The Bulls Keep the Market Up

Futures were down 50 points, and the bears were in full swing today. Gold fell Friday (our Blue Chip Option subscribers had just sold for good profits) despite no logic as to why it would.

The S&P 500 closed last Friday at 1192.13. If the S&P holds under 1188, or if the Dow goes below 10, 950, we may see more volatility and downside run.

Essentially a plunge occurred Friday because slimy old Goldman Sachs is the first of many the now active SEC will file suit against for various frauds and house of cards.

So, what did this do for us? As the market opened our May 2010 500 Put had lows for 1.55 and traders were able to enter, and were able to enter on the May 550 Call as low at 5.20 and sell to 7.00 by 3.00 p.m. by 10.30 a.m.

These signals could have been day traded on Monday, and both remain open issues. Fall in love with these options; a far OTM put that could catch great profits if a landslide occurs for the bears, and a call that shows the strength and volatility of the market. It's as if we think "the news" leads it, when in reality CYCLES do. Again, DO NOT chase prices up and ALWAYS have sell orders in after you have executed. Many traders miss these tools. Put your limit price to buy in and put your limit price to sell.

I am very impressed that by 3 p.m. the bulls had kept the market up to 11, 067 and that moves below 11,000 were fleeting until the final "stock manipulation hour."

Floydian Facts

2010's savings rate is already down from 2009's 4.6%
9.8% unemployment rate expected for all of 2010

10.5 trilion in personal consumption spending set to rise by 4%, to this amount.

Bernanke tells us "the risk of a double dip is certainly less than it was a few months ago.

Tuesday earnings reports coming out: US Bank, Johnson and Johnson, Apple, Bank of NY Mellon, United Healthcare and Coca Cola.

After IBM, Citi and Lilly reported Monday we could begin to see the market's reaction. Tuesday the market also watches JC Penney, meeting with analysts, that has been doing well.

There have been 78 drone attacks in Pakistan since Obama hit office, vs. 45 under Bush, always the cowboy to be shooting at the wrong enemy.

Our enemy is the fear and hatred we bring ourselves.