Year End Sell-Off For Tax Reasons

We’ve had so many slowly moving but upward days that the market closed at two-year highs this past week. Our trust call recommended Monday was available for tight profits each day of the week, always able to buy below prior day close.

Many traders ask when we give a buy price of say, $10.00, and the option closed at 11.90, do they wait until $10.00, and what happens if it never makes it.

Our “best buy” and sell recommendations are just that. Recommendations. These are AREAS to buy or sell in, and never exact. The core rules are set to apply under most market conditions, which are to never buy an index option at prior day close or higher, but always hold for a discount price. These will change only when we so notify in an alert because of a specific condition.

The last several weeks, after 44 plus successful trades in a row and only two losses, have been difficult to trade. The “trade range” has kept the market very tight in movement, with very little volatility, necessary for our really successfully trading the index options.

We expect light movement this coming week, and increasing movement in early January, in which the “first five days” are often considered the “telling tale for how the market will move” for the following year.

Over all conditions we are short term bullish, and believe the euphoric upturn will continue.

It takes a 239-point or greater overall downturn in a single day would shift the market. Many services use this character as a 200 plus move singularly in day shifts the bell curve, and create a new bias. Be careful to note that we’re at over 80 plus signals of upturn without a true “bear phase”.

The difference between a dramatic move that will shift the bell curve and a period of time in which the market corrects are vastly different and merely reflect a shift in correction for oversold or overbought conditions.

We are adjusting our Dow projections because of the lack of volume, holiday conditions, and the bell curve we see in the market.

Dow Projections

11,127-Market Pivot Point, lowest low. Doubtful

11,240-11,367-Former Resistance lines turning to support

11,430-Likely support bottom on any correction

11,550-Resistance

11,624-11,647-Resistance and Likely Tops to Market

At this area the market is truly overbought, and overextended.

This week will be both the “sell off” for tax reasons, cleaning house, and the “buying new” but the big moves have already been made. Volume will be light.

The economic calendar may have several trigger points:

http://www.bloomberg.com/markets/economic-calendar/

Puts still remain the weak string, so to both OEX and Blue Chip subscribers the bell curve count still shows upside.

Three Consecutive Weeks

The market has moved up for three consecutive weeks and we’ve hit new market highs several times, only to be held back by major resistance lines. And we now enter the Christmas week, with trading volume light. We will only trade through Wednesday, believing Friday to be very light volume or our final day to trade a signal.

Traders reported 5 successful .50 to .70 cents per contract profits last week on calls, two on puts, and most broke even on the signals with the light movement we saw in the slow grinding upward climb.

First the economic calendar:

http://noir.bloomberg.com/markets/ecalendar/index.html

__________________________________________________________

We live, trade and breath right now from FEAR. It pervades the world consciousness and is more of our energy than anytime I’ve seen in 60 years in life.

I read always with great interest about Wikileaks, as I believe more that the facts being released are both free speech, but alarming about what the idiots are doing that run our world. From a letter writer in a Florida paper:

Info- terrified

If WikiLeaks represents a new phase of info-warfare (or info-terror) leaving many of the world’s leaders with egg on their face, I’ll welcome this new development any day over bullets and napalm. (Catch Me, And I’ll Drop A Bomb of data, Assange Warns- Dec.6)

Those used to calling the shots and being in control instinctively understand that for them, the nub of the WikiLeaks problem is not that it’s releasing government or military “secrets.” That’s bad enough, but there’s a bigger concern, one with far more unsettling long-term implications: the populist, or is it anarchist? under current that’s driving WikiLeaks and similar websites and movements. They reflect the growing scorn and mistrust with which many ordinary people view our governing elites and their cronies.

The Internet and social media have profoundly changed the news and media industries. Now, these same forces are changing politics in ways our governing elites are beginning to see, but don’t yet fully understand.

The essence of democracy is an informed electorate, and so, while I have to wonder who appointed Julian Assange the guardian of knowledge and truth, I can only applaud the spirit of what he is doing, even if I don’t always applauds how he is doing it.

Ken Cuthbertson, Kingston, Ont.

Although Gold and Silver are both weakening we don’t see the top yet, and project upward movement on both metals at least until February 2011. WE have sold some of our precious metal positions recently near tops, but remain heavily invested in GLTR.

In actuality there is little going on in the market. We are seeing higher highs, but always a hold up near 11,550 area, the highest we’ve seen the market in two years.

We see crude oil continuing its upward climb only for the shortest term. Any drop below 88.10 may signify an oil decline. We have sold our Exxon calls, and a majority if not all of our Exxon position for hefty profits, but maintained our Chevron holdings.

__________________________________________________________

For a market dip and its potential, watch for any closings on the S&P below 1226; if the S&P does moves below 1200 we suggest the Dow will then hit its 10,000 area bottom support test. Cycles themselves are down until the end of the year.

We suggest light movement and thusly light profits on all open or new OEX option signals during that time period. Any order must include your knowledge that a larger second buy may occur.

For Blue Chip subscribers we have been taking profits, depending upon your financial risk and type of investment, on all holdings where we show 20% or more profits, and want to enter the year in more CASH than stock, except for our ongoing 15% minimum in precious metals and 30% in TIPS inflation bonds.

We continue in 90% of our stocks to only pick dividend paying stocks; our new higher rollers, such as SHZ, where we returned 50% in a few short weeks, or NENE where we returned 30%, only to buy again near the $2.00 range, waiting for more volatilty.

Economists and Wall Street strategists expect stocks in general to rise 10% next year, as an economic expansion takes hold. We agree with summation, as the GOP will now try to take credit for things “getting better”.

Recent “expert testimony” that is provided to hedge funds and money managers proves Floyd’s long term belief that the market is maniuplated, just as it was proven recently that Silver calls were manipulated by two brokerages over a two-three year period.

As this is an open dialogue to both services we will share with Blue Chip subscribers here to continue to hold the option positions:

-WMT LEAP

-PG LEAP

-SLV short term 3 month call

This is a bad sign: U.S. companies spent 92 billion on their own shares in the third quarter. Contrary to popular belief stock buy backs or splits do not influence the stock positively, in more cases than not.

Lastly the USD is less valuable, at least in trading. China’s currency is emerging now in Global foreign exchange markets.

During the week we will issue three new potential higher risk break out stock buys, in which volality will be high, and the risk higher. With this comes the risk that brings greater rewards.

Always Leave Some Money on the Table

We experimented with our OEX subscribers last week by providing two signals, a put and call, on Monday, and gave instructions on how to play both signals through the week, with no other new signals given.

We did this for three reasons:

1. We teach that the actual option that is chosen for index trading is secondary to how to buy , sell, and “learn” the option. This is called “falling in love with an option”, truly knowing its movement so well that you can anticipate the bid/ask and what the traders will trade as they try to profit from one another.

2. Our basic set of instructions for the week was set to teach the trader how to follow specific directions, or not to trade.

3. To teach our use of the “count” or bell curve around the Dow Projections and support and resistance lines to take tight profits even in a range bound market.

During the week Floyd received testimonials and updates from Level 2, Level 3 and Advanced Mentoring clients. The results should be of interest to you.

Using 73 email inquiries, averaged:

-No losses

-An average of 9 gains on the call of .50 to .80 per contract.

-An average of 5 gains on the put of .60 per contract.

This was “tight” trade range trading in a market almost unable to trade with the tight range the market was in.

We will be repeating this approach this week for index option traders, and as you receive your separate alert make note our goal is to “trade the edges” and if the market does trade range, how to have buys and sells always in, and work for tight profits.

The commentary to OEX traders above teaches our Blue Chip Option subscribers our approach to focusing in on “the few, not the many”.

Options and new stock trades that hit the money for us this past week:

RIMM Call- up to 46% profits, SOLD

CAT Call, up to 50% profits, SOLD

SHZ-new stock, up 50% in one week. Not sold, or if done so sold by 1/3’s

We remain deep in the mud on our REE January call but are not pulling the plug.

Our friend , Alan Austin, who recommended several of our positions, is studying the rare earth sector well and finds new break out stocks or options often.

We added to our WMT LEAP call on dips, and will continue to. We also continue to add to our PG LEAP call on any dips, and will continue to buy this position.

We believe both Gold and Silver are soon hitting short term tops, and recommend to all “traders” of Gold, Silver, etc. to take profits. For those traders holding inventory for the long term Glitter, or GLTZ, remains a balanced hedge of the 4 top precious metals.

Gold will still hit $2000 and up by the end of 2011, and Silver even higher ratios, or our recommendations to sell some of our positions is to always use our maxim

ALWAYS LEAVE SOME MONEY ON THE TABLE

Lower Cost and Better Education

I’ve had many emails from my lengthy commentary last Monday where I combined the resources of OEX Options and Blue Chip Options for the MONDAY commentary only.

I remind all subscribers again that alerts for the OEX and Blue Chip continue daily through the week, just holding less daily commentary, and listing what we are trading. With Blue Chip if we are not trading we do not issue an alert.

CC, a valued long-term subscriber, has asked that we improve our www.stockcharts.com public listing to show current recommendations. We will do so this weekend, but make note that many of our positions are CORE and we do not trade, we only buy and hold, and tell you only when updates, and many of the charts are for your general review about the market. In our Advanced Mentoring service http://www.oexoptions.com/AdvancedMentoring/AM.html

We teach distinctly how to utilize PNF charting as we do in Level 3 in our movies.

First an opinion from someone with common sense. This is NOT a pee party member; they are too busy watching the “truth” on Fox News or listening to Rush, the great Barnum hustler.

“ I am no economist, but having recently arrived in your country to work, manage and live. Let me at least propose four ways to help this slowly recovering economy:

1. To those who can afford it: Go spend money. For the first time ever your past overconsumption will actually contribute to making things better

2. To perfectly healthy companies: Invest in the U.S. Invest in selling or manufacturing products that can be exported, or substituted for imported.

3. To banks: fulfill your basic mission statement: Lend-finance medium size healthy companies. Estimate the risk, charge a reasonable margin, and contribute to get us out of this mess your cohorts got us into.

4. To the Government: What are you still doing in Afghanistan? Get out, which will save billions (which will help you balance the budget) and start working on the three things the U.S. economy really needs to become competitive again:

· A lower cost of litigation

· A lower cost of health care

· A better education system

Frank De Haan

Dallas”

This letter explains it well. It’s the definition of “lower cost, or better education” that remains the issue.

Here’s the sad answer on Wikileaks and the morality of disclosure of secrets:

Any government that is phucking stupid enough to make their security system so bad that a 20-year-old Private that can’t even shave is able to hack it DESERVES their secrets known.

Does it affect the fate of people? Sure, just as we reading the incredible corruption and falsehoods the U.S. and other nations have been perpetrating.

Sorry, I can‘t fault Wikileaks. They operate from the Constitution (show this please to a Pee party member). You may not agree, but it is their right.

GLD, closing above 1389, appears to be on another BUY signal.

Silver (SLV) some believe will top at 30.85 and others believe will outlast the Gold run and actually move even higher.

We will be recommending a new Call option to Blue Chip Traders through the week

Blue Chip Traders in long or short term Treasuries take note. We are approaching another cycle low. We may see a low point and burst up, but our money on Treasuries remains in TIPS, as the world talks about deflation.

Many OEX traders wrote with the same three questions this past week:

1. Why would you trade calls on down days?

Answer: Whipsaw leads to best buy, and we made money all the time on the bounces

2. Your Dow projections are astoundingly accurate and often vary from many other professional traders that we brokerages buy? Why?

Answer: I use a combination of Point and Figure charting, Bollinger Bands, historical cycles and intuition. I do not read any other points of view by professional traders, with the exceptions of Charles Nenner Research and Key Turning Dates. I read only Bloomberg for news, and do not watch any talking heads. Intuition is fully 30% of my read.

3. Do you see a long term return to buying equities, and have any long-term projections for the market, or the Dow?

Answer: To me, if I can “see” 21 days” ahead for index trading options it’s as far as one should or could go. As for longer term I only follow trends that I think will break through sectors as the market rises and falls, and these become our long-term CORE investments.

We have seen enough volatility, and enough key reversals, that the market may be now in for a pre-Christmas ball buster drop to scare the world, which certainly needs scaring. However, there is more right than wrong economically, and our easing moves appear to be working.

As we are stretching at the top of Bollinger Bands, which have been contracting, we also see any downturn following the same Dow Projection cycle that we just completed.

Not One Damn Reason

There is not ONE DAMN REASON you should not be making LOTS of money in the stock market right now. Not one. All the ups and downs, and the massive swings, are horrible for the buy and hold investor, but can be incredibly profitable for the day and index option trader.

At www.oexoptions.com our 2010 average returns are 40.1%, and this includes taking all the brokerage commissions and even the cost of this subscription out.

In other words, if you had invested $50,000 through the year in any or all of our 340 signals that were provided you could have $72,050.

At www.bluechipoptions.clom we study stocks and stock options, our rate of return for 2010, again taking out all costs, has been 44% on stocks and 48% on options.

We won the prestigious Readers Choice Award with Stocks and Commodities Magazine as one of the top TEN ADVISORY services. There is no real better reference than actual traders telling us how we are doing.

· 60% of our subscribers are stock analysts or full time traders

· 20% of our subscribers are Certified Financial Planners that use our methodologies to round out portfolios.

The remaining 20% of subscribers are those investors that know you must study to do well at something, and that we are not promising “You CAN make a Million in one year”.

Instead we offer one on one mentoring with our lead trader, Floyd.

Of interest, in a bad economy last year, more subscribers signed up for our most unique psychology-based introspective mentoring service for learning to trade:

http://www.oexoptions.com/AdvancedMentoring/AM.html

Sale Price!!
http://www.oexoptions.com/pages/Level3_BCO-Annual-2400.html

We make one “sale price offer” per year, and limit our subscription base.

Join us for one year of Blue Chip and OEX Options Level 3, both services, for the hugely discounted price of $2400.00 annually. (Split into quarterly payments of $600.)

If at the end of one year you believe you have not succeeded or learned with our services, our parent corporation will refund any portion of your subscription that you feel fair.

That’s right. WE GUARANTEE THE YEAR. You have nothing to lose.

Subscribe Now!!
http://www.oexoptions.com/pages/Level3_BCO-Annual-2400.html

If you are afraid to risk money, you will never make it. If you risk money without training and logic, you will never make it.

Feel free to write me with questions at: info@oexoptions.com for a personal reply.

This offer is only good until February 15^TH, 2011

YOU ARE WHAT YOU DECIDE

Upside Continues

The market went right to our top resistance line, a very bullish sign and the Dec535C, for those still holding partials, hit highs of 11.40 by 2 p.m.

Our rules are to never pay above prior day close, so we did not trade. With futures up so dramatically it was possible for traders following our system to buy up to 10% above prior day close, but even that was not possible.

We continue to see upside, following our Dow projections, and want to win every time, but are strict with our rules.

Simple Rule of Thumb

We saw the Dec 535 Call have both very negative and positive, and then day trades. Many subscribers wrote to tell me of two or three profits on this call, as the market tanked last week, and we saw the possibility of trading again. We profited again on 11/30, with lows of 5.70 to highs of 7.70. Tight $1.00 profits and up.

We are falling love with this option. Play it again trying to buy below prior day close, but following futures. We see likely upturn to 10,256 area

Remember this is how we are trading:

The OEX Simple Rule of Thumb Buy at S-2, Sell at R-2 Buy at R-2, Sell at S-2

Buy an option at Low Volatility And Sell it a High Volatility

Futures Were Zero at Opening

So, many of our subscribers read my long letter for the Monday commentary and came away confused.

It's really simple and benefits you. Each Monday of the week we will combine our Blue Chip Option weekly commentary with that of the OEX, as we find more and more similarities. During the business week we will only update OEX commentary, however, if something is exacting for the following day, allowing Floyd more time to pick signals, and work with our Level 3 and Advanced Mentoring students. So if the OEX commentaries are "light" there's nothing to report.

Here's an example: Futures were zero at opening. I would not have traded at al!. The downside already started hugely with 84 points down, and never came back. Just watching the news I would have stayed out the market, but the market allowed call buys and sells, and we've now got a second buy in on the position.

The market has fully corrected and is now overbought. Will it also act "overextended" as the bulls did or have a typically shorter run to the downturn.

Alternative News

To all of you as subscribers each week we try to provide alternative news opinions on a lightening fast changing. Take time to read them, as the more you study the market; really study it, the more you will know. The more you learn in books, and courses, will hold best with you if you are privately mentored, spent time with in trading with you, is all what we write about in this commentary.

When you receive alerts from Blue Chip during the week they will be around discussion of our current positions, new buy and trades, and general interests. Short and sweet.

Same with OEX. Facts out there. Signals issued and reported and the same 8 step process that our Daily Pre-Market Alert puts in as discipline.

We twitter everyday updates on Support/Resistance/Pivots on our Dow Projections, allowing you to day trade really any moving stock index or blue chip stock that has volatility.

All of This Simply Smells Bad

We are combining alerts in this shortened week and will have only this alert for the week.

Volume on the exchange will be very light and we see trade range moves that will hold the market barely up for Thanksgiving optimism.

NOTE: This is the only alert you will receive for OEX or Blue Chip for this shortened trading week, which we assume from history will be very light, as influential traders are already in the Hamptons.

The Bullish percent index is one of the best indicators of small investor and institutional investment.

Everyone is bullish.

Equities are considered under value.

Most trading specialists and analysts believe the market, although it may correct, has much farther to go up.

Perhaps. But with a Bullish Percent indicator this high we have more caution, and suspicion.

Add to this that traveling last week I heard numerous times that “now things would get straightened out,” a theory showing no understand of the gridlock this nation is in.

These are Fox TV children, clamoring for more Mac and Cheese.

All of this simply smells bad and has us hesitate. When the bullish percentage indicator goes above 70 we become concerned not just of oversold conditions but that euphoria has taken over.

We have sold a great number of stocks and options at great profits and never push our luck

It is time to sit back on hands and wait

_________________________________________________________________

You all know me so I won't explain.

The fucking idiots in Washington, led by Pee Partiers and others that want to "improve our standard of education" through testing are trying a time proven to fail approach. Uniform testing is not reasonable in a country of small towns, big cities, multi cultural, multi language, and it makes good teachers all want to quit.

Our 28-year daughter, a masters in Education, is in her 6th year teaching. Her middle school class (11 year old average) has kids up to 15 years that have failed many times, kids from other countries that come in legally and speak no to little English. There is no way someone could provide testing of reason to this varied a class.

So, the education system will likely lose one of its best teachers, because she values individualism and creativity, what real education is about.

America is NOT white people with all good kids and great family values, nor is all-Christian. America is going through massive change right now. Let's not be led by "false facts" to make our education "better" when, in fact, it does not.

This movie is the real thing:

http://failingschools.wordpress.com/2010/11/10/students-speak-out-against-standardized-retardation/

Fight our politicians and "value leaders" in the Pee Party. Help the world understand we are part of the world. Perhaps our educational system is broken, but standardizing a test is much like a really stupid version of human prohibition.

Each week we provide our Dow Projections, based on the theoretical Dow.

The theoretical Dow is much like an exponential analysis, where it evenly skews all 30 stocks in the Dow, not just a high mover.

A simple way to understand the theoretical Dow is:

High of the Day-add 40 points

Low of the Day- subtract 40 points

Close of the Day-Add or subtract 40 points to the close, dependent upon the swing of the close

We base our Dow projections on PNF charting, historical data, and Floydian intuition.

“Floyd, I have paid for Level 3 for three years and have made more money off your Dow projections than any other indicator or tool I’ve ever seen. I now trade full time the OEX, S&P, and Dow in day trades all around the Dow projections and the support and resistance lines. As you have taught me (and boy did I fight it) the actual option chosen your signal, is the least important part of the study

FYR-Buffalo NY”

Something Smells Bad

All of this simply smells bad and has us hesitate. When the bullish percentage indicator goes above 70 we become concerned not just of oversold conditions but that euphoria has taken over.

We have sold a great number of stocks and options at great profits and never push our luck

It is time to sit back on hands and wait

___________________

You all know me so I won't explain.

The fucking idiots in Washington, led by Pee Partiers and others that want to "improve our standard of education" through testing are trying a time proven to fail approach. Uniform testing is not reasonable in a country of small towns, big cities, multi cultural, multi language, and it makes good teachers all want to quit.

Our 28-year daughter, a masters in Education, is in her 6th year teaching. Her middle school class (11 year old average) has kids up to 15 years that have failed many times, kids from other countries that come in legally and speak no to little English. There is no way someone could provide testing of reason to this varied a class.

So, the education system will likely lose one of its best teachers, because she values individualism and creativity, what real education is about.

America is NOT white people with all good kids and great family values, nor is all-Christian. America is going through massive change right now. Let's not be led by "false facts" to make our education "better" when, in fact, it does not.

I Tire of our Stupidity

The dow hit highs of 11239 and lows of 10970.
We will not trade a put, but will continue to hold the call for what we think will be more upside.

By 6.30 a.m. futures had risen 92 points,and commodities were all up. Traders would have wondered then if the 7 days of sell off was just a "slow man's way" to drop the necessary 240 points to constitute a breakdown.

However, the "breakdown" was inconsistent, on relatively low volume, and primarily played around Ireland's cash issues, and China, as always.

I wanted you to first see how futures showed at 6.30 a..m. EST

Aren't you glad we didn't buy puts? The world did not end; in fact, the auto bailout appears to have worked well, with GM having a great IPO, and manufacturing and consumer sentiment both rose.

For the stupid, the market must do well first before we can re-employ
For the stupid, for every article we import, we export two, and we increase jobs.
For the stupid, the deficit was 80% of what it is now before Obama came to office.
For the stupid, one can never listen to the American people on intellect; for God's sake, we watch reality TV shows.

It's time to start finding articulate and educated people to listen to. Don't blame the press; we love this dribble. Why else would FOX be first, a Murdoch station made up of lies and lack of parallels.

Ok, I feel better. I tire of our stupidity.

________________________________________________

Our Nov550C immediately rose to near a break even by 10 a.m.

The pubes are mad because the auto bailout is working, the stimulus is working, and they need time to find things wrong.

But...unemployment is high, so Sarah Palin may soon be President. Are we stupid or just fearful of change?

FCIC Delays Probe Report Amid Republican Opposition

Nov. 18 (Bloomberg) -- Democrats on the Financial Crisis Inquiry Commission, the panel assigned to probe the worst U.S. economic collapse since the Great Depression, voted to delay the group’s final report on its findings amid Republican opposition.

The report will be available in January, rather than Dec. 15 as previously scheduled, FCIC Chairman Phil Angelides wrote in letters sent yesterday to President Barack Obama and members of Congress. The panel will conclude its operations on Feb. 13 as required by law, Angelides wrote.

“The additional time will allow the commission to produce and disseminate a report which best serves the public interest and more fully informs the president, the Congress and the American people,” wrote Angelides, a Democrat who formerly served as California’s treasurer.

Three Republicans on the 10-member FCIC voted against the delay and issued a statement yesterday that said it was imposed so the panel can issue a “book-length” version of the report at the same time it’s released to lawmakers.

Congress created the FCIC to investigate the causes of the 2008 financial crisis, which triggered the collapse of Lehman Brothers Holdings Inc. and led to U.S. bailouts for companies such as American International Group Inc. The panel, which has heard testimony from executives including billionaire Warren Buffett and Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein, has been beset by partisan disputes and staff departures throughout its 15-month existence.

‘Waste of Money’

“This has been a waste of money from the get-go,” said Lynn Turner, a former chief accountant at the U.S. Securities and Exchange Commission. Turner said he doubts the report “will really go out and nail anyone to the wall, so it likely doesn’t matter if it doesn’t come out until after hell has frozen over.”

Peter Wallison, a Republican FCIC member, has indicated he may issue a dissenting report with the backing of other Republicans, said two people briefed on his plans who declined to be identified before findings are released. Wallison, a former Treasury Department general counsel, didn’t return a phone call seeking comment.

FCIC spokesman Tucker Warren said he didn’t know whether Republicans would oppose the commission’s final report.

“Commission members continue to discuss and debate,” Warren said. “Until the commission’s work has concluded, we won’t know how the work will shake out.”

Republican Statement

The FCIC’s six Democratic members, including Angelides, all voted to postpone the report’s release. Republicans, including FCIC Vice Chairman Bill Thomas, dissented. Douglas Holtz-Eakin, a Republican who didn’t participate in the vote, joined his colleagues in a statement criticizing the delay.

“We believe a report containing the findings and conclusions of the FCIC on the causes of the financial crisis can be delivered by the statutory delivery date,” the statement said. “Republican commissioners are prepared to work to meet the deadline set forth in the statute.”

At least five members of the FCIC staff have left since January, including Matthew Cooper, the former Time magazine White House correspondent who had been hired to help write a book about the panel’s probe.

The FCIC has also changed publishers for the book version of its report. After initially reaching a deal with Hachette Book Group’s Little, Brown, the commission now plans to use PublicAffairs Books.

$8 Million Budget

Neither Cooper’s departure nor the change in publishing companies affected the timing of the report, Warren said.

Legislation approving the FCIC’s formation gave the panel an $8 million budget and said the commission “shall” submit a report to the president and Congress containing its findings on “December 15, 2010.”

The text of the legislation also said the panel may use a 60-day period after the Dec. 15 deadline for activities including “disseminating the final report.”

To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net .

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net

Find out more about Bloomberg for iPad: http://m.bloomberg.com/iphone

________________________

The gridlock will continue and nothing will change. The Pee Partiers, thank God, will be ignored. ON we don't go:

http://abcnews.go.com/Politics/112th-congress-ready-usher-leadership/story?id=12164901

__________________________

The End of the World is Coming. We have become that stupid:

http://abcnews.go.com/Politics/sarah-palin-thinking-running-president-tells-barbara-walters/story?id=12170631

________________

Bernanke tells us there is no inflation. Theoretically he is right. But we feel inflation, households think we are 2.7% higher in price than a year ago, a great deal in today's environment. That's an unusual gap but some economists are theorizing it is because food and energy costs have risen. In the sentiment survey there was not a lot of optimism about next year on cost of goods to the consumer, a telling tale.

But then, Bernanke wants to boost inflation, which is running below it's target.

(It's when you read this stuff that you think like a Libertarian)

Impossible to Trade

Death on Wall Street. Dow highs of 11082 and 10950. Impossible to trade.

We have sold the put profitably on November 16th, and will only hold open our November 560C which had highs of 1.45, lows of 1.09 and was not tradeable.

Following are what the chartists say:

-- RETAIL SPDR REMAINS RELATIVELY STRONG WITH FALLING FLAG
-- STOCKS CONTINUE TO FOLLOW THE EURO
-- EURO STOXX 50 TESTS IMPORTANT SUPPORT LEVEL
-- TREASURY YIELDS LEAD THE DOLLAR
-- VIX CHALLENGES RESISTANCE WITH BIG SURGE
-- VIX TRIGGERS MOMENTUM SIGNAL SIMILAR TO APRIL

We will continue to only hold the OTM Call today, waiting for a bias to establish

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All of the money we have been printing has to go somewhere, and emerging markets, and the commodities they gobble, offer some obvious stories.

At www.bluechipoptions.com we've been actively recommending stocks and options around our printing of the dollar and the repercussions. New bubbles are being created as we speak.

The State of Currency as Commodities

No, god of financials. I am not afraid. FEAR = False Evidence Appearing Real. This is what happened yesterday, all before the 3 p.m. closing hour, which I consider telling only of the electronic trading.

1. The market hit new theoretical Dow bottoms of 10,945, right within our Dow projections.

2. A return to 10,776 means that only the day trader in stocks and options got shellacked again, as all the profits are gone. At www.bluechipoptions.com we progressively sell off.

3. A bottom test we believe will be short lived with a euphoric upward run back in the 11,500's and leading higher. We may have several bumpy corrections in here, and this sell off was well needed in an oversold market. This was very much a key date to the market and the sell off was solid.

Investors in our Dec OEX 560 Call should now have an averaged second buy cost of 1.70, with a new stop loss date. We believe this signal could now rebound in 4 market days

Read current signals carefully as our profits were astronomical high these past three days.

There is a bull market coming. Short term, but a good burst and a chance to perhaps not get shellacked, and learn to trade fast, as in today's world intrinsic values can change instantly.

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The state of currency as commodities and how they are interpreted is an important part of option trading. When the USD was worthless a few weeks ago, Gold and Silver were hitting all time highs.

Now the Euro has slumped to the weakest point in more than a month against the dollar as concerns again over Europe's simmering issues with sovereign debt.

China has become a bit concerned that the U.S. is making their massive Treasury investments of less value and we have currency fights with China. The theory of a one world currency is that of oligarchs, and the one of a gold standard solving the issues well beyond their mathematical skills. There is now not enough precious metal to cover the paper debt.

What a state we're in.

When watching futures watch Gold and Silver also, and the USD against the Euro. It's the start of a currency war.

Strategy for Both Signals

The market hit theoretical Dow tops of 11,314 by 1 p.m., and bottoms of 11,149. Traders that took entry to both our new positions were able before 1 p.m. to buy our November 545 Call below prior day close to 2.70. The higher risk and more in the money December 540P was also available below prior day close to 14.60.

Follow our directions within open signals carefully. Take tight profits either direction, and be prepared for second buys. The market is trade range oriented, waiting for a "news byte" to trigger movement.

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Crude had come near highs, and Gold and Silver have hit highs. This is partly manipulation, partly fear, and mostly greed. It smells of caution.

Our economy looks better, but last week showed a 2.2% pullback, the worst week in three months. Company insiders have been selling into the rally.

Even with that said we see a Dow top of 10,786 by year end, with whipsaw and breakdown struggling at specific Support and Resistance lines.

Current Signals:

Open Signal:

Strategy for both signals:

1. Do not trade the opposing position if futures are plus or minus 70 points.

2. If futures are volatile or flat place a first buy to either position on any movement 10% or more below prior day close.

3. Expect a larger second buy on both entries.

4. Use stop loss of # days, changing to new start date if a second buy is made.

5. Sell to Dow or Support or Resistance Lines or for up to 40% each

Risk: Puts may have hit their downside, or will soon and this is an expensive ITM option. We are afraid OTM issues will lose value too quickly.

Calls are OTM and have a long way up. Value will diminish quickly.

With market conditions showing a week of downside, we believe we will not close under 11, 050 and may hold at current rates, and that there is more to this bear run rally coming.

Fear, Greed, Indecision

The Dow Friday went below what we saw as a key support line, 11,180. We mentioned this number in the morning alert because our concern was the market closing below 11,180, which would have potentially led to a deeper downslide. This showed a 2.2% pullback, the worst in three months.

Whipsaw and more downturn was amazing Friday watching a Dow theoretical high of 11,504 and a low of 11,104. In a quiet and formidable way the Dow has lost nearly 240 points, enough to point to downturn, only to close back up above a resistance line.

For those that held puts, or had partials after Thursday's profits, we saw highs of 18.80. Our call, no second position taken, hit stop loss. If you took a second buy make your sell 20% above your cost and hold until 11/18 stop loss.

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Three variable control the stock market:

1. Fear

2. Greed

3. Indecision

Fear occurs partly from indecision, and from "loss of gain." Greed occurs from ignoring all and being fearful of "loss of gain" Indecision occurs around both.

A Bear Run in Waves but not Today

The market is making it's bear run in waves, rather than huge drops. Yesterday we hit highs of 11,366 and lows of 11,191. Traders holding the November 550P could have bought intraday from 13.95 selling to 15.10 or doing what Level 3 subscriber did:

Floyd,
You always respond promptly. Here is my trade summary:
Bought OEX 550 NOV puts at average of 7.5 =>> Closed/Sold at 9.2(liquidated yesterday); Bought OEX 550 DEC puts at 10.9 =>> closed/sold at average of 15.0 this morning.
This covers some of my losses from Jan-March of 2010. My long term plan is to study well and get in the game.
Thanks,
Deepam

Deepam is a subscriber that has gone on "hold" with his subscription because he suffered real losses in the early part of the year. I recommended extensive real time paper trading, and he just began writing me again. Here's his trading, a perfect example of how to make profits a number of times.

We continue to hold the call,and have not made a second buy. Let's see what today brings. Read option sale instructions carefully.

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The primary question asked me by all subscribers:

"How much of your success is your "disrespet, contraian and stubborn points of view that we all have to put up with?

I'd say about 50% is based on disbelieving the concept while it is being explained, and knowing that most of all I hear is a con game.
Con game life has been how I have seen the consulting business in approaching a client, how the most adept traders work, where they just tune int"
Good question.

Republican Study Committee Recommends Cutting Welfare Program That Already Expired
The Republican Study Committee on Monday recommended reducing the deficit by cutting a welfare program that lards the federal budget with $2.5 billion in wasteful...

JPMorgan Internal Document Predicts 'Gridlocked' Congress 'Without Any Landmark Legislation'
The financial titan JPMorgan Chase is betting on the next congressional session to be historic in its lack of productivity, according to a leaked internal...

Low Rates Are Not Bullish

Today is Veteran's Day. The market is flatlining, and allowing us tight two way profits on both trades, and we're still keeping both open. Remember, in tight market conditions take tight profits, and study the pivot/support and resistance and recalculation during the day.

Something will trigger the market, and the analysts will say "this" is what caused it. It is just the market inhaling and exhaling.
We saw theoretical Dow tops of 10,404 and bottoms of 10,215.

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Low rates on Treasuries many bond investors think is bullish. Most investors are now borrowing money to invest in bonds; the are looking for safety.
Low rates are not bullish. When no one is borrowing interest rates decline. Low rates means the demand for our product is low

Want to understand what is really happening:

1. http://www.truth-out.org/bill-moyers-money-fights-hard-and-it-fights-dirty64766

2. There Aren't Enough Jobs For 4 Out Of 5 Unemployed Americans
There simply aren't enough jobs to employ four out of five unemployed Americans, according to recent data from the Bureau of Labor Statistics. The total...

Selectiveness of Our Collective Thoughts

As the market showed a mild whipsaw around pivot and support and resistance lines we were able to sell our open call, bought at 9.00 yesterday for as high at 10.80, for the 20% we were looking for.
We saw the same support and resistance lines and the same struggle. Remember, we have to see a 230-245 drop to generate a bear shift and we see a deepest bottom near 11,127.

Puts are waiting. Their time will come. We will keep the call position open for both new buy, below prior day close, and to hold for future profits.

We are listing a December put. Only enter if you see news-bytes trigger futures and futures show hesitancy.

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Has anyone thought of the revolution in the labor force that will occur when the baby boomers hit the time when the charade is up, they are living with children, who are doing poorly, and health insurance will fail them without controls. This is actually considered by some to be a pre-mediated move from "the middle class shifting to the lower middle class" and accepting it, while the poor accept worse, and the entire spectrum shifts to an elite oligarchy.

Great sci-fi plot and half true today.

I listened to former President Bush, out trying to sell his book on TV last night. Every morning he reads the Wall Street Journal, that's it, and it shows the intellect we had in our White House.
The WSJ is a Murdoch paper, so he is reading exactly what he wants to hear, slanted to just the direction he wants.

Funny few remember what he wrought.

The selectiveness of our collective thought as a nation often frightens me. We may not "get it."

The World is Shifting

A nice soft start to the week. Everyone is now waiting. Waiting for "the ball to drop" or for a home run hit, and no indicators show any bear correction that is any more of one than a normal sell off.

We took entry to the November OEX 545 call at a good buy down price. We'll hold for the day and to work for 22 to 25% average markups. As we watch the "count," or bell curve analysis, shift, we'l watch for a put entry, but the market must begin moving again
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Everyone thinks I hate Republicans and am a full blooded liberal. I am a liberal, am proud of it, and see liberals as being open to all ideas, and conservatives as being open to only their opinions.
Most of you have been waiting for me to scream after the Republicans "lied" their way into the House last week, but Fareed Zakaria says it best in Time Magazine. This is really worth your time:

http://www.time.com/time/politics/article/0,8599,2029356,00.html

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"As the dollar wobbles, China is pulling back from U.S Treasury securities and buying up hard assets around the rule." - Barrrons

We discuss the implication of China's change in investment, and their holding of their own rare earths extensively in our service www.bluechipoptions.com

The world is shifting; is the U.S in gridlock, shifting with the earth.

Okay, so here's how they are reporting it. I chose reputable middle of the road media messengers in Fidelity, Bloomberg, and Market Watch

1. Fidelity Investments:

Wall St rallies as Fed stokes risk appetiteWall St rallies as Fed stokes risk appetite
REUTERS—28 MINUTES AGO

Stocks rose sharply on Thursday as risk appetite escalated following more monetary stimulus from the U.S. Federal Reserve in a move to boost a wilting economic recovery. The Fed's plan to buy $600 billion in Treasuries lifted risky assets, including commodity-related stocks that rose on expectations of worldwide demand. Oil and basic materials equities rallied on the greenback's weakness.

2. Bloomberg: http://noir.bloomberg.com/apps/news?pid=20601087&sid=a3o3eQdjgIOw&pos=1

3. MarketWatch: http://www.marketwatch.com/story/us-stocks-rally-day-after-fed-boost-2010-11-04

And Floyd: The stimulus should have been part of the original stimulus, but Obama was afraid the American people would not accept it. The buying of debt puts us as huge risk, but no part of what Obama did in the first two years even should have been about unemployment, but instead tyring to stop the imploding of the world's economy. We came that close.

So yesterday everyone got happy and the world was better, and the market went UP on borrowing more money and creating more deficit. It's hard to fathom our stupidity at times.

We raked in on the call, and sold the put at stop loss. The market had reached a two year record top of 11,467 by 3.15 p.m. The call we saw happen. Somone had an offer in to sell at 17.20 before opening, and someone bought. That led the option price, and it only reached it again by 3.15 p.m. Several of our traders were part of the lead in 17.20 price to sell before open, and it's an example of how bid / ask really is bartering.


We will not recommend any new trade for weekend trade, but believe the market will show some balancing on Friday.

We'll have new Dow Projections Monday, and stand by our bullish tone (no matter thinking nothing is really good). There may be correction, but this overextended market could continue.

Power and Greed

Okay, so we have now entered complete gridlock, and a nation totally divided, but not really, as most are not well informed enough to even know what our country does.
The market hit lows of 11.047 in morning trading, and highs of 11,246 by 3.15 p.m.. Obama spoke at 1 p.m., let everyone beat him up, and Bernanke again said we'll create more stimulus (sorely needed, and should have been when Obama was elected), and off the market went. And that didn't last long. Complete hesitancy by 3.30 p.m.

Our December call was a good buy at 13.90 with sales to 15.40. Many asked why we chose December calls and the higher risk November puts. We believe we will have faster chance of quick downside, and that this strike call could both be day traded, traded for tight profits, and held for longer term upside.

The market seemed stunned yesterday. Taking all the rhetoric in, facing emotions that all of else felt about "what we wanted," made the market, moving ahead of us, seem to "digest the news," whatever that news was.

Meg Whitman spent 160 million of her own money to win in California. What sadness. That money could have helped so many people, yet she chose POWER and GREED, and still lost her ass. It's the only real good news of the political day for me. I hope she regrets her excess, but as an oligarch, I doubt she even knows she did harm. What the heck, send her housekeeper back to Mexico, she was an illegal. The sadness is how much was spent in general to create false ads, or "fear ads," and what it accomplished, except the gridlock is reversed, and the Pee Party is "watching to keep the GOP moving right."

OMG.

And this is what we wrought:
SAD MEAL: McDonald's Workers Told They'll Only Get Raises, Benefits If Republicans Win
WASHINGTON -- There may be something rotten at McDonald's -- and it's not a year-old Happy Meal.
The owner of a franchise in Canton, Ohio... (read the article)

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Questions Traders Ask Floyd:

1. How long did it take you to learn the stock market?
I believe it takes 10,000 hours to truly learn a subject. I have been studying the market for over 30 years.
I believe it takes 90 to 120 days to paper trade OEX options "live" to even understand what will and can go wrong.

2. Do you believe option and stock trading will be viable over the next ten years?
I believe it will vastly change in scope, but be very profitable to the individual investor that knows WHAT to trade.

3. Do you believe we are successfully regulating the market makers against excess? And, how does this affect the daily trader?
I believe no one has listened to Paul Volker, who knows just what to do, and instead we "play around" with his suggestions because of lobbyists and the market makers.
It may take one more flash crash to awake the American people to the fact that unemployment is a by product of years ago, NOT now, and is secondary to making the stock market and thusly the economy healthy.