Nothing Was New

"A strong up day can cause a low to come early and a high to come late; a strong down day can cause a high to come early and a low to come late."

Wow, did we make some money! We had all bought OXBHI OEX.X AUG 2009 445.0000 CALL for costs of 3.37 up. This position was sold to highs of of 8.50, and most selling in the 7.50 to 7.80 range for a 100% return.

All it took, traders, was following our alert. Watching futures, seeing that they were up, checking Bloomberg (all the URLS we give you) and seeing good news, and being ready. By recalculating the Dow during the day the trader was able to see a new R 1 and R2 and sell accordingly.

We have numerous "thanks" from subscribers today that study our work, and have learned our system, and we've had 4 profitable call trades this week.

We own a hedge position in either an OTM put that we'll hold, or a new issue recommendation to an inverse ETF called BGZ that is a 3X bear fund, and when traded as an option (traded as a call) can be hugely profitable.

By 4 p.m. the market had climbed over 256 points. We had recalculated Dow projections mid day and saw the new R2 at 8616, and climbing. Everyone knows that nothing was new yesterday, and that "events" triggered euphoria, and a massive run up right to the top of our Dow projections. I see a classic head and shoulders pattern, and a market set up for a fall, because yet again, it rose without reason, but only emotion. We have hit all of our Dow projections. The reversal to the projections will now take place, where the former support becomes resistance.