The Famous First Week is Over

The famous first week is over. This is supposed to define the projections for the Dow and the market for a year. Got any ideas?

We had great burst up at Monday opening, followed by days of slight whipsaw downward, but never crossed any key lines.

Let’s study our economic calendar for the upcoming week first:

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

Our holding in TIPS we recommend continuing purchase. The government under Bushy spent 3 years deciding if there even was a recession, or when it began, so we suspect that Bubbles Bernanke will have as tough a time understanding deflation and what leads to inflation. Always remember, all these guys on our monetary boards have never worked, except as professors or bankers. Professors do not know the reality of the market, only the theory, and bankers know the reality of the market, their way only.

The best way to analyze this is to look at the historical data of the last few weeks, the low volume and the highs and lows of the market.

To both the OEX and Blue Chip trader Floyd has one simple rule he works from:

Analyze prior day Open, Low, High, and Close. Keep your analysis to the historical patterns of where the market ended, not just the gyrations of the day.

Historical Price Data: $INDU

Dow Jones Industrial Average ($INDU) DAILY bars

Day Date Open High Low Close Volume

=== =========== ========== ========== ========== ========== ===========

Fri 07-Jan-2011 11696.8600 11726.9400 11599.6800 11674.7600 1157085824

Thu 06-Jan-2011 11716.9300 11736.7400 11667.4600 11697.3100 1004811904

Wed 05-Jan-2011 11688.6100 11742.6800 11652.8900 11722.8900 922302272

Tue 04-Jan-2011 11670.9000 11698.2200 11635.7400 11691.1800 918602816

Mon 03-Jan-2011 11577.4300 11711.4700 11577.3500 11670.7500 919851520

Fri 31-Dec-2010 11569.3300 11597.4100 11530.3200 11577.5100 327053792

Thu 30-Dec-2010 11585.3000 11594.3800 11551.9300 11569.7100 344135488

Wed 29-Dec-2010 11572.7400 11625.0000 11572.6600 11585.3800 356986208

Tue 28-Dec-2010 11554.8000 11591.1300 11541.1400 11575.5400 451611392

Mon 27-Dec-2010 11572.8100 11573.1900 11518.4400 11555.0300 402863392

Thu 23-Dec-2010 11559.1100 11580.8400 11542.6200 11573.4900 502196992

Wed 22-Dec-2010 11532.1700 11566.9900 11528.0800 11559.4900 678702528

Tue 21-Dec-2010 11478.3600 11549.1200 11478.2900 11533.1600 619990016

Mon 20-Dec-2010 11491.3000 11517.0700 11442.6800 11478.1300 598926912

Floyd doubts we will pass 12,000 without a more substantive correction, but that correction will be consolidative and profit taking, and lead us up the same settings.

We have had extraordinary success with our options this week. Remember we buy many long or leap options, but then day trade the long expiry.

We made up to 25% in RIG, APPL, and several other call recommendations, and were able to re-buy again at our first price.

Gold and Silver are going to take a vacation and we believe correct. We have sold all of our long positions fully to lock profits and will re-buy again within a few weeks for what we think will be a higher and faster run up for these commodities no later than March.

Right now everyone is being corrective /fearful/conservative of a bubble and it’s time to let these commodities breathe.

As trader Alan brought me to a number of rare earth stocks we’ve had some extraordinatry gains in recent weeks, and even left too much money on the table for some of these 140% in a day gains.

RIG made us good call option money and we’ll buy it again when oil moves even lower, and RIG will benefit as oil companies work to find new oil.

We remain strong on XLF, and are now watching for entry to some healthcare leader besides JNJ and SNY, as we think healthcare will prosper and that after a few more handslaps the greedy top banks will beat the system again and make great money.

Charles Nenner Research-market guru:

“Sell NASDAQ at 22220 as a stop; sell S&P500 1251.”

Floyd research:

Take profits off the table no higher than theoretical Dow 11876. Be preparedto re-enter near 10,200 or higher. Long term holdings can simply be added to, but for those momentum traders, BE SURE TO LEAVE SOME MONEY on the table.

Please make fun of everything. It puts perspective to value.

Question all facts, and all presumptions. Lead a life of only trying to listen and contribute.