1. Each of you will trade slightly differently than the other person. You are trying to learn both a system with logic, and the art of the emotion of the option trade.
2. All the information you need to trade is in the daily alert, and in fact, this can be used for your thinking about ETF's and the stock market in general. Our pivot point calculator works with all stocks and indices.
3. Study our videos online (full time subscribers, not trial) and learn the nuances of what Floyd does. We have many new videos online for your review.
4. To learn how to trade any option "for a living" takes practice. Take the time to study our work, ask questions, and truly learn a trade. A great % of our Level 3 and Advanced Mentoring students trade full time for a living.
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Imagine former President Bush or "Shooter" Cheney making a speech to the Muslim world. I can envision a Saturday Night Live show alone on the arrogance, stupidity and "mightier than thou" approach.
President Obama is smartly trying to distance our history of "aggressor" to a 1/3 of the world, and working on a global "economy" approach. Personally, I believe the type of speech Obama gave in Cairo is unifying, and not "the axis of evil" babble that created so much world hate. Just gaining more of a world order that believes the U.S. is not a bunch of fat, arrogant Hummer drivers is a key focus to our re-development as a nation. I was impressed by our efforts to unify with the world, and recognize that not all are our enemies, and that we can easily create them, as we have been. This will in the end be good for our stock market, as we rebuild world confidence.
But my favorite....the Chinese are buying the Hummer, planning to sell it to the growing China middle class:) Ahh, the lessons we never learn.
With this said....
The government, we know, is borrowing more money than can be conceived. Treasuries are falling hard because of this, as they should. Worldwide we are seeing downgrading of government credit ratings, and it's likely our own debt could be downgraded. Geitner has been selling China, assuring our largest investor we are "safe" and will become the buyer of last resorts for bonds. What the government really said here: we will begin to monetize government debt.
This is happening because of some simple facts:
1. The spread between 2 and 10 year bond yields was a whopping 2.75%, which simply says investors are unwilling to buy long term debt.
2. The IMF estimates government debt to be be 97.5% of GDP in 2010.
3. The Chinese are buying less of our bonds
4. The Chinese are the largest foreign holder of American debt, which this year has shown the worst loss since 1977, down 5.1%.
Economists will argue that the rise in yields shows inflation is likely. Being a "Floydian Economist" I'd guess the world is just worried to hell about our debt, and their own. People are saving more, thusly holding us to recession.
If we have interest rate increases during what some now call deflation it could further depress economic activity.
This serious stuff is all fact. How we now interpret this fact is what is key, both as a nation, and as we view the stock market.
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