Ash Wednesday

Ash Wednesday

"The job of central banks: To take away the punch bowl just as the party is getting going." - William McChesney Martin (Federal Reserve Chairman, 1951 - 1970)

A clear definition of hypocrisy:
http://www.huffingtonpost.com/2010/02/12/medicare-cuts-hypocrisy-g_n_459930.html

The Fed release minutes from its meeting in January; housing starts are projected to jump 6% in January, after December's poor weather. It might be a blip but imagine housing starts for February.

Much real news took place yesterday with Simon Properties bidding 10 billion for commercial REITS gone bad, and JP Morgan Chase, Alcoa and Newmont all reporting.

Study our Dow projections very carefully, and remember to re-calulate the pivot point on any large moves (80 + or -)

Always have sell orders in.

We suggested two new signals for today. The first, the March 500 2010 call never hit prior close or lower, and was only profitable for those that traded "above market price." Those of you that know this technique could have had 34% returns.

Traders to the put were able to make a great first buy as low as 5.70.

Make specific note that SPX 1100 is strong resistance as is OEX 505

There may be more upside potential, but pay attention to the blocking area at SPX 1100. This will coincide with our Dow projection, and the SPX only hit highs of 1095.67 before settling back.

Both Dow and SPX resistance lines could also easily be broken as the market itself is trending back towards its 50 day moving average, a sign of recovery.

This may prompt risk takers to "follow futures" and "bet" a rising advance.