From Ecuador

This commentary is being written as Floyd flies to the center of the world, Ecuador.

I am here on business all week, and exploring new business opportunities in an overall South and Central American market that is ready to explode;

In this blog are two homework and participation assignments to help you as a person, and as a trader

The first article is about drugs, prohibitions, and to what extent the human being craves these reliefs and changes to the brain. I have been studying on the government’s work with LSD in the 60’s, both in fright and irony at the tests, and yet what the results of some of these drugs do, and cravings that do not stop.

It appears they worsen with the additional input and stress we put upon ourselves.

So read this article and just think as you read, how far this has gone

1. http://www.huffingtonpost.com/2011/01/23/bath-salts-a-growing-drug-problem_n_812693.html

Now, get more serious. Think from the article above that we have driven ourselves to this need, and it is obvious we are trying to self medicate.

Now read who the rich really are, and the rise of the new global elite. Floyd has been calling these people the “new oligarchs”.

The shift of the money balance of the world is taking place, and ideologies are being

political movements to encourage certain types of capitalism, where the few win.

Read it through and come right back. There are some lessons in this:

2. http://www.theatlantic.com/magazine/archive/2011/01/the-rise-of-the-new-global-elite/8343/

3. Take in some of the best and real facts of the market and what is happening:

"Don't be the last bear or last bull standing; let history guide you, be contrary to the crowd, and let the tape tell you when to act"-Jeffrey A. Hirsch

Floyd calls this: Always leave some money on the table.

This is why we sold a tremendous number of positions over the past few weeks, locked in real profit and went to cash from longs.

Blue Chip alerts today will show trades like this:

Our instructions all week for stock and option buys are simple. We will summarize option sales early this week, but recommend NO new buys on any stocks or options until we see the market correct. We'd start buying again at 11,597 down to 11,440.

Teaching day trading stocks and options might help this week, as these signals we sold out on for short term profits, planning to buy back in again on market dips

-leap call-10% profits

-stock-12% profits

-leap call-sold for 13%, re-bought next day at 8.90

-leap call-sold for 21%, will rebuy on dips

- sold for 10 to 13%, will rebuy a later issue on market dip

- sold for 3% profits, and reinvested in long term LLL calls

There were several others we made the same moves with. We are settling for tight 10 to 20% profits on options that are long (past March) and reinvesting.

Other than this we recommend selling options at tight profits, and holding all positions for new buys (stocks, et al) when the market does correct, but not to buy more on the upside swing.

This is sobering:

To manufacture the Kindle, Amazon couldn’t find enough expertise and capacity in the U.S. It headed to Taiwan.

All is not as it appears.

And this is the youtube I wrote of Friday. You must really think as you watch this, as this is how fast it is

http://www.youtube.com/watch?v=cL9Wu2kWwSY