Trade Updates

Dear friends,

The markets have moved higher. The S & P 500 has surpassed the early Nov high. In fact, S & P 500 is trading at a new 2-year high. The 30-Day Moving Average and the trendline are pointing upwards.

The NASDAQ is equally impressive. It also reached a new 3-year high.

The bullish market is buoyed by news of a deal by President Obama to extend the Bush-era tax cuts for at least another 2 years. This raises the optimism that the economy will have room for growth in 2011; though there's some debates whether extending the tax cuts (including the estate tax) for the super rich is appropriate.



Nevertheless, The Federal Reserve Chairman Mr Ben Bernanke said the Fed is ready to provide additional stimulus measures to help the economy to create jobs. The FED is dipping into the the quantitative easing measures by buying 600-billion-dollar of bond as announced after the last FOMC meeting in November 2010. The fed fund rate rates are near zero% and the FED can't cut interest rates any more as a measure to revive the economy.

Here are the updates of my Star Trading System trades.

I wish to take this opportunity to wish everyone a Merry Christmas & a Happy New Year!

Good Trading,

Tony Chai