It was a remarkable day for stock option traders up until 2 p.m., as during that time period the following occurred:
* Theoretical Dow tops hit 11,219, and our Nov525 Call hit 14.50, allowing us good profits from our two buys, and we're out.
* Theoretical Dow lows hit 11,052 allowing traders to take entry to the November 510 P at lows of 2.60 and sell to highs of 3.60
* For those trading the more OTM CAll, November 550C, it hit 2.81 by 2 p.m. and may be the only open signal you're left with
We will list all options today, as all stop loss or end by end of day, and will take no new options, as we do not want to hold any inventory over the weekend. We'll make note that the put, although profitable yesterday, could be held over the week-end.
Trader Questions of Floyd:
1. Do you place your stop loss orders right away on options?
Index options do not allow live stop orders because the market is then moved to the lowest stop loss.
If using # of days as a stop loss, stay firm with the rule.
Whatever stop loss you define: Stay firm with yourself.
2. I'm doing too well. I've made money now on 38 straight trades, and only one loss. I am afraid to continue trading because of "luck"
When doing well, trade on. Watch greed carefully and take lower profits.
Be sure to move at least 10% of your profits EVERY time to "outside of your trading bank." This hiding 10% from the profits is a superb discipline to help you in bad times, if you screw up, or to use for other investment at a later date.
Friday, October 29, 2010
Thursday, October 28, 2010
A Key Day
Yesterday was a key day. Our goal is not to see the S&P close below 1170, the Nasdaq below 2090, and the Dow below 11,040. It's fine to gyrate and whipsaw as we saw yesterday with moves before the 3 pm. electronic traders entered was a theoretical Dow low of 10.981, but a bounce back to near 11,110 before the electronic hedge funds moves came in at 3 p.m.
We continue to hold one or two open call positions, and will hold with our current position, and offer an alternative put as a secondary trade. We continue to see the "market holding up" for a short time.
______________
In our Monday morning Blue Chip Option commentary this week I spoke of supply and demand, the key of how we trade at OEX. I thought it appropriate to teach again how cause and effect/supply and demand lead our market:
As I was trained in the Wyckoff Method I believe the stock market is fully “run” by supply and demand, set in place by cause and effect.
Supply and demand is much simpler than we make it:
1. When there are an equal number of buyers vs. sellers price is equal, and not moving up and down.
2. When there are more buyers, prices will increase
3. When there are more sellers prices will decrease
4. It is possible for prices to move higher with the same number of buyers. There just need to be fewer sellers.
5. When prices decline it is not because there are more sellers; there are just fewer buyers.
Question Authority. Question All Facts. Ignore the Obvious, as it is not obvious. Know that a rock is not hard.
Understand that you only know what you know.
This is the Zen of trading.
We continue to hold one or two open call positions, and will hold with our current position, and offer an alternative put as a secondary trade. We continue to see the "market holding up" for a short time.
______________
In our Monday morning Blue Chip Option commentary this week I spoke of supply and demand, the key of how we trade at OEX. I thought it appropriate to teach again how cause and effect/supply and demand lead our market:
As I was trained in the Wyckoff Method I believe the stock market is fully “run” by supply and demand, set in place by cause and effect.
Supply and demand is much simpler than we make it:
1. When there are an equal number of buyers vs. sellers price is equal, and not moving up and down.
2. When there are more buyers, prices will increase
3. When there are more sellers prices will decrease
4. It is possible for prices to move higher with the same number of buyers. There just need to be fewer sellers.
5. When prices decline it is not because there are more sellers; there are just fewer buyers.
Question Authority. Question All Facts. Ignore the Obvious, as it is not obvious. Know that a rock is not hard.
Understand that you only know what you know.
This is the Zen of trading.
Wednesday, October 27, 2010
Lacey, the Conqueror
A market just waiting on earnings, on announcements, on something to "trigger movement." Yesterday we saw theoretical Dow lows of 11,047 and highs of 11,215.
Traders were able to take below prior day close entries on both our in the money and out of the money calls, and good profits of $2.00. We will, however, keep both trades open as signals, and NOT yet play puts. We may regret this, but we continue to see an upside bias, and another testing of top resistance lines. In other words, one more run up.
Watch futures carefully, and have sell signals in at all times. Take tight profits on the ITM call, as most did yesterday, and be prepared to follow all instructions for the riskier out of the money call.
An edge is up, as chartists have stated:
-- DOWNTRENDS IN DOLLAR AND BOND YIELDS ARE NEAR SUPPORT AND OVERSOLD
-- THAT CALLS FOR SOME CAUTION
-- SO DOES THE PRESENCE OF THE SPRING HIGHS IN DOW INDUSTRIALS AND TRANSPORTS
I've written a very personal article available now on our website called Lacey, the Conqueror.
It's a dog story with lessons, and it helped me change my life, as did the dog:
http://www.oexoptions.com/articles/Lacey.pdf
___________________________________________
What you are reading is our commentary for www.bluechipoptions.com service for today; the data, real facts, and the Floydian Logic used, you'll clearly know where we are.
It will help you vote, as you realize we now must spend while we are able to and create jobs, healthcare and social programs that bring back the middle class. We've lost our middle class, and oligarchy is easily created, the government itself just being a vehicle, and the large corporations in America that truly control our destiny:
What cost $1.00 in 1913 now costs more than $21.00. What cost $1.00 in 2009 would have cost $.05 in 1913. Logic would conclude the Federal Reserve has devalued the USDollar by approximately 95% during it's 97 year tenure.
Read that again.
Geitner has assured the world that " we will not devalue the USD to maintain prosperity and competitiveness. It simply does not work.
It's fine with us that Precious Metals have a correction, but Floydian Logic concludes: we are already phucked on the USD and continue to play massive bank games. Our currency is not even real.
Neither is the Euro.
There is no doubt that precious metals will at some time be much more highly valued than in dollars, or in companies that have and need dollars to be in market.
Traders were able to take below prior day close entries on both our in the money and out of the money calls, and good profits of $2.00. We will, however, keep both trades open as signals, and NOT yet play puts. We may regret this, but we continue to see an upside bias, and another testing of top resistance lines. In other words, one more run up.
Watch futures carefully, and have sell signals in at all times. Take tight profits on the ITM call, as most did yesterday, and be prepared to follow all instructions for the riskier out of the money call.
An edge is up, as chartists have stated:
-- DOWNTRENDS IN DOLLAR AND BOND YIELDS ARE NEAR SUPPORT AND OVERSOLD
-- THAT CALLS FOR SOME CAUTION
-- SO DOES THE PRESENCE OF THE SPRING HIGHS IN DOW INDUSTRIALS AND TRANSPORTS
I've written a very personal article available now on our website called Lacey, the Conqueror.
It's a dog story with lessons, and it helped me change my life, as did the dog:
http://www.oexoptions.com/articles/Lacey.pdf
___________________________________________
What you are reading is our commentary for www.bluechipoptions.com service for today; the data, real facts, and the Floydian Logic used, you'll clearly know where we are.
It will help you vote, as you realize we now must spend while we are able to and create jobs, healthcare and social programs that bring back the middle class. We've lost our middle class, and oligarchy is easily created, the government itself just being a vehicle, and the large corporations in America that truly control our destiny:
What cost $1.00 in 1913 now costs more than $21.00. What cost $1.00 in 2009 would have cost $.05 in 1913. Logic would conclude the Federal Reserve has devalued the USDollar by approximately 95% during it's 97 year tenure.
Read that again.
Geitner has assured the world that " we will not devalue the USD to maintain prosperity and competitiveness. It simply does not work.
It's fine with us that Precious Metals have a correction, but Floydian Logic concludes: we are already phucked on the USD and continue to play massive bank games. Our currency is not even real.
Neither is the Euro.
There is no doubt that precious metals will at some time be much more highly valued than in dollars, or in companies that have and need dollars to be in market.
Monday, October 25, 2010
Steadily Upward
The market has held steady upward ground for three weeks, and most importantly, has held above the magnetic fields of 0000's. Remember, psychologically worldwide when numbers hit 0000's ($1.00, $100,00, $1,000,000,000.00) there is a statistical insight that "faltering," "hesitation," "insight" appears and a struggle begins.
Gold and Silver both dropped as the USD was manipulated upward last week. In our Blue Chip Options service (www.bluechipoptions.com) we comment this week on Gold, silver,platinum, and all the precious metals.
Tim Geitner, much abused in the press, has done a brilliant job unmasking years of false facts and false financials and attended G-20 with a specific agenda. Typical of G-8 and G-20, who pretend to act as monetary bodies and representations of Governments, hedged and hustled. Floyd calls it group masturbation, and Christine O'Donnell, a serious candidate to be a Senator, has already told us you cannot masturbate without lust. So, read here, and define "what is the lust?"
The G-20 Meets:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=adpApa_DkMj8&pos=1
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a7VLszHe.5Ww&pos=3
As we trade today we are only listing a call, and recommend purchase ONLY if futures are mild, negative or positive, and news on Bloomberg does not startle the pre-market.
Our instructions are short term and different than our usual OEX systemology for this trade
Gold and Silver both dropped as the USD was manipulated upward last week. In our Blue Chip Options service (www.bluechipoptions.com) we comment this week on Gold, silver,platinum, and all the precious metals.
Tim Geitner, much abused in the press, has done a brilliant job unmasking years of false facts and false financials and attended G-20 with a specific agenda. Typical of G-8 and G-20, who pretend to act as monetary bodies and representations of Governments, hedged and hustled. Floyd calls it group masturbation, and Christine O'Donnell, a serious candidate to be a Senator, has already told us you cannot masturbate without lust. So, read here, and define "what is the lust?"
The G-20 Meets:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=adpApa_DkMj8&pos=1
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a7VLszHe.5Ww&pos=3
As we trade today we are only listing a call, and recommend purchase ONLY if futures are mild, negative or positive, and news on Bloomberg does not startle the pre-market.
Our instructions are short term and different than our usual OEX systemology for this trade
Friday, October 22, 2010
The Death Cross
We went right to our market tops at 11,243.00 and hesitated, the market then moving down to 11,050 by 2.11 p.m.
We took no new position yesterday for this very reason, as we thought the market was topping. For those that had or took ownership in the November 510 Put, they were able to buy as low as $3.00 and sell to highs of $4.90 by 2.14 p.m.
We've hit profits every day this week. And we've seen the market hit bottoms near 11,890 and return to over 11,000.
The market has three characteristics:
1. It wants to go to 11,450
2. It is oversold and wants to correct, near the Fib line at 10,746. The low of 10,890 we hit earlier this week MAY have been our correction, or we may move to 11,746 again, before more upside to the 11,450 area.
3. The USD and lowering of Gold and Silver yesterday could prime the market, either way.
Here's facts:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aAV5HJsm6pWs&pos=1
___________
France and Central Bank governors of G-20 meet in Seoul for womanizing and illegal drug use in advance of the G-20 meeting next month. This is a Floydian quote.
Judging how the G-20 thinks, a bit of womanizing and illegal drug use might be helpful.
A good example of charting and the crap that it makes us believe:
1. Three months ago we were under the "death cross," in which the major indices 50 day moving average slips below the 200 day moving average, a somehow foreboding sign.
2. So instead the market gave us a great "gold cross" in which the 50 day moving average climbed above the 200 day moving average.
What we can learn here is that charting terminology like this, although creating FEAR or GREED, are far more descriptive than predictive. The Dow has risen over 15% since all the talking heads began talking about the Death Cross.
We took no new position yesterday for this very reason, as we thought the market was topping. For those that had or took ownership in the November 510 Put, they were able to buy as low as $3.00 and sell to highs of $4.90 by 2.14 p.m.
We've hit profits every day this week. And we've seen the market hit bottoms near 11,890 and return to over 11,000.
The market has three characteristics:
1. It wants to go to 11,450
2. It is oversold and wants to correct, near the Fib line at 10,746. The low of 10,890 we hit earlier this week MAY have been our correction, or we may move to 11,746 again, before more upside to the 11,450 area.
3. The USD and lowering of Gold and Silver yesterday could prime the market, either way.
Here's facts:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aAV5HJsm6pWs&pos=1
___________
France and Central Bank governors of G-20 meet in Seoul for womanizing and illegal drug use in advance of the G-20 meeting next month. This is a Floydian quote.
Judging how the G-20 thinks, a bit of womanizing and illegal drug use might be helpful.
A good example of charting and the crap that it makes us believe:
1. Three months ago we were under the "death cross," in which the major indices 50 day moving average slips below the 200 day moving average, a somehow foreboding sign.
2. So instead the market gave us a great "gold cross" in which the 50 day moving average climbed above the 200 day moving average.
What we can learn here is that charting terminology like this, although creating FEAR or GREED, are far more descriptive than predictive. The Dow has risen over 15% since all the talking heads began talking about the Death Cross.
Thursday, October 21, 2010
A Full Moon
First, WHY did the market reverse 100% in a day; here's three motivators, besides that the market already planned it:
http://noir.bloomberg.com/apps/news?pid=20601103&sid=aehhyvh9Rg8U
http://noir.bloomberg.com/apps/news?pid=20601087&sid=arG9nBKDnArk&pos=1
http://noir.bloomberg.com/apps/news?pid=20601103&sid=a9o7o63mXBnA
______________________
The theoretical Dow hit highs of 11,192 and lows of 10,930. Our open call hit 15.00 by 1.30 p.m. from buys yesterday under $11.00, and was sold in one day for great profits. We're hitting on all cylinders during the whipsaw. The calls were an easy buy and sell, and we're sure many traders may have taken entry to the opposing put we recommended. For those following futures and Bloomberg news traders would NOT have bought this position.
But if not market studying, you have a good entry. It's likely to have whipsaw and dual trading today, and we would take tight profits.
_______________________
American Express reports earnings after the market closes. Also reporting earnings: AT and T, Xerox and Nokia also report. Rush Limbaugh is still breathing. The average American still has only an 8th grade education. Corruption still reigns. The middle class is slowly being eliminated, especially if the tax cut game (support the rich) continues. In our Blue Chip option service I share an article of how I believe to Live, and find it appropriate to share, as this is how one learns to trade:
Tomorrow is a full moon. This always affects the market
Weaving Straw Baskets-Fifty Steps to Understanding
1. A rock is not hard.
2. We only know what we know.
3. We do not know what we do not know.
4. There is no real such thing as “I”, but I AM.
5. There are people that do not read at all, and many people that do not
read well.
6. The majority always leads, and always forgets history.
7. Everything is really okay.
8. Everyone wants to dance, many in different ways, many so they are
never seen, many so they wish they could be seen, and many that are
always seen.
9. Negotiation is the art of understanding FEAR and GREED.
10. The mood of the public is first trended by stock markets, which show
levels of optimism, and supply and demand in the market place.
11. Most things are manipulated by the few at the top of the capitalist
pyramid that control the outcome, no matter what is done.
12. We only have what we remember.
13. In our reality our mission is really to give, love, flow and make and have
memories.
14. Our perspectives can change in a minute. Values and goals can shift as
fluid water. What we thought becomes not what we think.
15. Money must be understood. It is a “construed value” commodity, only
worth the value that we put on it.
16. All of life works on supply and demand, and cause and effect.
17. You are what you decide
18. If you surround yourself with people “better than yourself” in real life,
and as models, you become then and synergy can be created.
19. Everything happens for a reason.
20. Neither political party is really right or wrong; it is cause and effect in
action, because the actions of the 540 in Congress are no longer led by laws, but by corporations. This will affect the world.
21. We are always: approaching a crisis, within a crisis, or recuperating from a crisis. There is “always something”.
22. Many of us live in a circle of pain, in which we repeat the same negatively dramatic action with a group of others, all interacting within a black comedy drama. And able to be resolved.
23. Most of us do not know really know ourselves. When I ask clients to “tell me about themselves” they tell me about their jobs, their possessions, and lastly their families. They never mention themselves.
24. Most that appears obvious is not. Most that does not appear obvious is.
25. We are all in therapy at every moment. Most of us just don’t admit it, or
use it.
26. We are here to learn lessons and will struggle through until we learn
them. They may be very simple lessons.
27. In all steps of the life experience, and the dramas, people tend to put
love in the background, or it becomes part of the events.
28. Love is life.
29. If you repeat an action many times, it becomes a habit. If you continue,
“using the habit” it must be something that you value, or the habit will
become instead a self-destructive tendency.
30. Unrealistic expectations occur from being dishonest with you. If you
expect success at something you must earn it, and few that are lucky
last.
31. The question What Do I Want is the most important question you will
ask yourself in your life. Your answer defines your happiness. The question is not to tell yourself what possessions and monetary dreams you wish to come true, but to answer, “What do I want”.
32. There are simple ways to release unwanted stress.
33. There are ways to learn to relax and feel better physically.
34. There are ways to be happy.
35. Life is typically unfair and a series of negative events that are
overshadowed in our memory by the positive events.
36. Few people enjoy their work, making most of their life TV, sleeping, or
doing something they do not like. These people lose their strength and
general well being as time progresses.
37. We are fearful of our bodies. Of sex. This is true more in the U.S. than
most nations, and is something to be studied. But in the meantime,
have more sex.
38. The old funeral question has merit “What would they say for my
epitaph, and who would come?” It goes well with a general personal and introspective look that we must do and only you can do, and that is to look inside and ask what you contribute, and if you are good.
39. Things are not as they appear. What we see is not what is, but only what we know so far.
40. Much of what is smart repeats itself, and is never done.
41. All the religions really say the same thing, and sadly it will be religion
that could divide the world.
42. There is no such thing as an absolute.
43. There is no real black and white.
44. We self sabotage often so that we do not “get something we want” as we
want to punish ourselves for things we have done we feel guilty for.
45. It takes discipline to perform. Discipline is our way inside ourselves, as
we become rather than think.
46. People cannot take in more than 5 tasks/thoughts at one time.
Learning to control input is key to knowing when you are at or “over
your threshold”. We all have a threshold in which input overcomes us.
47. More could be done in business, and in politics, if simple playground
rules “no cheating” were put in place before any “deal” and
a. Cheaters had to pay by doing public service, but that is just a
dream.
b. I want Tom Delay mowing that White House lawn.
48. Life is too short to do business with assholes.
49. Use your time. Have your goals around your values, but be armed to
stop believing even what you believe.
50. Be open to the world. Trust no facts. Question authority.
___________________________________
Argue this fact. You have been hearing the reverse, in propaganda, and most of the world believing it:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a2kDMAOwVghA&pos=1
http://noir.bloomberg.com/apps/news?pid=20601103&sid=aehhyvh9Rg8U
http://noir.bloomberg.com/apps/news?pid=20601087&sid=arG9nBKDnArk&pos=1
http://noir.bloomberg.com/apps/news?pid=20601103&sid=a9o7o63mXBnA
______________________
The theoretical Dow hit highs of 11,192 and lows of 10,930. Our open call hit 15.00 by 1.30 p.m. from buys yesterday under $11.00, and was sold in one day for great profits. We're hitting on all cylinders during the whipsaw. The calls were an easy buy and sell, and we're sure many traders may have taken entry to the opposing put we recommended. For those following futures and Bloomberg news traders would NOT have bought this position.
But if not market studying, you have a good entry. It's likely to have whipsaw and dual trading today, and we would take tight profits.
_______________________
American Express reports earnings after the market closes. Also reporting earnings: AT and T, Xerox and Nokia also report. Rush Limbaugh is still breathing. The average American still has only an 8th grade education. Corruption still reigns. The middle class is slowly being eliminated, especially if the tax cut game (support the rich) continues. In our Blue Chip option service I share an article of how I believe to Live, and find it appropriate to share, as this is how one learns to trade:
Tomorrow is a full moon. This always affects the market
Weaving Straw Baskets-Fifty Steps to Understanding
1. A rock is not hard.
2. We only know what we know.
3. We do not know what we do not know.
4. There is no real such thing as “I”, but I AM.
5. There are people that do not read at all, and many people that do not
read well.
6. The majority always leads, and always forgets history.
7. Everything is really okay.
8. Everyone wants to dance, many in different ways, many so they are
never seen, many so they wish they could be seen, and many that are
always seen.
9. Negotiation is the art of understanding FEAR and GREED.
10. The mood of the public is first trended by stock markets, which show
levels of optimism, and supply and demand in the market place.
11. Most things are manipulated by the few at the top of the capitalist
pyramid that control the outcome, no matter what is done.
12. We only have what we remember.
13. In our reality our mission is really to give, love, flow and make and have
memories.
14. Our perspectives can change in a minute. Values and goals can shift as
fluid water. What we thought becomes not what we think.
15. Money must be understood. It is a “construed value” commodity, only
worth the value that we put on it.
16. All of life works on supply and demand, and cause and effect.
17. You are what you decide
18. If you surround yourself with people “better than yourself” in real life,
and as models, you become then and synergy can be created.
19. Everything happens for a reason.
20. Neither political party is really right or wrong; it is cause and effect in
action, because the actions of the 540 in Congress are no longer led by laws, but by corporations. This will affect the world.
21. We are always: approaching a crisis, within a crisis, or recuperating from a crisis. There is “always something”.
22. Many of us live in a circle of pain, in which we repeat the same negatively dramatic action with a group of others, all interacting within a black comedy drama. And able to be resolved.
23. Most of us do not know really know ourselves. When I ask clients to “tell me about themselves” they tell me about their jobs, their possessions, and lastly their families. They never mention themselves.
24. Most that appears obvious is not. Most that does not appear obvious is.
25. We are all in therapy at every moment. Most of us just don’t admit it, or
use it.
26. We are here to learn lessons and will struggle through until we learn
them. They may be very simple lessons.
27. In all steps of the life experience, and the dramas, people tend to put
love in the background, or it becomes part of the events.
28. Love is life.
29. If you repeat an action many times, it becomes a habit. If you continue,
“using the habit” it must be something that you value, or the habit will
become instead a self-destructive tendency.
30. Unrealistic expectations occur from being dishonest with you. If you
expect success at something you must earn it, and few that are lucky
last.
31. The question What Do I Want is the most important question you will
ask yourself in your life. Your answer defines your happiness. The question is not to tell yourself what possessions and monetary dreams you wish to come true, but to answer, “What do I want”.
32. There are simple ways to release unwanted stress.
33. There are ways to learn to relax and feel better physically.
34. There are ways to be happy.
35. Life is typically unfair and a series of negative events that are
overshadowed in our memory by the positive events.
36. Few people enjoy their work, making most of their life TV, sleeping, or
doing something they do not like. These people lose their strength and
general well being as time progresses.
37. We are fearful of our bodies. Of sex. This is true more in the U.S. than
most nations, and is something to be studied. But in the meantime,
have more sex.
38. The old funeral question has merit “What would they say for my
epitaph, and who would come?” It goes well with a general personal and introspective look that we must do and only you can do, and that is to look inside and ask what you contribute, and if you are good.
39. Things are not as they appear. What we see is not what is, but only what we know so far.
40. Much of what is smart repeats itself, and is never done.
41. All the religions really say the same thing, and sadly it will be religion
that could divide the world.
42. There is no such thing as an absolute.
43. There is no real black and white.
44. We self sabotage often so that we do not “get something we want” as we
want to punish ourselves for things we have done we feel guilty for.
45. It takes discipline to perform. Discipline is our way inside ourselves, as
we become rather than think.
46. People cannot take in more than 5 tasks/thoughts at one time.
Learning to control input is key to knowing when you are at or “over
your threshold”. We all have a threshold in which input overcomes us.
47. More could be done in business, and in politics, if simple playground
rules “no cheating” were put in place before any “deal” and
a. Cheaters had to pay by doing public service, but that is just a
dream.
b. I want Tom Delay mowing that White House lawn.
48. Life is too short to do business with assholes.
49. Use your time. Have your goals around your values, but be armed to
stop believing even what you believe.
50. Be open to the world. Trust no facts. Question authority.
___________________________________
Argue this fact. You have been hearing the reverse, in propaganda, and most of the world believing it:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a2kDMAOwVghA&pos=1
Wednesday, October 20, 2010
The Facts
As futures were just wiggling along early this morning Bloomberg hit with this news:
U.S. Index Futures Drop, Stocks Erase Gains on Apple Outlook, China Rates
and chartists later in the day shared with us:
-- BOUNCE IN OVERSOLD DOLLAR CAUSES PROFIT-TAKING IN STOCKS AND COMMODITIES
-- GOLD TUMBLES
-- STOCKS APPEAR DUE FOR SOME PROFIT-TAKING BUT REMAIN IN AN UPTREND
and
A testimonial befitting of yesterday's actions:
Hello there.
It's me..."Christian" _______. Just over a year ago, I subscribed to your free trial offer. I want to thank you for that. I also made some comments that you ultimately posted on your blog, I believe.
Just to jog your memory, this was around June of 2009. You know---trading requires a certain mindset. Agreed? that's not a startling statement. And I gotta tell ya---the tuition is quite high on Wall Street.
Boy...have I paid to learn how to play. And I fear that I still have to learn some more, and, of course, learning is gonna cost some money. When I came on board with your firm albeit on a trial basis, I funded my account with $8.5K---not a lot of money by any stretch. but get this. I started on a Monday, June 8th. By that Friday my account was up to $14, 600! Not bad? By early the following week...I gave it all back and then some. I closed out the account minus $5k of my initial principle. In summary, I know I can do this. I just have to resist from trying to create a trade where there is none to be had, and I also have to keep from over trading. In short, I need to work on my discipline. what I find is that I'll tune into CNBC to check out how Europe closed their session in order to have sense of the climate for what's to come.
Of course, if it's a Monday and any political stuff happened over the weekend that might adversely impact the market, I'll be on the lookout for this. And let's not forget the economic calendar that we need to watch. But where I tend to get into trouble is when I make a trade and in less than 15 minutes or so...I'm plus $800 or more, and I end up feeling like...phew! that was easy. And then I want to go back in to trade some more. And some times I win but most times I lose. And I suppose...this is one of my problems(?) I know that I'm good at picking (or sensing) which way the market is going. Often times the signs pretty clear. So, I jump in and make a quick hit. but there I go again...trying to scalp the market from home. I don't think is quite as easy as if one were in the pit? The dynamics of electronic trading, particularly the delay factor is of consequence. I love the OEX---it's all I've ever traded. And I'm determined to come up, on average, as winner. This next go around (which will be soon), I will enter the market with a sharper eye toward avoiding my previous mistakes as well as refraining from over-trading or attempting to create a trade where there is none to be had---perhaps you've been guilty of this in your earlier years of trading the OEX? I'm not sure if I'll be able to participate in the year end rally (if there is one) or if I'll have to wait until next year and catch the market when it decides to regroup and move forward again. And praise whatever higher power that we're not stricken with some horrific terrorist act that will send the market into a tailspin. And, of course, I'm not sure how long the veil of "economic indiscretions(s) can continue to hide the fact that this country is in deep pooh-pooh before clarity on the situation is prevalent across America---and BAM! It will hit the fan! Talk about a market dive---plunge of whatever you wanna call. I remember that I bought a book titled "Dow 40,000." Wow! That's a lot of change. But how about "Dow 3,500!" OUCH! Either way...there will be a lot of $ to be made if you know how to Trade. Nice talking to ya. Be in touch soon."
___________________________________________________________
The FACTS: The market sold off and hit theoretical lows of 10,870 area, leading right to the Fibonacci re-tracement that market always moves to. This is a healthy sell off if it holds on decline and if profit taking was just in order, and the fundamentals return. I mean, Apple did utterly FANTASTIC in earnings, yet that they did not do "good" enough was a trigger.
Puts we bought Monday were hugely profitable, buying the November 510 Put as low as 4.50, and selling to 6.90 by 3.30 p.m. 50% plus returns in a day no one can beat, and we also took a nice first buy to the call, which we'll hold, be ready to second buy and simply watch the market today. Puts may have some more downside, the market itself may, but we'll hold with our Tuesday profits and our open signal.
_______________________________________________________
As most of our traders have grasped I will be branded a liberal. Thank you. And I believe the best writing coming out in America these days, the best true and fear journalism, comes from The Atlantic, Harpers, and surprisingly, Rolling Stone.
Rolling Stone has Mat Taibbi, the best journalist of this century as a free lancer, and Tim Dickinson, who can close the loopholes on facts. As the GOP spends millions to regain power (with which we have no idea what they would do except stop the tax cuts for the rich, and end that damn start at healthcare), Dickinson takes the time to clearly identify what has been done, what was happening as Obama came into power, and how in the end he may be judged.
This view into politics is a direct view into the stock market and into real reporting, agree or disagree. Liberal vs. conservative is immaterial as both are just "names," often just used for "calling" or for "degrading a point of view" to "upgrade your point of view"
Please read this if you read any one article I pull off blogs and websites:
http://www.rollingstone.com/politics/news/17390/220013
U.S. Index Futures Drop, Stocks Erase Gains on Apple Outlook, China Rates
and chartists later in the day shared with us:
-- BOUNCE IN OVERSOLD DOLLAR CAUSES PROFIT-TAKING IN STOCKS AND COMMODITIES
-- GOLD TUMBLES
-- STOCKS APPEAR DUE FOR SOME PROFIT-TAKING BUT REMAIN IN AN UPTREND
and
A testimonial befitting of yesterday's actions:
Hello there.
It's me..."Christian" _______. Just over a year ago, I subscribed to your free trial offer. I want to thank you for that. I also made some comments that you ultimately posted on your blog, I believe.
Just to jog your memory, this was around June of 2009. You know---trading requires a certain mindset. Agreed? that's not a startling statement. And I gotta tell ya---the tuition is quite high on Wall Street.
Boy...have I paid to learn how to play. And I fear that I still have to learn some more, and, of course, learning is gonna cost some money. When I came on board with your firm albeit on a trial basis, I funded my account with $8.5K---not a lot of money by any stretch. but get this. I started on a Monday, June 8th. By that Friday my account was up to $14, 600! Not bad? By early the following week...I gave it all back and then some. I closed out the account minus $5k of my initial principle. In summary, I know I can do this. I just have to resist from trying to create a trade where there is none to be had, and I also have to keep from over trading. In short, I need to work on my discipline. what I find is that I'll tune into CNBC to check out how Europe closed their session in order to have sense of the climate for what's to come.
Of course, if it's a Monday and any political stuff happened over the weekend that might adversely impact the market, I'll be on the lookout for this. And let's not forget the economic calendar that we need to watch. But where I tend to get into trouble is when I make a trade and in less than 15 minutes or so...I'm plus $800 or more, and I end up feeling like...phew! that was easy. And then I want to go back in to trade some more. And some times I win but most times I lose. And I suppose...this is one of my problems(?) I know that I'm good at picking (or sensing) which way the market is going. Often times the signs pretty clear. So, I jump in and make a quick hit. but there I go again...trying to scalp the market from home. I don't think is quite as easy as if one were in the pit? The dynamics of electronic trading, particularly the delay factor is of consequence. I love the OEX---it's all I've ever traded. And I'm determined to come up, on average, as winner. This next go around (which will be soon), I will enter the market with a sharper eye toward avoiding my previous mistakes as well as refraining from over-trading or attempting to create a trade where there is none to be had---perhaps you've been guilty of this in your earlier years of trading the OEX? I'm not sure if I'll be able to participate in the year end rally (if there is one) or if I'll have to wait until next year and catch the market when it decides to regroup and move forward again. And praise whatever higher power that we're not stricken with some horrific terrorist act that will send the market into a tailspin. And, of course, I'm not sure how long the veil of "economic indiscretions(s) can continue to hide the fact that this country is in deep pooh-pooh before clarity on the situation is prevalent across America---and BAM! It will hit the fan! Talk about a market dive---plunge of whatever you wanna call. I remember that I bought a book titled "Dow 40,000." Wow! That's a lot of change. But how about "Dow 3,500!" OUCH! Either way...there will be a lot of $ to be made if you know how to Trade. Nice talking to ya. Be in touch soon."
___________________________________________________________
The FACTS: The market sold off and hit theoretical lows of 10,870 area, leading right to the Fibonacci re-tracement that market always moves to. This is a healthy sell off if it holds on decline and if profit taking was just in order, and the fundamentals return. I mean, Apple did utterly FANTASTIC in earnings, yet that they did not do "good" enough was a trigger.
Puts we bought Monday were hugely profitable, buying the November 510 Put as low as 4.50, and selling to 6.90 by 3.30 p.m. 50% plus returns in a day no one can beat, and we also took a nice first buy to the call, which we'll hold, be ready to second buy and simply watch the market today. Puts may have some more downside, the market itself may, but we'll hold with our Tuesday profits and our open signal.
_______________________________________________________
As most of our traders have grasped I will be branded a liberal. Thank you. And I believe the best writing coming out in America these days, the best true and fear journalism, comes from The Atlantic, Harpers, and surprisingly, Rolling Stone.
Rolling Stone has Mat Taibbi, the best journalist of this century as a free lancer, and Tim Dickinson, who can close the loopholes on facts. As the GOP spends millions to regain power (with which we have no idea what they would do except stop the tax cuts for the rich, and end that damn start at healthcare), Dickinson takes the time to clearly identify what has been done, what was happening as Obama came into power, and how in the end he may be judged.
This view into politics is a direct view into the stock market and into real reporting, agree or disagree. Liberal vs. conservative is immaterial as both are just "names," often just used for "calling" or for "degrading a point of view" to "upgrade your point of view"
Please read this if you read any one article I pull off blogs and websites:
http://www.rollingstone.com/politics/news/17390/220013
Tuesday, October 19, 2010
Question Information Pushed from ANY Source, ask WHY
Market movements by 2 p.m.: Theoretical Dow Low: 11,016 High: 11,171
All of this lack of real movement before the 3 pm. hour. A market stuck between support and resistance lines.
Calls were not available for purchase because the market held up, but first buys were possible to the November OEX Put.
We show an upside count to 4, with a waning strength, but strong resiliency.
If Gold and Silver falter we see only short term corrections around the USD.
_____________________
For years at OEX I often posted testimonials by traders, on great successes or failures, and their thoughts. Many of these are on our website, and I've slowed down the chest pounding recently simply because we all know how we are performing. Friday I received a great testimonial from an executive with a major insurance company in New York, legal counsel to the firm itself, that so well put what his concerns were, and what he had accomplished, that I thought I would share:
> Floyd:
> First let me thank you for your tremendous service. I have been a level 3 subscriber for just over a year and I feel that I have made some very substantial progress in my "trading education." Your philosophy of teaching "how to trade", rather than simply providing advice on "what to buy and sell" has motivated me to work to master this skill. Over the past year I have read the books you recommend on P&F Charting and the Wyckoff Method, as well as additional readings on Technical Analysis. I researched many on-line brokers and moved my accounts to Think or Swim because of their charting capabilities, especially the support / resistance and Fibonacci overlays. I understand the concepts of how the market breathes and falling in love with an option. I can see it happen as I watch the market daily. The Think or Swim support and resistance overlays are terrific, and I should know exactly when to get in and out of a trade. However, for all of the great technology and personal progress I have made in educating myself, I am having difficulty "pulling the trigger" on a trade. I am in constant fear that when I enter the trade that the market will whipsaw in the opposite direction, even though I know that the market moves in phases. When I do enter a trade I will change my sell order and normally jump out way too early when I see the market start to pull back. I am very "stuck" at this point and could use some guidance.
> I was hoping that you would be kind enough to review my attached Myers Briggs Test and perhaps help me shed some light on my personality characteristics and how they effect my trading.
_______________________
This is a fascinating article that may change your view on the values and methods of some good businesses:
http://www.businessweek.com/magazine/content/10_42/b4199062749187_page_3.htm
We felt that when Bernanke spoke last Friday, which all were ready for and priced into the market, that we heard "self congratulation, part apologia, heavy on the obvious and not especially revelatory".
What we at OEX believe about mid term elections, and the future of the stock market (now half the volume of three years ago) is that the devaluation of currency, the creation of massive debt to overcome massive debt (Keynesian in nature if allowed to play out), will play small parts, while the "advertisers" that have so falsified will lead us down the same path of family values and JOBS, the least important part of an economic recovery at this stage.
Jobs are critical, but control of the crisis and regulation so that it does occur again, are key. Remember, many remember the "magnificent years of Reagan" but take no note of the massive debt left behind for the next President. In this case, Reagan had the press and the media.
Here we have the reverse, in which the press and media have been overcome by the GOP rich to make sure the important stuff to them does not change.
Question why the information is coming, always, from any source.
All of this lack of real movement before the 3 pm. hour. A market stuck between support and resistance lines.
Calls were not available for purchase because the market held up, but first buys were possible to the November OEX Put.
We show an upside count to 4, with a waning strength, but strong resiliency.
If Gold and Silver falter we see only short term corrections around the USD.
_____________________
For years at OEX I often posted testimonials by traders, on great successes or failures, and their thoughts. Many of these are on our website, and I've slowed down the chest pounding recently simply because we all know how we are performing. Friday I received a great testimonial from an executive with a major insurance company in New York, legal counsel to the firm itself, that so well put what his concerns were, and what he had accomplished, that I thought I would share:
> Floyd:
> First let me thank you for your tremendous service. I have been a level 3 subscriber for just over a year and I feel that I have made some very substantial progress in my "trading education." Your philosophy of teaching "how to trade", rather than simply providing advice on "what to buy and sell" has motivated me to work to master this skill. Over the past year I have read the books you recommend on P&F Charting and the Wyckoff Method, as well as additional readings on Technical Analysis. I researched many on-line brokers and moved my accounts to Think or Swim because of their charting capabilities, especially the support / resistance and Fibonacci overlays. I understand the concepts of how the market breathes and falling in love with an option. I can see it happen as I watch the market daily. The Think or Swim support and resistance overlays are terrific, and I should know exactly when to get in and out of a trade. However, for all of the great technology and personal progress I have made in educating myself, I am having difficulty "pulling the trigger" on a trade. I am in constant fear that when I enter the trade that the market will whipsaw in the opposite direction, even though I know that the market moves in phases. When I do enter a trade I will change my sell order and normally jump out way too early when I see the market start to pull back. I am very "stuck" at this point and could use some guidance.
> I was hoping that you would be kind enough to review my attached Myers Briggs Test and perhaps help me shed some light on my personality characteristics and how they effect my trading.
_______________________
This is a fascinating article that may change your view on the values and methods of some good businesses:
http://www.businessweek.com/magazine/content/10_42/b4199062749187_page_3.htm
We felt that when Bernanke spoke last Friday, which all were ready for and priced into the market, that we heard "self congratulation, part apologia, heavy on the obvious and not especially revelatory".
What we at OEX believe about mid term elections, and the future of the stock market (now half the volume of three years ago) is that the devaluation of currency, the creation of massive debt to overcome massive debt (Keynesian in nature if allowed to play out), will play small parts, while the "advertisers" that have so falsified will lead us down the same path of family values and JOBS, the least important part of an economic recovery at this stage.
Jobs are critical, but control of the crisis and regulation so that it does occur again, are key. Remember, many remember the "magnificent years of Reagan" but take no note of the massive debt left behind for the next President. In this case, Reagan had the press and the media.
Here we have the reverse, in which the press and media have been overcome by the GOP rich to make sure the important stuff to them does not change.
Question why the information is coming, always, from any source.
Sunday, October 17, 2010
Puts and Calls
Puts and calls could have moved Friday for us if the trader was willing to sit around all day and watch the market repeat the same 100 point up and down, still ending above 11,000.
We move to November issues and list both put and call with specific instructions. The market bias is bullish, with an expectation (out of FEAR) of downside.
With both signals, follow futures carefully and only trade if you have buy and sell signals in at all times. Expect larger second buys. Any news byte could affect the market.
We move to November issues and list both put and call with specific instructions. The market bias is bullish, with an expectation (out of FEAR) of downside.
With both signals, follow futures carefully and only trade if you have buy and sell signals in at all times. Expect larger second buys. Any news byte could affect the market.
Friday, October 15, 2010
Pure Hesitancy
Slimey Goldman Sachs won with a a 38% and our Blue Chip Options call on this stock has advanced dramatically already.
http://noir.bloomberg.com/apps/news?pid=20601010&sid=af_s05VsXeTU
The market continued a classic flat lining, pure hesitancy on upside or downside, and waiting for a "news byte" to bite on, and trigger a movement.
We've been extremely accurate in our Dow Projections this week.
We sense the possibility of a downside raises each day, but the market fights with resiliency.
Yesterday's call recommendation was profitable several times, from $1.00 to $2.50 per contract, and we remain with it as an open signal, suggesting a top is soon coming.
Today we list our first put, but again with caution.
We see any decline as short lived, even if "deep."
The market through 2 p.m. yesterday, before the electronic funds enter, had fluctuated from theoretical Dow highs of 10,998 and lows of 10,052. The hesitancy around 11,000 were fodder for massive electronic trades, while we calmly sat and made a bit of money on the call.
Bought right, we might be able to do so several times with the put. Note we are buying a November put, under the right conditions, while still holding an October call. Read our buy and sell instructions carefully.
Above all, question all facts. In the market, in life, and especially in the games that Karl Rove and group are playing; they are world changing, and not good. Things are not as easy as "lower taxes and stop spending." Custer was actually a coward.
________________________
In our Advanced Mentoring service we work with traders most about three things:
1. Self defeating behavior (the conscious fighting the subconscious)
2. Subconscious self sabotage
3. Buying and selling in a frenzy, and not remembering even what and why you did what you did.
There are reasons we all act in these ways, and much of this is exposed when trading options, as you are acting as
a fruit vendor (See Movie and Article on website). Many of us have trouble seeing inside ourselves.
http://noir.bloomberg.com/apps/news?pid=20601010&sid=af_s05VsXeTU
The market continued a classic flat lining, pure hesitancy on upside or downside, and waiting for a "news byte" to bite on, and trigger a movement.
We've been extremely accurate in our Dow Projections this week.
We sense the possibility of a downside raises each day, but the market fights with resiliency.
Yesterday's call recommendation was profitable several times, from $1.00 to $2.50 per contract, and we remain with it as an open signal, suggesting a top is soon coming.
Today we list our first put, but again with caution.
We see any decline as short lived, even if "deep."
The market through 2 p.m. yesterday, before the electronic funds enter, had fluctuated from theoretical Dow highs of 10,998 and lows of 10,052. The hesitancy around 11,000 were fodder for massive electronic trades, while we calmly sat and made a bit of money on the call.
Bought right, we might be able to do so several times with the put. Note we are buying a November put, under the right conditions, while still holding an October call. Read our buy and sell instructions carefully.
Above all, question all facts. In the market, in life, and especially in the games that Karl Rove and group are playing; they are world changing, and not good. Things are not as easy as "lower taxes and stop spending." Custer was actually a coward.
________________________
In our Advanced Mentoring service we work with traders most about three things:
1. Self defeating behavior (the conscious fighting the subconscious)
2. Subconscious self sabotage
3. Buying and selling in a frenzy, and not remembering even what and why you did what you did.
There are reasons we all act in these ways, and much of this is exposed when trading options, as you are acting as
a fruit vendor (See Movie and Article on website). Many of us have trouble seeing inside ourselves.
Thursday, October 14, 2010
Businesses are Unwilling to Borrow
The theoretical Dow hit highs of 11,195 and lows of 10,982. We were never able to get the Nov signal and are taking it off our buy list. Nothing stops this bull run and we see topping soon and to take more prudence
__________________
Stocks Gain on China Reserves, U.S. Earnings; Bonds, Yen Drop
Oct. 13 (Bloomberg) -- Stocks rose, sending the benchmark global index to a six-month high, as China announced record currency reserves, the Federal Reserve signaled it will protect the recovery and Intel Corp. forecast higher sales. A gauge of commodities reached a two-year high, as the yen and bonds fell.
The MSCI World Index gained 1.3 percent at 11 a.m. in New York, its highest level since April 27. The Standard & Poor’s 500 Index added 0.8 percent. The Reuters/Jefferies CRB Index of commodities added 0.9 percent and reached its highest level since October 2008. The yen weakened against all but one of 16 of its most-traded counterparts. The yield on the German 10-year bund climbed four basis points, while the U.S. Treasury yield rose three basis points.
China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery. The Fed said in minutes published yesterday it was prepared to ease monetary policy “before long.” Intel’s sales forecast topped analysts’ estimates.
“The market’s got a lot of tailwinds operating right now,” said John Kattar, chief investment officer at Eastern Investment Advisors in Boston, which manages $1.6 billion. “Earnings should be good, and that should be a catalyst for the market, and everyone’s looking ahead to” bond purchases by the Federal Reserve to spur growth. “All risk assets have responded dramatically just to expectations.”
__________________
Relative to Gold the past 10 years have actually shown a steady and steep drop in equity prices.
Earnings look as if they will be strong, overall, yet nearly all market gains in recent years have occurred outside of earnings season.
Businesses are unwilling to borrow not because money is not available. That's a GOP lie. They are unwilling to borrow because they fear more changes in Washington.
__________________
Stocks Gain on China Reserves, U.S. Earnings; Bonds, Yen Drop
Oct. 13 (Bloomberg) -- Stocks rose, sending the benchmark global index to a six-month high, as China announced record currency reserves, the Federal Reserve signaled it will protect the recovery and Intel Corp. forecast higher sales. A gauge of commodities reached a two-year high, as the yen and bonds fell.
The MSCI World Index gained 1.3 percent at 11 a.m. in New York, its highest level since April 27. The Standard & Poor’s 500 Index added 0.8 percent. The Reuters/Jefferies CRB Index of commodities added 0.9 percent and reached its highest level since October 2008. The yen weakened against all but one of 16 of its most-traded counterparts. The yield on the German 10-year bund climbed four basis points, while the U.S. Treasury yield rose three basis points.
China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery. The Fed said in minutes published yesterday it was prepared to ease monetary policy “before long.” Intel’s sales forecast topped analysts’ estimates.
“The market’s got a lot of tailwinds operating right now,” said John Kattar, chief investment officer at Eastern Investment Advisors in Boston, which manages $1.6 billion. “Earnings should be good, and that should be a catalyst for the market, and everyone’s looking ahead to” bond purchases by the Federal Reserve to spur growth. “All risk assets have responded dramatically just to expectations.”
__________________
Relative to Gold the past 10 years have actually shown a steady and steep drop in equity prices.
Earnings look as if they will be strong, overall, yet nearly all market gains in recent years have occurred outside of earnings season.
Businesses are unwilling to borrow not because money is not available. That's a GOP lie. They are unwilling to borrow because they fear more changes in Washington.
Wednesday, October 13, 2010
Bullish Short Term
Everybody's waiting. We hit theoretical Dow lows of 10,873 in morning trading and highs of only 11, 066 by 3.15 p.m.
Gold slightly consolidated but held. A close below 1300 would move us bearish on gold short term. Silver held stead.
All the major soft commodities (corn, potash, wheat, and all agricultural products and services) took off, on global needs and a new
safe commodity.
The market is at a turning point. We will continue only trade one signal and only buy it at the right price. I know it's not exciting to not win every day as we did for 6 weeks, but this is too tight a market.
We are bullish for the short term. Any correction deeper than 250 points would raise our eyebrows, and any one below that is merely healthy consolidation.
____________________________________________________
These slime should know. They created much of the first recession:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aJi7lXBGSi3U&pos=6
More facts:
*In 2008 the largest # of shares traded on the big board was 11.1 billion; this year we are averaging only 4.9 billion shares.
*Chinese credit card balances have risen by 17.1% in 2009. Sarcastic spectators such as Floyd, noting the number of McDonalds and KFC's opening in China, predict the average weight of Chinese will increase by 30% within two years.
*On Friday Big Benny speaks at a conference on monetary policy in a low-inflation environment, perhaps shedding more light on the central bank's intention.
*GE reports results tomorrow before the market opens and may affect futures.
Gold slightly consolidated but held. A close below 1300 would move us bearish on gold short term. Silver held stead.
All the major soft commodities (corn, potash, wheat, and all agricultural products and services) took off, on global needs and a new
safe commodity.
The market is at a turning point. We will continue only trade one signal and only buy it at the right price. I know it's not exciting to not win every day as we did for 6 weeks, but this is too tight a market.
We are bullish for the short term. Any correction deeper than 250 points would raise our eyebrows, and any one below that is merely healthy consolidation.
____________________________________________________
These slime should know. They created much of the first recession:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aJi7lXBGSi3U&pos=6
More facts:
*In 2008 the largest # of shares traded on the big board was 11.1 billion; this year we are averaging only 4.9 billion shares.
*Chinese credit card balances have risen by 17.1% in 2009. Sarcastic spectators such as Floyd, noting the number of McDonalds and KFC's opening in China, predict the average weight of Chinese will increase by 30% within two years.
*On Friday Big Benny speaks at a conference on monetary policy in a low-inflation environment, perhaps shedding more light on the central bank's intention.
*GE reports results tomorrow before the market opens and may affect futures.
Tuesday, October 12, 2010
Very Scary Stuff
Floyd grew bored with the market by 2.11 p.m, during which time the market had only moved 40 points in the day.
No entry was made to our new recommendation to the call, but we remain open to purchase this signal. Same rules, different day.
Remember, a key rule of Floydian trading,and of life,is to question authority:
http://abcnews.go.com/Technology/fbi-backdoor-access-mail-texts/story?id=11825039
We believe this is NEWS, not Christine, not Sarah,and not whether Obama is a Muslim.
Very scary stuff.
________________________________
FED minutes will likely (duh) express continued concern about the economy and will include more policy option discussions. This could create volatility in the market.
_______________________________
We will spend a few moments this week with REAL facts, none that you are hearing being paid for, or news-byted:
*The USD has hit fresh lows against several currencies
*Apple is making a version of its iphone for use by Verizon. It may well take the stock above $300.00. Our Blue Chip Option service reports on new positions in Apple this week
*Not only did the Dow top 11,000 last Friday, but Global stock markets also rallied.
*The Treasury may have to take unprecedented steps to prevent U.S. workers from seeing big tax increases in the new year, as congressional delays hold back the setting of withholding tables.
Smart traders already distrust this, knowing it is the "holding of a vote" to make things look worse.
*Intel reports earnings today, as do many other tech companies, again noting that volatility may increase.
No entry was made to our new recommendation to the call, but we remain open to purchase this signal. Same rules, different day.
Remember, a key rule of Floydian trading,and of life,is to question authority:
http://abcnews.go.com/Technology/fbi-backdoor-access-mail-texts/story?id=11825039
We believe this is NEWS, not Christine, not Sarah,and not whether Obama is a Muslim.
Very scary stuff.
________________________________
FED minutes will likely (duh) express continued concern about the economy and will include more policy option discussions. This could create volatility in the market.
_______________________________
We will spend a few moments this week with REAL facts, none that you are hearing being paid for, or news-byted:
*The USD has hit fresh lows against several currencies
*Apple is making a version of its iphone for use by Verizon. It may well take the stock above $300.00. Our Blue Chip Option service reports on new positions in Apple this week
*Not only did the Dow top 11,000 last Friday, but Global stock markets also rallied.
*The Treasury may have to take unprecedented steps to prevent U.S. workers from seeing big tax increases in the new year, as congressional delays hold back the setting of withholding tables.
Smart traders already distrust this, knowing it is the "holding of a vote" to make things look worse.
*Intel reports earnings today, as do many other tech companies, again noting that volatility may increase.
Monday, October 11, 2010
Columbus Day
Today is Columbus Day which means the government and the slimey bankers take the day off, but the market is open and everyone else who has a job is working.
First some reading, so we see why the dollar is falling, Gold and Silver are rising, and the elections are so critical to our sanity.
1. The bankers phucked us. We let them.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a6g9Mv92t0pk
2. This is my favorite. Bubbles Greenspan created a great portion of the real estate bubble and "free credit," and has the gall to write this:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=akB_IZ1E7ulg
First some reading, so we see why the dollar is falling, Gold and Silver are rising, and the elections are so critical to our sanity.
1. The bankers phucked us. We let them.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a6g9Mv92t0pk
2. This is my favorite. Bubbles Greenspan created a great portion of the real estate bubble and "free credit," and has the gall to write this:
http://noir.bloomberg.com/apps/news?pid=20601087&sid=akB_IZ1E7ulg
Friday, October 8, 2010
Calm Your Mind
Yesterday is a perfect example of a market poised for a move. And the oddsmakers are all arguing it, but the consensus remains long term bullish.
We are not trading a put yet. The volume is too light, the flat lining too steady.
________________________________
Many traders ask questions daily. These are the questions I am asked the most:
1. What Pnf Charts do you watch
1 minute, 5 minute, 15 minute, daily and weekly)
2. Why do you constantly argue with facts and "false facts"
(because they vastly influence how the public reacts. We are a gullible, and ill read people)
3. Do you have stop losses in place at all times?
(No. First, it is not possible to do so on an index option, but even if it were we keep all option stop losses as "mental ones" as listing them can draw market makers to buy the stop loss, moving the market down).
4. What is the key to your success?
(1. Discipline and Focus 2. Following Rules, flexibly 3. Questioning all authority and all facts
5. You follow the market all day, and you recommend meditation, and even show a meditation methodology on your home page. Why?
I believe we know little of ourselves and that we know only what we want to know. Meditation eases and relieves the mind of itself, and I use meditation twice daily to "calm my mind"
We are not trading a put yet. The volume is too light, the flat lining too steady.
________________________________
Many traders ask questions daily. These are the questions I am asked the most:
1. What Pnf Charts do you watch
1 minute, 5 minute, 15 minute, daily and weekly)
2. Why do you constantly argue with facts and "false facts"
(because they vastly influence how the public reacts. We are a gullible, and ill read people)
3. Do you have stop losses in place at all times?
(No. First, it is not possible to do so on an index option, but even if it were we keep all option stop losses as "mental ones" as listing them can draw market makers to buy the stop loss, moving the market down).
4. What is the key to your success?
(1. Discipline and Focus 2. Following Rules, flexibly 3. Questioning all authority and all facts
5. You follow the market all day, and you recommend meditation, and even show a meditation methodology on your home page. Why?
I believe we know little of ourselves and that we know only what we want to know. Meditation eases and relieves the mind of itself, and I use meditation twice daily to "calm my mind"
Thursday, October 7, 2010
Venus Turns Retrograde
Additionally traders see positive news in the number of companies that are boosting dividends
Our next trade is slightly different than normal as we are preparing for a slight sell off before longer term upside. With this position read our instructions carefully...
When Japan yesterday (sorry we wrote China) took measures to boost their economy it resounded around the world and futures yesterday showed what it meant in security to the public
There is now speculation other central banks will follow and it's why we project new Dow tops near 11261 and perhaps 11350
Some chartists see the oversold conditions as leading us back to the fib retracement at 10740
Or even to Dow 10629
We will not play any potential downside as we see the risk too high with the overall momentum for health and well being as an economy too high
If futures show downside begin buying a November ITM call expecting a larger second buy and hold
We will recommend this call as we see the market play out so note to only buy if this downside is clear
______________________________________________________________________
For moon chartists, Venus turns retrograde on 10/8 for the first time since the major low of March 6th, 2009. Today and tomorrow have stronger chances of reversal than normal days. We believe that any decline occurring now or to occur will be short term as a trader's profit taking decline, and will lead to more upside.
The Questions Floyd is asked is proving very popular, with lots of feedback. Sometimes these questions are asked within testimonials, or "thanks," or "WTF did I do? letters" Here's five more:
1. Floyd, I have made over 140k this year trading the OEX, thanks to my Level 3 membership and constant questions of you. Do you seriously save 10 or 15% of every winning trade and take it out of your trading portfolio
(Great news on your profits, and YES, I always save 10 to 15% of any win and hide it. I do not use it to cover losses. I hide it by moving it to TIPS, inflation traded bonds, or SLV, if the price is lower (not now)
2. How often are successes on double down buys compared with a single buy and sale?
(I have never calculated a percentage but the odds of success do diminish as you buy down. If you are following the market carefully it's easier to know when NOT to buy down, if you are seeing a massive cracking of support and resistance lines; however, almost always the market trends in bias within a 4 day period, and the majority of the double downs become profitable. I only do this when I see short term "breaks to a bias" occuring).
3. How much money do I need in my account to daytrade?
(The SEC which protected us so well from Madoff and cash derivatives, etc, has elected to protect the consumer by irrational legislation that requires a 25k balance in a day trading account. If not pattern day trading this balance is not required).
4. Do you believe the mid term elections will effect and affect the economy if the GOP wins?
(Very much so. Everyone will first show euphoria because the GOP has told us "the spending will stop" (they created it) and they will "abolish national health care," which they have lied to the American people so well about that now most everyone thinks it's bad. I believe the past two years have been full protectionism by the rich in the GOP (The Skull and Bones boys) to get things back to normal, where the poor are used, the middle class abused, and the rich richer)
5. What's the best option trade you ever made?
(Several years ago I bought heavily on 4 month out calls on Apple (AAPL) and bought it down heavily when it moved down. I returned 300% in less than 45 days of holding. On the OEX I have many days in the past 10 years where I have 50 to 60% returns, and always sell at that %, as I am fearful my greed instinct will take over.)
Our next trade is slightly different than normal as we are preparing for a slight sell off before longer term upside. With this position read our instructions carefully...
When Japan yesterday (sorry we wrote China) took measures to boost their economy it resounded around the world and futures yesterday showed what it meant in security to the public
There is now speculation other central banks will follow and it's why we project new Dow tops near 11261 and perhaps 11350
Some chartists see the oversold conditions as leading us back to the fib retracement at 10740
Or even to Dow 10629
We will not play any potential downside as we see the risk too high with the overall momentum for health and well being as an economy too high
If futures show downside begin buying a November ITM call expecting a larger second buy and hold
We will recommend this call as we see the market play out so note to only buy if this downside is clear
______________________________________________________________________
For moon chartists, Venus turns retrograde on 10/8 for the first time since the major low of March 6th, 2009. Today and tomorrow have stronger chances of reversal than normal days. We believe that any decline occurring now or to occur will be short term as a trader's profit taking decline, and will lead to more upside.
The Questions Floyd is asked is proving very popular, with lots of feedback. Sometimes these questions are asked within testimonials, or "thanks," or "WTF did I do? letters" Here's five more:
1. Floyd, I have made over 140k this year trading the OEX, thanks to my Level 3 membership and constant questions of you. Do you seriously save 10 or 15% of every winning trade and take it out of your trading portfolio
(Great news on your profits, and YES, I always save 10 to 15% of any win and hide it. I do not use it to cover losses. I hide it by moving it to TIPS, inflation traded bonds, or SLV, if the price is lower (not now)
2. How often are successes on double down buys compared with a single buy and sale?
(I have never calculated a percentage but the odds of success do diminish as you buy down. If you are following the market carefully it's easier to know when NOT to buy down, if you are seeing a massive cracking of support and resistance lines; however, almost always the market trends in bias within a 4 day period, and the majority of the double downs become profitable. I only do this when I see short term "breaks to a bias" occuring).
3. How much money do I need in my account to daytrade?
(The SEC which protected us so well from Madoff and cash derivatives, etc, has elected to protect the consumer by irrational legislation that requires a 25k balance in a day trading account. If not pattern day trading this balance is not required).
4. Do you believe the mid term elections will effect and affect the economy if the GOP wins?
(Very much so. Everyone will first show euphoria because the GOP has told us "the spending will stop" (they created it) and they will "abolish national health care," which they have lied to the American people so well about that now most everyone thinks it's bad. I believe the past two years have been full protectionism by the rich in the GOP (The Skull and Bones boys) to get things back to normal, where the poor are used, the middle class abused, and the rich richer)
5. What's the best option trade you ever made?
(Several years ago I bought heavily on 4 month out calls on Apple (AAPL) and bought it down heavily when it moved down. I returned 300% in less than 45 days of holding. On the OEX I have many days in the past 10 years where I have 50 to 60% returns, and always sell at that %, as I am fearful my greed instinct will take over.)
Wednesday, October 6, 2010
Sit On Your Hands Day
Japan lowered their prime rate yesterday and the market jumped.
For those that bought the call the day before on the downside move huge profits were possible.
Following the market opening no puts would have been bought.
With the upswing yesterday we have approached market tops.
The market has more upside, perhaps to 11,224 through 11,310 but a slight retracement is likely to occur.
The Dow hit theoretical highs of 11,005 and lows of 10,712.63, with a total movement of nearly 200 points.
We will not trade puts or calls today and let the market breathe. I am simply unsure of how the market will react to such swings in trading
Today is sit on your hands day
Do not chase any trade in this market, put or call. Follow our option signal rules to the T to win, as it's in the volatility this past few weeks that we've had the greatest success.
And remember to always have sell signals in.
___________________________________________
Real facts: The market has rallied 38% in 90 days. Almost 2500 Dow points from 3/9 to 6/11 alone moved, and from there has moved up an additional 1400 points, or 17%.
This is a fast upside, perhaps too fast.
We have also noticed, in recent weeks, that Down openings 80% of the time lead to UP closings. Don't know if this is a long term pattern, but it's a clear short term one.
Earnings reporting begins in earnest this week, and results will suddenly become our reality.
For those that bought the call the day before on the downside move huge profits were possible.
Following the market opening no puts would have been bought.
With the upswing yesterday we have approached market tops.
The market has more upside, perhaps to 11,224 through 11,310 but a slight retracement is likely to occur.
The Dow hit theoretical highs of 11,005 and lows of 10,712.63, with a total movement of nearly 200 points.
We will not trade puts or calls today and let the market breathe. I am simply unsure of how the market will react to such swings in trading
Today is sit on your hands day
Do not chase any trade in this market, put or call. Follow our option signal rules to the T to win, as it's in the volatility this past few weeks that we've had the greatest success.
And remember to always have sell signals in.
___________________________________________
Real facts: The market has rallied 38% in 90 days. Almost 2500 Dow points from 3/9 to 6/11 alone moved, and from there has moved up an additional 1400 points, or 17%.
This is a fast upside, perhaps too fast.
We have also noticed, in recent weeks, that Down openings 80% of the time lead to UP closings. Don't know if this is a long term pattern, but it's a clear short term one.
Earnings reporting begins in earnest this week, and results will suddenly become our reality.
Tuesday, October 5, 2010
How Often Do You Recalculate
The market opened up despite negative futures and the put was available as low as 4.10 and sold to highs of 6.60.
_____________________
Many traders commented on "the top five questions" and asked for more, so here's the next five most popular questions subscribers ask:
1. How often do you re-calculate the support/resistance and pivot. (Once to twice a day. If high movement, by 10.30 to 12 noon, and again by 2.30 p.m. before the 3 p.m. market makers take over)
2. Do you trade by minute charts? (I use them, but I trade by knowing an option and how it will respond to the market movement ("falling in love" with an option means learning its nuances)
3. When you sell, how do you think of the sale? (This answer will disturb you. I am personally trading against others, as you are, when we bid/ask. I sit and hope I am making someone else lose their ass while I make money. It is a "war thinking.")
4. You soapbox liberalism and fight conservatism throughout your writing. How is this relevant to the market? (I soapbox what I believe "right thinking" healthy to our populace and economy. I believe idiocy leads our politics and that this idiocy affects the market dramatically. I try to influence to help traders see that there are direct correlations. Further, I support conservatism and liberalism. I do not support "greed" conservatism or "extreme" liberalism, by my definitions.) Those with me when Bush became President made a great deal of money on oil, as I know the family, their first interest being power and power with oil. Georgey Jr just wasnt' smart enough to keep manipulating the oil prices after Iraq so desperately failed. And traders would have made great money following housing and betting with me against growth, which I felt all created by Greenspan and later Cheney the President to support an already weak economy)
5. When you lose several days in a row, what do you do? ( I analyze my journal of the trades to learn what I did wrong, and I stop trading for a few days)
_____________________
Many traders commented on "the top five questions" and asked for more, so here's the next five most popular questions subscribers ask:
1. How often do you re-calculate the support/resistance and pivot. (Once to twice a day. If high movement, by 10.30 to 12 noon, and again by 2.30 p.m. before the 3 p.m. market makers take over)
2. Do you trade by minute charts? (I use them, but I trade by knowing an option and how it will respond to the market movement ("falling in love" with an option means learning its nuances)
3. When you sell, how do you think of the sale? (This answer will disturb you. I am personally trading against others, as you are, when we bid/ask. I sit and hope I am making someone else lose their ass while I make money. It is a "war thinking.")
4. You soapbox liberalism and fight conservatism throughout your writing. How is this relevant to the market? (I soapbox what I believe "right thinking" healthy to our populace and economy. I believe idiocy leads our politics and that this idiocy affects the market dramatically. I try to influence to help traders see that there are direct correlations. Further, I support conservatism and liberalism. I do not support "greed" conservatism or "extreme" liberalism, by my definitions.) Those with me when Bush became President made a great deal of money on oil, as I know the family, their first interest being power and power with oil. Georgey Jr just wasnt' smart enough to keep manipulating the oil prices after Iraq so desperately failed. And traders would have made great money following housing and betting with me against growth, which I felt all created by Greenspan and later Cheney the President to support an already weak economy)
5. When you lose several days in a row, what do you do? ( I analyze my journal of the trades to learn what I did wrong, and I stop trading for a few days)
Sunday, October 3, 2010
Huge Wealth Disparities
Friday continued the play: Theoretical Dow top: 10,906 and a theoretical bottom at 10,781. We will continue with the same October options that we favored and profited from 7 times last week, and with the same specific buy below prior day close methodology.
The market is clearly bullish, and we believe, as does KeyTurningDates.com that "the bear market rally has one goal: "to create a sucker rally that will finally get the public back in the market before the devastating second leg of the supercycle bear takes the markets to new lows."
That's happening now, and may continue to occur ( a bullish trend) through all of 2011, and much of 2012. That's just enough time for all our greeds to build, and for the slime to find the best ways to fool the government and the stock market buying public.
The New Economy Index (NEI) averages just 5 stocks and just hit a three year high.
SE Asia markets are higher than any level since their 1987 crash.
The mood is good in the American markets. We're killing ourselves and others daily and spending big bucks in Afghanistan, 13% of our nation is in poverty, 26% fully uninsured with health benefits, we now hate our Muslim Communist dictator and want fresh meat in Congress, finally realizing all we have has rotted. Life is normal.
Unemployment is high and will remain so. Unskilled labor has been replaced by technology, companies have found out they can do well with less, and we've proven now that the Bush 2.7 trillion deficit was largely fueled by false bubbles and the lowering of taxes.
Every single economic depression has been preceded by huge wealth disparities. The income gap between the richest and the poorest Americans grew last year to its widest amount on record.
Despite the GOP's need for greed (don't end the tax breaks) and the Pee Party babbling, the U.S. Census reported last week that the income gap between the richest and poorest Americans grew last year to its widest amount on record.
The market is clearly bullish, and we believe, as does KeyTurningDates.com that "the bear market rally has one goal: "to create a sucker rally that will finally get the public back in the market before the devastating second leg of the supercycle bear takes the markets to new lows."
That's happening now, and may continue to occur ( a bullish trend) through all of 2011, and much of 2012. That's just enough time for all our greeds to build, and for the slime to find the best ways to fool the government and the stock market buying public.
The New Economy Index (NEI) averages just 5 stocks and just hit a three year high.
SE Asia markets are higher than any level since their 1987 crash.
The mood is good in the American markets. We're killing ourselves and others daily and spending big bucks in Afghanistan, 13% of our nation is in poverty, 26% fully uninsured with health benefits, we now hate our Muslim Communist dictator and want fresh meat in Congress, finally realizing all we have has rotted. Life is normal.
Unemployment is high and will remain so. Unskilled labor has been replaced by technology, companies have found out they can do well with less, and we've proven now that the Bush 2.7 trillion deficit was largely fueled by false bubbles and the lowering of taxes.
Every single economic depression has been preceded by huge wealth disparities. The income gap between the richest and the poorest Americans grew last year to its widest amount on record.
Despite the GOP's need for greed (don't end the tax breaks) and the Pee Party babbling, the U.S. Census reported last week that the income gap between the richest and poorest Americans grew last year to its widest amount on record.
Friday, October 1, 2010
Lies
These numbers are very real and important. Yesterday the market by 2.45 p.m. had spiraled from highs of 10,948/10988 theoretical Dow tops, to lows of 10,745/10,705.
Those are numbers that stand out because we "almost crossed" 11,000, (the magic in 000's) and we retreated right to the 16th century mathematician Fibonacci bottoms and jumped back up.
Charles Nenner Research had just noted that moving below 10,700 would likely than move us lower, but we held at this number yesterday. And the bulls struggled again. Whipsaw all day.
Puts hit highs of 7.50 and Calls hit highs of 11.40. Traders who owned profited and traders who bought today could have also been profitable by simply following support and resistance lines and the pivot, one recalculation perhaps by noon, and traders could have traded both signals twice each for profits.
Today we'll list the same signals, but only as day trades. We do not want to hold inventory over the weekend, and want time to really analyze if we are having higher highs, and if the market is now reacting less to "news." It appears this way in the last 10 days of trading.
I can't make this stuff up if I tried:
Bush does this:
Bush Tax Cuts Reduced Total Income By $2.7 Trillion
Just as they did in 2000, the Republicans are running this year on an economic platform of tax cuts, especially making the tax cuts permanent...
Obama is blamed for spending money.
Of course, no one is behind "freezing his adminisration" or "false lies" being perpetrated, and not one GOP member seems to remember this.
Current Signals:
Those are numbers that stand out because we "almost crossed" 11,000, (the magic in 000's) and we retreated right to the 16th century mathematician Fibonacci bottoms and jumped back up.
Charles Nenner Research had just noted that moving below 10,700 would likely than move us lower, but we held at this number yesterday. And the bulls struggled again. Whipsaw all day.
Puts hit highs of 7.50 and Calls hit highs of 11.40. Traders who owned profited and traders who bought today could have also been profitable by simply following support and resistance lines and the pivot, one recalculation perhaps by noon, and traders could have traded both signals twice each for profits.
Today we'll list the same signals, but only as day trades. We do not want to hold inventory over the weekend, and want time to really analyze if we are having higher highs, and if the market is now reacting less to "news." It appears this way in the last 10 days of trading.
I can't make this stuff up if I tried:
Bush does this:
Bush Tax Cuts Reduced Total Income By $2.7 Trillion
Just as they did in 2000, the Republicans are running this year on an economic platform of tax cuts, especially making the tax cuts permanent...
Obama is blamed for spending money.
Of course, no one is behind "freezing his adminisration" or "false lies" being perpetrated, and not one GOP member seems to remember this.
Current Signals:
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