Of the 30 companies that make up the DJIA only McDonalds and Walmart have higher stock prices than a year ago. Think on this. Walmart, which abuses employees and imports most of its products, and McDonalds, which makes a terrible and dangerous product for consumption. So sad.
We watched the market immediately react to lowered outlooks for TI, and Fed Ex, and began moving to our Dow projection bottoms. The Dec420P was available as low as 8.30, and sold to 12.60. Many traders reported dual profits on this position during the whipsaw of the market today.
Here's some commentary from BD, a long term subscriber who often "journals" me his thinking in advance of the day:
Up 9 out of the last 11 sessions.
Dow did not close above 9000 yesterday Potential Bear market rally. Also coinciding with previous PnF resistance levels. Dow not closing above 50dma or 9000 not confirming SP close over 900.
Look for Put entry today up to DJI 9150
Calls only on futures open lower.
Topping here to 9150 PnF.
Look for move to 8450.
Beware of Infrastructure plays holding up the market as well as auto bailout.
All indexes breakout alert PnF.
12/8/08
50 dma Intraday High yesterday close
oex 446 445 441
djia 8941 9026 8934
spx 929 918 909
naz 1640 1583 1571
rut 505 483 481"
Suffice it to say, this is a successful trader.
And from trader DP:
Floyd,
Can’t express how good I am feeling today. Thanks again for responding to my email yesterday regarding DEC 370 Put i.e. recommeding DEC 420 PUT.
"Bought second lot this afternoon at 8.5 (exact) and Sold both the lots today afternoon with an average gain of 36%. I think its okay to miss some additional profit (if its DEC 420PUT hits 13.90 tomorrow). Current Status - NO open position sitting on the sideline"
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