Day before Presidents’ Day Weekend, S&P down 15 of last 18. Off 11 in a row, 1992 to 2002.
Yesterday yet again opened perfectly for our OEX moves. Futures were slightly down, and we took entry at best buy on the option we are falling in love with, the February 2010 490 Call. Best buy means buying below prior day close, typically 15 to 22%, but at times even more if there is a strong gap.
Traders were able to take entry as low as 6.00 and sell to 10.50 by 2 p.m. We received a number of testimonials on buying in the 7 range and selling in the 9 dollar range, for extraordinary profits.
So what caused it? Nothing. To Floyd, we are merely in a mathematical cycle and it appears that events will trigger movements, but the action, or the cause and effect, were already in place.
We are seeing a struggle upward now, with numerous resistance areas, and more hesitancy for burst out days because 1 in every 4 American home mortgage holders owe more on their home than the value.
Two years ago friends and I would have great discussions over the ethics on defaulting on your obligations; these same friends now discuss with me that taking from the banks is justice.
And my next question, of home ownership, the rock of our country. Why have we encouraged people to put all their savings in one asset?
Is 1892 a bit different than 2010, when the value of home ownership had different meaning. Home ownership has been branded as the ultimate fulfillment of the American dream.
This ignores the true American dream: upward mobility for us and our own children.
And my last question "what if unemployment in the U.S. were 15% forever?" brought some great responses for your review. And remember, there is a lesson in here somewhere.
> 1. Q: What if unemployment in the U.S. was always 10 of 15% What would the country be like?
>
> A: France
From JK
i think a better place to live. the poor and middle class would revolt and the country would be in more turmoil
From SAC
Of interest, I have wondered if when the true rate of unemployment is 20% plus, which I think will occur in the next two years (and not of any part of Obama), that there will be a change of consciousness in this nation and worldwide.
From JWE
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