A Bit of Reality

The market finally hit a bit of reality, and by noon had bottomed at 10,206, allowing us a fair break even to 15% loss on our December 490P.

We saw enough drop off to show a true consolidation beginning, and there IS possibility of more downturn.
Traders watching futures, of course, took no entry to the call as the sell off began.

For those of you that study our S/R lines, we twitted mid morning and the market moved right to 10,259 re-calculation before beginning upside return.

Because market conditions lightened in afternoon trading we'll issue a trade to the put but very specific in definition, and hold out on new positions, unless market conditions so warrant.


These are the "things" we must watch out for:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFKrK5AcBecQ&pos=1
http://www.bloomberg.com/apps/news?pid=20601109&sid=awHX2QPENKgQ

It is interesting to me that the very "technicians" who struggled that the Dow could even return to 10,000 now struggle with the more magic "unemployment at 10%." What is important here is NOT the facts that the Dow hit 10,000, or the fact that real unemployment is over 20%, but how those facts translate to the open market. We are seeing a generally improving economy.

News: Some think Gold will hit $1300.000 before any pullback, and $2000.00 by year end. Much depends here upon the dollar weakening, or not. But The Wall Street Journal reports that governments around the globe are stepping up efforts to stem the greenback's slide.

If Playboy sells to Iconix (Playboy one of our Blue Chip recommendations) one of the largest assets being sold for the $300 million price tag is the rabbit ear logo.

Here it is proven that something worth nothing is worth something and that what is not real has value.