Inverted Head and Shoulders Pattern

I’ve spent last week in California meeting with other financial analysts and giving lectures on my views of the market and how politics and market manipulators and makers control the market.

The market is in an inverted head and shoulders pattern and actually has the potential for more upside, yet tips on fragile ground.

Several patterns for you to observe:

*When the market goes up, gold and silver go down. They are moving in conjunction now, and confusing chartists and technicians.

*Gold and silver are typically held as hedges against the USD. Many analysts, including myself, believe the worthless USD could truly shift ground, and although still truly worthless, may dramatically increase in value.

: Another sign of a bottom in the greenback: Longtime and well-respected dollar bulls are throwing in the towel. Having feared a "deflation" that would have seen the dollar's purchasing power grow, many analysts now realize the next crisis will be inflationary – meaning a collapse in the dollar's purchasing power.

And finally… perhaps most ominously… one of the world's greatest investors, Jeremy Grantham, the head of GMO, recently published a long document explaining why "this time is different" and the value of the dollar will not revert back towards the mean. The world, he says, is facing a Malthusian crisis – "peak everything."”-Stanberry and Associates

* Both Gold and Silver, which we read about ad nauseum, are technically due for a correction. We exited all precious metal positions at 1440 to 1476 for Gold and 42.00 for silver. It is our goal TO ALWAYS LEAVE MONEY ON THE TABLE FOR SOMEONE ELSE. NEVER SELL AT THE TOP, BUT NEAR THE TOP.

We’re very pleased with our decision.

Short term (6 months) we are bullish to the U.S.and global markets and have invested our Blue Chip portfolio very aggressively and have shown some truly marvelous returns in both stocks and options.

Good earnings, good money reports, and good political controls (the elimination of idiots like Trump telling us Obama is not a an American, or Huckabee telling us he is “too worldly” perhaps helping people realize there truly are some idiots trying to lead us.

Call profits were difficult last week, as the market opened up and stayed up, but any traders that paid prior day close or higher were able to profit each day of last week.

Please remember, our system and rules are unlike most. We are flexible to the market and recognize we must adjust slightly, as long as we are within the basics of our system

We have been resistant to entry to the put, often to the chagrin of our subscribers determined to see downside, as it should occur. Typically puts return less profits and requires second buys and we remain on the sidelines with a put purchase YET.

In fact we will open the market this week with no new OEX Option signal, as we want to watch technicals.

Separately in our Blue Chip Option “movie of the week” where Floyd speaks of market conditions in general (available only to BCO subscribers) we predict where we see market conditions heading. Sign up for this service and round out our trading at www.bluechipoptions.com

As you read Monday’s OEX alert we are standing sentry at the gates waiting to see what mood swings take place.

Remember, there is always a chance to buy and to make a profit, and even more chances to buy and have a loss, all because we want to trade.