Classical in Being Erratic

Market conditions were classical in being erratic yesterday. We saw a slight market topping, and moves right to our projected Dow lows.

IF the market has more downside, it MAY be to 8200, but we've now sold off all puts profitably and will lead, pending futures, with a short term CALL buy.

Several level 3 subscribers worked with me yesterday on a buy for a Nov440C, bought at 12.20, and sold to 17.00, and we'll begin trading this position for the short term, seeing a short term up cycle as possible.

Recent emails have outlined several "radical things" old Floyd has done:

1. I carry a box cutter on an airplane:) (By the way, you'll love this....they are legal now, although one half of TSA doesn't know it). I carry them on just to show the incompetence of my personal rights being violated, and airport security slowing down business, and to see what TSA idiots actually even find them. I do this in principle of what is a wrong principle, nothing more. You are NO safer than you were years ago. Do not be misled.

2. I gave a story a few weeks ago on being stopped in my 26 year old daughter's car, with old Floyd the passenger, and the officer asked to "see in the trunk." My daughter was stopped by the police and I was offended that they asked her to open her trunk. Why not accommodate, a reader writes? The reason: it is illegal that a police offer would ask this, and it is NOT right to teach a young person to simply "comply." This is Nazi Germany kind of stuff; in fact, it is believed if the youth had fought more rather than comply as taught by Jewish elders much of the Holocaust would've been different. We must learn to say NO when we have rights violated, and not to "comply." She had done nothing wrong, and had no reason to share what was in her trunk (dirty laundry).

3. My cell phone is NOT going to bring an airplane down by being "on" for take off. I refuse to let people LIE to me as to real reason this occurs. Tell me the truth and I'll turn it off. Lie to me, and I will not.

These are ALL FALSE FACTS, and if we as people do not question false facts, how else can we begin to know what is "real", vs. what is "told us".

The "economy is sound", or "deficits do not matter" are comments made to us for years. Why have we believed them? And look what it has caused.

Question facts and authority, not blindly, but respectfully.

In recent weeks we are seeing the highest level of market volatility since the crash of 1987. On a charted volatility index we've hit over 80, literally off the charts.

The Floydian rule is: whenever stocks get volatile, it's time to buy. The Leuthold Group, a great true research house, has charted volatility ratios all the way back to the 1800's and concluded:

"High volatility is the footprint of almost all market bottoms".

High volatility will couple with how we as people collectively interpret a level of consciousness, or an event.

When "fearful" the market reacted more than normally to much bad news, and our freefall led form 14,100 to 7700.

When "greedy" our market moved from 9400 to 14,100, and "bubbles" were created. We allowed our leaders to develop the bubbles (Greenspan) and never questioned facts.

Now we gain facts and are beginning to believe none of them. We're reversing our own volatility ratios as FEAR builds.