Best Month in a Year

Stocks had their best month in a year, with the Dow posting a July gain of 692 points, or 7.1%. Encouraging earnings reports have supported the market. On Friday the blue chips overcame an early 120 point drop to finish down just 1 point. However, the FEAR began. U.S. economic growth slowed in the second quarter to a 2.4% annual rate as consumers remained frugal and a business restocking showed signs of fading.

Floyd's favorite, and his soapbox rants for years: "The recession was deeper, and the subsequent recovery slower, than the government originally estimated. Remember just a few years ago when Emperor Bush was telling us we were "not really in a recession" and that things were brighter. Hmm, well it appears the numbers were wrong and the 1.5 last years of the Emperor's reign the GDP was actually much worse, with corrected numbers.

People forget the cause of the recession and focus on the stimulus spending that is meant to save it. For just a year, that didn't exist, I would like to implement the Republican strategy for "stop spending money." I have yet to see a Republican plan that details WHAT TO DO.

Floyd predicts another large economic stimulus required before year end.

Our masterful call that has hit profits over 21 times in a row was profitable again Friday for traders that had steel nerves and bought on the downside, waiting for the turnaround.

We Trade the Frenzy

-- NASDAQ AND NY COMPOSITE HIT RESISTANCE
-- A VOLATILE 16 WEEK PERIOD
-- FINANCE AND SEMIS HIT RESISTANCE
-- OIL AND GASOLINE ETFS FORM TRIANGLES
-- EURO ETF HITS KEY RETRACEMENT
-- EURO AND STOCKS ARE POSITIVELY CORRELATED
-- GOLD AND EURO ARE NEGATIVELY CORRELATED

Apache Oil buys in to bail out BP. We have BP calls. Apache (APA) many of our long term traders know I play a lot, but right now my www.bluechiptoptions.com oil stock recommendation is with another play.

The Apache Oil/BP money could be a trigger for the market.

It is important now as we trade the frenzy in the electronic bet, trying to catch "nuances" in bid/ask and making money that we recognize the triggers that will stimulate. This may be one.

The market should report the second quarter GDP as having 3.0% growth. It's really smaller inventories, but should show again some improvement. It always depends, with news, what the mob psychology sees at that moment.

We Are "Near Something"

We are "near something." What is it? We saw the market vacillate from theoretical Dow highs of 10,598 to 10,447, right within a trading range that left our longstanding August OEX500 Call available for new buyers as low as 11.40, before the 3 o"clock hour came.

The market is ripe for consolidation, and also ripe for another 150 points before downside. Charts can be read several ways. We remain with our open call position and will issue a new buy to the put, expecting high risk to both trades at this time.

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LOGIC: Many are upset that President Obama does not show his patriotism by wearing an American Flag on his lapel. Hmm, 95% of all Flag lapels are imported from Communist China

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Barrick Gold reports before the market opens, as does Kellogg. The House Ethics Panel (the very name gets me smiling) begins holding their trial on charges against Rep. Charles Rangel.

Mitsubishi and Nissan report after hours, and Honda and Mazda report tomorrow. Last week on of our core holdings at www.bluechipoptions.com, slimey and disgusting McDonalds (MCD) posted a 12% increase in earnings, mostly by selling high fat smoothies, addicting our youth to obesity.
You are what you eat. It is so interesting here to me is that McDonalds is our culture and has become the worlds. If one just sits and looks at it, that's sad.


With this, for the upside that we see in the market over the short term GE raised its dividend by 20% and reinstated a stock buyback plan. When GE begins buying its stock, and pays us more, it's a solid note in the upside we think will fuel the short term.

Chartists Starting to Really Argue

Chartists are now starting to really argue. Is the world to end, a huge correction, or is a oversold move now just down a bit. At BlueChipOptions.com we've made some great money recently recommending soft commodities, such as Mosaic (MOS) and Monsanto (MON) and profiting on both.

Many of our traders follow futures and try to study with us when futures "mean something" and when they are meaningless. For example, this morning we saw lightly fluctuating futures, with only a modest up side. And the reading at 9.32 and 9.35 showed even more "no bias."
As we are playing only the call, for what we think may be the "last top," it was easy to watch the market to wait for best buy. Yesterday, by 3.21 p..m. using the theoretical Dow we went from highs of the day of 10,535, to lows of 10,454.

Traders that had held our August500C came close to our top sell, when it reached $14.00 yesterday. We believe we have just a bit more upside, and will hold any open position to the call, and not yet take a position to the put.

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32.07% was the implied volatility of the equity market for June 2010; this is an important fact as it was the 4th consecutive monthly increase. We're certain July will be even higher pointing volatility, showing the "intensity" and uncertainty of this market.

Last week Big Ben Bernanke, the son of Bubbles Greenspan, told us "the economic outlook remains unusually uncertain. If the recovery seems to be faltering, we need to at least review our options."

This prompted FEAR, GREED, and more FEAR. Republicans, those that protect our assets so well, immediately say "stimulus not working," and "look at the debt being built up."

Pee Partiers are reading the Constitution to see where it talks about stock trading and derivatives. Democrats are haunted by seeing nothing truly ever work because nothing is ever really executed.

Floyd would like now to explain Big Ben's statement to the fragile "Everyman:" "We have not a phucking clue what is happening. If the recovery doesn't make it, we'll have to stimulate the economy again, as unemployment will only rise, while the large corporations make more money."

We Did it Again

Well, we did it again. Our handy OEX August 500C hit lows of 10.30, and highs of 12.40 by 1.15 p.m. Most traders did buy below prior day close, but following futures knew it unlike there would be huge whipsaw. This is where it is very important to "be on your own" and to "judge the market." I entered, for example, at 10.80 and sold at 11.80 for a quick $1.00 profit, and stopped trading for the day by 1.15 p.m. But for those that stuck it out, saw that we could break barriers, by 3 p.m.the market had hit theoretical tops, and the August 500 Call bought could have been sold for as high as 12.70
We came right to the Dow Projection top with a theoretical Dow at 10,540 in early trading. We believe there may be one more day of upside, perhaps two, and again will play the same issue, noting the higher risk, and that we think we'll soon be oversold and the market ready to correct. It is now a matter of "what trigger," good or bad, and whether FEAR or GREED take control. Wanna bet?
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Valued and esteemed chartists sent this update out over the weekend:

-- DOW AND NASDAQ CROSS BACK OVER 200-DAY LINES
-- THAT INCREASES ODDS FOR SUMMER RALLY
-- EMERGING MARKETS ARE LEADING RALLY
-- % NYSE STOCKS TRADING OVER 200-DAY AVERAGE TURNS UP

We see a necessary downturn taking place, a sell off, before sell offs in portfolios, and sense that the last few days of July will be strongly up. We see within this enough whipsaw to create real sell off, and to move right back up.

Stocks have rallied 3.6% on upbeat earnings. Interest rates are near to zero. As we watch the whipsaw, we almost forget the market gained, or then that it lost. It becomes a gambling pit with electronic pockets. Trading by rules becomes even more important.

If we see it right stocks, within whipsaw, will rally up to perhaps August 2nd, and we'll then see a several week slow down, before more upside. At www.bluechipoptions.com we have strategies on what to do long term. Check out what we do.

Deep Breaths and Blows

We believe that the market will continue this endless whipsaw and churning throughout August, more to the upside, and that stock holders will, as they have gained this past year, nothing.

We have been in a market that not just breathes, but appears to take deep breaths and blows. As one studies the market moves of 2010 no one has made money but traders that trade right. It's not really a stock market as much as a gambling pit with electronic pockets.
Just think:

7/16-260 point drop
7/19-50 points up

7/20-120 point drop, only to close 75 points above the prior day close, with 195 point swings throughout the day

7/21-160 point drop, rallying 60 points near day end

7/22-Up 200 points

7/23-Down 70 points, to end up 120 points.

All of this whipsaw points to cycles, Gann, mooncycles, Obama the Communist, and Lindsay Lohan being the causes.

From watching the analysts explain their charts, reversing opinions in the middle of the day, Floyd has learned this is perhaps our first completely

WTF? market.

WTF is extreme science for those of you that know the meaning.

As we see it, and note in our Dow projections, we have been contrarian to the upside for weeks and had all winning signals, with most over 50% in return, much higher than we normally expect.

As you study our Dow projections we have successfully profited, almost to the exact number, except for the lowest lows and the highest highs.

We open the week with a likely chance of reversal, but still remain contrarian to the call and the upside top. During the week we'll report on events, triggers, and "causes."

Again, We've not had a Loss This Week

All week the chartists have told us the "end of the world," changing their discussion as the market shifts. Yesterday we were again rewarded with our contrarian "in our face" analysis of Wall Street.
The market opened UP, and continued to move up on good earnings to a theoretical Dow high of 10403. We may see a reciprocal whipsaw from the massive moves, but the real news is that yet again our August 500C, bought as low as 3.90, and averaged cost for most traders. The 500 Call hit highs of 10.10 yesterday for a 100% return plus for most of our traders.

Again we have not had a loss this week, and continue to trade contrarian to the call, still seeing upside.

We'll not issue a signal for the day, as we believe it's an anything could happen day, and we do not want to hold inventory over the weekend.

Remember, when you are making money, and traders you have BEEN making money for weeks in a row on our contrarian in your fact attitude on the market, always be cautious of GREED.

We've simply done too well and do not want to slow our momentum. If open to trading, only day trade, and exit by day end.

Have a great weekend, and count your money.

If you are not making money right now on our options system, please write me, as conditions have been absolutely perfect for three weeks, all while the talking heads babble.

My favorite: Apple will fall. Antennagate. Jobs came on and said "shove it," you've created a phucking frenzy over nothing and our www.bluechipoptions.com also played this right.

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Charles Nenner Research, recently on CNBC, and a true analyst of the market, doesn't see a long position in the S&P 500 until it closes above 1109. The bounce may indeed be over, says Nenner, when the S&P closed under 1075.
I noted this past week the Dow Jones closed for three days on the 200 day moving average. Overall in the market in our BlueChipOption service we are also investors and "non investors" in Gold and Silver at various times.

We sold all of our Gold and Silver holdings a few months back at 1170 area. The market for GLD moved up almost 80 more points, then held in trade range, and we are now watching for could be a downside target. GLD appears to be following the Euro. This will effect the OEX.

Write for info on my thoughts on Gold and Silver and to hear a bit about Blue Chip Options. info@oexoptions.com and you'll get right to me.