This Says it All

This says it all:


-Benchmark Japanese index's losing streak the longest in 54 years

-"It is not clear, and by definition not yet a reality, that a recession has occurred. Stimulus and tax cuts have successfully controlled what is a vibrant U.S. economy simply affected by rising oil prices"-George W. Bush, May 17th, 2008


We have moved far beyond a normal 21 day cycle on the Dow, and the losses continue solely around FEAR and GREED in oil. Floyd is back from a well rested week of travel through the Midwest, and most important to our opening dialogue this week is a comment on "my anger" during our first losses in months, and how only a few subscribers reacted.

Quite candidly, few were upset, but Floyd used the pulpit to swing some hard balls at traders that over allocate on moves only to lose their butts and wonder why, or traders that choose to learn only a few of the rules.

"Floyd, nice week we had. I played puts 4 times and calls 3 times, and profited 20% average on each trade. 7 trades, 7 successes. Tell your subscribers that I lost on 2 of the 3 calls you recommended before, and just paid it all back plus more in last weeks trading. I've learned from you how to allocate, and when to "cut bait". I'm one of your subscribers up 35% for the year, trading everyday, and that is making a living trading off the OEX. "- Mary G, Omaha

"Interesting week. Hit profits on the puts each day, and whipsawed up with the calls twice. Net profits-$3500. Simply watched the pivot and s1 and r1, and followed your Dow projections. I am surprised oil is such a catalyst, when it was not just three weeks before, but the speculators are trying to build it to $150, I guess"-LMD

It is important to note that the "count" we use is also extremely low to bias. Our Dow projections are harder to formulate and "read" and the "count" itself, even though we "see" a great deal of downside has never yet had a put count of over 5 in the past 10 market days, simply because whipsaw as had the market struggling within a large trade range from 10,150 to 10,460, almost daily.

Puts have the obvious bias, BUT, the count is only 1 to the put, and we believe any day that oil can show a substantial drop will trigger upside short term euphoria.
Both puts and calls were tightly profitable again on Friday, allowing below prior day close buys and .50 to 1.00 per contract profits.