Yesterday's morning trading showed a top right to our resistance lines at 8270, before bottom testing just below 8000. Several new subscribers wrote in early trading that "we had no trade" as the market opened up, and they thusly could not buy the signal. This is true. Some of our traders add 10% to prior day close as their top to pay, and others hold strictly to this rule. Today the Feb400C, for example, was profitable for traders that did buy above prior day close, as it sold to highs of 17.40.
Some day traders with us reported single $2.00 per contract swings on this issue yesterday, and others did wait and were able to buy the option on the downside to prior day close, or just below.
What is important here is that all three approaches are correct. With each, a second buy twice the first buy may be required. Profit goals are then reestablished on the average. Chartists should recalculate the pivot/support mid day on high swing volume days, if following the support and resistance tools.
Our morning alert is a complex instrument, giving you all the facts you need to trade the market that day. Study every part of it.
Markets thrive when information flows freely, and they seize up when uncertainty replaces understanding. We are dealing with an issue the country, and the world has not dealt with before, the fact that our bankers and companies have created false financials that created more wealth, and bet on borrowing, stimulating large debt and increasing euphoria. Any trillion we now put in, and it could be trillions, must be narrowly focused to create jobs and move money. Create a middle class again, that really spends well. It's the 1950's all over if we do it right, post war, and its truly scary to see how a "depression" could begin over more and more false facts, never checked, come to the service.
Where did the Paulson billions go? Toxic debts continue, and the credit markets appear frozen. Fraud is being uncovered now in every country, as if the whole world has been building a massive bubble, with eyes closed.
The Chinese peasants return to the rice fields, as their new jobs are gone, the factories slowed.
Wonder if we will ever find if "we" are accountable for all this, or if certain people are?
Things are not as they appear.
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