August is the worst Dow and S & P month since 1988. In the past farm harvesting made August the best Dow month 1901 through 1951 in a row. And now.....
On Friday the market hit all time highs for 09, showing a theoretical Dow top of 9478, and an opening low of 9218. The S&P500 has an important resistance 1014, which the market ran by, and held over, on a true bull run. This was sparked by unemployment showing at 9.4, not worse than before, truly the signs of either manipulation in the market or gross stupidity on the part of the American public.
> Arthur Delaney Why There's Really Nothing To Celebrate In The Unemployment Rate Drop
Something we teach at www.bluechipoptions.com is appropriate to the situation we are in:
*The Controlling Price Factor:
The distinction/difference between supply and demand has been the controlling price factor throughout the ages of mankind.
Only the medium of exchange has been different.
If we have something that no one wants, we call it worthless; if everybody wants it we call it priceless. This is the law of supply and demand.
Right now the stock market is priceless, and investors can't get enough. Our Dow projections below are NEW, and for the very short term, studying the longer range of trends.
Although the count is 4 to the call we consider the market too difficult to read to issue a safe trade. New Signal instructions are thusly a bit different than usual.
On Friday, just to keep the winning streak up, our trust OXBHM August call moved from lows of 7.70 to 11.50!!!! It was easily traded from opening at market price for a 2.00 per contract profit.
Our daily call profits have been extraordinary, for traders keeping their eyes on the market and playing the edges.
And the key Friday that we saw is that near day end, when the market always moves up, it did not. It actually declined. Tops?
For readers wanting some outstanding journalism on those truly evaluating and trying to build the Obama Plan, and fair evaluations of efforts, we highly recommend this outstanding piece of journalism: http://www.rollingstone.com/politics/story/29551986/barack_obama_so_far
Remember, you can follow us on Twitter. We are recalculating the Dow at least once during the day
http://twitter.com/Bluechipoptions
Floydian Therapy: Many new subscribers have asked us about this service. For traders wanting to work on the emotions behind the decisions that lead their trading, and their lives, we offer a unique email service with a trans-personal psychology approach from our classical training. View a video on Floyd on this: http://www.oexoptions.com/FloydTherapy/TheBlankScreen.swf or at http://www.oexoptions.com/pages/FloydianTherapy.html
www.bluechipoptions.com has new information online each day, updated articles on the market, blogs by Floyd, and option recommendations. There is also a Preferred Blue Chip subscription service.
Visit us at www.bluechipoptions.com
Floyd's Blog: http://bluechipoptions.blogspot.com/
Floyd is on Twitter: http://twitter.com/Bluechipoptions
Monday, August 10, 2009
Friday, August 7, 2009
I'm Stunned
By 10.30 a.m. the market had moved to S1 and R1, which I recalculated at that time. Day traders struggled to make any profits, until 3 p.m. This high frequency computer trading that has been taking over the market appears to manipulate both the open and the close. All I know, as I study up on this, is that this new high frequency computer trading is extending trade ranges.
Simply put, this means traditional lagging or technical indicators appear less accurate, concerning Wall Street more.
Months ago I predicted that from the lowest low (6400 average) it would be likely to have a Fibonnaci retracement of 68%, by year end hits highs at 10, 400 to 10,750 and a bull market under normal market conditions could achieve this, and I still see it.
But, I'm stunned by the trade range. We've been overbought far too long, without showing an accurate bell curve count, and healthy markets need healthy consolidations or distributions to allow the market to breathe.
We'll close out a put today, our third put loss, and our 18th call gain, and not recommend a new signal today unless risk traders want to try the same call signal we've used for 7 days, we're falling in love with it, as the PPT or someone daily moves the market up late in the day.
Our call recommendation was profitable only day trading for tight profits.
Simply put, this means traditional lagging or technical indicators appear less accurate, concerning Wall Street more.
Months ago I predicted that from the lowest low (6400 average) it would be likely to have a Fibonnaci retracement of 68%, by year end hits highs at 10, 400 to 10,750 and a bull market under normal market conditions could achieve this, and I still see it.
But, I'm stunned by the trade range. We've been overbought far too long, without showing an accurate bell curve count, and healthy markets need healthy consolidations or distributions to allow the market to breathe.
We'll close out a put today, our third put loss, and our 18th call gain, and not recommend a new signal today unless risk traders want to try the same call signal we've used for 7 days, we're falling in love with it, as the PPT or someone daily moves the market up late in the day.
Our call recommendation was profitable only day trading for tight profits.
Thursday, August 6, 2009
The Four Legged Stool
We each have our own handwriting. Think on this statement, as it defines the uniqueness in who we are, and in how we trade. As a trainer I teach FOCUS first, and thought you might gain as traders from the logic in which I approach a trade, or a business, or life.
The Four Legged Stool Concept
It has been proven that the human mind can only truly handle 5 large projects or situations at a time. Multi-tasking may “sound good,” but does not really happen. We end up doing some things without completing them, while doing other jobs without complete thinking. As speed takes over our universe, and we have “instantaneous communication it’s our natural tendency to begin to “overload,” or to hit our threshold.
To develop a business, a plan, or a project, it is always best to organize the effort. Most companies fail here because they have so many people multi tasking that it is impossible to sit down, prioritize, and then execute.
We fail at the execution.
To organize that effort I work at a consultant teaching organizations to focus on no more than 5 core objectives at one time. Each objective has a “seat,” or a core issue, shown in the 4- legged stool pictured below. This “seat” is defined as the WHAT (what must be done, what the issue is, what opportunity is being considered) and 4 legs hold up that seat, or the core issue.
One by one, we replace, bolster or rebuild four legs of a stool. We assign people to the tasks associated with the issues for each seat of the stool. You can build the four legs at one time, just not too fast on any one leg, and with projects that work in harmony. Or, some smart organizations may do the “research leg” before they even consider building a 4 legged stool.
Think of it as having rungs up a ladder, or multiple chair rails to build from the bottom of each stool leg to get to the top. You may not have to work on four legs at the same time, but the goal is strong support (the legs) for the concept (the seat)’.
This is a simple drawing that simply says:
-Identify (the seat)
-Define the issues and the how to’s (the legs)
It’s thinking this simply that can allow the complexity of a project to be completed perfectly. And, that project can be YOU, or YOU trading.
_________________________________________________________
The first nine trading days of August are historically weak. Interesting, they certainly have not been this time. Yesterday we saw the first real move to the downside, with the Theoretical Dow hitting 9166 before noon.
We re-calculated the Dow by 10.30 a.m. and had a pivot of 9250.61. For much of the day, despite downside, the market then struggled at or around the pivot point.
IMPORTANT NOTE: WE ARE UPDATING OUR DOW OR OEX PIT PIVOT Calculators in both Level 2 and Level 3 over the next few days, and you'll note we are providing an Intraday calculator that lists Open/High//Low/Close.
These are all calculations you take from the current day's Dow, and the close is defined as the "last" price of the Dow, or the OEX.
The market yesterday showed the fear and the greed in the market. Many chartists see a high at 9500 and up, and others sit back dumbfounded the trading range (The # of days a bias typically continues) has extended moving averages.
Watching the market at up until 2.30 p.m., before whatever "action" begins puts had gained considerable ground. We saw a market move from a pivot to r1 and s1.
Yesterday's instructions on the call again noted the high risk, but reports came in from many subscribers that traded again for profit. We said: -OXBHM OEX.X AUG 2009 465.0000 CALL
"I feel like a record. Watch futures, is up over 50 points, be ready to "pay to market" at open and try to sell by day end for 30% profits.
If futures are only moderately down, and you remain open to high risk, take a best buy trade on the signal at no higher than prior day close, 20% under best buy, and sell for 30% to 54%.
Calls increase in risk in second buys, and are "beyond bell curve analysis."
"Floyd, I still saw the hesitancy so waited for best buy on the call today and got it at 7.40 during the morning downturn, and sold when it hit R1 for 8.90. Wow, nice signal"-NBW, Kansas City
Yet again, at 3 pm. the market had upside swung to only a 24 point loss for the day.
So, here we are: we hold a put to the hedge, and are making money on calls daily, and some of us are seeing this as too high risk at this point, and are actually afraid to buy to the trend again.
That's what the market feels, coupled with this high frequency computer trading info I've been forwarding. The boys on Wall Street are up to something again, and I already know there are games, and even the conspiracist in me doesn't believe it's the government, but Wall Street back in action.
The Four Legged Stool Concept
It has been proven that the human mind can only truly handle 5 large projects or situations at a time. Multi-tasking may “sound good,” but does not really happen. We end up doing some things without completing them, while doing other jobs without complete thinking. As speed takes over our universe, and we have “instantaneous communication it’s our natural tendency to begin to “overload,” or to hit our threshold.
To develop a business, a plan, or a project, it is always best to organize the effort. Most companies fail here because they have so many people multi tasking that it is impossible to sit down, prioritize, and then execute.
We fail at the execution.
To organize that effort I work at a consultant teaching organizations to focus on no more than 5 core objectives at one time. Each objective has a “seat,” or a core issue, shown in the 4- legged stool pictured below. This “seat” is defined as the WHAT (what must be done, what the issue is, what opportunity is being considered) and 4 legs hold up that seat, or the core issue.
One by one, we replace, bolster or rebuild four legs of a stool. We assign people to the tasks associated with the issues for each seat of the stool. You can build the four legs at one time, just not too fast on any one leg, and with projects that work in harmony. Or, some smart organizations may do the “research leg” before they even consider building a 4 legged stool.
Think of it as having rungs up a ladder, or multiple chair rails to build from the bottom of each stool leg to get to the top. You may not have to work on four legs at the same time, but the goal is strong support (the legs) for the concept (the seat)’.
This is a simple drawing that simply says:
-Identify (the seat)
-Define the issues and the how to’s (the legs)
It’s thinking this simply that can allow the complexity of a project to be completed perfectly. And, that project can be YOU, or YOU trading.
_________________________________________________________
The first nine trading days of August are historically weak. Interesting, they certainly have not been this time. Yesterday we saw the first real move to the downside, with the Theoretical Dow hitting 9166 before noon.
We re-calculated the Dow by 10.30 a.m. and had a pivot of 9250.61. For much of the day, despite downside, the market then struggled at or around the pivot point.
IMPORTANT NOTE: WE ARE UPDATING OUR DOW OR OEX PIT PIVOT Calculators in both Level 2 and Level 3 over the next few days, and you'll note we are providing an Intraday calculator that lists Open/High//Low/Close.
These are all calculations you take from the current day's Dow, and the close is defined as the "last" price of the Dow, or the OEX.
The market yesterday showed the fear and the greed in the market. Many chartists see a high at 9500 and up, and others sit back dumbfounded the trading range (The # of days a bias typically continues) has extended moving averages.
Watching the market at up until 2.30 p.m., before whatever "action" begins puts had gained considerable ground. We saw a market move from a pivot to r1 and s1.
Yesterday's instructions on the call again noted the high risk, but reports came in from many subscribers that traded again for profit. We said: -OXBHM OEX.X AUG 2009 465.0000 CALL
"I feel like a record. Watch futures, is up over 50 points, be ready to "pay to market" at open and try to sell by day end for 30% profits.
If futures are only moderately down, and you remain open to high risk, take a best buy trade on the signal at no higher than prior day close, 20% under best buy, and sell for 30% to 54%.
Calls increase in risk in second buys, and are "beyond bell curve analysis."
"Floyd, I still saw the hesitancy so waited for best buy on the call today and got it at 7.40 during the morning downturn, and sold when it hit R1 for 8.90. Wow, nice signal"-NBW, Kansas City
Yet again, at 3 pm. the market had upside swung to only a 24 point loss for the day.
So, here we are: we hold a put to the hedge, and are making money on calls daily, and some of us are seeing this as too high risk at this point, and are actually afraid to buy to the trend again.
That's what the market feels, coupled with this high frequency computer trading info I've been forwarding. The boys on Wall Street are up to something again, and I already know there are games, and even the conspiracist in me doesn't believe it's the government, but Wall Street back in action.
Wednesday, August 5, 2009
The Woods Within
This worked like a top yesterday again. Our pre market instructions were "-OXBHM OEX.X AUG 2009 465.0000 CALL Watch futures. Pay "to market" only if futures up 50 points. Sell for 34 to 43% profits, trying for same day."
The position was available for day traders as low a buy as 7.90, with top sells of 9.60. Futures watchers saw a volatile and "hesitant" futures, whipsawing itself in advance of the market. This call was again a profitable one, and day traders reported two profits on tight .50 contracts.
The market showed us every sign of not knowing what to do. S&P500 has a strong resistance line at 1014 and our Dow projections remain as the highs we see the market potentially hitting. The resistance we saw throughout the day as the market hit our theoretical Dow top at 9361 several times before faltering.
Do calls have more of a range, and could it go on? With the euphoria we've seen and the new high frequency computer trading, it's possible, as the trading ranges are now so extended Floyd is doing new studies in his Point and Figure long term charting.
We'll continue to list a day trade call, and continue to warn of the risk. We count 15 straight call profits now, two put losses. Sum of all parts. We'll continue to hold our hedge put, and will watch for the trigger downturn that will surprise al.
* How to measure effective trading: The size of your winners vs. the size of your losers. It is okay to lose, if you are gaining more J
We'll lead off with an essay we soon plan for a blog at Blue Chip Options.com. Check out what we have there: http://www.bluechipoptions.com/
Two generations of lopsided capitalism. That's how I see it. We've spent 20 years, in various administrations, building an infrastructure of no controls, and the few richer. A study of who got rich over the past 20 years would be a study in what was "done."
We're paying for it, and I still don't believe we even know how deep the woods are that we are within.
The position was available for day traders as low a buy as 7.90, with top sells of 9.60. Futures watchers saw a volatile and "hesitant" futures, whipsawing itself in advance of the market. This call was again a profitable one, and day traders reported two profits on tight .50 contracts.
The market showed us every sign of not knowing what to do. S&P500 has a strong resistance line at 1014 and our Dow projections remain as the highs we see the market potentially hitting. The resistance we saw throughout the day as the market hit our theoretical Dow top at 9361 several times before faltering.
Do calls have more of a range, and could it go on? With the euphoria we've seen and the new high frequency computer trading, it's possible, as the trading ranges are now so extended Floyd is doing new studies in his Point and Figure long term charting.
We'll continue to list a day trade call, and continue to warn of the risk. We count 15 straight call profits now, two put losses. Sum of all parts. We'll continue to hold our hedge put, and will watch for the trigger downturn that will surprise al.
* How to measure effective trading: The size of your winners vs. the size of your losers. It is okay to lose, if you are gaining more J
We'll lead off with an essay we soon plan for a blog at Blue Chip Options.com. Check out what we have there: http://www.bluechipoptions.com/
Two generations of lopsided capitalism. That's how I see it. We've spent 20 years, in various administrations, building an infrastructure of no controls, and the few richer. A study of who got rich over the past 20 years would be a study in what was "done."
We're paying for it, and I still don't believe we even know how deep the woods are that we are within.
Tuesday, August 4, 2009
Bernie, Ebbers, and the Boys
The Dow passed norms, but the S&P500 hit the magic 1000 mark. Upturn continued. Read our new Dow projections, with notes on tops, and bottoms. Nothing in the market can be seen as bad, and all data is good. The economy is rebounding. This is what it seems with what we are seeing in the market.
Futures were up over 50 points so traders paid to market for -OXBHM OEX.X AUG 2009 465.0000 CALL. Most traders got in by 10 a.m. for 8.40 area, selling to highs of 10.00 by mid day.
It should be noticed that call premiums to not rise in proportion to profits, a sign of fear for call traders. But, before the magic 3 p.m. hour we had up to $1.60 per contract of profits on the call, and took a second buy to our hedge put.
Remember, do NOT overbalance a risk portfolio (trading options) to any one balance. Option trading successfully is managing the "sum of the parts" in buying and selling.
________________________________________________________
Nine lenders that got government aid paid at least 1 million to 5000 employees. These are banks that last year, under the first Paulson bribe, got 33 billion. The nine firms in the report had combined 2008 losses of nearly 100 billion.
Sadly this is a grey line. Surprise you? Of course, Congress, which initially approved this whole bail out, pre Obama, we know were all on this graft, as the banks got money that seemed to go nowhere, everything collapsed, and all of us were paying consultants to figure out what the actuaries had actually done for all the brokerages and companies betting derivatives.
Some of this stuff was actually legitimate banking, and most of it how the guys have the country club prison down there in N.C. Bernie, Ebbers, and the boys.
Goldman just rapes during the second quarter, and we're all amazed how much money is being made.
But some argue we have to pay these top people to either 1) Analyze and get us out of our lies (Blackwater), or 2) Create new ways for the banks to make money, or continue legitimate trading.
I'll leave it here today. Think of this:
1. The banks are making money.
2. Corporate profits appear to be up. Much are from continued write offs of bad investments, but much because of cost cutting.
The market has been marvelously up for so many days. Wall Street is coming back. The economy is improving. We hear this each day, and are able to interpret the data we receive to prove that this is true.
Just a fact to sober your euphoria: In 2007 the U.S. Government sold $450 billion in debt. THIS WEEK the government is selling 200 billion of new debt.
Jog on over to www.bluechipoptions.com and read our blog on "There is No Black and White"
Meanwhile, the market is being manipulated. And the stories being told on "cash for clunkers" and "raising taxes on the middle classs", sigh.......go over to our FREE blogs at http://www.bluechipoptions.com/
Here's the new game in town, that is causing this euphoric uproar, and may soon cause the downturn. High Frequency Computer Trading.
http://online.wsj.com/article/SB124908601669298293.html#mod=todays_us_money_and_investing
____________________________________________
And, next from Advanced Mentoring client MR, who is studying how to study. My comments in bold as we share this dialogue:
Per floyd's recommendation I started reading roubini this weekend. I read as many free articles as I could find on the RGE Moniter. Excellent reading. I like the perspective it gave. Excellent reading. This is a recommendation I give all subscribers. Want to get the true economic issues of our times, read Roubini and Krugman.
I have been thinking more about the silent witness at home, working around the house. Starting to give myself feedback rather than being so focused and ingrained in myself.
I think allot of times I live life like a kid with his face 2 inches from the TV screen. I can't see anything except for what's thrown in my face. I see how that can happen as a trader, as an employee, as a parent.
Taking that step back - giving myself some space helps to build an observatory gap between myself and I. I am beginning to grasp how this can allow clarity and reason an opportunity to flourish.
The silent witness is a simple way of putting "you as an observer" on your shoulder. Let "you" watch your behavior. It can be eye opening.
I remember Floyd referring to himself as our provacateur - the instigator of thought. I'm taking some of the seeds of insite and digging into them. Asking my own questions. What is a double dip recession? Why is the market climbing so high? Why are revenues up, but sales down - and how long can that sort of performance provide a springboard for stock market recovery? When will the lack of sales start to show in earnings, creating the flurry of selling that seems impending at some point.
Maybe I am starting to see the puzzle. Rather than just scattered pieces.
There are many articles on our website, and the new FREE blogs at www.bluechipoptions.com are techniques and thoughts I don't have time to share in this alert. Again, check our blogs.
______________
What's next for the market? Whipsaw. Our top projections would cause many shorts to go broke, and many traders "buying" the downside to buckle, and it would be THEN in the market's breathing that a consolidation began, when the brokerages are ready.
Floydian Therapy: Many new subscribers have asked us about this service. For traders wanting to work on the emotions behind the decisions that lead their trading, and their lives, we offer a unique email service with a transpersonal psychology approach from our classical training. View a video on Floyd on this: http://www.oexoptions.com/FloydTherapy/TheBlankScreen.swf or at http://www.oexoptions.com/pages/FloydianTherapy.html
www.bluechipoptions.com has new information online each day, updated articles on the market, blogs by Floyd, and option recommendations. There is also a Preferred Blue Chip subscription service.
Visit us at www.bluechipoptions.com
Floyd's Blog: http://bluechipoptions.blogspot.com/
Floyd is on Twitter: http://twitter.com/Bluechipoptions
Futures were up over 50 points so traders paid to market for -OXBHM OEX.X AUG 2009 465.0000 CALL. Most traders got in by 10 a.m. for 8.40 area, selling to highs of 10.00 by mid day.
It should be noticed that call premiums to not rise in proportion to profits, a sign of fear for call traders. But, before the magic 3 p.m. hour we had up to $1.60 per contract of profits on the call, and took a second buy to our hedge put.
Remember, do NOT overbalance a risk portfolio (trading options) to any one balance. Option trading successfully is managing the "sum of the parts" in buying and selling.
________________________________________________________
Nine lenders that got government aid paid at least 1 million to 5000 employees. These are banks that last year, under the first Paulson bribe, got 33 billion. The nine firms in the report had combined 2008 losses of nearly 100 billion.
Sadly this is a grey line. Surprise you? Of course, Congress, which initially approved this whole bail out, pre Obama, we know were all on this graft, as the banks got money that seemed to go nowhere, everything collapsed, and all of us were paying consultants to figure out what the actuaries had actually done for all the brokerages and companies betting derivatives.
Some of this stuff was actually legitimate banking, and most of it how the guys have the country club prison down there in N.C. Bernie, Ebbers, and the boys.
Goldman just rapes during the second quarter, and we're all amazed how much money is being made.
But some argue we have to pay these top people to either 1) Analyze and get us out of our lies (Blackwater), or 2) Create new ways for the banks to make money, or continue legitimate trading.
I'll leave it here today. Think of this:
1. The banks are making money.
2. Corporate profits appear to be up. Much are from continued write offs of bad investments, but much because of cost cutting.
The market has been marvelously up for so many days. Wall Street is coming back. The economy is improving. We hear this each day, and are able to interpret the data we receive to prove that this is true.
Just a fact to sober your euphoria: In 2007 the U.S. Government sold $450 billion in debt. THIS WEEK the government is selling 200 billion of new debt.
Jog on over to www.bluechipoptions.com and read our blog on "There is No Black and White"
Meanwhile, the market is being manipulated. And the stories being told on "cash for clunkers" and "raising taxes on the middle classs", sigh.......go over to our FREE blogs at http://www.bluechipoptions.com/
Here's the new game in town, that is causing this euphoric uproar, and may soon cause the downturn. High Frequency Computer Trading.
http://online.wsj.com/article/SB124908601669298293.html#mod=todays_us_money_and_investing
____________________________________________
And, next from Advanced Mentoring client MR, who is studying how to study. My comments in bold as we share this dialogue:
Per floyd's recommendation I started reading roubini this weekend. I read as many free articles as I could find on the RGE Moniter. Excellent reading. I like the perspective it gave. Excellent reading. This is a recommendation I give all subscribers. Want to get the true economic issues of our times, read Roubini and Krugman.
I have been thinking more about the silent witness at home, working around the house. Starting to give myself feedback rather than being so focused and ingrained in myself.
I think allot of times I live life like a kid with his face 2 inches from the TV screen. I can't see anything except for what's thrown in my face. I see how that can happen as a trader, as an employee, as a parent.
Taking that step back - giving myself some space helps to build an observatory gap between myself and I. I am beginning to grasp how this can allow clarity and reason an opportunity to flourish.
The silent witness is a simple way of putting "you as an observer" on your shoulder. Let "you" watch your behavior. It can be eye opening.
I remember Floyd referring to himself as our provacateur - the instigator of thought. I'm taking some of the seeds of insite and digging into them. Asking my own questions. What is a double dip recession? Why is the market climbing so high? Why are revenues up, but sales down - and how long can that sort of performance provide a springboard for stock market recovery? When will the lack of sales start to show in earnings, creating the flurry of selling that seems impending at some point.
Maybe I am starting to see the puzzle. Rather than just scattered pieces.
There are many articles on our website, and the new FREE blogs at www.bluechipoptions.com are techniques and thoughts I don't have time to share in this alert. Again, check our blogs.
______________
What's next for the market? Whipsaw. Our top projections would cause many shorts to go broke, and many traders "buying" the downside to buckle, and it would be THEN in the market's breathing that a consolidation began, when the brokerages are ready.
Floydian Therapy: Many new subscribers have asked us about this service. For traders wanting to work on the emotions behind the decisions that lead their trading, and their lives, we offer a unique email service with a transpersonal psychology approach from our classical training. View a video on Floyd on this: http://www.oexoptions.com/FloydTherapy/TheBlankScreen.swf or at http://www.oexoptions.com/pages/FloydianTherapy.html
www.bluechipoptions.com has new information online each day, updated articles on the market, blogs by Floyd, and option recommendations. There is also a Preferred Blue Chip subscription service.
Visit us at www.bluechipoptions.com
Floyd's Blog: http://bluechipoptions.blogspot.com/
Floyd is on Twitter: http://twitter.com/Bluechipoptions
Monday, August 3, 2009
When Greed Takes Over
The first trading day in August is typically weak, with the Dow down 8 of the last 11 years, and up only 1.1% in 2007. The extended ranges we are now seeing, 21 day up periods, or lengthier consolidations, around often reducing VIX, help confirm to me that the high velocity computer trading, and our famed Plunge Protection Team, have done a great job holding the market up.
It might go up more. When greed takes over, as we now know, nothing stops it, until.....
The August 480C was day tradeable for .50 profits Friday, in a market that moved from a low of 9133.45 to a high of 9218.77, a hundred points of excruciating struggles around support and resistance lines.
We had good profits on the August 455 Put, day trading for up to a 1.00 per contract, and able to buy first inventory to this new hedge position as low as 6.70.
Many traders wrote in, with the highly overbought market, asking if it was wise to hold the August 440Put or take stop loss.
My answer here is always complicated, yet simple:
1. Our 4 day stop loss is meant to work best around monthly options, that will erode more each Friday as they progress towards expiry.
2. There are always times that holding several days longer can allow the move to take place, and bring the option to break even, or profitability.
3. The risk, however, increases, with erosion and a typically now OTM strike point.
The bottom line: holding longer depends entirely on how you follow the system rules, and your risk orientation.
And,as a comment on one of the best economic moves I've seen, is the response to cash for clunkers. Good that we put 2 billion more to this; we are seeing that big government, done right, can create long term industrial development by consumer spending. And for the Republicans immediately arguing about "big government," let's not forget The Emperor and The Shooter from the last 8 years, that built one of the largest of all governments, with massive debt.
* One Basic Rule – Let the Winners Run, Cut the Losses Quickly. You've now read what usually happens, last week, where we let the losses run, so now focus on "rules" of selling, even if those rules involve your losing, because you can always lose more.
"Floyd, Just signed up for your Blue Chip new service. I've been reading your Blue Chip blogs, and as I trade daily on the OEX and what else you've taught me, and read that new subscribers ask these questions I have memories of when I began this trading odyssey with you 18 months ago.
After spending big bucks for Advanced Mentoring, and being on waiting list for three months, I was paper trading and learning at level 3 service. Since I have joined you, and costed in all I have paid for the services, I have earned over $141k. In 20 years of trading different ways, I hesitate to even wonder if I ever made money, except for money in my 401k from a job I had.
You are a very astute teacher, and I wish you luck with the new Blue Chip service. Thanks for teaching me. AON, Chicago"
It might go up more. When greed takes over, as we now know, nothing stops it, until.....
The August 480C was day tradeable for .50 profits Friday, in a market that moved from a low of 9133.45 to a high of 9218.77, a hundred points of excruciating struggles around support and resistance lines.
We had good profits on the August 455 Put, day trading for up to a 1.00 per contract, and able to buy first inventory to this new hedge position as low as 6.70.
Many traders wrote in, with the highly overbought market, asking if it was wise to hold the August 440Put or take stop loss.
My answer here is always complicated, yet simple:
1. Our 4 day stop loss is meant to work best around monthly options, that will erode more each Friday as they progress towards expiry.
2. There are always times that holding several days longer can allow the move to take place, and bring the option to break even, or profitability.
3. The risk, however, increases, with erosion and a typically now OTM strike point.
The bottom line: holding longer depends entirely on how you follow the system rules, and your risk orientation.
And,as a comment on one of the best economic moves I've seen, is the response to cash for clunkers. Good that we put 2 billion more to this; we are seeing that big government, done right, can create long term industrial development by consumer spending. And for the Republicans immediately arguing about "big government," let's not forget The Emperor and The Shooter from the last 8 years, that built one of the largest of all governments, with massive debt.
* One Basic Rule – Let the Winners Run, Cut the Losses Quickly. You've now read what usually happens, last week, where we let the losses run, so now focus on "rules" of selling, even if those rules involve your losing, because you can always lose more.
"Floyd, Just signed up for your Blue Chip new service. I've been reading your Blue Chip blogs, and as I trade daily on the OEX and what else you've taught me, and read that new subscribers ask these questions I have memories of when I began this trading odyssey with you 18 months ago.
After spending big bucks for Advanced Mentoring, and being on waiting list for three months, I was paper trading and learning at level 3 service. Since I have joined you, and costed in all I have paid for the services, I have earned over $141k. In 20 years of trading different ways, I hesitate to even wonder if I ever made money, except for money in my 401k from a job I had.
You are a very astute teacher, and I wish you luck with the new Blue Chip service. Thanks for teaching me. AON, Chicago"
Saturday, August 1, 2009
The Good News
Let's start with the good news. Here's from yesterday's open signal on the alert:
"-OXBHM OEX.X AUG 2009 465.0000 CALL Two buys now made, average cost 4.50". We sold this position on Thursday's early euphoric run up to highs of 9.20. 100% profits were possible.
Subscriber testimonials, to say the least, were "knock out" for this strong a call win.
So now let's think:
*The market goes up 2/3’s of the time.
* A 50% loss on a $100 stock means the trader must have a percentage gain of 100%
> There are many conspiracy theories on how an economy doing so overall poorly could have good earnings reports, and construe the same facts we’ve been hearing about or a year into yet another almost 1000 point run up.
>
> It’s been great news for some www.bluechipoption.com investors, as our portfolios have really gained, and probably ‘”oh, gee, I’ve lost not as much last year” for others, and “the cash is rolling in” for the few.
>
> I suspect that most of the American public are excited, as the stock market is coming back. But again, most of the American public believed in WMD in Iraq, and that the bank debacles that led us down were not in part planned and ways for the few to get rich, even led by the government.
>
> My Dad had a ticker tape in his office, a huge investment, so he could call his broker as he watched the market and charted out of the newspaper each evening on the closing price.
>
> As computers came to trading the laws of efficiencies were first released. This is Floydian Rule 876-When a new model is introduced its efficiencies outweigh any concerns, and the model is then built on the new efficiency, without regard to “next step."
>
> As a consultant for years it’ all I saw. And right now, we’ve hit the unregulated securities game (still far from under control) , but many believe that computer trading can manipulate stocks.
>
> With a global network of all types of brokerages, and the ability to trade for all who are “high frequency trading” (HTF). Regulators are already adding this game to the many other games already leading our market at all times. When the market is ready to gather just enough in, a fair consolidation is always in order, to allow profits.
>
> When the market can move in near1000 point increments it can be attributed to high frequency trading, which could extend trading ranges.
>
> This is what we are seeing, meaning Dow projections must be always pre market and intraday on big moves, as pivots change constantly.
And, it says it all that at 8250, our projected top, the market closed only up 83.74 points. :)
"-OXBHM OEX.X AUG 2009 465.0000 CALL Two buys now made, average cost 4.50". We sold this position on Thursday's early euphoric run up to highs of 9.20. 100% profits were possible.
Subscriber testimonials, to say the least, were "knock out" for this strong a call win.
So now let's think:
*The market goes up 2/3’s of the time.
* A 50% loss on a $100 stock means the trader must have a percentage gain of 100%
> There are many conspiracy theories on how an economy doing so overall poorly could have good earnings reports, and construe the same facts we’ve been hearing about or a year into yet another almost 1000 point run up.
>
> It’s been great news for some www.bluechipoption.com investors, as our portfolios have really gained, and probably ‘”oh, gee, I’ve lost not as much last year” for others, and “the cash is rolling in” for the few.
>
> I suspect that most of the American public are excited, as the stock market is coming back. But again, most of the American public believed in WMD in Iraq, and that the bank debacles that led us down were not in part planned and ways for the few to get rich, even led by the government.
>
> My Dad had a ticker tape in his office, a huge investment, so he could call his broker as he watched the market and charted out of the newspaper each evening on the closing price.
>
> As computers came to trading the laws of efficiencies were first released. This is Floydian Rule 876-When a new model is introduced its efficiencies outweigh any concerns, and the model is then built on the new efficiency, without regard to “next step."
>
> As a consultant for years it’ all I saw. And right now, we’ve hit the unregulated securities game (still far from under control) , but many believe that computer trading can manipulate stocks.
>
> With a global network of all types of brokerages, and the ability to trade for all who are “high frequency trading” (HTF). Regulators are already adding this game to the many other games already leading our market at all times. When the market is ready to gather just enough in, a fair consolidation is always in order, to allow profits.
>
> When the market can move in near1000 point increments it can be attributed to high frequency trading, which could extend trading ranges.
>
> This is what we are seeing, meaning Dow projections must be always pre market and intraday on big moves, as pivots change constantly.
And, it says it all that at 8250, our projected top, the market closed only up 83.74 points. :)
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