Purveyors of Hate

It's almost fun. We saw Friday again run to a 10,140 high, and a 9892 low, in the same whipsaw pattern we've seen for days, with the exception that the market CLOSED more dramatically down.

Our OTM 520 day trade call was profitable only to .40 per contract, yet traders on the November 490P were able to buy as low as 4.60 and sell to highs of 7.80. Numerous traders wrote us notes on what Friday was, but I'll give you the funniest to start your week:

Sometimes when I am stupid I make the most! I smelled the downside, and put a pre-order on the put in at 4.80. I had to leave for a few hours, and then my car broke down,but I had learned from Floyd to "never leave without a sell order in" so I (thinking I would be back in a couple hours) put a sell in at 7.60. I had planned to return to do a second larger buy, and had bought 15 contracts for my opening. So I returned home after the car disaster to see my order filled at 7.60. The math is incredible. I made $4500.00! I had been profitable on all calls this past week, being smart, and had a week with total profits of over 8200.00. WOW! MDL, New Orleans

Here's how I see the market:
1. We need a healthy consolidation to allow more upturn. Each upturn we have without effective consolidation (and there have been TOO many) is not a bull market, but a euphoric market, and historically always leads to larger falls.
2. Over 106 banks have closed. This is serious stuff.
3. Wall Street was FIRST bailed out by President Bush, and as the magnitude of the fraud became clear, then bailed out by Obama. The Bush/Paulson 585 billion was a game to pay off the boys that helped them. It slowed the crisis, but the next bail out was to save our nation from financial ruin. Sadly, no regulations have been put in (Congress leads this) and we're seeing new Wall Street games that the GOP boys claim is socialistic to "stop the earnings."
Sorry, but with earnings to Wall Street slime now exceeding prior massive earnings, we are in process of allowing greed to take over our nation, while we "fret" that Obama does not understand the high unemployment issue.
Sigh.
4. With healthy consolidation I believe the market will rebound again, and that 10,700 is a Fibonnacci retracement from our deepest bottom earlier this year, and MAY be a stopping point. In other words, with retracements so far following Fibbonanci to the T, we may have euphorically led ourselves to a top that could easily disintegrate, and lead to a deeper downturn. Much will depend upon whether the HATE in the nation can be calmed, as we have built a fervor over "obamanation", bullshit on socialism, etc., and of course, led to even more bi-partisanship in the country.
5. Glenn Beck and Rush the idiot lead much of the nation. This will influence group intelligence. Pay attention to their rants, as some actually believe this stuff. Sorry, conservatives, but these men are not conservatives, but purveyors of hate.