Tuesday, August 4, 2009

Bernie, Ebbers, and the Boys

The Dow passed norms, but the S&P500 hit the magic 1000 mark. Upturn continued. Read our new Dow projections, with notes on tops, and bottoms. Nothing in the market can be seen as bad, and all data is good. The economy is rebounding. This is what it seems with what we are seeing in the market.

Futures were up over 50 points so traders paid to market for -OXBHM OEX.X AUG 2009 465.0000 CALL. Most traders got in by 10 a.m. for 8.40 area, selling to highs of 10.00 by mid day.

It should be noticed that call premiums to not rise in proportion to profits, a sign of fear for call traders. But, before the magic 3 p.m. hour we had up to $1.60 per contract of profits on the call, and took a second buy to our hedge put.

Remember, do NOT overbalance a risk portfolio (trading options) to any one balance. Option trading successfully is managing the "sum of the parts" in buying and selling.

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Nine lenders that got government aid paid at least 1 million to 5000 employees. These are banks that last year, under the first Paulson bribe, got 33 billion. The nine firms in the report had combined 2008 losses of nearly 100 billion.

Sadly this is a grey line. Surprise you? Of course, Congress, which initially approved this whole bail out, pre Obama, we know were all on this graft, as the banks got money that seemed to go nowhere, everything collapsed, and all of us were paying consultants to figure out what the actuaries had actually done for all the brokerages and companies betting derivatives.

Some of this stuff was actually legitimate banking, and most of it how the guys have the country club prison down there in N.C. Bernie, Ebbers, and the boys.

Goldman just rapes during the second quarter, and we're all amazed how much money is being made.

But some argue we have to pay these top people to either 1) Analyze and get us out of our lies (Blackwater), or 2) Create new ways for the banks to make money, or continue legitimate trading.

I'll leave it here today. Think of this:

1. The banks are making money.

2. Corporate profits appear to be up. Much are from continued write offs of bad investments, but much because of cost cutting.

The market has been marvelously up for so many days. Wall Street is coming back. The economy is improving. We hear this each day, and are able to interpret the data we receive to prove that this is true.

Just a fact to sober your euphoria: In 2007 the U.S. Government sold $450 billion in debt. THIS WEEK the government is selling 200 billion of new debt.

Jog on over to www.bluechipoptions.com and read our blog on "There is No Black and White"

Meanwhile, the market is being manipulated. And the stories being told on "cash for clunkers" and "raising taxes on the middle classs", sigh.......go over to our FREE blogs at http://www.bluechipoptions.com/

Here's the new game in town, that is causing this euphoric uproar, and may soon cause the downturn. High Frequency Computer Trading.

http://online.wsj.com/article/SB124908601669298293.html#mod=todays_us_money_and_investing

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And, next from Advanced Mentoring client MR, who is studying how to study. My comments in bold as we share this dialogue:


Per floyd's recommendation I started reading roubini this weekend. I read as many free articles as I could find on the RGE Moniter. Excellent reading. I like the perspective it gave. Excellent reading. This is a recommendation I give all subscribers. Want to get the true economic issues of our times, read Roubini and Krugman.

I have been thinking more about the silent witness at home, working around the house. Starting to give myself feedback rather than being so focused and ingrained in myself.

I think allot of times I live life like a kid with his face 2 inches from the TV screen. I can't see anything except for what's thrown in my face. I see how that can happen as a trader, as an employee, as a parent.

Taking that step back - giving myself some space helps to build an observatory gap between myself and I. I am beginning to grasp how this can allow clarity and reason an opportunity to flourish.

The silent witness is a simple way of putting "you as an observer" on your shoulder. Let "you" watch your behavior. It can be eye opening.

I remember Floyd referring to himself as our provacateur - the instigator of thought. I'm taking some of the seeds of insite and digging into them. Asking my own questions. What is a double dip recession? Why is the market climbing so high? Why are revenues up, but sales down - and how long can that sort of performance provide a springboard for stock market recovery? When will the lack of sales start to show in earnings, creating the flurry of selling that seems impending at some point.

Maybe I am starting to see the puzzle. Rather than just scattered pieces.

There are many articles on our website, and the new FREE blogs at www.bluechipoptions.com are techniques and thoughts I don't have time to share in this alert. Again, check our blogs.

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What's next for the market? Whipsaw. Our top projections would cause many shorts to go broke, and many traders "buying" the downside to buckle, and it would be THEN in the market's breathing that a consolidation began, when the brokerages are ready.

Floydian Therapy: Many new subscribers have asked us about this service. For traders wanting to work on the emotions behind the decisions that lead their trading, and their lives, we offer a unique email service with a transpersonal psychology approach from our classical training. View a video on Floyd on this: http://www.oexoptions.com/FloydTherapy/TheBlankScreen.swf or at http://www.oexoptions.com/pages/FloydianTherapy.html

www.bluechipoptions.com has new information online each day, updated articles on the market, blogs by Floyd, and option recommendations. There is also a Preferred Blue Chip subscription service.

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