Thursday, July 29, 2010

We Are "Near Something"

We are "near something." What is it? We saw the market vacillate from theoretical Dow highs of 10,598 to 10,447, right within a trading range that left our longstanding August OEX500 Call available for new buyers as low as 11.40, before the 3 o"clock hour came.

The market is ripe for consolidation, and also ripe for another 150 points before downside. Charts can be read several ways. We remain with our open call position and will issue a new buy to the put, expecting high risk to both trades at this time.

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LOGIC: Many are upset that President Obama does not show his patriotism by wearing an American Flag on his lapel. Hmm, 95% of all Flag lapels are imported from Communist China

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Barrick Gold reports before the market opens, as does Kellogg. The House Ethics Panel (the very name gets me smiling) begins holding their trial on charges against Rep. Charles Rangel.

Mitsubishi and Nissan report after hours, and Honda and Mazda report tomorrow. Last week on of our core holdings at www.bluechipoptions.com, slimey and disgusting McDonalds (MCD) posted a 12% increase in earnings, mostly by selling high fat smoothies, addicting our youth to obesity.
You are what you eat. It is so interesting here to me is that McDonalds is our culture and has become the worlds. If one just sits and looks at it, that's sad.


With this, for the upside that we see in the market over the short term GE raised its dividend by 20% and reinstated a stock buyback plan. When GE begins buying its stock, and pays us more, it's a solid note in the upside we think will fuel the short term.

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