Monday, April 6, 2009

April is Typically the Best Month for the Dow

April is the best month for the Dow, with average 1.8% gains since 1950, and the third best month for the S&P. Friday saw a strong hold near the 8000 market, a sign the bulls want the market to continue, but the count/bell curve was only 2 to the call, no bias to trade. We've updated our Dow projections for this week, also, after hitting every single target in our support/resistance lines.

Of interest, we re-calculated (as you should) the pivot and support and resistance lines at market opening (We recommend recalculation using the calculators in our password protected area of the website at least once during the trading day during these massively volatile market conditions. As we recalculated we were able to see the market barely moved around the pivot point, and struggled half way to R1 and S1, only to return to the pivot.

This is a sign of flat lining, and of "something big" that will move the market. We had great profits on the April 400 Call Friday, available below prior day close of 9.80, and selling back to the former prior day close, for profits of up to 2.50 per contract, in a same day trade. Traders also took first buy inventories to the put, and we will open today with only this one open signal.

And to start our week, after my lengthy soapbox of swearing, arrests, and gaining a lack of respect, I'll lead with a key question from many subscribers:

What were we to learn from the rants about the market?

Here it is.

1. I believe less than 10,000 men took this country down financially. It is not the housing bust, or the bubbles we create, or are own personal greed as citizens (although indeed it is all that) as much as it the lead bankers, the lead Wall Street tycoons, the hedge funds, and the lead game players that placed bets on the American people and economy, and brought us to ruin.

2. We now waste time arguing whether President Obama is a socialist, or whether we should have allowed the bonuses to AIG, and neglect the real issues. Who brought us down, and how do we stop them from doing it again?

3. With a core disrespect I've watched for years the great wealth build with a few, while the many seemed to stagnate and struggle, and wondered if the capitalist dream of "anyone can get rich" was true as I watched the Wall Street excesses, the multiple "false facts" be blindly accepted by the American people. As things were good, many of us gained financially, from a soaring market, to the housing boom, and little reason was in place as the home equity and credit card loans escalated and we all got MORE. Leading with Hummers and bottled water.

4. If it is 10,000 men or less that led the game, and that many participated in, FUCK them. And FUCK us for our stupidity. For years we listened to Bush tell us "the war against terror" was being won, while our human rights were being taken away, waterboarding was acceptable, and we became patriots against the enemy of Iraq (not even the enemy) before listlessly forgetting the issue, and even electing the idiot a second time on the "fear of terrorism if we did not" and the "thriving economy"

5. Fuck us for watching the false facts of unemployment show us a strong economy under Bush, when 81% of growth in employment was housing related, while the rest of our manufacturing and brain trust was moved overseas.

6. Certainly more than 10,000 participated. But it was 10, 000 or less that led this debacle, and continue to. My rants are to show you that "arrests " are not what they appear, that "there have always been black swans even though we as a world only knew of white swans, so thusly "that is what is true, factual and logical." My rants are to show you that we become zealots OVER the wrong things, and are fearful to express our opinions forcefully (why the fuck do you need to know my religion or what my job is).

The rant is to show you that you are influenced by newsbites, by innuendo, and mostly by "don't make a big deal of it, it's not important."

There is no doubt that the distribution of wealth is shifting in this nation. Ignore whether right or wrong, and imagine that this is just the cycle of life. If the distribution had not begun to shift, and if we had not gotten a President to "renew the world" with the U.S., I can't imagine what the true shift of wealth would have been, by uprising. More are fed up than we even know, and the house of cards falling only shows our closeness to the breaking point.

Think smart. Question authority. Speak your mind. Ignore the zealots.

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