same, propelled probably by the tail end of the Santa Claus rally or aka January Anomaly aka Window Dressing period as we see investors continue to reallocate from bonds back to equities, raising bond yields across the board.

Even though it is expected to be a largely bullish week, being the first full trading week of 2018, I won't be surprised to see some early profit taking before the bulls take over again.

This strong bullish undercurrent continues to be the engine for January so far and if you don't know how to make really short trades to take advantage of this, you need to join me for just $1 at http://mastersoequity.com and let me tell you what to trade. We had a phenomenal 2017... are you ready to experience a phenomenal 2018 with me?

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

My 2017 Review and 2018 Predictions

Happy New Year 2018!!

Welcome to the first trading week of 2018!

I always like to start the year with my prediction of the year and a review of the previous year and all the more this time round as I wrap up one of the most amazing years that I ever had, not only in the US market but in many other areas of my life as well as God's Grace truly shined into my life.

In 2017, every single of my US stock market predictions came true; my 1 Jan 2017 outlook report stating that the market is going to end January 2017 strongly, with an intermediate correction somewhere in the middle of the year before the rally resumes, closing the year strongly (sorry that report was made on my wordpress blog which has since been destroyed from hacking, which took my confidence in wordpress blogs with it too... I am soooo sticking to blogspot!).

That was EXACTLY what the market did!

Yes, soooooooooooo many experts predicted that 2017 was going to be market crash year and I went against all these TV experts and predicted that it was going to be a GREAT year. Those who believed in me and joined my trading with my Master's Stock Options Picks service reaped an AWESOME 84.62% winning rate with a 5.5 : 1 win lose ratio in 2017! In fact, my market neutral options income strategy also turned in a nice 7% per month average return in 2017! All for doing next to nothing from month to month! Just put on the position, let it run for a month and KACHING, money fell from the sky! (Check out my Ride the Flow options income strategy!)

That happens also to be my highest winning rate year so far and the world's highest winning rate for options swing trading! Truly an achievement worthy of celebration!

In fact, if you read my daily reports, you will find that throughout 2017, I predicted every single pullback and recovery ON THE DOT, for example, I predicted the 22 August 2017 recovery when soooooooo many TV experts are speculating that its the start of a market crash! LOL! Right on the dot when I said that's where the market is going to resume its bull trend, it did and we profited from it while the rest of the world cried for missed opportunity yet again.

Indeed, God has blessed me with the right eye in 2017!

So, what do I think of 2018?

2018 is going to be a tough one to call.

It is still going to be a bullish inclined year for sure because:

1. Trump still has cards to play and every card he played so far triggers the Trump Magic Effect. The tax reform is going to be a big one for the US economy, one which has been long overdue and one which is going to fundamentally change buying patterns etc... with this card in play for 2018, I really hate to play against it.

2. The signs that need to be in place for market crashes just hadn't quite fall into place yet. Yes, for those of you who thinks market crashes are random, like a hammer that falls on your head one day when you wake up for no reason at all, no, it doesn't work like that. There are so many signs to watch for but expert like me just don't like to reveal them for free.

3. On the technical front, the market is still in a maturing long term bull cycle, this gives it at least another year to go before things get shaky... this technical pattern at least supports the fact that the pieces needed for an economic crisis just isn't in place yet.

As such, I am expecting yet another positive January 2018 as the bulls continue to run, leading on to a slightly volatile second quarter and a stronger, exhaustive close by the end of the year than 2017 did. That should set things up for a very bad 2019, most likely to be triggered by the economic blackholes created by the crytocoins phenomena (read: scam).

So, lets enjoy our 2018 while we still can!

 Here's wishing everyone a very very prosperous 2018!

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