The first trading day in May the market has been up 9 of the last 11 years. We've seen a great end run to April, with the Dow hitting tops of 8347.51. As the market hit this, top reversal began. Traders took inventory to the May 410P at the 8250 area, or 9.70, and were able to sell to highs of 12.708 again by 3 p.m. We'll keep this an open signal.
The May400P, however, hit it's top profit goals and was closed yesterday, selling to 8.90, near our 9.40 top. It was also available as a day trade for 1.50 per contract.
Note here we were selling puts during a market that showed futures at all time highs and a huge run up right to our Dow projection tops.
You'll see, if a student of Point and Figure charting, that the next resistance line is 8450, not hit for quite some time. We see consolidation now taking place, and note that each consolidation recently has shown higher higher and lower lows, and that we are above the 50 day moving average. All signs of a stronger bull market, if healthy consolidation, or the return of upside.
Floyd remains cynical and in our www.bluechipoption.com service has been trading calls successfully on a number of issues, and buying value stocks on downturns. Optimistic, but suspicious of the volatility, of Gold shifting its link with the USD. In Blue Chip Options we are shorting the Treasury also, as the worst of the banking crisis we do not believe over, with 5 of the 11 on the stress test requiring more cash.....more, GM closing 2900 dealerships across the U.S., or Chrysler going bankrupt. Not all the news is good, and the job situation in the U.S. is grim.
We continue to not "get it". Spector moving to the Democratic Party may truly help with unity, as will Franken's win, and we can watch the GOP disintegrate from their fractional infighting. It's quite fun to watch after the years of the Bush bluster. Our stake in the world is increasing. The U.S. is gaining respect in the world community, and we will need it to muster through the spiderweb of the financial "goat rodeo."
We've had some exceptional profits, traders, day after day, and we'll keep open with our one put at this time, anticipating downturn. And no, no calls....we'lll not risk it. If we see an intraday trade or premarket change our mind we'll advise.
Floyd Tip of Day: Limit input. Read Bloomberg online, and nothing more. Just explore this site. Learn the news without bias, and with a "business slant".
Stop reading or watching any slanted (Limbaugh, New York Times, Fox News,etc) and just gain basic Bloomberg information. Quit listening to opinion on large issues that are not fully fact set to you, or you are wasting your energy.
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Floydian Therapy:
Seeing the Background of Life
I teach to view the audience, not be in the audience.
This means while you are “there” be in the “all” of there so you can see and experience others, and not just yourself “waiting to perform”, or “be noticed” or “do what the boss wants."
It is the same as seeing background. Next time you are watching a favorite TV show watch only the background. Some is “real”, some is obviously a “set’, and some will even surprise you more, that you are looking at dim hues and colored walls.
I often watch TV this way to hone in on what is. The overall event of the show precludes the “effect” that is part of what makes the overall effect.
This is true in “being the audience, not being in the audience”. When I am consulting for a large group, or giving a speech, I like to “be in the audience” to “see the audience” and “view the people.” I do this when I am consulting. Simply listening, and taking notes.
The very act of saying little and taking notes helps people to truly show themselves.
This is also true in index option stock trading. It is true in managing a business, or being a salesperson, or running a household.
As I practice “simply watching” or mindfulness, a Buddhist practice, there is a way to hone this meditative practice to the moment of “what is happening” and how you fit within it.
If interested in learning more about our transpersonal approach and “real time therapy”, contact us at
floydiantherapy@gmail.com
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