This May Say It All

This may say it all: Bill Miller, Legg Mason Value Trust, was the top stock picker in the U.S. This year: 16.5 billion assets to 4.3 billion assets in 2008. But, he outperformed the broad market from 1991 to 2005. In other words, the top stock picker in the country went down in defeat this last year. No ONE knows what to invest in, or what the market will do.

Supply side economics has failed, and our lack of oversight about our own greed, has begun to destroy us. Floyd calls this "the Hummer mentality," and we are now being punished. That's all I know:)

Yesterday we began to see a bit of clear direction, with sell off. And, the sell off may now not last. It's a full guessing game on how Friday shorts will play.

Trader BD writes:

Floyd:

"I must admit, I was too anxious, emotions, and entered put positions too early. No panic though.

Still ended up with +10k. :) I have sold almost all of my 420 Put position today, hold a few contracts had a couple call orders out for the Jan Call. I'll sit back tomorrow and watch for a while.

Salvaged the 350 Put position today by adding to the 420 position. I didn't want to hold the 350 beyond today as time erosion on Friday would kill it

Big couple weeks for me. +40k

Cheers,
Bill"

Trader MDL write:

"I've calculated out that I've hit 14 straight profitable trades, and lost on one. I'm trading for far fewer profit dollars now, listening to you to take the buck and not always hold for bigger profits, in a crazy market like this.

The more I learn from you the more I begin to understand about me, that I often "sabotage" my own behavior, and go "crazy" with what I think will happen"

I'm sharing successes and thoughts here because it is most important that you all realize NO ONE knows what the market will do, including the stock pickers, and the economists.

The FOMC meets next week, and interest rates will be the focus. Puts were profitable again yesterday, but make note that January issues are very low volume and remain high premium. December issues are simply too high risk.

Friday's recently have seen a "sell up"/exhaustive gap as shorts cover positions, and this could occur today. Watch futures carefully. We have an open signal to the call, and will list it as a new buy.

Puts may have strength with our "count" increasing, but the risk is high. We'll list only a December day trade put for those willing to take the risk, and exit by end of day.