Open Puts were Hugely Profitable

Our open puts were hugely profitable. Traders reported up to 74% to 109% gains on both open puts, and all traders were rewarded with a minimum profit of 35 to 47%.

With futures negative yesterday we took no open entry to the call, but see the market potentially bottoming quickly and rebounding on any good earnings. Surprisingly, we're bullish for the end of the week, with no logical reason other than euphoria is building and any good news could spring the market to break former resistance lines. It's still a "good" month for stocks, and we think another surprise at a top is likely.

Remember, the top we speak of is now just a few 100 points above the market bottom of 7750 that hit last October, and sent the world to a tailsspin. So although "up dramatically" we are strong resistance lines.

With the strong market volatility days we are experimenting with a new buy technique for the more risk oriented trader. At opening the trader buys inventory to the signal we recommend, at "market price", meaning paying perhaps much higher than prior day close. The second buy is made at the prior day close, the former "limit buy" we would recommend. Traders average cost and sell for up to 42% by third day, or stop loss.

This appears to work best on highly volatile days, where we see sharp futures declines or up moves in the early market hours.

We'll keep you tuned on this, and begin reporting it as another method in the alert. Here's what we'll say:

"Pay to Market"-Take a first buy at the market opening, and a second buy at the prior day close price, if necessary. Sell for 34 to 42% profits by end of third day hold, or stop loss.

This is a higher risk trade opportunity for markets that show futures defining a strong market bias.

Right now traders we recommend using the pivot point calculator available on the website at least once during the trading day. You can plug in both OEX or DJIA numbers and get a better reading of the support and resistance lines on a highly volatile day.



Floydian Therapy:

The Circle of Pain, continued:

Circles have entry points and exit points, but they also look like circles, so they can appear to have no entry or exit. How does a circle become a circle? Can it be broken?

Circles can be broken, and can be dissected. What is key is to find the issues that surround one joining a circle (of pain, of addiction, of fear) and defining where the entry points were, and where the exit points can be made.

Here’s a scenario of something we read about all of the time with families – of physicians, entrepreneurs, celebrities, politicians, etc...

This is a wealthy family with many possessions, a secure business and, for all outward purposes, a strong and happy family. They have no friends outside of their church, and the parents never stop working; the children never start.

The family has an adult son suffering from drug abuse, arrested time and again for various things and does not have a job, and never had. His arrests have been for abuse, and showing aggressive, drug induced behavior. The daughter works in the family business without rules or real job expectations, coming and going as she likes. Her life is “subsidized” by her parents, and they balance her checkbook. She is married with three children.

The millions of dollars in money spent by the parents has always been on “supporting them,” paying legal bills, paying their rent (on nice homes), buying them things, and generally being generous and offering unconditional love.

This unconditional love, however, is enabling and controlling, breeding anger in the children, and the wife, even though they are supported and always “forgiven” for their behavior.

The father is rightfully upset that the situation never changes, and he is always counted on to “bail them out,” to “support the adult children.” But he never loses “control” by the way he handles this, and by “having control” he at least feels somewhat grounded in an untenable drama.

Sadly, his controlling behavior helps fuel the drama. The wife is fearful the children will never get well, and enables them by giving them money, and constantly forgiving bad behavior.

This picture is clear. They live in a circle of pain that they have created, and that never ends. And, subconsciously, this family may not want to change, as the DRAMA of the circle is what keeps their relationship alive. They don’t know how they would be a family without the circle of pain.

Now relate it to yourself. Do you have a circle of pain? It’s likely that you do.

And it’s just as likely that you do not want to stop, as the drama is what drives your relationships, and becomes your purpose. It’s stupid, and you can change.

In any circle there are entry points, and these same entry points prove there can be a exit point

The second circle defines quadrants, a simple way to “break down a circle” into specific areas, for your identification, and for your focus on areas that you could “break” to leave at least part of the circle.

Floydian Therapy calls this “chunking.” Chunking is simply a way to work at things in stages, “chunks of time” so that the situation is not overwhelming, or so large that you find yourself unable to even begin.


For more on Circle of Pain, go to:
http://www.oexoptions.com/FloydTherapy/CircleOfPain.pdf