Yesterday we again saw market tops that we outline below in detail within our Dow projections. The market is at a clear struggle between support/resistance, and what is good news and not.
National unemployment yesterday hit 9.4%. 8 major businesses went bankrupt. Name brands. We are listening to a government, I think rightly, actually trying to seize controls of the financial industry to put controls in from the GREED. 99% of Americans do not even know what Libor is, or "derivatives." It's simply to them "people got loans on houses that they shouldn't", etc.
What happened to Bernie Madoff's fake money that helped feed the stock market?
It was easy to trade profitably yesterday. In our alert we had recommended OXBSD July 420P, bought under 9.80, and sold to 11.10 in early morning trading. We'll keep this trade open, however, as we will the OTM July call, also tightly profitable in yesterdays trading.
Today is June triple witching expiry (up 4 of the last 5 triple witching) , ending a week of flat lining volatility and a struggle between a "bull market continuing", to "is this enough of a consolidation. I repeat: last week the USA Today had colorful pages about the turnaround of the economy, and yesterday we shared how many economists see the "end to the recession."
Historically, these guys are always wrong:) Just as those armed with true facts find little difference in key doctrines between Shia, Sunni, Sufi and Prebyterians. Charts show a bearish wedge, and intuitively we all know the market has had remarkable successful of late, and market direction typically does proceed general economic direction. Yet, more Americans are now questioning if Obama has the right plan and why "things aren't getting better yet."
I do not believe 99% of the American people know how close we came to an economic meltdown in this past year, and how "just breathing" we are. Yesterday we all watched a market at 8500, just think of 14,100 a few short months ago, and we are now excited for the large upside we've seen. How perspectives change.
Sometimes we make it hard to see what is real, as we are too busy involved in the "day to day" to even conceive what we have all wrought. And businesses we are paying for, just a sign of how complex ineptitude can be, continue to not perform. Here's a great Citi (C) story:
1. A customer pays off a $378,000 business loan, after they had paid off two other mortgages with Citi.
2. This customer maintains AX and Visa business accounts, with a 60k limit on the Visa account.
3. Notice is received by the customer after they have paid off the business loan that the Visa credit limit had been moved to $4800.00
This bill had been paid in full each month for 60 months, with 20k averages per month.
4. Customer complains, get supervisor, writes letter, and never gets any answer from anyone. Trys to call top people. Credit line lowered. Customer cancels card.
5. The next week Citi sends this customer a solicitation for a business credit card with an "automatic 5 k limit."
6. Clueless, Citi loses long term customer that had borrowed over 1 million and paid all "revolver loans" off on time.
Citi (C) bank stock has recently been performing well, and they are showing signs of "rebirth", say the papers.
Are they?
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Advice from Floyd to all subscribers:
I was with an old friend yesterday at lunch that subscribes to our daily alert. He makes his living off trading "the methods" that are listed in our detailed pre-market alert, and was sharing that he prints this alert, makes notes on it, and trades both stocks and options off what he reads.
Be sure you also READ this. Don't just look for signals to buy, and then wonder later why you lost money? Learn to trade, this alert works with how to view day trading stocks, other indices, and teaches the emotions of the market, much of it outlined to you within the rules in this alert.
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