Wednesday, August 18, 2010

A Bell Curve Bias

It does not matter why, as most analysts think, but yesterday the market showed signs of recovery, and hit highs of 10,520 before hitting our resistance at 10,550, and fell back.

Those that took inventory in the Sept500Call yesterday at prices near 7.20 were able to sell to highs of 11.10 even before the 3 p.m. for a nice 55%+ return. With the count reversing the bias is now to the call. Two buys have been made on our hedge put.

Market conditions show a bell curve bias to the call, a sign of short term recovery to above current support lines. Follow futures carefully.

Read this for true sobriety:

http://www.marketwatch.com/story/reagan-insider-gop-destroyed-us-economy-2010-08-10

Read this to understand we have created a valueless currency:

http://noir.bloomberg.com/apps/news?pid=20601010&sid=aiFjnanrDWVk


Weekly jobless claims are seen dipping a bit tomorrow.
Hewlett Packard (HPQ), after their STUPID move in letting Hurd go, will release earnings. Traders with our Blue Chip Option service are actively following HPQ, Hewlett Packard, for a surprising kind of entry.
Watch HPQ

Pimco reduced its bond holdings in U.S. debt. Bill Gross, the Buffett of bonds, to 54% for 63% in its Pimco Total Return Fund
It's a statement about lowering yields, and watching U.S Treasuries against other government and corporate bonds.

Dow components have a dividend yield equal to a 10 year U.S. Treasury, with a chance of upside potential.

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