A Sucker Rally

As Emperor Bush returns from the Middle East, having accomplished nothing, please note: 1. The U.S. has let in 5000 Iraqi refugees since the war for nothing began.

Sweden, totally neutral, has brought in 40,000 Iraqi refugees. Shame on ourselves for this travesty. Elect smartly.

Yesterday a bit of a sucker rally took place, scaring the bejeebies off a few of you, and making a number of you smile, as the market moved right to 13, 136 (12,176 theoretical Dow), right near our highest top, and then moved right back to close at 13,020.

This allowed call traders that still held Friday inventory to sell right to top profits. Floyd left off the open call in yesterday's alert in error, as many traders had sold profitably Friday, but it had a stop loss of Tuesday, and many traders again sold to top profits in Monday's trading. The June660P was available for new and second buys, and day trading, and hit tops of 17.10.

We believe the rally we have been seeing was not "forever", and a rally on euphoria. There is more downside to come with housing, and remember that the mortgage banks are backstopped by the FED, which continues to expand the money supply, so the market COULD rise again on this false build up. If the Frank-Dodd mortgage bailout plan takes place, which economists are backing, recession could slow, inflation could slow....and the economy falsely expand. Classic government false bail out.

From traders:
"1. Hey Floyd,

Got in Jun660p @ $12.40 and just sold @ $16.20. Total time just over 3 hours!

Thanks again!

dexter"

"2. I bought 2 sat 15.80 on Friday and 4 more at 12.40 Monday and sold at 16.10. Nice fast profits, again.

DAE"

We will keep today's commentaries short. There's little to say. Fall in love with the June 660P, and continue to play for tight profits. Yesterday we think we saw a sucker rally over the idiots at Microsoft, who can't even make good software, trying to buy Yahoo, who have lost their foothold in the search market.
I know this: everyone I know that has Microsoft Vista is unhappy, and it's the new product. And, at OEX, we advertise on Yahoo, and find them utter idiots to work with, while Google works, and are a pleasure. And we own Apple computers. Hmmm.

Downside has higher potential now than upside, to a higher Dow bottom as noted below, before euphoria could take over again. Take prudent risk. We've been right so much recently, traders, we emphasize that it is possible to lose money on a trade. Do not become complacent.