Positive Thinking has Nothing to do with Stock Trading

Floyd leaves today for a week of vacation. There will be no intraday alerts or commentary during the trading day, or responses to any emails for this coming week. Floyd is NOT trading. Floyd is writing each alert, and will be recommending new trades daily but will NOT be online.

Part of the reason for this vacation are evidenced in the following testimonials from subscribers. I'm often surprised by this work, but yesterday showed the FEAR in the market, and I thought I would share:

-I have been wanting to express this to you for 3 weeks. You were on a roll and then from out of the blue you started saying we have won so many we are due for a loser. Wow --- That scared me! I am a Golf Professional--Tournament Player. If I won a tournament ( wins are hard to come by ) and the next event I thought I could not win--That would be projecting a negative Bias. No one can predict the future or the next event and what has happened in the past is just that ---The Past---It is OVER! The next Future event has nothing to do with what happened in the past event----It is OVER! Now what would have been more positive for you to report would have been " We are 38 for 38 and we plan on winning the next trade " If we were not planning on winning than we would have gone fishing until we were more positive on our recommendation. The point being is I lost confidence when you lost confidence in your self. and dame it all came to Futurity. Of which we wanted the opposite-----You let you stubborness get in the way of your Brilliance. You missed this huge decline and you should not have. I am BROKE



Sigh-We actually hit 47 in a row, and three losses. We were fearful that GREED would take over with subscribers and they would think us infallible Positive thinking has nothing to do with stock trading. We refunded his monthly subscription yesterday. Floyd

-Floyd, I've made $237,000 in trades with you from February thru early June. I've now lost $13,000. Thank you for telling us recently that option trading was risky and that we could lose. I had made 38 trades in a row with you successfully, and I was starting to feel smart. I've learned more from you than any other service I've used, and hold Blue Chip options as a service with most of my IRA account. Thanks.

Nice perspective here-Floyd

-I believe you make more money on OEX Options than actual trading.

This one makes me want to close the service. I advertise $1200 a month, at most, and this small business supports my daughter. It's a way to train her in the market and for me to do good with others. It saddens me that this would be perceived-Floyd

-Whew. Great profits this week, and will lose my ass on this one. So be it. I missed on the one call last week, and on this one, but I'm still far ahead for the year. I've begun to figure out that things really are worse than they were saying. You were right.

An interesting perspective here again, from a trader that understands we only interpret the market, not define it-Floyd

Oil may fall, as we believe we are creating a bubble, but the responsibility for the price of oil today lies in three obvious variables:

1. Algerian Energy Minister Chakib Khelil, who serves as president of OPEC, on Thursday said oil prices could jump as high as $150-$170 dollars a barrel this summer according to reports. However, he thinks crude will fall short of $200 a barrel. At a meeting in Paris, Khelil said a further fall of 1% to 2% of the dollar verses the euro could add another $8 a barrel to oil prices. He cited the weakness of the greenback as a major cause of spiking oil prices

George Bush did this with our rising debt. Supply side economics does NOT work.

2. We are stupid and forget that oil is not a renewable resource. The answer is NOT "drill Florida now".

3. Speculative traders control the pricing of oil.

The market drops yesterday were bad for our traders. One subscriber wrote "your recommendation on calls has been breaking us" and it sums it up. But, the sum up is important to note: we have been wrong 2 of the last 47 trades, and perhaps (most likely) will lose on the call we recommended yesterday.

As I leave on vacation I will share with you some insight, important for your review of the market:

-Option trading you will NOT win all the time. You must allocate smartly.

-The more I recommend that is right (as we have February thru early June) the greater chance of our failing, and my recent emails to all reminding us that I could fail need to be heeded. Option trading is high risk.

-Market conditions have now thrown the cycles of trading to our March, 2008 lows. Stop losses have now been reached by institutions and trading frenzy has increased out of FEAR.

Market declines should prove some very important things to us. Oil controls the world. The USD is in the tank.

Major corporations are now affected. The sell off is world wide.

We will hold the open call we bought yesterday for # of days, as market shifts could occur now in exhaustion gaps. However, we now hold what was an ITM call that was profitable for us on 6/26, and has become a far strike point.

I apologize to our traders for not projecting this downturn. The depth of the Bush madness ("it's the economy, stupid") now permeates to the world. Even China, who holds our debt, questions our economics.

As I suggested last week and this week, IF the market hit March lows and continued, a sell off would occur.

I believed that these lows would hold.

"I am certain we are not yet in a recession, and the economy is rebuilding well. Tax stimulus is what is needed"-George W. Bush, April 16th, 2008