The FEDs Babble

The FEDS babble is announced today. It's possibly already priced into the market, and it's in HOW the FEDS tell us what they WILL do in the future that defines how the market will long term respond.

Bernanke is in a tough spot, and will probably have to act like Volcker did in, and be careful to not CREATE inflation. The USD has risen in the past few days around what the FEDS may announce.

We suggest we'll whipsaw trades, tops, and bottoms. In what order....who knows, as the market is now driven by FED fear.
"All eyes are trained on the Fed's policy statement on Wednesday to see how strongly it hints at a pause in the easing cycle after an expected 25 basis-point rate cut to 2.0%," said Sal Guatieri, economist at BMO Capital Markets.

Economic data, meanwhile, may reveal that the U.S. economy is in a recession. On Wednesday, first-quarter gross production data may reveal the economy already has contracted. On Friday, investors expect jobs data to reveal another big drop in payrolls in April."

5/1 – First trading day in May, Dow up solidly 7 of last 9

T Bonds have had higher total returns than stocks in five of the last eight years.

Large stock cap stocks will show the most value investing over the next year.

The market is at its first level mechanical. When the S&P500 futures trades over a calculated fair value for any specific definition of time the floor and institutional traders are selling the futures contracts, and buying the underlying stocks.

Want to truly study the market, and learn stocks with us? It's this kind of information and fact we teach in www.bluechipoptions.com


And, to help us all study, a few testimonials:

From B in Indonesia: “Floyd, as today Dow (is) playing on the baseline, and Bush live speech didn’t do anything, (I thought) I'd better write to you...
Remember below email from me in early 2008?

Yesterday, I just paid OEXoptions for the 2nd time, for the following May subscription. (Subscriber is Level 2, paying monthly, began subscription in April)

For the April trading I got back ALL my last year Loss only in one month..under your guidance..plus 50 % more profits .. with just only 1 or maximum 2 OEX contract I played...

Reason I play with only 1 or 2 contract(s) ...
- This is the test drive. I should learn your way, your writing style.. and to get used with market mechanism
- the most important is My money management is only allowed me to play with 1 or 2 contract(s) , which I know, in the future along with my growing account, I can adjust (with) more contract(s). Best regards - B

(and B’s earlier email he referenced above) …

“I am rather interested to join your service, however still have some questions to ask

I'm new and still learning, read a lot of books and view dvds
but no success in trading. I started option trading for $ 2250 in Optionxpress, and go up to $4500 in 2 months, but after that being wiped by the market, leaves me about $ 350

Floyd - You began trading too soon, in our minds. We teach paper trading for at least 90 days.

I never subscribed to any advisory service cause, all forum and blog said it's only sucking my account ... , however I still want to try one...which also give me some education in trading..., "not only give a fish every day".

Floyd - This is very true for most services. We teach how to trade, and are an educational service.

As I had only small amount of money, Is it appropriate to start again for about $3500, (because from what I read, better investment is about $5000?

One more question about low investment start … $3500 can it cover monthly subscription fee... ?

Floyd - We suggest trading with a minimum of $5000.00, and "paper trading" first for a period of 90 days


From another Trader in Colorado: “2 scalp trades on the put signal today following S1 R1 and recalculated R1 S1. In @ 8.30 out @ 10.20 - In @ 8.20 out @ 9.20. Continue to take quick profit when available. 12 in a row! Will not trade tomorrow. Let FOMC babble settle and revisit Thursday.”