A True Bear Market

What happened Thursday, which may have begun a true bear market, and what continued Friday, was triggered by OIL, the USD, and comments (right ones) on GM:

"NEW YORK (MarketWatch) -- U.S. stocks fell sharply Thursday with the blue-chip index enduring its worst June so far since 1930, and plunging to its lowest finish since Sept. 11, 2006, after getting slammed hard as crude soared to new highs and Goldman Sachs disparaged U.S. brokers and advised selling General Motors Corp.
Floyd's rants Thursday after traders wrote on our not reading Thursday's fall led to some great email responses, which we think relevant to both the mood of the market, and your great loyalty:

From a subscriber Thursday evening:

Isn't it sad that some people are your best friends when things are going good and turn on you if something doesn't go their way. Can't they see that the economy and the market is all screwed up? The most important thing is to shake it off, regroup and get back on track. please take the negitive comments with a grain of salt. I for one would like to know if you think the selloff will stop soon? I entered the 600 calls at 8.75 do you think I should do a second buy yet or at all at this point? Please stick around for us floyd now is when we need you. I still see this as a poss. winner if the market turns around what do you think? I promise I wont turn on you right or wrong. Thanks , Don



And from another:

Floyd, I have to jump in here. You should not be apologizing for not calling the sell off. After reading Black Swan I was anticipating a situation like this, but if you buy puts way out you can go broke because the timing is off. That is the problem. timing is everything!! The whiners are not living in reality, I have been around maybe as long as you and I can not believe these people think you win all the time. Are we Americans that screwed up, or have we had it too good for too long? I'm losing money, what else is new. I am still up, not where I'd like to be but that is reality, not wishing. The golf pro has been taught by sports psychologists to forget the past it does not matter. But it does matter, you are elated after a big win and can get down on a loss. Experience is the past, good judgment comes from mistakes i.e. bad judgment and just bad luck.We may have further to go on the downside,I thought maybe 10,500 on the Dow. I am not surprised by any of this you just can not time everything. I am appalled by the immaturity of some of the whiners, getting down to personal insults. Of course you should make $ on your service, we are paying for your experience. I paid $5000 for Vantage Point. It is accurate but not as accurate as you. I use it as a corroboration, have to since I paid so damn much. Your service is cheap by comparison to other services that are not as accurate. As Will Rogers said " I don't belong to an organized political party, I'm a Democrat" I will close with the following quote by Dick Cheney "deficits don't matter" Docben PS have a good vacation and don't let the bastards grind you down.


Hey Floyd,

I just want you to know that I've also been guilty of questioning your methodology as well. BUT I've come to realize that this is your service and your methodology. I am free to take practice what I like and discard what I don't like.

I also understand that if I was left to myself...I'd be COMPLETELY broke in a matter of weeks, if not days. It is your guidance and support that has kept me afloat and it is my own anti-Floydian practices that have gotten me into trouble. So what I've decided is that I will continue to follow your rules...since they are proven to work (45 out of 48 trades is a ridiculous winning percentage)...and if for some reason I don't feel comfortable with your recommendation...well then, I just won't do it...and if I miss a trade then I miss a trade...tomorrow is another day!!

You are here sharing all of your years of experience with us and it is obvious that your heart is in what you do. It is blatantly obvious that your only desire is to teach us how to succeed in the market. Please forgive our obnoxious and greedy attitudes.

Personally, I ask you to forgive me as well for all of those religious rants that I went on last week. I feel bad about giving you a hard time regarding faith and politics...you've got enough crap coming from greedy subscribers and you certainly do not need any more headaches!

You are a great man Floyd. I just want to let you know that if you decide to close shop because some idiot makes a rude comment such I believe you make more money on OEX Options than actual trading."...Then I'm going to personally come to one of your homes, whether it be in Florida, KC or on the west coast, and I'm gonna make you teach me - ONE ON ONE!! You are NOT getting rid of me brother!!

I love ya Floyd. You are in my thoughts and prayers. Keep pushing forward and have a great week to yourself! I will be practicing your rules today and next week and I will keep you informed of my progress. I do not expect a reply because I know you are taking a vacation but I thought you may be interested in how I am doing since you are a man that cares!!

God bless you brother,

Michael


Traders that took our recommendation to trade OTM puts Friday were rewarded with 30% profit goals.