Futures Were Zero at Opening

So, many of our subscribers read my long letter for the Monday commentary and came away confused.

It's really simple and benefits you. Each Monday of the week we will combine our Blue Chip Option weekly commentary with that of the OEX, as we find more and more similarities. During the business week we will only update OEX commentary, however, if something is exacting for the following day, allowing Floyd more time to pick signals, and work with our Level 3 and Advanced Mentoring students. So if the OEX commentaries are "light" there's nothing to report.

Here's an example: Futures were zero at opening. I would not have traded at al!. The downside already started hugely with 84 points down, and never came back. Just watching the news I would have stayed out the market, but the market allowed call buys and sells, and we've now got a second buy in on the position.

The market has fully corrected and is now overbought. Will it also act "overextended" as the bulls did or have a typically shorter run to the downturn.

Alternative News

To all of you as subscribers each week we try to provide alternative news opinions on a lightening fast changing. Take time to read them, as the more you study the market; really study it, the more you will know. The more you learn in books, and courses, will hold best with you if you are privately mentored, spent time with in trading with you, is all what we write about in this commentary.

When you receive alerts from Blue Chip during the week they will be around discussion of our current positions, new buy and trades, and general interests. Short and sweet.

Same with OEX. Facts out there. Signals issued and reported and the same 8 step process that our Daily Pre-Market Alert puts in as discipline.

We twitter everyday updates on Support/Resistance/Pivots on our Dow Projections, allowing you to day trade really any moving stock index or blue chip stock that has volatility.

All of This Simply Smells Bad

We are combining alerts in this shortened week and will have only this alert for the week.

Volume on the exchange will be very light and we see trade range moves that will hold the market barely up for Thanksgiving optimism.

NOTE: This is the only alert you will receive for OEX or Blue Chip for this shortened trading week, which we assume from history will be very light, as influential traders are already in the Hamptons.

The Bullish percent index is one of the best indicators of small investor and institutional investment.

Everyone is bullish.

Equities are considered under value.

Most trading specialists and analysts believe the market, although it may correct, has much farther to go up.

Perhaps. But with a Bullish Percent indicator this high we have more caution, and suspicion.

Add to this that traveling last week I heard numerous times that “now things would get straightened out,” a theory showing no understand of the gridlock this nation is in.

These are Fox TV children, clamoring for more Mac and Cheese.

All of this simply smells bad and has us hesitate. When the bullish percentage indicator goes above 70 we become concerned not just of oversold conditions but that euphoria has taken over.

We have sold a great number of stocks and options at great profits and never push our luck

It is time to sit back on hands and wait

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You all know me so I won't explain.

The fucking idiots in Washington, led by Pee Partiers and others that want to "improve our standard of education" through testing are trying a time proven to fail approach. Uniform testing is not reasonable in a country of small towns, big cities, multi cultural, multi language, and it makes good teachers all want to quit.

Our 28-year daughter, a masters in Education, is in her 6th year teaching. Her middle school class (11 year old average) has kids up to 15 years that have failed many times, kids from other countries that come in legally and speak no to little English. There is no way someone could provide testing of reason to this varied a class.

So, the education system will likely lose one of its best teachers, because she values individualism and creativity, what real education is about.

America is NOT white people with all good kids and great family values, nor is all-Christian. America is going through massive change right now. Let's not be led by "false facts" to make our education "better" when, in fact, it does not.

This movie is the real thing:

http://failingschools.wordpress.com/2010/11/10/students-speak-out-against-standardized-retardation/

Fight our politicians and "value leaders" in the Pee Party. Help the world understand we are part of the world. Perhaps our educational system is broken, but standardizing a test is much like a really stupid version of human prohibition.

Each week we provide our Dow Projections, based on the theoretical Dow.

The theoretical Dow is much like an exponential analysis, where it evenly skews all 30 stocks in the Dow, not just a high mover.

A simple way to understand the theoretical Dow is:

High of the Day-add 40 points

Low of the Day- subtract 40 points

Close of the Day-Add or subtract 40 points to the close, dependent upon the swing of the close

We base our Dow projections on PNF charting, historical data, and Floydian intuition.

“Floyd, I have paid for Level 3 for three years and have made more money off your Dow projections than any other indicator or tool I’ve ever seen. I now trade full time the OEX, S&P, and Dow in day trades all around the Dow projections and the support and resistance lines. As you have taught me (and boy did I fight it) the actual option chosen your signal, is the least important part of the study

FYR-Buffalo NY”

Something Smells Bad

All of this simply smells bad and has us hesitate. When the bullish percentage indicator goes above 70 we become concerned not just of oversold conditions but that euphoria has taken over.

We have sold a great number of stocks and options at great profits and never push our luck

It is time to sit back on hands and wait

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You all know me so I won't explain.

The fucking idiots in Washington, led by Pee Partiers and others that want to "improve our standard of education" through testing are trying a time proven to fail approach. Uniform testing is not reasonable in a country of small towns, big cities, multi cultural, multi language, and it makes good teachers all want to quit.

Our 28-year daughter, a masters in Education, is in her 6th year teaching. Her middle school class (11 year old average) has kids up to 15 years that have failed many times, kids from other countries that come in legally and speak no to little English. There is no way someone could provide testing of reason to this varied a class.

So, the education system will likely lose one of its best teachers, because she values individualism and creativity, what real education is about.

America is NOT white people with all good kids and great family values, nor is all-Christian. America is going through massive change right now. Let's not be led by "false facts" to make our education "better" when, in fact, it does not.

I Tire of our Stupidity

The dow hit highs of 11239 and lows of 10970.
We will not trade a put, but will continue to hold the call for what we think will be more upside.

By 6.30 a.m. futures had risen 92 points,and commodities were all up. Traders would have wondered then if the 7 days of sell off was just a "slow man's way" to drop the necessary 240 points to constitute a breakdown.

However, the "breakdown" was inconsistent, on relatively low volume, and primarily played around Ireland's cash issues, and China, as always.

I wanted you to first see how futures showed at 6.30 a..m. EST

Aren't you glad we didn't buy puts? The world did not end; in fact, the auto bailout appears to have worked well, with GM having a great IPO, and manufacturing and consumer sentiment both rose.

For the stupid, the market must do well first before we can re-employ
For the stupid, for every article we import, we export two, and we increase jobs.
For the stupid, the deficit was 80% of what it is now before Obama came to office.
For the stupid, one can never listen to the American people on intellect; for God's sake, we watch reality TV shows.

It's time to start finding articulate and educated people to listen to. Don't blame the press; we love this dribble. Why else would FOX be first, a Murdoch station made up of lies and lack of parallels.

Ok, I feel better. I tire of our stupidity.

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Our Nov550C immediately rose to near a break even by 10 a.m.

The pubes are mad because the auto bailout is working, the stimulus is working, and they need time to find things wrong.

But...unemployment is high, so Sarah Palin may soon be President. Are we stupid or just fearful of change?

FCIC Delays Probe Report Amid Republican Opposition

Nov. 18 (Bloomberg) -- Democrats on the Financial Crisis Inquiry Commission, the panel assigned to probe the worst U.S. economic collapse since the Great Depression, voted to delay the group’s final report on its findings amid Republican opposition.

The report will be available in January, rather than Dec. 15 as previously scheduled, FCIC Chairman Phil Angelides wrote in letters sent yesterday to President Barack Obama and members of Congress. The panel will conclude its operations on Feb. 13 as required by law, Angelides wrote.

“The additional time will allow the commission to produce and disseminate a report which best serves the public interest and more fully informs the president, the Congress and the American people,” wrote Angelides, a Democrat who formerly served as California’s treasurer.

Three Republicans on the 10-member FCIC voted against the delay and issued a statement yesterday that said it was imposed so the panel can issue a “book-length” version of the report at the same time it’s released to lawmakers.

Congress created the FCIC to investigate the causes of the 2008 financial crisis, which triggered the collapse of Lehman Brothers Holdings Inc. and led to U.S. bailouts for companies such as American International Group Inc. The panel, which has heard testimony from executives including billionaire Warren Buffett and Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein, has been beset by partisan disputes and staff departures throughout its 15-month existence.

‘Waste of Money’

“This has been a waste of money from the get-go,” said Lynn Turner, a former chief accountant at the U.S. Securities and Exchange Commission. Turner said he doubts the report “will really go out and nail anyone to the wall, so it likely doesn’t matter if it doesn’t come out until after hell has frozen over.”

Peter Wallison, a Republican FCIC member, has indicated he may issue a dissenting report with the backing of other Republicans, said two people briefed on his plans who declined to be identified before findings are released. Wallison, a former Treasury Department general counsel, didn’t return a phone call seeking comment.

FCIC spokesman Tucker Warren said he didn’t know whether Republicans would oppose the commission’s final report.

“Commission members continue to discuss and debate,” Warren said. “Until the commission’s work has concluded, we won’t know how the work will shake out.”

Republican Statement

The FCIC’s six Democratic members, including Angelides, all voted to postpone the report’s release. Republicans, including FCIC Vice Chairman Bill Thomas, dissented. Douglas Holtz-Eakin, a Republican who didn’t participate in the vote, joined his colleagues in a statement criticizing the delay.

“We believe a report containing the findings and conclusions of the FCIC on the causes of the financial crisis can be delivered by the statutory delivery date,” the statement said. “Republican commissioners are prepared to work to meet the deadline set forth in the statute.”

At least five members of the FCIC staff have left since January, including Matthew Cooper, the former Time magazine White House correspondent who had been hired to help write a book about the panel’s probe.

The FCIC has also changed publishers for the book version of its report. After initially reaching a deal with Hachette Book Group’s Little, Brown, the commission now plans to use PublicAffairs Books.

$8 Million Budget

Neither Cooper’s departure nor the change in publishing companies affected the timing of the report, Warren said.

Legislation approving the FCIC’s formation gave the panel an $8 million budget and said the commission “shall” submit a report to the president and Congress containing its findings on “December 15, 2010.”

The text of the legislation also said the panel may use a 60-day period after the Dec. 15 deadline for activities including “disseminating the final report.”

To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net .

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net

Find out more about Bloomberg for iPad: http://m.bloomberg.com/iphone

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The gridlock will continue and nothing will change. The Pee Partiers, thank God, will be ignored. ON we don't go:

http://abcnews.go.com/Politics/112th-congress-ready-usher-leadership/story?id=12164901

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The End of the World is Coming. We have become that stupid:

http://abcnews.go.com/Politics/sarah-palin-thinking-running-president-tells-barbara-walters/story?id=12170631

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Bernanke tells us there is no inflation. Theoretically he is right. But we feel inflation, households think we are 2.7% higher in price than a year ago, a great deal in today's environment. That's an unusual gap but some economists are theorizing it is because food and energy costs have risen. In the sentiment survey there was not a lot of optimism about next year on cost of goods to the consumer, a telling tale.

But then, Bernanke wants to boost inflation, which is running below it's target.

(It's when you read this stuff that you think like a Libertarian)

Impossible to Trade

Death on Wall Street. Dow highs of 11082 and 10950. Impossible to trade.

We have sold the put profitably on November 16th, and will only hold open our November 560C which had highs of 1.45, lows of 1.09 and was not tradeable.

Following are what the chartists say:

-- RETAIL SPDR REMAINS RELATIVELY STRONG WITH FALLING FLAG
-- STOCKS CONTINUE TO FOLLOW THE EURO
-- EURO STOXX 50 TESTS IMPORTANT SUPPORT LEVEL
-- TREASURY YIELDS LEAD THE DOLLAR
-- VIX CHALLENGES RESISTANCE WITH BIG SURGE
-- VIX TRIGGERS MOMENTUM SIGNAL SIMILAR TO APRIL

We will continue to only hold the OTM Call today, waiting for a bias to establish

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All of the money we have been printing has to go somewhere, and emerging markets, and the commodities they gobble, offer some obvious stories.

At www.bluechipoptions.com we've been actively recommending stocks and options around our printing of the dollar and the repercussions. New bubbles are being created as we speak.

The State of Currency as Commodities

No, god of financials. I am not afraid. FEAR = False Evidence Appearing Real. This is what happened yesterday, all before the 3 p.m. closing hour, which I consider telling only of the electronic trading.

1. The market hit new theoretical Dow bottoms of 10,945, right within our Dow projections.

2. A return to 10,776 means that only the day trader in stocks and options got shellacked again, as all the profits are gone. At www.bluechipoptions.com we progressively sell off.

3. A bottom test we believe will be short lived with a euphoric upward run back in the 11,500's and leading higher. We may have several bumpy corrections in here, and this sell off was well needed in an oversold market. This was very much a key date to the market and the sell off was solid.

Investors in our Dec OEX 560 Call should now have an averaged second buy cost of 1.70, with a new stop loss date. We believe this signal could now rebound in 4 market days

Read current signals carefully as our profits were astronomical high these past three days.

There is a bull market coming. Short term, but a good burst and a chance to perhaps not get shellacked, and learn to trade fast, as in today's world intrinsic values can change instantly.

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The state of currency as commodities and how they are interpreted is an important part of option trading. When the USD was worthless a few weeks ago, Gold and Silver were hitting all time highs.

Now the Euro has slumped to the weakest point in more than a month against the dollar as concerns again over Europe's simmering issues with sovereign debt.

China has become a bit concerned that the U.S. is making their massive Treasury investments of less value and we have currency fights with China. The theory of a one world currency is that of oligarchs, and the one of a gold standard solving the issues well beyond their mathematical skills. There is now not enough precious metal to cover the paper debt.

What a state we're in.

When watching futures watch Gold and Silver also, and the USD against the Euro. It's the start of a currency war.