I’ll Be Fine Until I'm Not

The fall of the Egypt regime should not be viewed with optimism, nor that with the fall of the regime in Tunisia will be a slow conversion to democracy. This is wishful thinking.

The chaos that reigns with nations that have not lived without dictatorship in many years, or ever leads to other opportunities, and believe me, they are preparing.

The option to democracy spreading is either continued chaos, or a slow overtaking of these nations by radical Islam.

Do not believe that everything will work out for democracy.

Things are not as they appear.

As a trader I would like to teach the best knowledge I know to you in one sentence:

I’ll be fine until I’m not.

Fear and Greed control our emotion, and supply and demand are created by cause and effect, and this creates the stock market.

Learn this around pivot points and support and resistance lines and you’ve got half of it. Watch Dow tops and bottoms in our projections to review 30 of the top 100 stocks.

Trade with rules. Do not break the rules. Expect losses. Have enough capital to make losses up with wins, which to date we are running at 8.75 to 1, meaning we’ve mostly been dead right.

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As trade ranging continues, however, we are more held with constraint, neither bull nor bear, as oil, which we had thought to correct prior to Egypt, may now lead to higher highs and even more inflation.

Gold holds at a resistance line, in slight correction, and we believe will move less slowly up that Silver. SLV we would option, and have, as it held at 29.30, and will sell at near 32.00, where SLV may top.

Otherwise we will stay out of the Gold and Silver markets.

In our Blue Chip service we have a large number of open options, and many of our traders have been very successful in day trading one and two LEAPS, and buying again on dips. We always suggest taking some profits on options at 33%, even if you believe there is much room ahead.

Study PNF to see where support and resistance lines lead, and remember that our pivot point and support and resistance calculators, and even the count of the stock can be used in option trading also.

Explain Hain and Tyco has been the question of the week.

Why would old Floyd pick stocks that are “staid” or “flat”.

1. They are undervalued.

2. Tyco has had image problems with the slime Kowalski, now in jail that they have handled poorly in PR, as the new CEO has done a magnificent turn around and we believe we’re by a great value stock with long term potential.

3. Hain is simple. Floyd is a student of Carl Icahn and his turnarounds. Icahn is the ultimate risk taker, and Icahn stocks are like the old Wild West. We believe he has taken a sizeable interest in Hain with his normal methodology with his normal work with top restructuring CEOS, consultants that detail where and how to change, and executes to a strong plan.

These are long-term holdings, using a 25% trailing stop.

As for new trades this week we will have none in Blue Chip.

We have too many holdings and its’ time to just day trade and hold our various positions while the market considers changing sectors, and whether to defy odds and continue upside, or to fall to our Dow lows on fear of oil and the lack of knowledge of what is going to happen.

As if we knew

Be Well, Do, Good, Show Compassion:

Floyd at BCO and OEX