George Soros says, "If investing is entertaining and you are having fun, you're probably not making any money. Good stock investing is boring." He's right, and it's why smart investors "play the market" with index cash derivative options, the OEX, while conservatively investing in key core and speculative stocks, and studiously track just what they hold.
We hit Floydian highs yesterday, and our OEWCJ calls could have been sold for up to 150% profits, three days maximum holds. Congratulations, all. Put traders took first buys on the April 320P at around 6.50, at R2, and we will hold.
As you read Dow projections you'll see I saw the third top at 7237. We hit 7232 on the Dow yesterday, what could be a top. The Dow projections below identify the next resistance lines if a true bull rally could be beginning.
We doubt it. Somehow not enough is good yet, there is still too much fear, and it's 70% likely to us that we'll have a stronger downside, soon. We may be early in projecting this, but any trigger could induce fear, and lead a support line run down to same support lines we've seen all week.
Our call recommendation is a day trade. We'd only hold puts over the weekend, an April issue, so it can be hedge for us.
Bernie Madoff is in jail. That may have actually influenced the market, comic as it is. Geitner testified, and tried to explain to people that know nothing in Congress that this is one big mess and he can't believe it, and more crap comes out of the woodwork hourly. I can only imagine the issues Geitner deals with, as exposing the house of cards continues to unravel, but understanding what it did to the financial system is even more complicated.
Again, we've had some superb profits this week. Let's count our blessings. Smart day traders are able to scalp tight .50 to 1.50 contracts if they are online studying by the minute, and puts have rewarded us.
We've missed 4 signals in the last 30 days, and this week surely helped make up for it.
This is the hardest market to read and project I've seen in my 30 years of trading. Buffet said falling "off a cliff." WE have seen first what GREED can do, with no regulation or structure, and we are now seeing what FEAR can do. It's the perfect lesson for us all.
Lastly, I've posted President Obama's complete layman version budget on the website (in the left column with other Lessons In Investing articles) This is an Acobat PDF document that is 128 pages and is the crux of his vision and plan. Stop watching TV, reading papers, and listening to fodder.
It's free, it's on our website, and if you truly read this, you can make a fair judgement of your opinion.
It's called A New Era of Responsibility: Renewing America's Promise. This is the plan he is trying to enact.
Floydian Therapy:
I often tell people that they will need to, very effectively, learn to water a rock garden. People smile when they hear this. How you hear it alone is part of who you are.
Your perception is often that something does not need to be done, or that it “is this way,” and this is part of the problem. What we perceive to be “real” is often not, and what we understand is often incomplete.
Everything necessary to solve all human problems is simple and in you right now.
You are the complete problem with yourself, so know that up front.
It’s Mom and Dad, genetics, who your friends were, and are, where you live and what you eat, but it is as much your perception.
Smoking is bad, some drinking is good, exercise is essential. White bread is bad. Prayer does help. Do not eat too much, and exercise every day, and you will not get fat.
You can live a lot longer than before, and that makes you worry more.
It is important that you like your work, but most people don’t. When you are happy is when you do your best work, so find work that makes you happy. Until you do this you will not be happy.
Get over yourself. You really do not have any real problems that you didn’t create yourself, so quit creating problems. Think this out. Once you figure out all the problems you keep developing and stop doing them, things are easier.
This all may take a lifetime but this is how you do it.
Join me if you are interested in Private Counseling with Floydian Therapy:
Write me at : floydiantherapy@gmail.com
Sign up at: http://www.oexoptions.com/pages/FloydianTherapy.html
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