I can candidly tell you that yesterday's flat lining is an indicator. But of what, I'm not sure. Many chartists believe more downside could occur, and others see us bottoming, and just waiting for a 100 point upswing confirmation day to another short bull rally. The market moved very little for many hours, tested the same bottoms several times, and traders just "watched."
Trading on 1/13:
-4.8% decline the week prior
-the recent rebound was very powerful, and some chartists and optimists believe upside will occur. Other chartists point out the low volume on the rebound, and the higher volume on the recent sell off.
-We are adjusting our Dow projections regularly now, as with a count of 10 to the put yesterday we're seeing a very overextended market.
-Ordinarily a 20% gain from a low would be a signal that a bear market is over, and a new bull market has begun. Thus far, we've moved up, and continually hesitated, taking the market back, but to higher lows.
The February 320P actually declined in value on a 96 point drop by 2.30 p.m. The February 460C could have sold for tight .50 per contract profits several times yesterday.
The U.S. automakers, idiots to the core, must survive simply to allow the economy to expand psychologically. The failure of our auto industry can be discussed ad nauseum, but the collapse is an easy answer.
Allowing bankruptcy only hurts many other sectors of the economy. This time through the boys in the suits at the "small three" must have oversight, however, as we've seen their lack of oversight in detail. Sure the UAW has been stupid, but the lineworkers are not what caused the Hummer to be the vehicle of choice for years, or cars that simply didn't perform when compared to others. The UAW had no part of the stupid decision making that occurred, but participated in the GREED.
Floyd believes that interest rates will not long term hold at 0%, as our mounting debt will have to be financed in some way. Unlike supply side economics in which there is no regulation, free enterprise is controlled by the rich, and deficits don't matter, Obama will lead a growing deficit to jump start our economy evenly. We continue to believe we'll see a Fibonnaci retracement of 38% from our lowest lows in the market sometime in 09, and that this will occur before the economy itself improves, as the market leads the economy.
Volatility in the market may also diminish, and the heyday we've seen in massive moves may slow. Either way we believe the OEX as an investment vehicle will continue to gain us 20% to 30% profits, conservatively, with 3 to 4 day holds, and a win ratio of 78 to 81%. Our more established subscribers have advised me that their average returns in 08 were 34-38%, counting all wins and losses. Established traders follow Floydian rules to a T, and do not interpret the market or listen to talking heads, instead following our Dow projections and watching the economic calendars.
Astute traders that are considering more investment in trading during a down economic time should consider our Level 3 or Advanced Mentoring programs. These are more costly, but the pay back can be huge, as the attention is given to how to trade, the psychology of the trade, and YOU as the vehicle. www.oexoptions.com website should show you details on both services, and references are always available.
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Floydian Therapy:
The search for God is a reversal of the normal, mundane worldly order. In the search for God, you revert from what attracts you and swim towards which is difficult. You abandon your comforting and familiar habits with the mer hope that something will be offered to you in return for what you’ve been given.
From trader MP:
Hey Floyd...
First of all I just want to tell you that I haven't made a cent through your service thus far but I can feel and see myself becoming a better person. Thanks for all of your insight. My life is enhanced each day as I continue in my faith but shrink from my black and white thinking. I know the money will be there some day. I'm not worried about that. What I am excited about is that I can actually "see" how I am changing.!!
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