We Are On a Roll

Traders were able to buy the new recommendation to the July440P at 11.60, a full dollar below prior day close, and sell to highs of 16.70 by 2 p.m. This means the maximium profits available on this day trade were over 44%.

Many traders wrote with profitable trades also on the open July 415P. Depending on length of hold, and buy, traders broke even to making 24% average profits.

We are on a roll, and it's because we are suspicious. We saw the Plunge Protection Team come in again on the downside, not enough to truly consolidate, and close the market in another unclear bias.

To help new subscribers I thought you'd like two emails received today:

-"Floyd, whew, it's hard to do this. I am trying to keep track of everything, but my emotions are often in the way, and keep breaking the rules. I finally made a good profit today paper trading, and am starting to get the hang of it, but this ain't easy." - Washington, DC

-"Hey Floyd, another great profit day for me. I am only trading a few trades a week now, bigger contracts, and feel very much in control of what I do. I'm using the daily alert for stock trades, and for the OEX. This service is really paying off big time." Shreveport, LA


The first trading day in July the Dow is up 16 of the last 19 years, historically. After a happy six months for institutional funds and massive run ups, allow my cynicism to remind you all that we are not far from the original 7700 drop in the market that precipitated the downfall. For over six weeks now I've been bearish on the market, simply because of the massively overbought and plunge protection team run up. We've profited handsomely on these moves, and we don't care what the market does, but we do want to be ready.

From the following two charts we see a head and shoulders topping pattern developing, and using the S&P500 to chart some chartists can see a down move to 810 on the SPY.

Floyd is a student of Roubini and he says, "recent data from the U.S. and other advanced economies suggest that the recession may last through the end of the year. Worse, the recovery is likely to be anemic and sub-par. . . The recession is not going to be over today. It's going to last another 6 to 9 months."

But, with this soapbox on the downside, we'll continue to enjoy call and put profits, and let the market do what it wants. If we can get returns like we've been getting, who needs buy and hold :)?
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Lastly, let us sadly remember Emperor George Bush and Shooter Cheney as we exit Iraq shamed, with nothing accomplished but deaths, and trillions in debt. War and death continued right up to our first "gentle exit." They killed us on our way out. What we can learn from the "period of George" as i call it , is not to be led by false facts, or innuendos of fear. As we built our bubble of greed the period of George led us in our fear of "the evil ones", only to find that perhaps we are them.