The theoretical Dow averages exponentially and I believe gives a more accurate reference to actual Dow numbers. You simply add or subtract 40 points to the highs and lows of the day.
Yesterday 10,279 low to 10,478 high-200 actual points, when it looked like a day of slight whipsaw. We saw the market fall below the all important 200 day moving average, struggle dutifully at 10,350. Traders that owned our open OEX July 500 Call sold to highs of 14.20.
Advanced Mentoring Trader MR saw this and perhaps added to it, but the brilliance alone will shine through. Read it carefully:
After the Last Tree has died
Man will realize
That Money is not edible
I have the eerie feeling we might live to see it
I hope I don't
I would suggest the Earth (EAR110716C000) call.
_________
Rogers buying Euros and explains how bailouts, which all countries are now doing, are destroying paper currency. No paper currency in the history of time has ever lasted. Only Gold has.
But Rogers buying Euros points for a shift in the market. Some suggest a last burst for the market, and true moves to 9550 area, which would support the Euro rising.
Others see the Euro holding, the Dollar holding, and the economy being noted for being sustainable, while the world tries to negotiate "created wealth and created debt."
_________
Jim Rogers Buys Euros, Says Bailouts Destroy Currency
June 16 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, said he is buying euros even as he predicts that bailouts for European nations will eventually destroy their single currency.
The Singapore-based investor, who predicted the start of the global commodities rally in 1999, said he bought euros this week and may acquire more because investor sentiment has turned too negative in the short term. It will take 10 to 15 years for the currency to disappear, he said in an interview in Madrid.
“It’s time to go in and take the other side,” Rogers said today. “It got beaten down so much.”
The euro fell almost 11 percent against the dollar in the last three months as European Union nations struggled to contain budget deficits more than triple the bloc’s 3 percent limit. Last month the EU announced a 750 billion-euro ($923 billion) rescue mechanism to stem contagion from Greece as the risk premium on Spanish and Portuguese bonds surged.
“That’s not the way it’s supposed to work,” Rogers said at the Rafael Del Pino Foundation in the Spanish capital. “I don’t think it’s good for Europe, and I don’t think it’s good for the world to bail out people who have failed.”
The euro was down 0.1 percent to $1.2298 as of 11:38 p.m. in Madrid.
The extra yield investors demand to hold Spanish 10-year government bonds rather than the benchmark German bunds touched a euro-era record today of 2.22 percentage points on an intraday basis after Spain’s El Economista newspaper said the International Monetary Fund is coordinating a 250 billion-euro credit line for the country. The EU and IMF denied the report.
‘Long on Euro’
Rogers, who co-founded the Quantum Hedge Fund with George Soros in 1970, said the process of undermining the euro is a long one.
“Debasing what has been a strong currency and making it weaker and weaker is in the end going to destroy the euro,” Rogers said. “In the interim, I’m long the euro.”
Next, I'll lead with who we are; we are not smart people, or we are at least GREEDY and arrogantly not smart:
McLaren Supercar Buoyed by Europe as Austerity Fades
June 15 (Bloomberg) -- McLaren Group said Europe will provide at least half the buyers for its 200-mile-per-hour, Ferrari-rivaling MP4-12C supercar as demand for luxury autos rebounds from last year’s recession.
The 12C, which will cost about 150,000 pounds ($227,000), starts a 50-venue global promotional tour in Germany on June 17. About 2,500 expressions of interest have been received for the 1,000 cars to be produced next year, McLaren Automotive Managing Director Antony Sheriff said yesterday in an interview at the company’s base in Woking, near London.
“For many people it didn’t seem like the right time to be seen driving this type of a car, but from the interest that’s out there it appears that they’re growing a bit sick of self- imposed austerity,” Sheriff said. “The waiting list will be pushing on towards a year almost immediately.”
Britain and Germany will lead European sales, while a further one-third of orders will come from the U.S. and the rest from Asia and the Middle East, the executive said. McLaren, best-known for the most successful Formula One racing team after Ferrari, has selected 35 global dealerships to open in 2011, increasing to at least 70 by 2015 as the model range expands.
Sheriff predicts that luxury and sports-car sales will jump about 35 percent this year after slumping during the recession.
Private Viewing
The 12C will be shown in a private viewing to dealers and registered potential clients in Dusseldorf this week, Zurich and Brussels next week and U.K. buyers in Woking later this month. The car, a rival to Ferrari’s 458 and the Lamborghini Gallardo, will make its public debut at the Goodwood Festival of Speed, held at a racing circuit in southern England in July.
Jardine Motors Group will run McLaren’s London dealership, while Moll Sportwagen in Dusseldorf and Kamps Gruppe in Hamburg -- trading as Merkur Hanseatische Beteiligungs AG -- will sell the cars in Germany. Neubauer will act as distributer in Paris, Fassina Group in Milan, Schmohl AG in Zurich and Monaco Luxury Group in Monaco.
“We feel we’re in a very comfortable position already, especially considering we haven’t started to market the car yet,” Sheriff said in the interview a day after McLaren F1 drivers Lewis Hamilton and Jensen Button finished first and second in the Canadian Grand Prix in Montreal.
Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, said he wouldn’t have expected Europe to lead sales of the new McLaren.
‘Belt Tightening’
“I cannot quite conceive how Europe, at the moment, can add considerable momentum here,” he said. “The region seems captured by a pronounced sense of belt tightening. It’s more the rich Chinese, mad American business people or impetuous sheiks that would opt for this kind of car.”
In the U.S., the biggest supercar market, sales of autos costing more than $100,000 may jump 42 percent after falling 30 percent in 2009, industry researcher IHS Global Insight says.
McLaren will initially have nine U.S. dealers at locations including San Francisco, Beverly Hills, Chicago, Miami, New York and Dallas, with one sales outlet in Toronto.
While performance figures haven’t been released, the 12C is likely to have a faster top speed and swifter acceleration than the 458, Sheriff said from an office overlooking two Ferraris and a Porsche 911 used in comparison tests.
The McLaren model takes its name from the MP4 designation given to all of the company’s race cars since 1981 -- the latest being the MP4-25 driven by Hamilton and Button. The “C” indicates the road car’s carbon construction and the “12” is a reflection of “internal performance criteria” including weight, aerodynamics, power and down force, Sheriff said.
Price Range
The price of the successor to the McLaren F1, the world’s costliest car in the 1990s and the fastest at 240 mph (386 kilometers per hour), has yet to be finalized, but will be in the range of 125,000 pounds to 175,000 pounds, Sheriff said.
_________
From our Blue Chip Commentary of 6/16:
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more interest rate, and build the house of cards."
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street.
Saturday, June 19, 2010
Thursday, June 17, 2010
Hey Buddy... Want the Truth?
The market was just perfect again for tremendous day profits on our "in love with call." We recommended to trade on the July OEX 500 Call and returned another day trade profit of 18.5% up. Despite all the talking heads we see a potential upside before a deeper downside unless the strength of the market truly takes over, and the FEAR abates.
Hey Buddy, want the truth about the oil spill:
Yet again, Tim Dickinson exposes the long term truths of what has never been done, and who has been in charge.
http://www.rollingstone.com/politics/news/17390/111965
This portion of commentary also shows in our Blue Chip commentary. It is important stuff
The CEO slime of BP slime is on top of Capital Hill today to talk about slime, to those that took slime to let slime through.
Although as I wrote the above, simply translating the CEO hits Capital Hil, think of it. He will talk about slime, and it is clear there was no Defcon 6 plan, no real plan for failure, and many operations were incomplete. BP will pay.
But he wil be speaking with our representatives, many who were lobbied by oil for years, and helped bring this deep water drilling, believing the data from the corporations wanting to do the work.
Think of this. It's as if we had no regulation to study if what the oil companies said were true, but if we did have such regulatory structures they would increase government spending, create larger government, and we would be accused of socialism.
If we leave the corporations to self enforce, it doesn't work. All corporations are built on the profit model, and within all corporations we will only find corruption and greed, increasing by the size of the company, and the value of what they do, manufacture or process.
The corporatization of America, not the socialization.
Hey Buddy, want the truth about the oil spill:
Yet again, Tim Dickinson exposes the long term truths of what has never been done, and who has been in charge.
http://www.rollingstone.com/politics/news/17390/111965
This portion of commentary also shows in our Blue Chip commentary. It is important stuff
The CEO slime of BP slime is on top of Capital Hill today to talk about slime, to those that took slime to let slime through.
Although as I wrote the above, simply translating the CEO hits Capital Hil, think of it. He will talk about slime, and it is clear there was no Defcon 6 plan, no real plan for failure, and many operations were incomplete. BP will pay.
But he wil be speaking with our representatives, many who were lobbied by oil for years, and helped bring this deep water drilling, believing the data from the corporations wanting to do the work.
Think of this. It's as if we had no regulation to study if what the oil companies said were true, but if we did have such regulatory structures they would increase government spending, create larger government, and we would be accused of socialism.
If we leave the corporations to self enforce, it doesn't work. All corporations are built on the profit model, and within all corporations we will only find corruption and greed, increasing by the size of the company, and the value of what they do, manufacture or process.
The corporatization of America, not the socialization.
Wednesday, June 16, 2010
We Must ACT not React
We profited immensely by the upturn with our open and new recommendation to the
-OEX100717C500 /
OEX JUL 17 2010 500.00 CALL took us from low buys of $10 to $11, with sales to 12.90 by 2.54 p.m We wiil continue to hold and recommend this option, seeing an upside potential to our next resistance lines, near 10,550.
This just makes me laugh. Yesterday this prestigious chartist informed us that "the market fell at the 200 day moving average, and that sector selling was rampant." In fact, if we read this chartists 'summary of the day' the day prior one could only assume that the market would lead down immediately.
Today, it's all new, and he says:
-- MARKET BOUNCE CONTINUES OFF FEBRUARY LOW
-- SHORT-TERM OUTLOOK IMPROVES FOR RISK ASSETS
-- SECTOR LEADERS INCLUDE AIRLINES AND CHIPS
-- MARKET MAY BE STARTING SUMMER RALLY
How simple to change scope, simply as the market changes scope.
Here's what really happened:
1. The market is vastly overbought. The buying yesterday was not break out buying, as volume was light.
2. We will hesitate and pause at 10,350 because it is strong resistance line.
3. Things are "better" for traders yesterday as tech responded well, Oil rose, inflation seemed "under control," and the indices rose 1%
There are huge pent up emotions in the market, of both FEAR and GREED.
Just think, Britain itself has been asked by the Euro Zone finance ministers to cut down on its debt. These are the same finance ministers that agreed to a 525.4 billion dollar bailout vehicle to help ailing members, with Germany voting on a huge austerity plan.
Housing starts could drop 3.5% in May on the end of tax credits. CPI could drop .2% tomorrow, says Barclay, a trigger which could influence the market.
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more" interest rate, and build the house of cards.
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street
"In America we combine liberty and democracy as if they are the same word. The reality is that we are often more interested in democracy than personal liberties. The Chinese are the opposite." This comes from James Fallows, editor of The Atlantic, which offers truly fine journalism.
Fallows also says that the Chinese feel hostage to the U.S. economy.
I took most interest in his interview to America's struggles with understanding Democracy. For example, it is democratic, but sicker than hell, to rewrite the Texas schoolbooks to "put Jesus in" and take "slaves out," and all the twists that were put through. It is democratic also to stereotype and profile Hispanics in Arizona.
However, whatever democracy this is reminds of the Tea Party Poopers handing out the Constitution at every meeting, as if we adhere to these basic tenants all will be "all right."
In both places civil and social liberties are forgotten, yet "democracy" is in place.
I for one value my civil liberties and my social rights, and I disrespect and hold negative opinions on those that force their opinion on me. Hmm, democracy?
Fallows ended his speech with "our relationship with China is mutually beneficial. It is NOT a zero sum game. But as in every long term relationship there will be times we disagree. By far the gravest problem for China and for the West is environmental collaboration."
In Floydian Terms, we have to ACT, NOT react.
And none of this has anything to do with "raising our taxes, or having a deficit".
-OEX100717C500 /
OEX JUL 17 2010 500.00 CALL took us from low buys of $10 to $11, with sales to 12.90 by 2.54 p.m We wiil continue to hold and recommend this option, seeing an upside potential to our next resistance lines, near 10,550.
This just makes me laugh. Yesterday this prestigious chartist informed us that "the market fell at the 200 day moving average, and that sector selling was rampant." In fact, if we read this chartists 'summary of the day' the day prior one could only assume that the market would lead down immediately.
Today, it's all new, and he says:
-- MARKET BOUNCE CONTINUES OFF FEBRUARY LOW
-- SHORT-TERM OUTLOOK IMPROVES FOR RISK ASSETS
-- SECTOR LEADERS INCLUDE AIRLINES AND CHIPS
-- MARKET MAY BE STARTING SUMMER RALLY
How simple to change scope, simply as the market changes scope.
Here's what really happened:
1. The market is vastly overbought. The buying yesterday was not break out buying, as volume was light.
2. We will hesitate and pause at 10,350 because it is strong resistance line.
3. Things are "better" for traders yesterday as tech responded well, Oil rose, inflation seemed "under control," and the indices rose 1%
There are huge pent up emotions in the market, of both FEAR and GREED.
Just think, Britain itself has been asked by the Euro Zone finance ministers to cut down on its debt. These are the same finance ministers that agreed to a 525.4 billion dollar bailout vehicle to help ailing members, with Germany voting on a huge austerity plan.
Housing starts could drop 3.5% in May on the end of tax credits. CPI could drop .2% tomorrow, says Barclay, a trigger which could influence the market.
Over the weekend former Advanced Mentoring trader MR asked the best question we could all ask:
if all these countries are trillions of dollars in debt - who do they owe the money to? Where did it all go?
The money is owed to themselves, and to other bondholders, meaning other countries, that have "bet" with them.
It is owed to who sponsored the debt, and few are astute enough to take it back to realize oil companies, banks, raw materials, are all part of the circle of "build more, offer more" interest rate, and build the house of cards.
Only one thing really stopped this house of cards, and it was not real estate. It was the gigantic bets made on Wall Street on CDO's and derivatives beyond comprehension that Geitner explained so well "more money was being 'sold or optioned' than in available supply in the world." We were truly printing money, but not the FEDS, but instead banks and Wall Street
"In America we combine liberty and democracy as if they are the same word. The reality is that we are often more interested in democracy than personal liberties. The Chinese are the opposite." This comes from James Fallows, editor of The Atlantic, which offers truly fine journalism.
Fallows also says that the Chinese feel hostage to the U.S. economy.
I took most interest in his interview to America's struggles with understanding Democracy. For example, it is democratic, but sicker than hell, to rewrite the Texas schoolbooks to "put Jesus in" and take "slaves out," and all the twists that were put through. It is democratic also to stereotype and profile Hispanics in Arizona.
However, whatever democracy this is reminds of the Tea Party Poopers handing out the Constitution at every meeting, as if we adhere to these basic tenants all will be "all right."
In both places civil and social liberties are forgotten, yet "democracy" is in place.
I for one value my civil liberties and my social rights, and I disrespect and hold negative opinions on those that force their opinion on me. Hmm, democracy?
Fallows ended his speech with "our relationship with China is mutually beneficial. It is NOT a zero sum game. But as in every long term relationship there will be times we disagree. By far the gravest problem for China and for the West is environmental collaboration."
In Floydian Terms, we have to ACT, NOT react.
And none of this has anything to do with "raising our taxes, or having a deficit".
Tuesday, June 15, 2010
100 Points Now Seems "Nothing"
On the mark the week started with good news, was moderately up at opening, and built to a high of 10,368, just at our first support line, before falling back to 10,199 on the theoretical Dows of 10,199, as FEAR began building again on Greek debt. The market continued to move downward and by 3.40 p.m was in the negatives. The whipsaw continues.
100 points now seems "nothing" in the movement of the day. With the market drop our bell curve count, using a 10 axis, becomes almost a suspended time piece, hovering back and forth against magnets.
No chart will prove now if the market will go up or down. No one really predicts. I personally see more upside, near or under 10,470, before another consolidation deeper than we've seen.
And at the same time I see that there may be no need for another 12.4% type correction as we've seen in the past 42 days, and the market will continue a slow uphill for the short term.
We saw a true bull/bear fight on "nickles" in the final 30 minutes of trading, either a last gasp for a bull, or a bear?
______
For your enjoyment, a break from the talking heads, and instead words from George Soros, a billionaire investor:
"The collapse of the financial system is real, and the crisis is far from over. We have just entered Act II of the drama"
For your enjoyment in facing reality:
TALKING BUSINESS: Waking Up From the American Dream
Despite the financial crisis, few are willing to address a key factor behind it: the concept of homeownership for all.
http://nyti.ms/b1gQqy
______
The Dow Industrials fell 12.4% in just 42 days.
100 points now seems "nothing" in the movement of the day. With the market drop our bell curve count, using a 10 axis, becomes almost a suspended time piece, hovering back and forth against magnets.
No chart will prove now if the market will go up or down. No one really predicts. I personally see more upside, near or under 10,470, before another consolidation deeper than we've seen.
And at the same time I see that there may be no need for another 12.4% type correction as we've seen in the past 42 days, and the market will continue a slow uphill for the short term.
We saw a true bull/bear fight on "nickles" in the final 30 minutes of trading, either a last gasp for a bull, or a bear?
______
For your enjoyment, a break from the talking heads, and instead words from George Soros, a billionaire investor:
"The collapse of the financial system is real, and the crisis is far from over. We have just entered Act II of the drama"
For your enjoyment in facing reality:
TALKING BUSINESS: Waking Up From the American Dream
Despite the financial crisis, few are willing to address a key factor behind it: the concept of homeownership for all.
http://nyti.ms/b1gQqy
______
The Dow Industrials fell 12.4% in just 42 days.
Monday, June 14, 2010
Triple Witching Week
June triple witching week, Dow up 5 straight years 2003 - 2007, down big in 2008, off 3.8%
Retail sales fell, and the market fell Friday. We showed signs of flat lining through 2.40 p.m. Please read our Dow Projections carefully this week.
We outline short (one day) to two week projections, and recommend recalculating the pivot point/support lines at least once a day, or get on the website and sign up for our FREE Twitter daily S/R projections.
The Australian and Russian markets are closed today.
The USD had a four year high, while the Euro barely holds it's equal value, a strong reversal from prior years.
Traders were successful in trading our new recommendation in an easy day trade on the
OEX JUN 19 2010 480.00 CALL. We were able to buy as low as 12.60, below prior day close, and sell to highs of 15.73, for nice day trade profits. We open the week with no open signals, and a one way trade recommendation.
Retail sales fell, and the market fell Friday. We showed signs of flat lining through 2.40 p.m. Please read our Dow Projections carefully this week.
We outline short (one day) to two week projections, and recommend recalculating the pivot point/support lines at least once a day, or get on the website and sign up for our FREE Twitter daily S/R projections.
The Australian and Russian markets are closed today.
The USD had a four year high, while the Euro barely holds it's equal value, a strong reversal from prior years.
Traders were successful in trading our new recommendation in an easy day trade on the
OEX JUN 19 2010 480.00 CALL. We were able to buy as low as 12.60, below prior day close, and sell to highs of 15.73, for nice day trade profits. We open the week with no open signals, and a one way trade recommendation.
Saturday, June 12, 2010
Thousands of Instant Facts and Opinions
The bears are now in turmoil, and the talking heads are discussing wedges, ABC formations, tops leading to new bottoms, and all the normal stuff we hear after the market does a complete shift yet again.
It's big numbers: a theoretical Dow low of 9861 and a high of 10,208 by 3.25 p.m.
Whatever caused it (and the reason and catalyst I hope you are realizing is MEANINGLESS, just that the cycle changed is of value in making money.)
It has been an astounding whipsaw this past week. As you view our new Dow Projections next week you'll see we will have the same struggles and turning points.
OEX trading is around moments to days, following cycles and patterns around support and resistance lines. Within it we utilize the Dow (which runs in correlation to the OEX well) for tops and bottoms to look for.
Cycles in which one trades, however, are much longer as we analyze the series of events that create longer term triggers. Charles Nenner of Nenner Research states: "A period of 250 years is the minimum for the student of the business cycle. Only detailed historic knowledge can answer most questions. Without it, theoretical analysis is inconclusive. Looking at the facts of the prior quarter or even the half of a century is, in our opinion, quite inadequate."
We use cycles in our Blue Chip Option trading, and the longer historical events to help us see what will trigger movement.
Comparisons, for example, to the 1930's crash, are interesting, but don't take it far enough back, NOR include current events that have changed from the 1930's. As examples:
1. Our greed of oil was just beginning then.
2. China was not a factor then. China is now a factor, because investors concentrate on it.
3. Deflation/Inflation was less, as the world was less, in people, in manufacturing, and in money. We still had a Gold Standard.
Lastly, there was not any form of media that instantized news. We now deal with 1000's of "instant" facts and opinions.
Here's a movie on youtube that truly explains it all:
http://www.youtube.com/watch?v=mSujCHfvTb0
It's big numbers: a theoretical Dow low of 9861 and a high of 10,208 by 3.25 p.m.
Whatever caused it (and the reason and catalyst I hope you are realizing is MEANINGLESS, just that the cycle changed is of value in making money.)
It has been an astounding whipsaw this past week. As you view our new Dow Projections next week you'll see we will have the same struggles and turning points.
OEX trading is around moments to days, following cycles and patterns around support and resistance lines. Within it we utilize the Dow (which runs in correlation to the OEX well) for tops and bottoms to look for.
Cycles in which one trades, however, are much longer as we analyze the series of events that create longer term triggers. Charles Nenner of Nenner Research states: "A period of 250 years is the minimum for the student of the business cycle. Only detailed historic knowledge can answer most questions. Without it, theoretical analysis is inconclusive. Looking at the facts of the prior quarter or even the half of a century is, in our opinion, quite inadequate."
We use cycles in our Blue Chip Option trading, and the longer historical events to help us see what will trigger movement.
Comparisons, for example, to the 1930's crash, are interesting, but don't take it far enough back, NOR include current events that have changed from the 1930's. As examples:
1. Our greed of oil was just beginning then.
2. China was not a factor then. China is now a factor, because investors concentrate on it.
3. Deflation/Inflation was less, as the world was less, in people, in manufacturing, and in money. We still had a Gold Standard.
Lastly, there was not any form of media that instantized news. We now deal with 1000's of "instant" facts and opinions.
Here's a movie on youtube that truly explains it all:
http://www.youtube.com/watch?v=mSujCHfvTb0
Thursday, June 10, 2010
Interpretation Can Change Reality
Any interpretation can change reality. Here's an example.
1. I bought IBM a year ago and have greatly profited.
2. There is gossip that IBM will come out with "great earnings" tomorrow
3. Based on cycles, the stock will either go up or down.
4. If tomorrow is a cycle low, and IBM shows great results, the stock will go up.
All the news services will write: "Results for IBM were good and the market liked it and bought IBM"
5. But, if the cycle is high, the stock will go down, even on positive results
The news will then say: Investors took profits with good earnings, as they see IBM waning over the next year.
Now, view our video on treating options as fruit and being a fruit vendor. Your job as a trader is to understand how the market will move and how fast the bananas will rot.
_______________
Gain a sense of lack of respect. Question facts. Above all, question authority.
Today's example: GM is recalling 1.5 million vehicles for windshield wiper fluid systems that catch on FIRE, and will give owners $100.00
First, it's rape to the public.
Second, it's second page news to Toyota's recall; who paid for this lobbying?
_______________
With futures being 53 points up before 9 a.m. the market had hesitated in the pre-morning, so we'll share some chartists theories of upside/downside:
1. OEX Options believes the first upside at 10,050 and a maximum upside (586 points from the low) to 10,350, before correction again.
2. Some MACD chartists see this first high, and a drop to as low as 9550, the bottom we hit last year, which we did NOT close at. Our lowest low may have been here, but it did not close there.
Some chartists believe this could be a final bottom test, well below 9774, that than takes the market to flat lining and later upside, with a 1000 point overall potential rise in two segments-first up to 10,136, and a stop at 10,440.
3. Timing chartists that follow cycles don't see any upside returning that holds until the third week of June, at the earliest.
________________
And here's what happened. Our contrary play to the OEX 470 Put was available below prior day close as low as 3.40 and sold to 5.60 by 3..30 p.m. We consider this position sold profitably.
Our "we are in love with" option, the Oct 500C was an easy play. Traders that held the issue at 2.35 averaged cost were able to sell to 3.00, and we consider this trade sold profitably.
We open the day with no new positions. If you hold either of the above trades, continue to hold through Friday for sale, and we'll issue a new trade today.
Dow Theoretical High 6/9-10,105 (right in our turn around scenario)
Dow Theoretical Low 6/9-9848
1. I bought IBM a year ago and have greatly profited.
2. There is gossip that IBM will come out with "great earnings" tomorrow
3. Based on cycles, the stock will either go up or down.
4. If tomorrow is a cycle low, and IBM shows great results, the stock will go up.
All the news services will write: "Results for IBM were good and the market liked it and bought IBM"
5. But, if the cycle is high, the stock will go down, even on positive results
The news will then say: Investors took profits with good earnings, as they see IBM waning over the next year.
Now, view our video on treating options as fruit and being a fruit vendor. Your job as a trader is to understand how the market will move and how fast the bananas will rot.
_______________
Gain a sense of lack of respect. Question facts. Above all, question authority.
Today's example: GM is recalling 1.5 million vehicles for windshield wiper fluid systems that catch on FIRE, and will give owners $100.00
First, it's rape to the public.
Second, it's second page news to Toyota's recall; who paid for this lobbying?
_______________
With futures being 53 points up before 9 a.m. the market had hesitated in the pre-morning, so we'll share some chartists theories of upside/downside:
1. OEX Options believes the first upside at 10,050 and a maximum upside (586 points from the low) to 10,350, before correction again.
2. Some MACD chartists see this first high, and a drop to as low as 9550, the bottom we hit last year, which we did NOT close at. Our lowest low may have been here, but it did not close there.
Some chartists believe this could be a final bottom test, well below 9774, that than takes the market to flat lining and later upside, with a 1000 point overall potential rise in two segments-first up to 10,136, and a stop at 10,440.
3. Timing chartists that follow cycles don't see any upside returning that holds until the third week of June, at the earliest.
________________
And here's what happened. Our contrary play to the OEX 470 Put was available below prior day close as low as 3.40 and sold to 5.60 by 3..30 p.m. We consider this position sold profitably.
Our "we are in love with" option, the Oct 500C was an easy play. Traders that held the issue at 2.35 averaged cost were able to sell to 3.00, and we consider this trade sold profitably.
We open the day with no new positions. If you hold either of the above trades, continue to hold through Friday for sale, and we'll issue a new trade today.
Dow Theoretical High 6/9-10,105 (right in our turn around scenario)
Dow Theoretical Low 6/9-9848
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