Two Testimonials

Two OEX Testimonials explain perfectly how our system works. Read them carefully as these men are successfully becoming traders:

“I realize now I don't have to hit a home run every trade. I gained $1700.00 this week targeting 10 and 20%. I will keep greed out of my trading decisions. I have also employ risk control, money management, and position size. I am keeping a trading journal of the good the bad and the ugly. I think the light bulb finally click onto think you have had everything I needed right in front of me.

One week doesn't change a lifestyle but I am in it to win it.”

“Floyd,

I sold all of the contracts for a profit of $1 each contract and I am walking away with a cool $8000 in a week. Frankly, I did not know how to trade today with the futures staying mildly up but the commodities staying up as well. So I decided to stay conservative and sold during the first half hour as the Dow was closer to R1. I was not sure if it will go past R1 but apparently it did. I still have to make simple adjustments as to how I am trading and clarity is only getting better. This is not possible without your valuable service and help. It is amazing with your position on a call when the market has only somewhat stayed down the whole week but yet so many people seemed to have made money including me ;)

Thanks,

LK

Market Study

Gold mining stocks will grow the most with any upswing to precious metals, and we already have a holding in Canadian Exchange Fund and a long-term call in SLW for silver.

GDX is a buy and hold. Close eyes. Please note this chart was prepared on 5/22/11. How is the stock performing?

How Heavy is a Glass of Water

This next article is schmaltzy stuff. I bow as I pro-offer it as truly it says it all and should be lessons we learn.

Just A glass of water

A young lady confidently walked around the room while leading and explaining stress management to an audience; with a raised

glass of water, and everyone knew she was going to ask the ultimate question, 'half empty or half full?'..... She fooled them all...

“How heavy is this glass of water?” she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, that's not a problem.

If I hold it for an hour, I'll have an ache in my right arm. If I hold it for a day, you'll have to call an ambulance. In each case it's the same weight,

but the longer I hold it, the heavier it becomes." She continued, "and that's the way it is with stress. If we carry our burdens all the time sooner or later, as the burden becomes increasingly heavy, we won't be able to carry on."

"As with the glass of water, you have to put it down for a while and rest before holding it again. When we're refreshed, we can carry on with the burden - holding stress longer and better each time practiced. So, as early in the evening as you can, put all your burdens down.

Don't carry them through the evening and into the night... pick them up tomorrow. Whatever burdens you're carrying now, let them down for a moment. Relax, pick them up later after you've rested. Life is short.

Enjoy it and the now 'supposed' stress that you've conquered!"

1 * Accept the fact that some days you're the pigeon, and some days you're the statue!

2 * Always keep your words soft and sweet, just in case you have to eat them.

3 * Always read stuff that will make you look good if you die in the middle of it.

4 * Drive carefully... It's not only cars that can be recalled by their Maker.

5 * If you can't be kind, at least have the decency to be vague

6 * If you lend someone $20 and never see that person again, it was probably worth it..

7 * It may be that your sole purpose in life is simply to serve as a warning to others.

8 * Never buy a car you can't push.

9 * Never put both feet in your mouth at the same time, because then you won't have a leg to stand on.

10 * Nobody cares if you can't dance well. Just get up and dance.

11 * Since it's the early worm that gets eaten by the bird, sleep late.

12 * The second mouse gets the cheese.

13 * When everything's coming your way, you're in the wrong lane.

14 * Birthdays are good for you. The more you have, the longer you live.

15 * You may be only one person in the world, but you may also be the world to one person.

16 * Some mistakes are too much fun to make only once.

17 * We could learn a lot from crayons. Some are sharp, some are pretty and some are dull. Some have weird names and all are different colors, but they all have to live in the same box.

18 * A truly happy person is one who can enjoy the scenery on a detour.

19 * Have an awesome day and know that someone has thought about you today.

20 * It was me, your friend!

*Save the earth..... It's the only planet with chocolate

There are basics to what we teach. Learn your Dow projections. Study the economic calendar, watch futures, don’t ask for to much admit into your mind…

Study each morning within the alert the economic calendar

http://www.bloomberg.com/markets/economic-calendar/

Use this in conjunction with analyzing futures as often as you can while “our world is closed”; the world market is still going on.

We are re-allocating already within some of our open “baskets” and you’ll note when we are increasing certain stocks. It’ up to you to keep track of your basket, from how you first traded it, but each basket we hold are just part of our overall recommended portfolio.

All options remain open. We need strong movement to show profits, but have investments in key companies.

We are re-entering our Proctor and Gamble 2013 Call.

29% profits in a few months, we turned it, and are ready to invest again. This could be a long-term hold with added commitment.

Welcome to our new “mix” of trading disciplines and effective method to have subscribers interested in truly learning, or being mentored thru the Zen of the market.

Money Bags

Huge lessons learned by advanced mentoring trainer MP we publish to show you progression:

“I just had one of those "Ah Hah" moments today where I actually executed a trade like clockwork...

I demonstrated everything you teach in the last 48 hours.

Yesterday...I could have entered to the call...but I waited because the move down was pretty heavy. I was not anxious to get in knowing that I might miss a move...but I was OK with that...

today...because of all my practice and because of all your lessons...I was able to "breathe" with the market..beginning at 4.30 am with the futures...Because of your DOW projections and my practice using support/resistance...and my experience "tracking" price. I was able to enter at the perfect time..

Again...because of your projections...and profit taking rules...I knew exactly where my target was...

After I sold out with a 24% gain..right BEFORE the top....(while staying home with my girls, cooking lunch and playing hide and go seek)...I just sat back and almost teared up thinking..."I just made more money in four hours than some people do in a week..."

I thought of that book I'm reading...Nickel and Dimed (almost finished by the way)...and how hard people work for $70-$80 per day...(BEFORE TAXES)...and I just took more money home in 4 hours then hard working teens and ADULTS make busting their ass all week long in crappy work conditions...

I was with my kids all day in a very comfortable home doing practically nothing but clicking my computer mouse..and just hanging with my family..

It doesn't seem fair...but I realize that I've worked very hard to get to this point...and I expect it to continue...I just need to keep perspective like this so pride, arrogance and greed stays in check...

I believe I have been blessed with a gift...and you are a big part of that..

Thanks brother.”

MP is my favorite subscriber. He is a fundamental Christian, a libertarian, and a conspiracy thinker. I believe in all faiths until they preach to me, am a Zen Buddhist, and am also a conspiracy thinker. MP and I argue all the time, for years, in emails, and we have both learned from one another.

Remember there are only three of us that run OEX and BCO services so we are not the spiffy group that updates signals hourly.

If our many articles, videos and ability to work by email with Floyd are truly educating you we hope you are learning enough to “trade by oneself”.

"Markets are constantly in a sense of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected"-George Soros

Floyd has a fascination with numbers, hence the study of geometry and math with W.D. Gann, and my use of Fibonacci.

Here’s math to help us simplistically see what patterns can do:

“Money bags"



This year, July has 5 Fridays, 5 Saturdays and 5 Sundays. This happens once every 823 years. This is called money bags. So, forward this to
your friends and money will arrive within 4 days (Based on Chinese Feng Shui.) The one who does not forward.....will be without money. 



Kinda interesting - read on!!!




This year we're going to experience four unusual dates.

1/1/11, 1/11/11, 11/1/11, 11/11/11 and that's not all...

Take the last two digits of the year in which you were born - now add the age you will be this year, the results will be 111 for everyone in the whole world. This is the year of the Money!!! 

The proverb goes that if you send this to eight good friends. Money will appear in next four days as it is explained in Chinese FENGSHUI.

Those who don't continue the chain won't receive....... It’s a mystery, but it’s worth a try. “

We have all received mail chains like this. There is significance in this cycle, however, and more proof of Fibonacci cycles

The Monday After Mother's Day

We will lead again this weekend with our ongoing experiment in Floydian Movies on trading for the week, so be sure to view the movie in the password protected area of the Blue Chip Website. www.bluechipoptions.com

For OEX subscribers we highly recommend you also subscribe to this service for three reasons:

*Our commentary on Monday is much more detailed, discusses current holdings, market trends and projections and new stock and option trades. Blue Chip carries the methodology of much of our OEX system to stock market and option trading.

Market conditions for the OEX over the past 6 months have been harder to trade than any time since we first began trading the OEX over 12 years ago, because volatility shifts dramatically and volume on the index exchange has lessened dramatically as market maker traders have shifted to other vehicles.

Having both subscriptions is a minor expense for the gain you can receive on just one option.

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The Monday after Mothers Day the Dow has been up 12 of the last 15 years.We will lead again this weekend with our ongoing experiment in Floydian Movies on trading for the week, so be sure to view the movie in the password protected area of the Blue Chip Website. www.bluechipoptions.com

For OEX subscribers we highly recommend you also subscribe to this service for three reasons:

*Our commentary on Monday is much more detailed, discusses current holdings, market trends and projections and new stock and option trades. Blue Chip carries the methodology of much of our OEX system to stock market and option trading.

Market conditions for the OEX over the past 6 months have been harder to trade than any time since we first began trading the OEX over 12 years ago, because volatility shifts dramatically and volume on the index exchange has lessened dramatically as market maker traders have shifted to other vehicles.

Having both subscriptions is a minor expense for the gain you can receive on just one option.

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The Monday after Mothers Day the Dow has been up 12 of the last 15 years.

Overall, the market remains with a bullish overtone, despite correcting in Gold and Silver as we predicted. Silver was the largest correction from 50 to 34. If we see Gold close below 1469 it may have more to correct.

However, we believe most professional investors have moved to equities, and that the retail investors are those still “betting” on I shares GLD and SLV.

In our Blue Chip complete commentary we share what instruments for precious metals we would be investing in, and plan to.

We also see Oil stabilizing by the middle of June near 95, a reasonable price to allow market trading and not crash all markets. Remember, oil is fully manipulated not by supply and demand but by commodity traders.

And a few F.A.Q.s that come up often to help you learn:

1. What makes the traders that “win” with you do so? What traits do they show?

They learn to see that nothing is black or white.

They stop listening to the knowledgeable, or reading the columnists

They follow the system rules 100%

2. What makes the traders that “churn” out of your system leave, especially those on the 30-day free trials?

-The churners are first those that think they will learn everything in 30 days.

-They seldom read or watch the movies available online, and instead just start trading off the daily alert, and lose their ass

-Typically they enter learning with the prejudices of what they have learned or read, and are not ever believers that most facts are false, that the market is manipulated, or that one is actually “poker trading” against another in bid/ask.

3. What does the average full time trader with your OEX system earn annually?

First it’s illegal for me to answer this, much like franchisors can only offer ranges

Second, it depends on the risk to reward ratio the trader has. Conservative traders make less, but longer. Risk oriented traders make larger amounts, with great chances of losing

4. How long does it take to learn to trade options?

One should “virtual paper trade at least 90 days”; typically it takes one year to learn to trade options.

5. What is the single greatest mistake you see new traders make?

They move too fast. Not enough study, the need to trade (instant gratification) and if they do well they move even faster. There’s really two reasons though; the new traders that don’t make it usually take NO time to study our articles, movies or charts

6. You have traded for many years. What is your best quality in trading?

-My best quality is my learned intuition about the market. I listen to almost no one and keep all the noise out of my trading.

-I have a gambler personality and am a high-risk trader. At times I haven’t stopped fast enough when on a good run

7. If you were going to learn just one thing to trade, what would it be?

-Point and Figure Charting

Have a great week trading. If you are subscriber to the Blue Chip (www.bluechipoptions.com) service, this commentary will continue with a movie and more specifics about stocks and option trading for the week.

Inverted Head and Shoulders Pattern

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

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

Several patterns for you to observe:

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

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

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

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

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

We’re very pleased with our decision.

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

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

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

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

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

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

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

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

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

A Critical Juncture

The stock market is at a critical juncture, and we are relying here on technicals, not fundamentals. What we’ve seen occur this past two trading weeks is leading to an important movement to the market.

First, from KeyDates.com

“The S&P ran into resistance just below the February 18 high, traded sideways in early April, then fell into the April 18 turning date. The rally off the April 18 low has formed what appears to be an island reversal on the daily chart, with a gap down on Monday morning and a gap up this morning. If these gaps remain unfilled, we could have a very bullish situation, one that might surprise most traders. The next few days should tell us whether this analysis is correct. The S&P needs to exceed its February 18 high for the bulls to have the upper hand.

The April 26 turning date comes next week, one day prior to the next FOMC interest rate announcement, due on April 27. April 27 also marks the first time Fed Chairman Bernanke will hold a press conference following the FOMC meeting. We may see volatility during that timeframe”

And next, some commentary from chartists:

“-- NEW DOLLAR DOWNLEG MAY BE STARTING FROM BEARISH TRIANGLE

-- THAT BENEFITS STOCKS AS WELL AS COMMODITIES

-- THE FALLING DOLLAR ALSO GIVES AN ADDED BOOST TO FOREIGN SHARES”

The FOMC announcement Wednesday should be surrounded by volatility, as the market watches Bernanke and his responses to quantitative easing, what he says about Standard and Poor’s lowering our debt rating.

This week we’ve tried a new approach to our combined OEX/BCO commentary, with Floyd making a lengthy movie of his commentary for the week. The URL link for this movie, in its test phase, will be found in the BCO alert for Monday.

Here’s a summary of a few of Floyd’s number projections:

-We are now long the QQQ’s with options as it closed about 2350.

-We think the S&P has an upside price of target of 1349; if it breaks this it could gap up to 1400.

-This is all occurring because of the inverted head and shoulder formation we’ve been discussing.

-We agree with Charles Nenner Research that the NASDAQ looks strong, but be watchful at 2385, where we are now long on calls on the QQQ, which could lead to a NASDAQ close above 2450

-And what we’ll show you in our Dow projections is most key. If the market can hold up and close above 12,540 there is high potential of reaching 12,746 and then 12,880 before any correction.

We see a 70% potential of this happening and a 30% probability that the market will first correct again and take us back to 12,540 area.

Floyd has a rule of thumb to always sell for big profits too early and “to leave money on the table”.

We sold Gold at 1446 and Silver at 43.00, and it’s since continued its upward ride. We expected to see a mild correction before more upside, but we now hang our heads as gold and silver appear on a buy signal. Gold may hesitate 1540, and now that its’ hit the magic 1500 mark, a close below 1495 will be a warning signal.

We see more upside in Silver and would rather be long there first, as Gold cycles still show potential weakness until mid May. If we hit 1540 on gold we’ll be very bullish.

We have already begun to build small inventory in SLV and CEF.

By June Crude could reach 116. The market in oil, as with all commodities, is 50% outside of supply and demand and cause and effect, but all based on trader games and market makers leading markets. Obama may think he can stop this, but this is the natural law of option trading from beads 1000’s of years of years ago. Electronic manipulation now puts market makers fully in charge

In Blue Chip we are overinvested and plan no new buys this week. I’ll report on outstanding options and holdings that we are “watching” for our profits, or ready to reinvest again in

And yes, for those of you that ask:

1. We have fucked our sovereign debt, but so has every country in the world.

2. The house of cards of paper currency will somehow adjust to forgive debt, to practice a global valuation, and we see a return to the Gold standard.

False Facts: The Republicans lower debt and lower taxes. The Democrats raise debt and taxes. To yet again teach empirical facts please prove this to me as a summary of the past years.

All is never as it appears, but how we see it.

Be Well

Floyd at OEX and BCO

May 25^th, 2011

Market Basket Trading

Market Basket Trading

We will be introducing more market basket trading over the next few months. Within a market basket the trader invests equal $’s in each position, or does so by % allocation, and holds in a basket.

The stocks can be bought and sold individually, but at Blue Chip we typically hold the basket for sale as a basket.

As an example of how we trade we invested $2500.00 4/8 in the total of the basket below, invested another $2500.00 on market lows 4/13, and now hold a small position of $5000.00 in a basket of the following stocks, with no stop loss:

2012 Brand Basket

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

This week we will be introducing three new market baskets for traders. One is from our friend Trader Alan, who invests in breakouts and higher risk speculative plays. We’ve done well with his recommendations and his work brings new dimensions to our style of speculative trading:

Trader Alan’s Dice Roll Basket

THIS BASKET WILL BE LISTED IN OUR BLUE CHIP ALERT Subscribers Alert early this week

With this fund we recommend an equal dollar valuation, meaning pick a dollar amount for the basket investment, and invest equally in each position. Later you can add, sell, and change exposures, but we would start here by dollar valuation

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

Michael O’Higgins, head of the O’Higgins Asset Management Group in Miami and the famed creator of the Dogs of the Dow basket created the next basket.

The Dogs of the Dow is based on the premise that one year’s worst performers of the “dogs of the Dow” could become more often than not the next year’s big winners. It’s proved steadily correct.

His new approach, tested since 1995, is called the MOAR Basket, standing for the Dogs of the World, or the Michael O’Higgins Absolute Return Fund.

After every losing year by the Dogs of the World he takes 5% points from each of the other categories and over weights the dogs, again playing the odds that they will outperform. If and when the stocks rebound he brings the equity portion of the portfolio to normal in 15%% point increases.

Using this technique since 1996 MOAR would have appreciably outperformed every major stock index, long and intermediate term bonds, gold and cash and inflation and done so with ONLY ONE DOWN YEAR.

This is a percentage allocated basket:

THE BASKETS will be shown each day in our Blue Chip alerts this week, for our subscribing base. Mr. O’Higgins is hard to argue with, as his famous Dogs of the Dow has worked famously, and we think his thinking of Dogs of the World will be an excellent hedge against turbulent markets

NOTE: WE will NOT list any baskets in our Stock Charts portfolio to make it manageable. These are all baskets you can create your own Stock Charts portfolios (if subscribers) to set up your own point and figure charting analysis.

Make note this is a 4-day trading week. If investing in baskets, start in small increments (Fidelity Brokerage requires only $2000.00) to create a basket, and build equity regularly in buys into the baskets.

Good trading, and please shoot me if Donald Trump becomes President, as we have become then not an ignorant nation, as I see us, but truly a stupid nation, and I’ll be moving out.