Monday, December 6, 2010

Lower Cost and Better Education

I’ve had many emails from my lengthy commentary last Monday where I combined the resources of OEX Options and Blue Chip Options for the MONDAY commentary only.

I remind all subscribers again that alerts for the OEX and Blue Chip continue daily through the week, just holding less daily commentary, and listing what we are trading. With Blue Chip if we are not trading we do not issue an alert.

CC, a valued long-term subscriber, has asked that we improve our www.stockcharts.com public listing to show current recommendations. We will do so this weekend, but make note that many of our positions are CORE and we do not trade, we only buy and hold, and tell you only when updates, and many of the charts are for your general review about the market. In our Advanced Mentoring service http://www.oexoptions.com/AdvancedMentoring/AM.html

We teach distinctly how to utilize PNF charting as we do in Level 3 in our movies.

First an opinion from someone with common sense. This is NOT a pee party member; they are too busy watching the “truth” on Fox News or listening to Rush, the great Barnum hustler.

“ I am no economist, but having recently arrived in your country to work, manage and live. Let me at least propose four ways to help this slowly recovering economy:

1. To those who can afford it: Go spend money. For the first time ever your past overconsumption will actually contribute to making things better

2. To perfectly healthy companies: Invest in the U.S. Invest in selling or manufacturing products that can be exported, or substituted for imported.

3. To banks: fulfill your basic mission statement: Lend-finance medium size healthy companies. Estimate the risk, charge a reasonable margin, and contribute to get us out of this mess your cohorts got us into.

4. To the Government: What are you still doing in Afghanistan? Get out, which will save billions (which will help you balance the budget) and start working on the three things the U.S. economy really needs to become competitive again:

· A lower cost of litigation

· A lower cost of health care

· A better education system

Frank De Haan

Dallas”

This letter explains it well. It’s the definition of “lower cost, or better education” that remains the issue.

Here’s the sad answer on Wikileaks and the morality of disclosure of secrets:

Any government that is phucking stupid enough to make their security system so bad that a 20-year-old Private that can’t even shave is able to hack it DESERVES their secrets known.

Does it affect the fate of people? Sure, just as we reading the incredible corruption and falsehoods the U.S. and other nations have been perpetrating.

Sorry, I can‘t fault Wikileaks. They operate from the Constitution (show this please to a Pee party member). You may not agree, but it is their right.

GLD, closing above 1389, appears to be on another BUY signal.

Silver (SLV) some believe will top at 30.85 and others believe will outlast the Gold run and actually move even higher.

We will be recommending a new Call option to Blue Chip Traders through the week

Blue Chip Traders in long or short term Treasuries take note. We are approaching another cycle low. We may see a low point and burst up, but our money on Treasuries remains in TIPS, as the world talks about deflation.

Many OEX traders wrote with the same three questions this past week:

1. Why would you trade calls on down days?

Answer: Whipsaw leads to best buy, and we made money all the time on the bounces

2. Your Dow projections are astoundingly accurate and often vary from many other professional traders that we brokerages buy? Why?

Answer: I use a combination of Point and Figure charting, Bollinger Bands, historical cycles and intuition. I do not read any other points of view by professional traders, with the exceptions of Charles Nenner Research and Key Turning Dates. I read only Bloomberg for news, and do not watch any talking heads. Intuition is fully 30% of my read.

3. Do you see a long term return to buying equities, and have any long-term projections for the market, or the Dow?

Answer: To me, if I can “see” 21 days” ahead for index trading options it’s as far as one should or could go. As for longer term I only follow trends that I think will break through sectors as the market rises and falls, and these become our long-term CORE investments.

We have seen enough volatility, and enough key reversals, that the market may be now in for a pre-Christmas ball buster drop to scare the world, which certainly needs scaring. However, there is more right than wrong economically, and our easing moves appear to be working.

As we are stretching at the top of Bollinger Bands, which have been contracting, we also see any downturn following the same Dow Projection cycle that we just completed.

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