The market again suffered a complete free-fall, moving the theoretical Dow lows of 9814, just near the Fibonnaci retracement we have used time and time again.
As this bottomed, and after obvious futures news in advance of down movements worldwide, we just sat back. We weren't in on the put, and many traders took second entry to the OEX July 500 C, averaging cost.
And several Advanced Mentoring students who were "dual trading reported" 86% returns on OEX JUL 17 2010 490.00 PUT in yesterday's trading.
__________
June consumer confidence is reported today. The World Gold Investment Congress takes place in London. Tomorrow, the SEC (Berrnie's buddies) will vote on a rule that will prohibit "pay to play practices."
And the second quarter ends. Today Obama meets with Saudi Arabia's King Abdullah.
Someone might want to investigate how much investment Aramaco (Saudi's oil company, the Senior Bush on the Board, had in the BP oil drilling, and how much they have with other companies.
It is a myriad of complexity.
________
Advanced Mentoring client MR always reads my "Floydian Rants" and does his research. On my last rant to the Tea Party's, created by Karl Rove, I noted that these idiots handed out The Constitution before each meeting, as if it were the Word of God. I pointed out one of the dudes that wrote this might have had good theory, but.....
"I read up on Jefferson (based on a Floydian Tea Party Rant) and found out things like: Jefferson was again slavery in theory, but was so in debt that he could not afford to free the ones that worked for him - and never was able to escape that within his life time. Interesting that the virtue of life long indebtedness was already instilled by the 1700's. Seems like we need to keep searching our history books to find how "it ought to be." Maybe in truth it never really was "how it should be" which wouldn't be all that surprising, after all - we're human - and awfully dishonest, unfair, and brutal to each other historically....I see there is more. Reportedly fathered some children to one of his slaves. Allegedly questioned the existence of God. He diverged greatly from the orthodox christian views of the day. Seems like he was rather liberal in some of his thinking. Died broke, the only reason he wasn't evicted from Monticello was because of his stature as a politician. He was in France during the drafting of the constitution, fine dining and having his slave trained as a french chef."
There is good reason for my angry rants. Much of our action and reaction as a nation is based on propaganda, and false facts, and as innocent citizens just "working and living" we don't fathom the details of the dishonor, or the deceit. Sadly we are obese nation reading at an 8th grade level, watching TV 2.5 hours a day or more, and believing FOX news or any extremist, right or left, that "plays well."
This is true in the market also. Some stocks "market" well, and have a brand. Some stocks follow few chart patterns and live on "innuendo and hype." And Dow projections, support and resistance, and pivots often get caught up in the volatility that is created over exposure. Think carefully about these statements, and when I rant, recognize I am acting again as the provocatuer, and helping to fight false facts.
Allan Abelson says it well: " Mr. Obama was NOT the agent of the credit crunch or the Great Recession. But voters thought he would get things cracking again."
And that alone is our issue....things are not better instantly. We can't go back to the way it was. Thusly, he's probably not an American citizen and should be impeached.
Wednesday, June 30, 2010
Tuesday, June 29, 2010
It's Far From Over
Yesterday through noon the market began "flat lining" or trade range hesitating trying to study all the different news and decide what should be "marketed." Believe this...the analysts and market makers get ready to build up before any "bad" or "good" news.
We saw classic trade range moves from Theoretical Dow Lows of 10,061, and highs of 10,241 thru the 3.30 p.m. hour
We see a market that has increasing chance of volatility and increasing "tops and bottoms". Study always the support and resistance lines and be sure to re-calculate intraday or take advantage of our Twitter email for any moves around 100 points.
Announcements: Construction for May Car Sales
Pending Home Sales ISM Manufacturing Report
All of these will be announced at 10 a.m. EST
Europe's financial-stability facility-emergency loans for euro-zone countries-is expected to be activated. This is a big deal
_______________________
The great burst upward by equities, speculative bonds form the March 09 bottoms lent a credence to the anticipation of a dramatic and sustained recovery for the economy.
Oops, later we figured we better take some profits from this 1000 point meteoric rise, and the bottom began falling.
This leads the talking heads babbling about another recession, and a second housing bust.
The housing bust may well occur, as it's far from over, and nothing was that much better as the market rose meteorically,EXCEPT the economy was slowly recovering, and the Blue Chip companies were doing well, and still are.
The nature of trading in the market has changed dramatically.
And we are now led by fractions, divided, of no bi-partisanship, no willingness to work together, and arguments over whether Obama is an American citizen.
This is my favorite of the day: Brewer: Most illegals are 'drug mules' http://www.cnn.com/2010/US/06/25/arizona.immigrants.drugs/index.html
This person was elected as a Governor and honestly believes this crap. It's amazing.
We saw classic trade range moves from Theoretical Dow Lows of 10,061, and highs of 10,241 thru the 3.30 p.m. hour
We see a market that has increasing chance of volatility and increasing "tops and bottoms". Study always the support and resistance lines and be sure to re-calculate intraday or take advantage of our Twitter email for any moves around 100 points.
Announcements: Construction for May Car Sales
Pending Home Sales ISM Manufacturing Report
All of these will be announced at 10 a.m. EST
Europe's financial-stability facility-emergency loans for euro-zone countries-is expected to be activated. This is a big deal
_______________________
The great burst upward by equities, speculative bonds form the March 09 bottoms lent a credence to the anticipation of a dramatic and sustained recovery for the economy.
Oops, later we figured we better take some profits from this 1000 point meteoric rise, and the bottom began falling.
This leads the talking heads babbling about another recession, and a second housing bust.
The housing bust may well occur, as it's far from over, and nothing was that much better as the market rose meteorically,EXCEPT the economy was slowly recovering, and the Blue Chip companies were doing well, and still are.
The nature of trading in the market has changed dramatically.
And we are now led by fractions, divided, of no bi-partisanship, no willingness to work together, and arguments over whether Obama is an American citizen.
This is my favorite of the day: Brewer: Most illegals are 'drug mules' http://www.cnn.com/2010/US/06/25/arizona.immigrants.drugs/index.html
This person was elected as a Governor and honestly believes this crap. It's amazing.
Monday, June 28, 2010
It's How We Chart
Last week was exceptionally profitable for OEX Options and we were profitable in 8 of 8 trades. To trade successfully last week took nerves of steel just to watch the market vacillate.
We did act contrarian last week, believing the market had more upside potential, and would "hold" at the head and shoulders pattern. During the week we heard from every bear in the world that we were ready for another and deeper correction, and a new "bottom test."
This may be true but we continue to see more economic good news than bad, and think contrarian again that the market has more upside potential, to 10,450 area before hesitancy, actually breaking the 10,350 resistance struggles we've been at for a week.
We "fall in love" with an option. It's how we chart. We effectively are learning the trading range of an option itself around the support and resistance lines. For over two weeks we've been playing the July OEX 500 Call, and it's our contrarian trade to start the week.
----------------
Hmmm:
1. 39 trillion is the collective worth of millionaires in 2009, an increase of 19%
2. There was a 17% increase in just the number of millionaires in 2009
3. Not including the primary residence there were 10 million people who had a net worth of at least 1 million.
*The Feds have announced that rates will hold "for the near future" with no inflationary plans. Translated: The FOMC is a valueless instrument that creates much of our financial greed and panic, and have told us yet again what is obvious.
*It has been made clear now that President Obama is responsible for everything wrong, and Sarah Palin wants us to compare him to Hitler. He can do no right with BP (Government intervention to the conservatives, amateur belief in BP by cynics, and not enough of a hard stance by others.
I'll stick with Hitler.
This is all important as it shows how we are being misled, and we "fall" for tricks. The Palin babbles, split votes, are all signs of dissension caused by two things:
1. Karl Roveian politics, the brilliant way we got a guy with an IQ of 98 in the WhiteHouse for 8 years so that "the boys could do their thing."
2. An immature party of people that will allow no bill to pass, effectively stalemating the country in any decisions.
________
Simply put we are a nation, and perhaps a world, that have polluted ourselves, in all ways, with "plan b" for when the pollution begins rotting us.
We did act contrarian last week, believing the market had more upside potential, and would "hold" at the head and shoulders pattern. During the week we heard from every bear in the world that we were ready for another and deeper correction, and a new "bottom test."
This may be true but we continue to see more economic good news than bad, and think contrarian again that the market has more upside potential, to 10,450 area before hesitancy, actually breaking the 10,350 resistance struggles we've been at for a week.
We "fall in love" with an option. It's how we chart. We effectively are learning the trading range of an option itself around the support and resistance lines. For over two weeks we've been playing the July OEX 500 Call, and it's our contrarian trade to start the week.
----------------
Hmmm:
1. 39 trillion is the collective worth of millionaires in 2009, an increase of 19%
2. There was a 17% increase in just the number of millionaires in 2009
3. Not including the primary residence there were 10 million people who had a net worth of at least 1 million.
*The Feds have announced that rates will hold "for the near future" with no inflationary plans. Translated: The FOMC is a valueless instrument that creates much of our financial greed and panic, and have told us yet again what is obvious.
*It has been made clear now that President Obama is responsible for everything wrong, and Sarah Palin wants us to compare him to Hitler. He can do no right with BP (Government intervention to the conservatives, amateur belief in BP by cynics, and not enough of a hard stance by others.
I'll stick with Hitler.
This is all important as it shows how we are being misled, and we "fall" for tricks. The Palin babbles, split votes, are all signs of dissension caused by two things:
1. Karl Roveian politics, the brilliant way we got a guy with an IQ of 98 in the WhiteHouse for 8 years so that "the boys could do their thing."
2. An immature party of people that will allow no bill to pass, effectively stalemating the country in any decisions.
________
Simply put we are a nation, and perhaps a world, that have polluted ourselves, in all ways, with "plan b" for when the pollution begins rotting us.
Friday, June 25, 2010
A Rock is Not Hard
By 1.30 p.m. the market had hit lows, again, of 10,123. The world is babbling about another large correction, that Europe will bring us down, that Obama is at fault for the BP disaster (my favorite), that half the country now believes we are heading in the wrong direction, and that much of the country believes we have become a socialist country (we have been one for over 40 years).
I often hit a point of laughter as the talking heads explain away what just happened, or why it happened, or why they recommended BP just before it was found guilty of faulty rigging, safety regulations, and compassion.
I still remain amazed that it takes Rolling Stone Magazine to first uncover:
1. The Goldman Sachs fraud
2. The oil fraud
3. The Afghanistan idiocy.
They are not paid off by lobbyists. Matt Taibbi, son of the veteran newscaster, is a "gonzo journalist." He can't be argued on this factual analysis, and he speaks in his language. which includes swear words so it can't make "the honest papers."
Chartists following the head and shoulders formation we wrote on yesterday saw the immediate downside that occurred at opening.
Chartists again had reasoning behind the FEAR. Floydian comments filled with satire are in bold
----------
-- LINK BETWEEN BONDS AND STOCKS CHANGED IN 1998-
-- FALLING BOND YIELDS ARE NOW BAD FOR STOCKS
-- FALLING RETAIL STOCKS ARE ANOTHER SIGN OF WEAKNESS
-- SO ARE DROPS IN HOME DEPOT AND LOWES
-- 13 and 34 DAY EMA LINES ARE STILL NEGATIVE
Retail sales are far off because we are saving money as a people.
Home Depot and Lowes are off because retail sales are off, and the economy is off
Chartists that give us this type of information are responding to what occurred that day.
________
We have done well in our Blue Chip Options stock and stock option picks this year as well as trading the OEX successfully.
We've certainly noticed the rules of stock trading have totally changed, and most of the stock books are now outdated.
"The thing always happens that you really believe in; and the belief in a thing makes it happen." - Frank Lloyd Wright
The most successful of our students and subscribers adhere to higher risk orientation, strong capital, and complete control of emotions. Brokers that use us, usually the most emotional,
or analysts that are ready the "project the Dow" to know where to "insure a position" are looking most for the trade ranges that they will occur in.
PNF charting does this perfectly, from the one minute to the weekly chart, and with the various "views" that one can have of the supply and demand in real view; a chart without noise.
Set your rules of loss and risk ratio. Decide what you are trading, for the day, for a few days, for the longer term. How often do you want the excitement or FEAR of watching the market by the nanosecond.
If you are going to get good at something, you have to do it 50,000 times. A proven fact. Study. Paper trade. Ask questions. Trading is an art, a zen in the way of what we have made money, which is not real.
As a rock is not hard. It is only as you know it to be.
I often hit a point of laughter as the talking heads explain away what just happened, or why it happened, or why they recommended BP just before it was found guilty of faulty rigging, safety regulations, and compassion.
I still remain amazed that it takes Rolling Stone Magazine to first uncover:
1. The Goldman Sachs fraud
2. The oil fraud
3. The Afghanistan idiocy.
They are not paid off by lobbyists. Matt Taibbi, son of the veteran newscaster, is a "gonzo journalist." He can't be argued on this factual analysis, and he speaks in his language. which includes swear words so it can't make "the honest papers."
Chartists following the head and shoulders formation we wrote on yesterday saw the immediate downside that occurred at opening.
Chartists again had reasoning behind the FEAR. Floydian comments filled with satire are in bold
----------
-- LINK BETWEEN BONDS AND STOCKS CHANGED IN 1998-
-- FALLING BOND YIELDS ARE NOW BAD FOR STOCKS
-- FALLING RETAIL STOCKS ARE ANOTHER SIGN OF WEAKNESS
-- SO ARE DROPS IN HOME DEPOT AND LOWES
-- 13 and 34 DAY EMA LINES ARE STILL NEGATIVE
Retail sales are far off because we are saving money as a people.
Home Depot and Lowes are off because retail sales are off, and the economy is off
Chartists that give us this type of information are responding to what occurred that day.
________
We have done well in our Blue Chip Options stock and stock option picks this year as well as trading the OEX successfully.
We've certainly noticed the rules of stock trading have totally changed, and most of the stock books are now outdated.
"The thing always happens that you really believe in; and the belief in a thing makes it happen." - Frank Lloyd Wright
The most successful of our students and subscribers adhere to higher risk orientation, strong capital, and complete control of emotions. Brokers that use us, usually the most emotional,
or analysts that are ready the "project the Dow" to know where to "insure a position" are looking most for the trade ranges that they will occur in.
PNF charting does this perfectly, from the one minute to the weekly chart, and with the various "views" that one can have of the supply and demand in real view; a chart without noise.
Set your rules of loss and risk ratio. Decide what you are trading, for the day, for a few days, for the longer term. How often do you want the excitement or FEAR of watching the market by the nanosecond.
If you are going to get good at something, you have to do it 50,000 times. A proven fact. Study. Paper trade. Ask questions. Trading is an art, a zen in the way of what we have made money, which is not real.
As a rock is not hard. It is only as you know it to be.
Thursday, June 24, 2010
99.4% of all Talking Heads are Wrong
The General should have been fired for being so stupid as to be interviewed by Rolling Stone, who has two other journalists uncovering Goldman Sachs, the actual oil game, and now a General in dispute with his own side. Please note this "liberal" publication has broken three stories that have all been "shock and glory." I have so much fun watching Goldman take a dive.
I smile at our euphorias, and frown at our greed and fear.
"When you learn not to want things so badly, life comes to you"- Jessica Lange
I believe the repetition of core rules constant and fundamental to a traders success:
1. It doesn't matter what you think should happen.
2. 99.4% of all talking heads are wrong
3. Set your buys and stick to them. Set your sells and stick to them. Have parameters
4. Take losses. It is the sum of the parts that make index option trading profitable
5. Paper trade for at least 90 days. Anytime you are doing poorly, stop, and paper trade again
6. Anytime you are doing well do not stop trading. It means you have caught the wave, or the "breath of the market."
Will there soon be a world currency? Is this the "new world order" or is it that we've all phucked up our own currencies so much it's best to start fresh.
"Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8
July 10 (Bloomberg) -- Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”
“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”
The coin, which bears the words “unity in diversity,” was minted in Belgium and presented to the heads of G-8 delegations, Medvedev said.
The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”
Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the U.S. dollar’s future as a global reserve currency. Russia’s proposals for the G-20 meeting in London in April included the creation of a supranational currency."
I smile at our euphorias, and frown at our greed and fear.
"When you learn not to want things so badly, life comes to you"- Jessica Lange
I believe the repetition of core rules constant and fundamental to a traders success:
1. It doesn't matter what you think should happen.
2. 99.4% of all talking heads are wrong
3. Set your buys and stick to them. Set your sells and stick to them. Have parameters
4. Take losses. It is the sum of the parts that make index option trading profitable
5. Paper trade for at least 90 days. Anytime you are doing poorly, stop, and paper trade again
6. Anytime you are doing well do not stop trading. It means you have caught the wave, or the "breath of the market."
Will there soon be a world currency? Is this the "new world order" or is it that we've all phucked up our own currencies so much it's best to start fresh.
"Medvedev Shows Off Sample Coin of New ‘World Currency’ at G-8
July 10 (Bloomberg) -- Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”
“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”
The coin, which bears the words “unity in diversity,” was minted in Belgium and presented to the heads of G-8 delegations, Medvedev said.
The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”
Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the U.S. dollar’s future as a global reserve currency. Russia’s proposals for the G-20 meeting in London in April included the creation of a supranational currency."
Wednesday, June 23, 2010
A Large Lesson Learned
" We make things happen by wishing them, because we are not the only observer of what we experience, but also the creator"-Vilayat Khan
A large lesson learned: The long recession has cast a glaring light on the fact that public and private workers increasingly live in separate economies.
___________
In our Monday commentary we mentioned that we are watching steel. U.S. Steel had 850 $46.00 calls and 800 $50.00 calls; overall 29,000 call trades, and 20,000 put trades.
We think much of this might be moving from the "front month" (July), and traders looking for more time. We saw the same thing in AK Steel Holdings, with 13,600 August $15,$16, and $17.00 calls changing hands.
So, there is a bet going on sparked by China's move.
A large lesson learned: The long recession has cast a glaring light on the fact that public and private workers increasingly live in separate economies.
___________
In our Monday commentary we mentioned that we are watching steel. U.S. Steel had 850 $46.00 calls and 800 $50.00 calls; overall 29,000 call trades, and 20,000 put trades.
We think much of this might be moving from the "front month" (July), and traders looking for more time. We saw the same thing in AK Steel Holdings, with 13,600 August $15,$16, and $17.00 calls changing hands.
So, there is a bet going on sparked by China's move.
Tuesday, June 22, 2010
An Easing of the FEAR Index with VIX
Wheee! 130 point run up at the start, all on the Chinese devaluation. Everything will be "fair" now :) Done before the G20 meeting, this allowed an early upside to 10,634, very close to a Dow top. A few traders had not followed rules and kept some of the July 500 Call over the weekend and were rewarded to sales of 16.60.
So, what we are saying is: The market hit theoretical highs of 10,634 by 10 a.m, and lows of 10,410 by 1 p.m., showing massive volatility. And by 3.30 p.m. had turned and hit theoretical Dow lows taking us right back to Dow 10,350.
There has been an easing of the FEAR index with VIX; this means outperforming stocks will break away and have the chance for break out, or to be judged as a stock itself, not part of the "slide" in general.
We now approach a Fib top at 10,746 and a very nervous world about G20, the yuan, the Euro, Gold falling (as we predicted-but perhaps just short term)
"You can have anything you want if you will give up the belief that you can't have it." Dr. Robert Anthony
Analysis of Logic: The very thought that BP should cancel the dividend on its common stock, or put all that money into a fund administered by the government, is truly Floydian comical.
About 39% of BP shares are owned by U.S. Citizens through individual accounts, mutual fund companies and pension plans, and of course the huge amount of Brits that have this in their pension plans.
Grandma will not be getting her quarterly dividends, and we've robbed the shareholders of the company also. Not bad management alone, but simple lack of regulation. The Bush Administration took all those "silly rules" out as they lowered the chances for fast oil exploration, to help pay many cronies off.
As Obama is now criticized for "too late, or not enough sympathy," make logical note that this was not a predicted force of weather, but a man made ongoing catastrophe.
So, what we are saying is: The market hit theoretical highs of 10,634 by 10 a.m, and lows of 10,410 by 1 p.m., showing massive volatility. And by 3.30 p.m. had turned and hit theoretical Dow lows taking us right back to Dow 10,350.
There has been an easing of the FEAR index with VIX; this means outperforming stocks will break away and have the chance for break out, or to be judged as a stock itself, not part of the "slide" in general.
We now approach a Fib top at 10,746 and a very nervous world about G20, the yuan, the Euro, Gold falling (as we predicted-but perhaps just short term)
"You can have anything you want if you will give up the belief that you can't have it." Dr. Robert Anthony
Analysis of Logic: The very thought that BP should cancel the dividend on its common stock, or put all that money into a fund administered by the government, is truly Floydian comical.
About 39% of BP shares are owned by U.S. Citizens through individual accounts, mutual fund companies and pension plans, and of course the huge amount of Brits that have this in their pension plans.
Grandma will not be getting her quarterly dividends, and we've robbed the shareholders of the company also. Not bad management alone, but simple lack of regulation. The Bush Administration took all those "silly rules" out as they lowered the chances for fast oil exploration, to help pay many cronies off.
As Obama is now criticized for "too late, or not enough sympathy," make logical note that this was not a predicted force of weather, but a man made ongoing catastrophe.
I Am Tomorrow What I Establish Today
No news permeates Monday trading, while Tuesday Walgreeen's reports earnings and May existing home sales are reported. Today and tomorrow the FEDS are having their two day summit where they intelligently will discuss the inevitable: keep rates low to encourage borrowing, and be prepared for turbulence and a "watchful eye" on inflation.
There has been, coincidentally, a 3.6% drop in charitable donations, with a 5.5% increase in giving by corporations.
This is the story of the "talking heads":
Wall Street Said 'Buy, Buy, Buy' BP Stock As Gulf Crisis Unfolded
When you click the URL above you'll see they ALL were recommending BP at top prices. And have an "explanation for everything." Do not trust journalistic authority as expertise.
And here's the beginning of a week of a few thought provoking concepts that affect your trading. For example, what does this really mean?
"I am tomorrow, or some future day, what I establish today. I am today what I established yesterday or some previous day."- James Joyce
_______________
Our Dow projections are the longest running (17 trading days) projections we've ever had and many of the support/resistance lines have been met, several times.
Market moves up were by sector this past week, on low volume, prompting bears to speculate "no rally," and bulls to note that the market continues to hold.
Because of where the market is stalling the odds diminish for a market crash to 9550 again, but FEDS or housing news this week could be a negative catalyst.
We believe, purely contrarian, that there is more upside. We were profitable on the same call 4 day of 5 last week, and will continue with this same trade.
Our goal is for you to begin to understand the nuances of a position, and how profits can be made with trades of $5000 or less.
This call is the same we've traded, from lows of 3.50 to current closes of 13.00.
Please study our Dow projections carefully, there is much detail, and only buy our recommendations following our rules of engagement.
There has been, coincidentally, a 3.6% drop in charitable donations, with a 5.5% increase in giving by corporations.
This is the story of the "talking heads":
Wall Street Said 'Buy, Buy, Buy' BP Stock As Gulf Crisis Unfolded
When you click the URL above you'll see they ALL were recommending BP at top prices. And have an "explanation for everything." Do not trust journalistic authority as expertise.
And here's the beginning of a week of a few thought provoking concepts that affect your trading. For example, what does this really mean?
"I am tomorrow, or some future day, what I establish today. I am today what I established yesterday or some previous day."- James Joyce
_______________
Our Dow projections are the longest running (17 trading days) projections we've ever had and many of the support/resistance lines have been met, several times.
Market moves up were by sector this past week, on low volume, prompting bears to speculate "no rally," and bulls to note that the market continues to hold.
Because of where the market is stalling the odds diminish for a market crash to 9550 again, but FEDS or housing news this week could be a negative catalyst.
We believe, purely contrarian, that there is more upside. We were profitable on the same call 4 day of 5 last week, and will continue with this same trade.
Our goal is for you to begin to understand the nuances of a position, and how profits can be made with trades of $5000 or less.
This call is the same we've traded, from lows of 3.50 to current closes of 13.00.
Please study our Dow projections carefully, there is much detail, and only buy our recommendations following our rules of engagement.
Saturday, June 19, 2010
Money is Not Edible
The theoretical Dow averages exponentially and I believe gives a more accurate reference to actual Dow numbers. You simply add or subtract 40 points to the highs and lows of the day.
Yesterday 10,279 low to 10,478 high-200 actual points, when it looked like a day of slight whipsaw. We saw the market fall below the all important 200 day moving average, struggle dutifully at 10,350. Traders that owned our open OEX July 500 Call sold to highs of 14.20.
Advanced Mentoring Trader MR saw this and perhaps added to it, but the brilliance alone will shine through. Read it carefully:
After the Last Tree has died
Man will realize
That Money is not edible
I have the eerie feeling we might live to see it
I hope I don't
I would suggest the Earth (EAR110716C000) call.
_________
Rogers buying Euros and explains how bailouts, which all countries are now doing, are destroying paper currency. No paper currency in the history of time has ever lasted. Only Gold has.
But Rogers buying Euros points for a shift in the market. Some suggest a last burst for the market, and true moves to 9550 area, which would support the Euro rising.
Others see the Euro holding, the Dollar holding, and the economy being noted for being sustainable, while the world tries to negotiate "created wealth and created debt."
_________
Jim Rogers Buys Euros, Says Bailouts Destroy Currency
June 16 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, said he is buying euros even as he predicts that bailouts for European nations will eventually destroy their single currency.
The Singapore-based investor, who predicted the start of the global commodities rally in 1999, said he bought euros this week and may acquire more because investor sentiment has turned too negative in the short term. It will take 10 to 15 years for the currency to disappear, he said in an interview in Madrid.
“It’s time to go in and take the other side,” Rogers said today. “It got beaten down so much.”
The euro fell almost 11 percent against the dollar in the last three months as European Union nations struggled to contain budget deficits more than triple the bloc’s 3 percent limit. Last month the EU announced a 750 billion-euro ($923 billion) rescue mechanism to stem contagion from Greece as the risk premium on Spanish and Portuguese bonds surged.
“That’s not the way it’s supposed to work,” Rogers said at the Rafael Del Pino Foundation in the Spanish capital. “I don’t think it’s good for Europe, and I don’t think it’s good for the world to bail out people who have failed.”
The euro was down 0.1 percent to $1.2298 as of 11:38 p.m. in Madrid.
The extra yield investors demand to hold Spanish 10-year government bonds rather than the benchmark German bunds touched a euro-era record today of 2.22 percentage points on an intraday basis after Spain’s El Economista newspaper said the International Monetary Fund is coordinating a 250 billion-euro credit line for the country. The EU and IMF denied the report.
‘Long on Euro’
Rogers, who co-founded the Quantum Hedge Fund with George Soros in 1970, said the process of undermining the euro is a long one.
“Debasing what has been a strong currency and making it weaker and weaker is in the end going to destroy the euro,” Rogers said. “In the interim, I’m long the euro.”
Next, I'll lead with who we are; we are not smart people, or we are at least GREEDY and arrogantly not smart:
McLaren Supercar Buoyed by Europe as Austerity Fades
June 15 (Bloomberg) -- McLaren Group said Europe will provide at least half the buyers for its 200-mile-per-hour, Ferrari-rivaling MP4-12C supercar as demand for luxury autos rebounds from last year’s recession.
The 12C, which will cost about 150,000 pounds ($227,000), starts a 50-venue global promotional tour in Germany on June 17. About 2,500 expressions of interest have been received for the 1,000 cars to be produced next year, McLaren Automotive Managing Director Antony Sheriff said yesterday in an interview at the company’s base in Woking, near London.
“For many people it didn’t seem like the right time to be seen driving this type of a car, but from the interest that’s out there it appears that they’re growing a bit sick of self- imposed austerity,” Sheriff said. “The waiting list will be pushing on towards a year almost immediately.”
Britain and Germany will lead European sales, while a further one-third of orders will come from the U.S. and the rest from Asia and the Middle East, the executive said. McLaren, best-known for the most successful Formula One racing team after Ferrari, has selected 35 global dealerships to open in 2011, increasing to at least 70 by 2015 as the model range expands.
Sheriff predicts that luxury and sports-car sales will jump about 35 percent this year after slumping during the recession.
Private Viewing
The 12C will be shown in a private viewing to dealers and registered potential clients in Dusseldorf this week, Zurich and Brussels next week and U.K. buyers in Woking later this month. The car, a rival to Ferrari’s 458 and the Lamborghini Gallardo, will make its public debut at the Goodwood Festival of Speed, held at a racing circuit in southern England in July.
Jardine Motors Group will run McLaren’s London dealership, while Moll Sportwagen in Dusseldorf and Kamps Gruppe in Hamburg -- trading as Merkur Hanseatische Beteiligungs AG -- will sell the cars in Germany. Neubauer will act as distributer in Paris, Fassina Group in Milan, Schmohl AG in Zurich and Monaco Luxury Group in Monaco.
“We feel we’re in a very comfortable position already, especially considering we haven’t started to market the car yet,” Sheriff said in the interview a day after McLaren F1 drivers Lewis Hamilton and Jensen Button finished first and second in the Canadian Grand Prix in Montreal.
Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, said he wouldn’t have expected Europe to lead sales of the new McLaren.
‘Belt Tightening’
“I cannot quite conceive how Europe, at the moment, can add considerable momentum here,” he said. “The region seems captured by a pronounced sense of belt tightening. It’s more the rich Chinese, mad American business people or impetuous sheiks that would opt for this kind of car.”
In the U.S., the biggest supercar market, sales of autos costing more than $100,000 may jump 42 percent after falling 30 percent in 2009, industry researcher IHS Global Insight says.
McLaren will initially have nine U.S. dealers at locations including San Francisco, Beverly Hills, Chicago, Miami, New York and Dallas, with one sales outlet in Toronto.
While performance figures haven’t been released, the 12C is likely to have a faster top speed and swifter acceleration than the 458, Sheriff said from an office overlooking two Ferraris and a Porsche 911 used in comparison tests.
The McLaren model takes its name from the MP4 designation given to all of the company’s race cars since 1981 -- the latest being the MP4-25 driven by Hamilton and Button. The “C” indicates the road car’s carbon construction and the “12” is a reflection of “internal performance criteria” including weight, aerodynamics, power and down force, Sheriff said.
Price Range
The price of the successor to the McLaren F1, the world’s costliest car in the 1990s and the fastest at 240 mph (386 kilometers per hour), has yet to be finalized, but will be in the range of 125,000 pounds to 175,000 pounds, Sheriff said.
_________
From our Blue Chip Commentary of 6/16:
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more interest rate, and build the house of cards."
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street.
Yesterday 10,279 low to 10,478 high-200 actual points, when it looked like a day of slight whipsaw. We saw the market fall below the all important 200 day moving average, struggle dutifully at 10,350. Traders that owned our open OEX July 500 Call sold to highs of 14.20.
Advanced Mentoring Trader MR saw this and perhaps added to it, but the brilliance alone will shine through. Read it carefully:
After the Last Tree has died
Man will realize
That Money is not edible
I have the eerie feeling we might live to see it
I hope I don't
I would suggest the Earth (EAR110716C000) call.
_________
Rogers buying Euros and explains how bailouts, which all countries are now doing, are destroying paper currency. No paper currency in the history of time has ever lasted. Only Gold has.
But Rogers buying Euros points for a shift in the market. Some suggest a last burst for the market, and true moves to 9550 area, which would support the Euro rising.
Others see the Euro holding, the Dollar holding, and the economy being noted for being sustainable, while the world tries to negotiate "created wealth and created debt."
_________
Jim Rogers Buys Euros, Says Bailouts Destroy Currency
June 16 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, said he is buying euros even as he predicts that bailouts for European nations will eventually destroy their single currency.
The Singapore-based investor, who predicted the start of the global commodities rally in 1999, said he bought euros this week and may acquire more because investor sentiment has turned too negative in the short term. It will take 10 to 15 years for the currency to disappear, he said in an interview in Madrid.
“It’s time to go in and take the other side,” Rogers said today. “It got beaten down so much.”
The euro fell almost 11 percent against the dollar in the last three months as European Union nations struggled to contain budget deficits more than triple the bloc’s 3 percent limit. Last month the EU announced a 750 billion-euro ($923 billion) rescue mechanism to stem contagion from Greece as the risk premium on Spanish and Portuguese bonds surged.
“That’s not the way it’s supposed to work,” Rogers said at the Rafael Del Pino Foundation in the Spanish capital. “I don’t think it’s good for Europe, and I don’t think it’s good for the world to bail out people who have failed.”
The euro was down 0.1 percent to $1.2298 as of 11:38 p.m. in Madrid.
The extra yield investors demand to hold Spanish 10-year government bonds rather than the benchmark German bunds touched a euro-era record today of 2.22 percentage points on an intraday basis after Spain’s El Economista newspaper said the International Monetary Fund is coordinating a 250 billion-euro credit line for the country. The EU and IMF denied the report.
‘Long on Euro’
Rogers, who co-founded the Quantum Hedge Fund with George Soros in 1970, said the process of undermining the euro is a long one.
“Debasing what has been a strong currency and making it weaker and weaker is in the end going to destroy the euro,” Rogers said. “In the interim, I’m long the euro.”
Next, I'll lead with who we are; we are not smart people, or we are at least GREEDY and arrogantly not smart:
McLaren Supercar Buoyed by Europe as Austerity Fades
June 15 (Bloomberg) -- McLaren Group said Europe will provide at least half the buyers for its 200-mile-per-hour, Ferrari-rivaling MP4-12C supercar as demand for luxury autos rebounds from last year’s recession.
The 12C, which will cost about 150,000 pounds ($227,000), starts a 50-venue global promotional tour in Germany on June 17. About 2,500 expressions of interest have been received for the 1,000 cars to be produced next year, McLaren Automotive Managing Director Antony Sheriff said yesterday in an interview at the company’s base in Woking, near London.
“For many people it didn’t seem like the right time to be seen driving this type of a car, but from the interest that’s out there it appears that they’re growing a bit sick of self- imposed austerity,” Sheriff said. “The waiting list will be pushing on towards a year almost immediately.”
Britain and Germany will lead European sales, while a further one-third of orders will come from the U.S. and the rest from Asia and the Middle East, the executive said. McLaren, best-known for the most successful Formula One racing team after Ferrari, has selected 35 global dealerships to open in 2011, increasing to at least 70 by 2015 as the model range expands.
Sheriff predicts that luxury and sports-car sales will jump about 35 percent this year after slumping during the recession.
Private Viewing
The 12C will be shown in a private viewing to dealers and registered potential clients in Dusseldorf this week, Zurich and Brussels next week and U.K. buyers in Woking later this month. The car, a rival to Ferrari’s 458 and the Lamborghini Gallardo, will make its public debut at the Goodwood Festival of Speed, held at a racing circuit in southern England in July.
Jardine Motors Group will run McLaren’s London dealership, while Moll Sportwagen in Dusseldorf and Kamps Gruppe in Hamburg -- trading as Merkur Hanseatische Beteiligungs AG -- will sell the cars in Germany. Neubauer will act as distributer in Paris, Fassina Group in Milan, Schmohl AG in Zurich and Monaco Luxury Group in Monaco.
“We feel we’re in a very comfortable position already, especially considering we haven’t started to market the car yet,” Sheriff said in the interview a day after McLaren F1 drivers Lewis Hamilton and Jensen Button finished first and second in the Canadian Grand Prix in Montreal.
Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, said he wouldn’t have expected Europe to lead sales of the new McLaren.
‘Belt Tightening’
“I cannot quite conceive how Europe, at the moment, can add considerable momentum here,” he said. “The region seems captured by a pronounced sense of belt tightening. It’s more the rich Chinese, mad American business people or impetuous sheiks that would opt for this kind of car.”
In the U.S., the biggest supercar market, sales of autos costing more than $100,000 may jump 42 percent after falling 30 percent in 2009, industry researcher IHS Global Insight says.
McLaren will initially have nine U.S. dealers at locations including San Francisco, Beverly Hills, Chicago, Miami, New York and Dallas, with one sales outlet in Toronto.
While performance figures haven’t been released, the 12C is likely to have a faster top speed and swifter acceleration than the 458, Sheriff said from an office overlooking two Ferraris and a Porsche 911 used in comparison tests.
The McLaren model takes its name from the MP4 designation given to all of the company’s race cars since 1981 -- the latest being the MP4-25 driven by Hamilton and Button. The “C” indicates the road car’s carbon construction and the “12” is a reflection of “internal performance criteria” including weight, aerodynamics, power and down force, Sheriff said.
Price Range
The price of the successor to the McLaren F1, the world’s costliest car in the 1990s and the fastest at 240 mph (386 kilometers per hour), has yet to be finalized, but will be in the range of 125,000 pounds to 175,000 pounds, Sheriff said.
_________
From our Blue Chip Commentary of 6/16:
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more interest rate, and build the house of cards."
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street.
Thursday, June 17, 2010
Hey Buddy... Want the Truth?
The market was just perfect again for tremendous day profits on our "in love with call." We recommended to trade on the July OEX 500 Call and returned another day trade profit of 18.5% up. Despite all the talking heads we see a potential upside before a deeper downside unless the strength of the market truly takes over, and the FEAR abates.
Hey Buddy, want the truth about the oil spill:
Yet again, Tim Dickinson exposes the long term truths of what has never been done, and who has been in charge.
http://www.rollingstone.com/politics/news/17390/111965
This portion of commentary also shows in our Blue Chip commentary. It is important stuff
The CEO slime of BP slime is on top of Capital Hill today to talk about slime, to those that took slime to let slime through.
Although as I wrote the above, simply translating the CEO hits Capital Hil, think of it. He will talk about slime, and it is clear there was no Defcon 6 plan, no real plan for failure, and many operations were incomplete. BP will pay.
But he wil be speaking with our representatives, many who were lobbied by oil for years, and helped bring this deep water drilling, believing the data from the corporations wanting to do the work.
Think of this. It's as if we had no regulation to study if what the oil companies said were true, but if we did have such regulatory structures they would increase government spending, create larger government, and we would be accused of socialism.
If we leave the corporations to self enforce, it doesn't work. All corporations are built on the profit model, and within all corporations we will only find corruption and greed, increasing by the size of the company, and the value of what they do, manufacture or process.
The corporatization of America, not the socialization.
Hey Buddy, want the truth about the oil spill:
Yet again, Tim Dickinson exposes the long term truths of what has never been done, and who has been in charge.
http://www.rollingstone.com/politics/news/17390/111965
This portion of commentary also shows in our Blue Chip commentary. It is important stuff
The CEO slime of BP slime is on top of Capital Hill today to talk about slime, to those that took slime to let slime through.
Although as I wrote the above, simply translating the CEO hits Capital Hil, think of it. He will talk about slime, and it is clear there was no Defcon 6 plan, no real plan for failure, and many operations were incomplete. BP will pay.
But he wil be speaking with our representatives, many who were lobbied by oil for years, and helped bring this deep water drilling, believing the data from the corporations wanting to do the work.
Think of this. It's as if we had no regulation to study if what the oil companies said were true, but if we did have such regulatory structures they would increase government spending, create larger government, and we would be accused of socialism.
If we leave the corporations to self enforce, it doesn't work. All corporations are built on the profit model, and within all corporations we will only find corruption and greed, increasing by the size of the company, and the value of what they do, manufacture or process.
The corporatization of America, not the socialization.
Wednesday, June 16, 2010
We Must ACT not React
We profited immensely by the upturn with our open and new recommendation to the
-OEX100717C500 /
OEX JUL 17 2010 500.00 CALL took us from low buys of $10 to $11, with sales to 12.90 by 2.54 p.m We wiil continue to hold and recommend this option, seeing an upside potential to our next resistance lines, near 10,550.
This just makes me laugh. Yesterday this prestigious chartist informed us that "the market fell at the 200 day moving average, and that sector selling was rampant." In fact, if we read this chartists 'summary of the day' the day prior one could only assume that the market would lead down immediately.
Today, it's all new, and he says:
-- MARKET BOUNCE CONTINUES OFF FEBRUARY LOW
-- SHORT-TERM OUTLOOK IMPROVES FOR RISK ASSETS
-- SECTOR LEADERS INCLUDE AIRLINES AND CHIPS
-- MARKET MAY BE STARTING SUMMER RALLY
How simple to change scope, simply as the market changes scope.
Here's what really happened:
1. The market is vastly overbought. The buying yesterday was not break out buying, as volume was light.
2. We will hesitate and pause at 10,350 because it is strong resistance line.
3. Things are "better" for traders yesterday as tech responded well, Oil rose, inflation seemed "under control," and the indices rose 1%
There are huge pent up emotions in the market, of both FEAR and GREED.
Just think, Britain itself has been asked by the Euro Zone finance ministers to cut down on its debt. These are the same finance ministers that agreed to a 525.4 billion dollar bailout vehicle to help ailing members, with Germany voting on a huge austerity plan.
Housing starts could drop 3.5% in May on the end of tax credits. CPI could drop .2% tomorrow, says Barclay, a trigger which could influence the market.
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more" interest rate, and build the house of cards.
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street
"In America we combine liberty and democracy as if they are the same word. The reality is that we are often more interested in democracy than personal liberties. The Chinese are the opposite." This comes from James Fallows, editor of The Atlantic, which offers truly fine journalism.
Fallows also says that the Chinese feel hostage to the U.S. economy.
I took most interest in his interview to America's struggles with understanding Democracy. For example, it is democratic, but sicker than hell, to rewrite the Texas schoolbooks to "put Jesus in" and take "slaves out," and all the twists that were put through. It is democratic also to stereotype and profile Hispanics in Arizona.
However, whatever democracy this is reminds of the Tea Party Poopers handing out the Constitution at every meeting, as if we adhere to these basic tenants all will be "all right."
In both places civil and social liberties are forgotten, yet "democracy" is in place.
I for one value my civil liberties and my social rights, and I disrespect and hold negative opinions on those that force their opinion on me. Hmm, democracy?
Fallows ended his speech with "our relationship with China is mutually beneficial. It is NOT a zero sum game. But as in every long term relationship there will be times we disagree. By far the gravest problem for China and for the West is environmental collaboration."
In Floydian Terms, we have to ACT, NOT react.
And none of this has anything to do with "raising our taxes, or having a deficit".
-OEX100717C500 /
OEX JUL 17 2010 500.00 CALL took us from low buys of $10 to $11, with sales to 12.90 by 2.54 p.m We wiil continue to hold and recommend this option, seeing an upside potential to our next resistance lines, near 10,550.
This just makes me laugh. Yesterday this prestigious chartist informed us that "the market fell at the 200 day moving average, and that sector selling was rampant." In fact, if we read this chartists 'summary of the day' the day prior one could only assume that the market would lead down immediately.
Today, it's all new, and he says:
-- MARKET BOUNCE CONTINUES OFF FEBRUARY LOW
-- SHORT-TERM OUTLOOK IMPROVES FOR RISK ASSETS
-- SECTOR LEADERS INCLUDE AIRLINES AND CHIPS
-- MARKET MAY BE STARTING SUMMER RALLY
How simple to change scope, simply as the market changes scope.
Here's what really happened:
1. The market is vastly overbought. The buying yesterday was not break out buying, as volume was light.
2. We will hesitate and pause at 10,350 because it is strong resistance line.
3. Things are "better" for traders yesterday as tech responded well, Oil rose, inflation seemed "under control," and the indices rose 1%
There are huge pent up emotions in the market, of both FEAR and GREED.
Just think, Britain itself has been asked by the Euro Zone finance ministers to cut down on its debt. These are the same finance ministers that agreed to a 525.4 billion dollar bailout vehicle to help ailing members, with Germany voting on a huge austerity plan.
Housing starts could drop 3.5% in May on the end of tax credits. CPI could drop .2% tomorrow, says Barclay, a trigger which could influence the market.
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more" interest rate, and build the house of cards.
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street
"In America we combine liberty and democracy as if they are the same word. The reality is that we are often more interested in democracy than personal liberties. The Chinese are the opposite." This comes from James Fallows, editor of The Atlantic, which offers truly fine journalism.
Fallows also says that the Chinese feel hostage to the U.S. economy.
I took most interest in his interview to America's struggles with understanding Democracy. For example, it is democratic, but sicker than hell, to rewrite the Texas schoolbooks to "put Jesus in" and take "slaves out," and all the twists that were put through. It is democratic also to stereotype and profile Hispanics in Arizona.
However, whatever democracy this is reminds of the Tea Party Poopers handing out the Constitution at every meeting, as if we adhere to these basic tenants all will be "all right."
In both places civil and social liberties are forgotten, yet "democracy" is in place.
I for one value my civil liberties and my social rights, and I disrespect and hold negative opinions on those that force their opinion on me. Hmm, democracy?
Fallows ended his speech with "our relationship with China is mutually beneficial. It is NOT a zero sum game. But as in every long term relationship there will be times we disagree. By far the gravest problem for China and for the West is environmental collaboration."
In Floydian Terms, we have to ACT, NOT react.
And none of this has anything to do with "raising our taxes, or having a deficit".
Tuesday, June 15, 2010
100 Points Now Seems "Nothing"
On the mark the week started with good news, was moderately up at opening, and built to a high of 10,368, just at our first support line, before falling back to 10,199 on the theoretical Dows of 10,199, as FEAR began building again on Greek debt. The market continued to move downward and by 3.40 p.m was in the negatives. The whipsaw continues.
100 points now seems "nothing" in the movement of the day. With the market drop our bell curve count, using a 10 axis, becomes almost a suspended time piece, hovering back and forth against magnets.
No chart will prove now if the market will go up or down. No one really predicts. I personally see more upside, near or under 10,470, before another consolidation deeper than we've seen.
And at the same time I see that there may be no need for another 12.4% type correction as we've seen in the past 42 days, and the market will continue a slow uphill for the short term.
We saw a true bull/bear fight on "nickles" in the final 30 minutes of trading, either a last gasp for a bull, or a bear?
______
For your enjoyment, a break from the talking heads, and instead words from George Soros, a billionaire investor:
"The collapse of the financial system is real, and the crisis is far from over. We have just entered Act II of the drama"
For your enjoyment in facing reality:
TALKING BUSINESS: Waking Up From the American Dream
Despite the financial crisis, few are willing to address a key factor behind it: the concept of homeownership for all.
http://nyti.ms/b1gQqy
______
The Dow Industrials fell 12.4% in just 42 days.
100 points now seems "nothing" in the movement of the day. With the market drop our bell curve count, using a 10 axis, becomes almost a suspended time piece, hovering back and forth against magnets.
No chart will prove now if the market will go up or down. No one really predicts. I personally see more upside, near or under 10,470, before another consolidation deeper than we've seen.
And at the same time I see that there may be no need for another 12.4% type correction as we've seen in the past 42 days, and the market will continue a slow uphill for the short term.
We saw a true bull/bear fight on "nickles" in the final 30 minutes of trading, either a last gasp for a bull, or a bear?
______
For your enjoyment, a break from the talking heads, and instead words from George Soros, a billionaire investor:
"The collapse of the financial system is real, and the crisis is far from over. We have just entered Act II of the drama"
For your enjoyment in facing reality:
TALKING BUSINESS: Waking Up From the American Dream
Despite the financial crisis, few are willing to address a key factor behind it: the concept of homeownership for all.
http://nyti.ms/b1gQqy
______
The Dow Industrials fell 12.4% in just 42 days.
Monday, June 14, 2010
Triple Witching Week
June triple witching week, Dow up 5 straight years 2003 - 2007, down big in 2008, off 3.8%
Retail sales fell, and the market fell Friday. We showed signs of flat lining through 2.40 p.m. Please read our Dow Projections carefully this week.
We outline short (one day) to two week projections, and recommend recalculating the pivot point/support lines at least once a day, or get on the website and sign up for our FREE Twitter daily S/R projections.
The Australian and Russian markets are closed today.
The USD had a four year high, while the Euro barely holds it's equal value, a strong reversal from prior years.
Traders were successful in trading our new recommendation in an easy day trade on the
OEX JUN 19 2010 480.00 CALL. We were able to buy as low as 12.60, below prior day close, and sell to highs of 15.73, for nice day trade profits. We open the week with no open signals, and a one way trade recommendation.
Retail sales fell, and the market fell Friday. We showed signs of flat lining through 2.40 p.m. Please read our Dow Projections carefully this week.
We outline short (one day) to two week projections, and recommend recalculating the pivot point/support lines at least once a day, or get on the website and sign up for our FREE Twitter daily S/R projections.
The Australian and Russian markets are closed today.
The USD had a four year high, while the Euro barely holds it's equal value, a strong reversal from prior years.
Traders were successful in trading our new recommendation in an easy day trade on the
OEX JUN 19 2010 480.00 CALL. We were able to buy as low as 12.60, below prior day close, and sell to highs of 15.73, for nice day trade profits. We open the week with no open signals, and a one way trade recommendation.
Saturday, June 12, 2010
Thousands of Instant Facts and Opinions
The bears are now in turmoil, and the talking heads are discussing wedges, ABC formations, tops leading to new bottoms, and all the normal stuff we hear after the market does a complete shift yet again.
It's big numbers: a theoretical Dow low of 9861 and a high of 10,208 by 3.25 p.m.
Whatever caused it (and the reason and catalyst I hope you are realizing is MEANINGLESS, just that the cycle changed is of value in making money.)
It has been an astounding whipsaw this past week. As you view our new Dow Projections next week you'll see we will have the same struggles and turning points.
OEX trading is around moments to days, following cycles and patterns around support and resistance lines. Within it we utilize the Dow (which runs in correlation to the OEX well) for tops and bottoms to look for.
Cycles in which one trades, however, are much longer as we analyze the series of events that create longer term triggers. Charles Nenner of Nenner Research states: "A period of 250 years is the minimum for the student of the business cycle. Only detailed historic knowledge can answer most questions. Without it, theoretical analysis is inconclusive. Looking at the facts of the prior quarter or even the half of a century is, in our opinion, quite inadequate."
We use cycles in our Blue Chip Option trading, and the longer historical events to help us see what will trigger movement.
Comparisons, for example, to the 1930's crash, are interesting, but don't take it far enough back, NOR include current events that have changed from the 1930's. As examples:
1. Our greed of oil was just beginning then.
2. China was not a factor then. China is now a factor, because investors concentrate on it.
3. Deflation/Inflation was less, as the world was less, in people, in manufacturing, and in money. We still had a Gold Standard.
Lastly, there was not any form of media that instantized news. We now deal with 1000's of "instant" facts and opinions.
Here's a movie on youtube that truly explains it all:
http://www.youtube.com/watch?v=mSujCHfvTb0
It's big numbers: a theoretical Dow low of 9861 and a high of 10,208 by 3.25 p.m.
Whatever caused it (and the reason and catalyst I hope you are realizing is MEANINGLESS, just that the cycle changed is of value in making money.)
It has been an astounding whipsaw this past week. As you view our new Dow Projections next week you'll see we will have the same struggles and turning points.
OEX trading is around moments to days, following cycles and patterns around support and resistance lines. Within it we utilize the Dow (which runs in correlation to the OEX well) for tops and bottoms to look for.
Cycles in which one trades, however, are much longer as we analyze the series of events that create longer term triggers. Charles Nenner of Nenner Research states: "A period of 250 years is the minimum for the student of the business cycle. Only detailed historic knowledge can answer most questions. Without it, theoretical analysis is inconclusive. Looking at the facts of the prior quarter or even the half of a century is, in our opinion, quite inadequate."
We use cycles in our Blue Chip Option trading, and the longer historical events to help us see what will trigger movement.
Comparisons, for example, to the 1930's crash, are interesting, but don't take it far enough back, NOR include current events that have changed from the 1930's. As examples:
1. Our greed of oil was just beginning then.
2. China was not a factor then. China is now a factor, because investors concentrate on it.
3. Deflation/Inflation was less, as the world was less, in people, in manufacturing, and in money. We still had a Gold Standard.
Lastly, there was not any form of media that instantized news. We now deal with 1000's of "instant" facts and opinions.
Here's a movie on youtube that truly explains it all:
http://www.youtube.com/watch?v=mSujCHfvTb0
Thursday, June 10, 2010
Interpretation Can Change Reality
Any interpretation can change reality. Here's an example.
1. I bought IBM a year ago and have greatly profited.
2. There is gossip that IBM will come out with "great earnings" tomorrow
3. Based on cycles, the stock will either go up or down.
4. If tomorrow is a cycle low, and IBM shows great results, the stock will go up.
All the news services will write: "Results for IBM were good and the market liked it and bought IBM"
5. But, if the cycle is high, the stock will go down, even on positive results
The news will then say: Investors took profits with good earnings, as they see IBM waning over the next year.
Now, view our video on treating options as fruit and being a fruit vendor. Your job as a trader is to understand how the market will move and how fast the bananas will rot.
_______________
Gain a sense of lack of respect. Question facts. Above all, question authority.
Today's example: GM is recalling 1.5 million vehicles for windshield wiper fluid systems that catch on FIRE, and will give owners $100.00
First, it's rape to the public.
Second, it's second page news to Toyota's recall; who paid for this lobbying?
_______________
With futures being 53 points up before 9 a.m. the market had hesitated in the pre-morning, so we'll share some chartists theories of upside/downside:
1. OEX Options believes the first upside at 10,050 and a maximum upside (586 points from the low) to 10,350, before correction again.
2. Some MACD chartists see this first high, and a drop to as low as 9550, the bottom we hit last year, which we did NOT close at. Our lowest low may have been here, but it did not close there.
Some chartists believe this could be a final bottom test, well below 9774, that than takes the market to flat lining and later upside, with a 1000 point overall potential rise in two segments-first up to 10,136, and a stop at 10,440.
3. Timing chartists that follow cycles don't see any upside returning that holds until the third week of June, at the earliest.
________________
And here's what happened. Our contrary play to the OEX 470 Put was available below prior day close as low as 3.40 and sold to 5.60 by 3..30 p.m. We consider this position sold profitably.
Our "we are in love with" option, the Oct 500C was an easy play. Traders that held the issue at 2.35 averaged cost were able to sell to 3.00, and we consider this trade sold profitably.
We open the day with no new positions. If you hold either of the above trades, continue to hold through Friday for sale, and we'll issue a new trade today.
Dow Theoretical High 6/9-10,105 (right in our turn around scenario)
Dow Theoretical Low 6/9-9848
1. I bought IBM a year ago and have greatly profited.
2. There is gossip that IBM will come out with "great earnings" tomorrow
3. Based on cycles, the stock will either go up or down.
4. If tomorrow is a cycle low, and IBM shows great results, the stock will go up.
All the news services will write: "Results for IBM were good and the market liked it and bought IBM"
5. But, if the cycle is high, the stock will go down, even on positive results
The news will then say: Investors took profits with good earnings, as they see IBM waning over the next year.
Now, view our video on treating options as fruit and being a fruit vendor. Your job as a trader is to understand how the market will move and how fast the bananas will rot.
_______________
Gain a sense of lack of respect. Question facts. Above all, question authority.
Today's example: GM is recalling 1.5 million vehicles for windshield wiper fluid systems that catch on FIRE, and will give owners $100.00
First, it's rape to the public.
Second, it's second page news to Toyota's recall; who paid for this lobbying?
_______________
With futures being 53 points up before 9 a.m. the market had hesitated in the pre-morning, so we'll share some chartists theories of upside/downside:
1. OEX Options believes the first upside at 10,050 and a maximum upside (586 points from the low) to 10,350, before correction again.
2. Some MACD chartists see this first high, and a drop to as low as 9550, the bottom we hit last year, which we did NOT close at. Our lowest low may have been here, but it did not close there.
Some chartists believe this could be a final bottom test, well below 9774, that than takes the market to flat lining and later upside, with a 1000 point overall potential rise in two segments-first up to 10,136, and a stop at 10,440.
3. Timing chartists that follow cycles don't see any upside returning that holds until the third week of June, at the earliest.
________________
And here's what happened. Our contrary play to the OEX 470 Put was available below prior day close as low as 3.40 and sold to 5.60 by 3..30 p.m. We consider this position sold profitably.
Our "we are in love with" option, the Oct 500C was an easy play. Traders that held the issue at 2.35 averaged cost were able to sell to 3.00, and we consider this trade sold profitably.
We open the day with no new positions. If you hold either of the above trades, continue to hold through Friday for sale, and we'll issue a new trade today.
Dow Theoretical High 6/9-10,105 (right in our turn around scenario)
Dow Theoretical Low 6/9-9848
Wednesday, June 9, 2010
Best Eight Months
June ends NASDAQ's "Best Eight Months"
The OEX Rules of Trading: We are in an overbought market so we must show upturn with a close at least 100 points higher to show reversal to the bias.
If this continues we calculate the highest the market will turn upward is 586 points from the lowest low.
We believe we hit our lowest low yesterday, and are bullish on the market.
We hit a theoretical Dow low of 9717, lower than the strong resistance at 9774.
___________
First, read the great living American journalist, the first to uncover Goldman Sachs, Mat Taibi at http://www.rollingstone.com/politics/news/12697/64824
This is gut wrenching journalism and explains the context of the situation we have created for ourselves.
I am saddened that Helen Thomas, the veteran reporter, was "RETIRED" for her honest point of view offered on Israel. Don't all White House journalists have the right to say what they speak?
Rush Limbaugh and Glen Beck do, and they are not retired.
I am also saddened that Toyoyta months back took the hit on their "car problems" and since then EACH American manufacturer has had safety recalls, some even larger than Toyota.
As your cynic, this looks like lobbyists trying to play up American cars.
Most subscribers know me as an extreme liberal, far removed from whether Obama is a citizen, whether we are following the constitution, or whether war is good.
I simply believe there is no free enterprise in this country, and that the rich only get richer while the middle class disappears. And in our mindless thought of "taxes" we now eliminate the "slaves" we allow to immigrate, as we have done for over 200 years.
I am most concerned that a large government (which I believe in) use its power to regulate circumstances that the greedy create. Wall Street comes to mind. Halliburton, the no bid company, is another. And BP is our best. There were NO regulations. During the Bush administration we learned that "environment" did not matter, and that there was no global warming. We learned that a man can be President and "not read books or papers." We learned about how greed moves within the White House inner circle. Study through this, and see that nothing was planned, and that BP lied to us consistently about the controls and the amount of oil being spilled.
To the far right Christians this is all in the Bible and only they will be saved, so go live it up.
To the far left we just shake our head at the lobbying, and that no one stops it (too good a deal)
To the middle of all faiths, we just watch our jobs, net worth, home value, and future disappear.
And create a third party. Yawn.
The OEX Rules of Trading: We are in an overbought market so we must show upturn with a close at least 100 points higher to show reversal to the bias.
If this continues we calculate the highest the market will turn upward is 586 points from the lowest low.
We believe we hit our lowest low yesterday, and are bullish on the market.
We hit a theoretical Dow low of 9717, lower than the strong resistance at 9774.
___________
First, read the great living American journalist, the first to uncover Goldman Sachs, Mat Taibi at http://www.rollingstone.com/politics/news/12697/64824
This is gut wrenching journalism and explains the context of the situation we have created for ourselves.
I am saddened that Helen Thomas, the veteran reporter, was "RETIRED" for her honest point of view offered on Israel. Don't all White House journalists have the right to say what they speak?
Rush Limbaugh and Glen Beck do, and they are not retired.
I am also saddened that Toyoyta months back took the hit on their "car problems" and since then EACH American manufacturer has had safety recalls, some even larger than Toyota.
As your cynic, this looks like lobbyists trying to play up American cars.
Most subscribers know me as an extreme liberal, far removed from whether Obama is a citizen, whether we are following the constitution, or whether war is good.
I simply believe there is no free enterprise in this country, and that the rich only get richer while the middle class disappears. And in our mindless thought of "taxes" we now eliminate the "slaves" we allow to immigrate, as we have done for over 200 years.
I am most concerned that a large government (which I believe in) use its power to regulate circumstances that the greedy create. Wall Street comes to mind. Halliburton, the no bid company, is another. And BP is our best. There were NO regulations. During the Bush administration we learned that "environment" did not matter, and that there was no global warming. We learned that a man can be President and "not read books or papers." We learned about how greed moves within the White House inner circle. Study through this, and see that nothing was planned, and that BP lied to us consistently about the controls and the amount of oil being spilled.
To the far right Christians this is all in the Bible and only they will be saved, so go live it up.
To the far left we just shake our head at the lobbying, and that no one stops it (too good a deal)
To the middle of all faiths, we just watch our jobs, net worth, home value, and future disappear.
And create a third party. Yawn.
Tuesday, June 8, 2010
Playing The Games
Much of the world thinks the world is ending. The trading range around 9950 kept the market humming in a flat area through 1.30 p.m., with little moves down of fear, or up on excitement.
Gold continues, and Silver follows, on strong upturn. We are sharing with our Blue Chip Option (www.bluechipoptions.com) subscribers to be "short Gold and Silver," as we think both are strongly overbought. FEAR drives gold, and we suggest one more upturn to 10,350 area, and on through our Dow projections.
Yesterday through 1.30 p.m. it was hard to even stay awake with the flat lining.
Mid-afternoon Arthur Hill with www.stockcharts.com reported:
------------------------------------
-- EMPLOYMENT REPORT WEIGHS ON STOCKS AND LIFTS BONDS
-- EURO AND EUROPEAN STOCKS FALL SHARPLY
-- MACD FORMS DIVERGENCE ON WEEKLY GOLD CHART
-- INVERSE GOLD EURO CORRELATION UNDER THREAT
-- GOLD MINERS ETF HITS RESISTANCE AT GAP
-- JUNIOR MINERS LAG SENIOR MINERS
------------------------------------
Trading range, says Michael Santolli at Barrons, might seem to suggest that the market is not ready to puncture outlooks. But this market is erratic, suggestible, and irresolute.
Santolli uses pnf charts to see strong support at 1040, and a bottom between 1016 and 1020 as possible. He further sees upside no higher than 1200, "as that is all the market deserves."
We'll use this as the week continues to "remember" how deep we could go, especially if we break the 9774 area on the Dow.
There is NO fundamental need for a further collapse in U.S. equities, and 1040, or in the 9800's. We've hit so close or to these numbers several times now that the oversold conditions may begin to actually be "calmed" and realized, and the market short term build up again. When and if this happens we have clear instructions on stocks and bonds written to our subscribers at www.bluechipoptions.com
Bernanke just said, "One particularly difficult issue is the continued high unemployment it imposes on workers and their families."
It is good to know such a "smart" man can share with us all such an obvious thing. It may be that he just learned it, so far removed from reality.
This is what we must be afraid of. Those "playing the games" have never really worked. This makes a big difference in how we think.
Please think:
46.4% of a baseball team's revenues is the "national average" for percentage of salary paid out. This is another stupid fact, but sadder when you realize just what these salaries can amount to :)
The majority of Americans believe drilling around our coastlines, with regulations, is prudent and responsible. Drill, baby, drill.
My son died for a just war.
My son died for nothing in an unjust war.
I bribe you to vote for my needs, so you can keep your job and "advertise yourself," get paid well, and have a great life.
I bribe you because the only way you will give me the business is if I "kickback" to you. It means my job whether I get the business or not.
My God is the only God.
Without my God you will die.
"We need to instill classic American values," is the best line I know. We all agree on this, perhaps not on values, but there is no need for discussion. Act your values and you are spreading them.
And life goes on.
Gold continues, and Silver follows, on strong upturn. We are sharing with our Blue Chip Option (www.bluechipoptions.com) subscribers to be "short Gold and Silver," as we think both are strongly overbought. FEAR drives gold, and we suggest one more upturn to 10,350 area, and on through our Dow projections.
Yesterday through 1.30 p.m. it was hard to even stay awake with the flat lining.
Mid-afternoon Arthur Hill with www.stockcharts.com reported:
------------------------------------
-- EMPLOYMENT REPORT WEIGHS ON STOCKS AND LIFTS BONDS
-- EURO AND EUROPEAN STOCKS FALL SHARPLY
-- MACD FORMS DIVERGENCE ON WEEKLY GOLD CHART
-- INVERSE GOLD EURO CORRELATION UNDER THREAT
-- GOLD MINERS ETF HITS RESISTANCE AT GAP
-- JUNIOR MINERS LAG SENIOR MINERS
------------------------------------
Trading range, says Michael Santolli at Barrons, might seem to suggest that the market is not ready to puncture outlooks. But this market is erratic, suggestible, and irresolute.
Santolli uses pnf charts to see strong support at 1040, and a bottom between 1016 and 1020 as possible. He further sees upside no higher than 1200, "as that is all the market deserves."
We'll use this as the week continues to "remember" how deep we could go, especially if we break the 9774 area on the Dow.
There is NO fundamental need for a further collapse in U.S. equities, and 1040, or in the 9800's. We've hit so close or to these numbers several times now that the oversold conditions may begin to actually be "calmed" and realized, and the market short term build up again. When and if this happens we have clear instructions on stocks and bonds written to our subscribers at www.bluechipoptions.com
Bernanke just said, "One particularly difficult issue is the continued high unemployment it imposes on workers and their families."
It is good to know such a "smart" man can share with us all such an obvious thing. It may be that he just learned it, so far removed from reality.
This is what we must be afraid of. Those "playing the games" have never really worked. This makes a big difference in how we think.
Please think:
46.4% of a baseball team's revenues is the "national average" for percentage of salary paid out. This is another stupid fact, but sadder when you realize just what these salaries can amount to :)
The majority of Americans believe drilling around our coastlines, with regulations, is prudent and responsible. Drill, baby, drill.
My son died for a just war.
My son died for nothing in an unjust war.
I bribe you to vote for my needs, so you can keep your job and "advertise yourself," get paid well, and have a great life.
I bribe you because the only way you will give me the business is if I "kickback" to you. It means my job whether I get the business or not.
My God is the only God.
Without my God you will die.
"We need to instill classic American values," is the best line I know. We all agree on this, perhaps not on values, but there is no need for discussion. Act your values and you are spreading them.
And life goes on.
Monday, June 7, 2010
More History Made
More history was made with a 300 point plus drop Friday, taking the market below some critical support lines. This will continue, and the whipsaw will also. We may see ups and more downs. We consider 9774 a critical juncture,and if the market closes below it, there is more possibility of extended downside. As the market closed with moves 365 points down, to below 9890, we began to see the test of deterioration.
The market has flirted in the high 9800 range, and continue to try to hover near 10,000. This means, simply, that what is decided already by cycles and supply and demand is being shown to us, and we are truly at a market settling point. There is more bullish news long term for corporations, and the manufacturing sector is growing. Disaster, as does war, will create work while it also destroys work, and our fish and oceans.
Beyond someone paying for this and all our grandiose ideas as we continue to use oil let's at least be smart. Regulate, inspect. Do not trust the corporation. Question all authority.
Use the government to truly enforce, not create bipartisan jabs.
The world order is truly changing, from whatever perspective you wish to see it. Let's use it wisely in trading. We'll repeat dual trades this week. Last week we made money on 3 calls, and Friday some could have profited from the OTM put, but more still hold it. Our call profits were good. It is hard to trade right now. The profits are certainly there, but it takes hairpin trading to hone in on bid/ask.
The market has flirted in the high 9800 range, and continue to try to hover near 10,000. This means, simply, that what is decided already by cycles and supply and demand is being shown to us, and we are truly at a market settling point. There is more bullish news long term for corporations, and the manufacturing sector is growing. Disaster, as does war, will create work while it also destroys work, and our fish and oceans.
Beyond someone paying for this and all our grandiose ideas as we continue to use oil let's at least be smart. Regulate, inspect. Do not trust the corporation. Question all authority.
Use the government to truly enforce, not create bipartisan jabs.
The world order is truly changing, from whatever perspective you wish to see it. Let's use it wisely in trading. We'll repeat dual trades this week. Last week we made money on 3 calls, and Friday some could have profited from the OTM put, but more still hold it. Our call profits were good. It is hard to trade right now. The profits are certainly there, but it takes hairpin trading to hone in on bid/ask.
Friday, June 4, 2010
The Worst May in Half a Century
Yesterday morning showed slightly positive futures, and the market gapped up quickly, hitting tops on the theoretical Dow of 10,355 by 10.30 a.m.
I'm glad we did not have a new signal yesterday, as my concern on if we would stop a support line (we did not by 2 pm.) or start trade ranging again (we were by 1.00 p.m.)
Volatility spikes occur with electronic traders, hedge funds, but the last few days have seemed "slower" despite the swings. That's just my personal read on it.
We continue to hold our OTM July OEX 400 Put. It's priced now at .30 average yesterday, and we think remains a buy. We have two positions now. Again, we are choosing a very OTM issue because of the risk of the market. If there is a large downturn, this cheap put will make lots of money. If not, it's a better return on investment stop loss candidate for what the stock market has become.
We experienced the Worst May in half a century. How has this week fared? Look at the Dow opening Monday morning of 10,136. Study the closing for each day of the week, and compare to our Dow projections. We've never experienced a bell curve count (1-10) that has been so extreme as to register 12 and 13 until a week ago, to only move to almost a 0 bell curve in one day.
This is the sign of a uncontrolled market. Your study of what has occurred this week may help you gain the perspective of the general trend of the market. Study your PNF charting on both the OEX and the Dow in different settings. Remember, it's all free on www.stockcharts.com
In zero velocity the human brain will will scan endlessly, like a computer, in the attempt to impose order on chaos.
This is in our characterology.
I'm glad we did not have a new signal yesterday, as my concern on if we would stop a support line (we did not by 2 pm.) or start trade ranging again (we were by 1.00 p.m.)
Volatility spikes occur with electronic traders, hedge funds, but the last few days have seemed "slower" despite the swings. That's just my personal read on it.
We continue to hold our OTM July OEX 400 Put. It's priced now at .30 average yesterday, and we think remains a buy. We have two positions now. Again, we are choosing a very OTM issue because of the risk of the market. If there is a large downturn, this cheap put will make lots of money. If not, it's a better return on investment stop loss candidate for what the stock market has become.
We experienced the Worst May in half a century. How has this week fared? Look at the Dow opening Monday morning of 10,136. Study the closing for each day of the week, and compare to our Dow projections. We've never experienced a bell curve count (1-10) that has been so extreme as to register 12 and 13 until a week ago, to only move to almost a 0 bell curve in one day.
This is the sign of a uncontrolled market. Your study of what has occurred this week may help you gain the perspective of the general trend of the market. Study your PNF charting on both the OEX and the Dow in different settings. Remember, it's all free on www.stockcharts.com
In zero velocity the human brain will will scan endlessly, like a computer, in the attempt to impose order on chaos.
This is in our characterology.
Thursday, June 3, 2010
Bonds?
Many people, superb investors, believe that the bonds in countries that can print money will be good investments. Our overall concern is that the decline we have experienced does not go below the prior low. This is true in each country with this debt, and in the case that the decline worsens beyond the lowest low will not be a sign of "good bonds." If the decline holds to our prior bottom, bonds may appear to be attractive investments.
Learn more at : www.bluechipoptions.com
Yet again, we had perfect entry to the OEX JUN 19 2010 500.00 CALL, as the market gapped down at opening, and it was available at opening at $6.30, selling to 7.60 within hours. The call continued to be profitable throughout the trading day.
We took a larger second buy on our OTM OEX put. If the market does crash, as the doomsayers see, this position will skyrocket, and we've given ourselves plenty of time to let that happen.
We will not make a new signal for the put, but hold our position, and will repeat again (falling in love with an option) our recommendation to the call, noting to watch all news and futures in this volatile market.
____________________________________________________________________________________
The body is merely glass around a lightbulb. The bulb does not go out, it is just encased. -Johnny K
We are spiritual beings having a human experience.
And, a rock is not hard.
These lessons, which you'll find the teachings on throughout our website, will help you understand the market, and yourself. The market is merely a breathing mechanism of the Collective Man.
And if anyone has interest in our soapbox on the oil crisis, why it occurred, has occurred and been hidden from us, and will occur again, around our insatiable demand, just write me. I'm saving my disdain and anger up just for a soapbox rant. As an example, the stupidest phucking thing the consumer can do is boycott BP stores.
BP doesn't' even own them, franchisees do.
Learn more at : www.bluechipoptions.com
Yet again, we had perfect entry to the OEX JUN 19 2010 500.00 CALL, as the market gapped down at opening, and it was available at opening at $6.30, selling to 7.60 within hours. The call continued to be profitable throughout the trading day.
We took a larger second buy on our OTM OEX put. If the market does crash, as the doomsayers see, this position will skyrocket, and we've given ourselves plenty of time to let that happen.
We will not make a new signal for the put, but hold our position, and will repeat again (falling in love with an option) our recommendation to the call, noting to watch all news and futures in this volatile market.
____________________________________________________________________________________
The body is merely glass around a lightbulb. The bulb does not go out, it is just encased. -Johnny K
We are spiritual beings having a human experience.
And, a rock is not hard.
These lessons, which you'll find the teachings on throughout our website, will help you understand the market, and yourself. The market is merely a breathing mechanism of the Collective Man.
And if anyone has interest in our soapbox on the oil crisis, why it occurred, has occurred and been hidden from us, and will occur again, around our insatiable demand, just write me. I'm saving my disdain and anger up just for a soapbox rant. As an example, the stupidest phucking thing the consumer can do is boycott BP stores.
BP doesn't' even own them, franchisees do.
Wednesday, June 2, 2010
Ongoing Whipsaw
Yesterday the market opened with huge negative futures, and the market dropped to 9998 before 11 a.m. This allowed us great entry to the OEX JUN 19 2010 500.00 CALL as low as 6.80, with sales to 9.30 by 2.30 pm.
Step # 1 of our ongoing whipsaw began. Study your Dow projections again carefully, and we will be playing the same positions again.
Fitch just downgraded Spain's AAA bonds. Automakers report May sales, which analysts expect to rise. The May ISM index also will come out. will show a dip, but still at strong levels.
Today the SEC sponsors a round-table discussion on market structure. Kool aid and cookies will be served.
Tomorrow any big retailers (Limited, Costco, Abercombie and Fitch, TJX, Target and Kohls report May sales.
Step # 1 of our ongoing whipsaw began. Study your Dow projections again carefully, and we will be playing the same positions again.
Fitch just downgraded Spain's AAA bonds. Automakers report May sales, which analysts expect to rise. The May ISM index also will come out. will show a dip, but still at strong levels.
Today the SEC sponsors a round-table discussion on market structure. Kool aid and cookies will be served.
Tomorrow any big retailers (Limited, Costco, Abercombie and Fitch, TJX, Target and Kohls report May sales.
Tuesday, June 1, 2010
The Poor Average Trader
It is almost too much to take in, what is going wrong, and in so many places. We blame the technical electronic traders, but as the days continue, see massive whipsaw.
The poor average American has lost most of what they gained back, and it could get much worse.
Billions of dollars have left stock funds, and now more than 50% of retail investors are bearish for the first time since November.
We traded well last week, but it took true discipline:
1. Have buy and sell prices in at all times, and adjust them
2. Run 1 to 5 minute Point and Figure Charts to see movement
3. Keep track of support and resistance
4. Sell in and out fast. Always leave money on the table.
We will trade as straddlers in a sense this week as we gamble on an upsurge, before a true potential of correction.
The poor average American has lost most of what they gained back, and it could get much worse.
Billions of dollars have left stock funds, and now more than 50% of retail investors are bearish for the first time since November.
We traded well last week, but it took true discipline:
1. Have buy and sell prices in at all times, and adjust them
2. Run 1 to 5 minute Point and Figure Charts to see movement
3. Keep track of support and resistance
4. Sell in and out fast. Always leave money on the table.
We will trade as straddlers in a sense this week as we gamble on an upsurge, before a true potential of correction.
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