The USD

We let this last day pass, to see if a higher volume commitment could occur (and it did) and to see if the market held at market tops. The market did top at 11623 by early afternoon.

Put traders to the OTM Aug540P took a second buy, and our costs should now be averaged well for a tight profit if the market recedes on any news.

Data showed private sector job growth was good ( a false fact), and then news that Bushy Feds were extending emergency loan relief (national debt at all times of the history of the country, but taxes are lowered:)) took the market up.

Read our Dow projections very carefully as we are approaching potential tops.

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Yesterday Floyd lectured on Freddie and Fannie, and it's now time to come back to the USD.

For three years Floyd has lectured about what we have done to the USD $. I fully blame George Bush, and believe that this is FAR worse than Iraq, or environmental concerns, or any of the folly he has led us through.

By taking our eye off the ball with financial institutions, and allowing the rich to have no controls put to them (sadly necessary) we have allowed profit mongers to destroy our financial models, and have blindly paid into it.

In a short time I believe the USD could truly have NO value. This means our $1.00 bill would JUST be paper, and this doomsday thinking does not state we will not "trade for other things," which is what the USD and all currency really does, but that we will have diminished our buying power to that of a Third World Country.

Now is the time to be in CASH as a primary investment. To trade OEX Options short term, and stocks only for fast profits if speculative.

Now is the time to believe the Government is so far gone that it will take years to even begin to fix what we have allowed to happen, and that our deficit will skyrocket even more as the dollar devalues.

The question, therefore, is NOT whether our taxes will be raised (as they are already raised, just in ways we don't know it) BUT what our dollar will be worth.

There are no investments more safe or of potential than in Gold and Silver. Using GLD and SLV to track, the full commodity ETF's for Gold and Silver, we believe that over the next five years we will see greater safety and return on investment in GLD and SLV, and especially in Silver, than in any other methodology to trade.



From Level 3 Trader MP:
Hey Floyd...

"I need some advice on my "behavior" today...

I understand that your alert today said: DO NOT TRADE..."Watch the market"...

I saw this as an opportunity to practice my skills as a day trader/scalper...to see if I am watching the market correctly...to see if I can "BREATHE WITH" the market...I keep reminding myself that the DOW is a living organism...comprised of people like me...with all sorts of money and emotions...Anyway...here is what happened as I observed...

I read the tape from 9:32-9;35....I recognized a +30 differential (likely upside day) and I also noticed within the 1st 15 minutes that DOW hit 11,540 (our old support and resistance level) and came back down to test 11,500...I figured that this would be a perfect time to scalp some calls b/c of the futures being up, the tape bing +30 etc....I bought (5) 580 calls for 14.90...sold them minutes later for 16.10...that is $600 profit.

About an hour later the DOW pull back and the 580 call hit 14.90...I bought 5 more and sold them quick at 15.40...another 50 cents or $250

I then left to take my girls to the pet store to buy a little fishy for the tank. I had my Blackberry with me...I began to notice that the DOW was making lower highs...it would drop and pull back up...drop and pull back up...FROM MY CAR...using my Blackberry...I bought 5 more calls for 14.70 only to sell them two traffic lights later for 15.20...another 50 cents or $250...

By the time I got home...the DOW had dropped to 11,420...it pulled back up to 11,470 and I "figured" that this would be a great time to scalp some puts since she will likely test that support area again...I bought (5) puts for 8.00....and sold them 15 minutes later for 8.60...another 60 cents or $300.

After the DOW bounced off of the 11,420...I WAITED...

I watched and noticed that the DOW was not above 11,470 since noon time...therefore...the edge I was looking for was that break past this level...When she took off past 11,470 or S1 on the OX...I bought 5 more calls and made 1.40 profit or $700 to finish the day.

On the day...I ended up 5 for 5 with my trades...for a total of 4.20 profit or $2100...not bad for a stay at home Dad..

The problem is that I am a bit concerned...I need to remember humility and remind myself that I am still new at this. What do you think? Am I doing this correctly or am I just getting lucky? Should I even be doing this when you tell us in the alerts not to trade and watch the market...

What I am finding is that there are times, like today, that if I just let the market do what it does...if my mind is clear and I don't have any presuppositions...it will almost tell me what to do...

What do you think?"
From Level 3 Trader MP


Floyd-> This is a trader LEARNING to perfectly trade as the market breathes. It's a perfect example of how to trade.