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Author: Mike Celeste Editor: Tony Ponzo August Circulation: 6734

Stat Sheet Week Ending August 22nd 2009

ChangesWeeklyYear to Date
Indexes Points Percent PointsPercent
Dow+185.0+2.0%+730.0+8.3%
S&P+22.0+2.2%+122.0+13.5%
NAS+35.0+1.8%+444.0+28.2%

Highlight of this past week: Both the Indicators and the Momentum Strategy had a winning week with the Indicators sitting on an 81% win rate and the Momentum strategy showing a year to date profit of over 328%.

In this Issue---
Options---
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Sometimes our decision making for day trades is a matter of choice, or a matter of funds. When making Momentum, Earnings, W Plays or Indicator Plays, we can avoid playing the market maker's game of a large spread in the bid/ask on options. We can do that by dealing directly in the stock, either going long or short. Usually we can get far more leverage by dealing in options, but we can also make a decent profit by buying or shorting the stock. It takes a lot more money to deal in the stock, but it is a more conservative play. Just something to think about.

Momentum Plays---
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We had a good week this week. Still only three plays but they were all big winners and for the most part we were in and out of each play within 10 minutes. That really kicked our profit percentage back up and we are now sitting on 328.39% profit year to date.
Past Results

Hopefully this means that the lackluster summer action is over. As you can see by our results, we did NOT have big losses during these summer months but we did have more smaller losses than we do at any other time of the year. We've talked about this before. It is just odd how the summer months have, over the last several years, been harder months to work with. We think, as mentioned before, it is due to the lighter trading volume during these months.

At any rate this has been a fantastic strategy for us and has been a lot of fun. No one play gives us a grand slam but the accumulation of a lot of wins gives a fantastic record and very nice profits overall. And, because the strategy is conservative in that we control our in and out parameters by making them tight, the losses we do have are small. That means with a lot of wins, the profits easily rule over the losses and that is why we are sitting on that 328% profit for the year. If you have been interested in this strategy, why not give it a try? There is a 30 day money back guarantee so you can basically get a 30 day free trial. Check it out by clicking on Learn more then scroll down to Level III.

Indicators---
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We started off the week with a nice win for the Indicator play. We then had another play scheduled for Friday, a down play, using Puts on the SPY. The pre-market action had swung from negative to positive and was increasing on the positive side, so we called off the play. It turned out that we saved ourselves a stop loss, as the market did what we figured it would do. It opened higher and then spurted higher to end up 156 Dow points. We are scheduled for another Indicator play on Monday, depending on the pre-market action, once again. We continue to have a win rate of over 81% on this particular strategy. Check it out by clicking on Learn more then reading about Level I.

Feedback---
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Macom wrote in to comment about our new Momentum page layout--and oh, yes, he had a nice winning trade, too. He writes----

"Concerning your email--Got in the 99 Call at 0.84 and out at 0.96. A good day today. Also, I like the new active page."

The Economy, The Markets & Commentary---
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This is getting to be a bit strange----This market just does not want to go down. Not only doesn't it want to go down, it doesn't want to go down during the summertime. We can't remember when the market was like this during the summer. Usually we see many investors concentrating on vacations rather than the market. Not this year. Maybe its because there are so many that are not going on any vacation because of the economy. The volume is still down as mentioned above but maybe it is because investors that are still trading are jumping in during any dip in the market, afraid that they are going to miss the next up move. So far that idea has been correct. As one commentator put it, any news that comes out is taken as good news, whether it is or not. We had a big down day Monday, but the rest of the week was up, including a big finish on Friday, resulting in a definite net positive figure for the week.

Oil made a new yearly high, and that also probably means that we haven't been doing a good enough job writing to our reps and screaming at them for some help. Demand is still down, and while some inventory has been worked off, the inventory is still very high historically. The refineries aren't operating at a big capacity, which can well explain the drawdown in inventory.

Employment was worse this past week, but it was brushed off and the market had a nice advance. Unemployed people don't have a whole lot of money to buy things, and the "experts" seem to be blaming the consumer for not opening up his pocketbook. It's pretty hard to spend when you don't have a job, or if your job is threatened. We can't fight the momentum, tho, so we are not making any specific predictions. There will come a time for that pendulum to swing the other way, but it certainly is not now.

The Car Clunker Program is set to end on Monday, with it being a great success, and it even spurred the auto manufacturers to increase production, which also meant hiring more people back that had been laid off. It was set to run until November, but it lasted just about a month. One problem has been getting the government money to the car dealers--apparently the paperwork is slowing things down, and they can't tell just how much they are going to have to give in these rebates.

Our consumer lack of spending doesn't seem to carry over to spending by our government agencies. If you want to hear something absolutely incredible about how taxpaper money is being spent, take a look at John Murtha's Pork Laden Airport

Another sector that seems a bit much is the report that came out this week saying that even in this bad economy, the compensation paid to company executives has increased over last year. Whatever happened to the concept that you were rewarded for doing a very good job, and you were punished for doing a bad job?

Stay tuned.......

Today's Thought---
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Great Truth--- Don't sneeze when someone is cutting your hair.


Mike

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