HAPPY HALLOWEEN

Due to Halloween tomorrow, I won't have a Monday night posting. The move up last Thursday was big, but most of the move took place on the gap up at the open. I warned not to chase that gap because I felt that it was an exhaustion gap. This means that I think that the rally is nearing its end. I can't predict the future, so there is always the chance that the market move up a bit further...but it looks like it is ready to correct. This October rally has turned many people bullish. This is what often happens in Bear Market rallies. Just as you believe the market is going to start going up further, it reverses and moves to lower lows. I'm not predicting a panic sell off...yet. I don't see any strong signals yet that the market is reversing, but pay attention and start looking for them. This is a prime area for a reversal to take place. I received several emails asking my opinion on silver (SLV). I'm still bearish short term and I feel that silver will make another move down before staging a possible rally. I feel the same way about gold (GLD). The recent pattern on both of those stocks looks bearish to me...like a bearish ABC pattern. I also expect the dollar to rally soon which would also put pressure on gold and silver to go down. We'll see what happens this week. Hopefully we will get some good signals this week and jump back in the market. If you see some strong weakness tomorrow, you can always buy puts on the SPY, DIA, or QQQ...until I can get some more specific trades listed on the blog. Don't build any large positions until we get some clearer signals. Use good money management.

DON'T BUY INTO THIS RALLY

The S&P 500 futures are up big right now as a result of the "debt agreement" for Greece. I've told many of you in my classes this week that we were obviously going to get an agreement that would appear to be good news for the markets. The brief research that I've done tonight on the agreement tells me that this deal is not even close to what is needed to prop up Greece right now. Not to mention the fact that Italy, Spain, Portugal, and Ireland will soon be lining up for their deal. Don't be surprised if we gap up big at the open tomorrow, then immediately start selling off...particularly the banks. We could move a bit higher, but it seems to me that a gap up would likely end up being an exhaustion gap. I'm not ready to short this market, but I'm definitely not looking to buy into it right now. There are a lot of mixed signals which is why I would recommend that most of you sit on the sidelines for a bit longer. For those that still want to trade, keep your risk small...and try to use option spreads if you know how to use them and adjust them. Sorry that I don't have any new recommendations, but I figured that a warning might be as good as a recommendation.

MARKET IS CONTINUING THE STRONG RALLY

The markets have continued the strong rally that they have been in over the last few weeks. I haven't seen any strong sign of weakness, but we are nearing some very important resistance areas. Many of you have asked if this is the start of a new bull market. I don't see any strong evidence of that...aside from a month long rally. In context this still looks like a correction within the downtrend. Even if I change from being longer term bearish to longer term bullish, I would still want to see a retracement in the market before I made any aggressive bullish trades. I have a couple of small bullish trades on the SPY and DIA made last week when I noticed an inverse head and shoulders chart pattern on the DIA. Other than that, I am mostly in cash right now...aside from a couple of option spread trades on GOOG and WYNN. I'm content to sit on the sidelines until I see some good trading opportunities. I don't like to trade earning announcements. They are too much of a gamble. I might trade them using a Straddle or Strangle, but I haven't seen many set ups that I really like. I've had a few emails on the FAZ. I don't recommend getting into the FAZ until the market starts to show more weakness. After taking a hit on FAZ last week, I'll be looking for more confirmation on the next entry.

MONDAY OUTLOOK

We should be nearing the end of the rally. We could move up a bit further, but I wouldn't try to trade that move. Although I think the markets will eventually make another big move down, I think the shorter term movement of the market could be choppy or sideways. This will be fine as long as we keep moving sideways within this big range that we've been in over the last few months. The tighter choppy moves are harder to make money on...unless you use some of the option spreads. Tech stocks have been under performing in the market over the last few sessions. We could see a scenario where the Nasdaq starts to drop more dramatically than the S&P 500 or the Dow. Keep an eye on the Dow Transportation Index and the VIX. If we see the transports drop faster than the market and the VIX start spiking up, we could have another decent drop in the market. Keep an eye on 1250 and 1258 on the S&P 500. These are the next big resistance levels. The financial stocks look like they are completing their corrective rallies. This could set up for a nice trade on FAZ this week. I'd like to see how the financial stocks trade tomorrow before I make another recommendation on FAZ. I got burned a bit from it last week.

BUTT KICKING

I couldn't think of a better title for today's activity. Actually that is the censored title. If you trade long enough, you will sometimes get days like today. Yesterday looked like we were certain to get a market decline. It even looked that way at the market open....but then things reversed. I'd love to blame it on market manipulators or the High Frequency Traders (HFT's), but sometimes you get beat in the market and you just have to take it like a man. I hate it when people blame the refs for their favorite sports team's loss, or give other lame excuses when things don't work out in their favor. I got beat in the market today....mostly on the FAZ. When the news out of Europe hit this morning, the financials stocks started to rally hard. When stocks are that oversold, it creates a snowball effect as thousands of short sellers start covering their positions. That action creates an even bigger move up which in turn causes more people to cover their short positions. I'd like to blame the entire rally today on short covering, but some of the volume numbers were high enough to believe that there was some true buying going on.

I was stopped out of my FAZ position. I didn't get stopped out of TZA, but I came really close. The big question that is on everyone's mind is what is going to happen next? Before I get into my opinion on that, I need to again emphasize the importance of money and trade management. I was down about 11% in one account and about 13% in another. Those are pretty big one day losses...but they didn't wipe me out. Despite my confidence last night that we were going to move lower, I didn't violate my money management plan. This would have prevented me from making tons more money had I been right...but it also prevented me from wiping out my account if I was wrong. I've learned over the years that the market can always throw you a curve...especially when you think you can't miss. Remember something that I've told you in your money management classes. If you are overly upset with your loss (or losses), you probably risked too much on that trade (or those trades). We are never going to like having a loss, but there is a difference between being mildly irritated and uncontrollably angry. I would characterize my mindset on the losses today as moderately irritated (I'm not perfect).

As for the rest of the week....I am still bearish on this market. I don't think the problems in Europe will be solved quickly and we aren't seeing great news coming out of these earnings reports. Apple will likely drop big at the open tomorrow (at least I got something right on last night's blog). Intel is very near a lot of resistance (around $24.50). I don't know if it can break though right now. Having said all that, the higher volume on this rally today does make me more cautious. We might have a few more back and forth swings over the next few days. I warned of this possibility last week. The clues of a reversal showed up early today. The Dow Transports were up almost twice the percentage of the market, the VIX had dropped almost as much as it rose the day before, and the volume increased.

For those that are less experienced, you might want to sit out of this market for a day or two. I don't see many patterns out there that give me a lot of confidence. Many of the patterns I listed last night are still tradable patterns, but you will need to place those stops above the most recent high...and make sure you follow your plan.

HAS THE NEXT DOWNWARD MOVE STARTED?

Much of what I talked about last night happened today. The Dow Transportation Index moved down at a greater percentage than the market. The VIX spiked up. The volume increased a bit today. The next question is how far will we drop? If this is just a retracement of the recent upward move, I would expect the market to pull back to around the 1150-1170 area...and do so on average to lighter volume. If this is a bigger move down, I would expect to move back down to the 1120 area. If this is a bigger move down, we should see more of what we saw today...the Dow Transports dropping at a larger percentage than the market, the VIX spiking higher, and the volume picking up on those down days. We don't necessarily need more selling tomorrow, but the market should be moving down quite a bit by the end of the week. IBM is down in after hours trading despite a decent earnings report. We've seen what has happened to Google after their big gap up. If Apple's earnings can't rally the market on Wednesday (Apple reports after the bell on tomorrow), I don't see anything else out there that will. I think that the professionals are looking to sell their Apple stock into the earnings report (just like they did with Google). I wouldn't be long this market right now....but I also wouldn't be heavily short either. Earnings releases can cause weird things to happen in the market. I still really like calls on FAZ and TZA. GMCR had a big move down today on high volume. It is likely going lower...at least to $73. CRM looks like it could move back down to $110. CMG is also looking more bearish with a possible move down to $285...or even $272. You may want to wait for CMG to move back below its 50 day MA for more confirmation. PCLN is also looking weak. As long as NFLX doesn't move above Friday's high, I like it as a put option trade. It held up pretty good today on a big down day in the market, but the volume was very light. It still looks like it is going lower. Here are some less expensive put option picks from the Dow 30: AA, AXP, BA, CAT (bearish engulfing pattern on higher volume. This gets five stars ***** as a great bearish trade. Put your stop above today's high), GE (put a stop above Friday's high. Great reward to risk. Target $15), HPQ, etc. I could go on and on. After just looking at all those Dow 30 stocks, I feel very confident that we are starting a bigger move down. Many of those are good looking bearish trades.

SILVER UPDATE

This post is from Chaz...a commodities trader that writes a monthly newsletter on the precious metals market. He has given me permission to post it on my blog. As a disclaimer...I (and Option Magic/Market Trend Signal) are not responsible for the content or recommendations in this newsletter. Also...a lot of this information relates to trading the actual commodities. There may be some terms or strategies that you don't recognize. This update is meant to be an information guide for those of you that are trading gold and silver...or just the gold and silver ETF's like the GLD or the SLV. This commentary is opinion and analysis. You must still use good money management and trade management principles. You must also read the charts. No one...I'll repeat...no one knows the exact future of any event on Wall Street. You must still do your due diligence. I have been a bit disturbed lately to hear of students that are risking everything on these recommendations. That is not what I have taught you. I teach trading...not gambling. If you are going to ignore my teachings, you better be willing to take responsibility for your decisions. If you have not had my coaching classes, please do not trade any of the recommendations in this blog. You need to know what you are doing first. Trading is more than just stock picks. That said, I always appreciate Chaz's opinions and commentary. Thank you Chaz!


Good Evening Traders. It seems we have some interesting changes to deal with. I've spent the last few days checking with other analysts and I can't seem to find even one credible analyst who accurately predicted this recent take down in silver. There are NO ifs, ands, or buts about it. This was the most criminal act I've ever witnessed in the commodity markets. And NO ONE is being charged or even investigated for wrongdoing. Our government is clearly assisting the major bank shorts to clear their short positions. We know that more than 16 THOUSAND positions were covered in this take down. That's unbelievable. We clearly have a new paradigm to deal with. Again, I do not have the luxury of going into great detail of what is happening but my current thoughts are this..... The silver price has been much too slow to rise over the last week. This dashes any chance of a rapid recovery in the next few days. I believe that the silver price will stay in the $32 range until after Oct 26th, which is the November contract expiration date. There is very little open interest in the Novembers but December is HUGE. I normally like to sell my options about 30 to 40 days before expiration in order to avoid time value erosion but I plan on keeping my December 40 calls because I have reason to believe that silver will rise dramatically after the November expiration. Even if it doesn't, WHEN it does, it will be VERY volatile and dramatic. I will not be surprised to see some volatility over the next two weeks but I'm not planning on trading it. I am well positioned for December and March and I have no concerns about WHEN the move occurs. I've seen this too many times . It WILL occur. If it doesn't happen by December, I will start adding on May positions. ....For Jerry's students, those of you holding the January SLV 40 calls, I strongly suggest you HOLD. The December commodity options may not pay off but I believe the Jan SLV will. If you have Jan SLV calls, you might want to consider exiting them by Dec 20th at the latest. Most major traders leave for Christmas vacation on the 20th and don't come back until the 2nd week of January. It's NOT a good idea to be trading over the holidays............. There is one other little thing. The weakness in the silver market indicates that there is a slight chance that the shorts may try to take silver down even further. If they do, it will likely occur this week. Maybe in the morning. IF this happens, try to buy as many far out options as you can. A further take down will only last a couple of days at best. It will be a Heaven sent gift. If another take down occurs, the recoil will be ferocious. For the record , I did buy some December puts just in case there is another take down. I do NOT recommend you do the same ( play both sides of the market ) unless you have experience with this type of trading. Remember this, silver is a manipulated market and the manipulators are losing control of it. They rule it now but they won't for much longer. One last thing. NEVER trade more than you are willing to lose. There are NO guarantees in this business. What looks like a good trade today can look like a stupid idea in the morning. For the umpteenth time, I do NOT predict markets. I offer my opinion of what I think is the MOST likely scenario to occur. Thats it. Good luck and happy trades...... Chaz ....Sunday ..Oct 16th

BIG WEEK AHEAD

Earnings season will start to heat up with some of the big boys reporting this week. Don't base your opinion of the economy on Google's earnings report. They are still growing rapidly and are one of the few companies that can put up those types of numbers in a down economy. Even with those numbers, the stock sold off after gapping up big at the open on Friday. The volume was huge. This tells me that there were many professionals that were selling their positions on that news. If Google can move above that gap open (about $600), it might be able to push a bit higher. Look at a longer term chart of Google (GOOG). There is a ton of resistance at $630. This is why I don't think it is going higher right now...not in this economic environment.

I think this latest market rally is starting to exhaust itself. We could still move a bit higher, but we should see some selling this week. Whether you're bullish or bearish, you should be expecting some selling. Earnings season creates a bit of a wildcard situation. Some of these reports can cause whole markets to move higher than the analysis expects them to move (and visa versa). This is why I don't like making predictions during earnings season. That said, I still think we pull back soon. Look for some of the signals. Look for the Dow Transportation Average to sell off in a higher percentage than the market averages. Look for volume to pick up on a down day in the market. Look for the VIX to start spiking up a bit higher than normal. We'll see what happens tomorrow. C and WFC report earnings tomorrow. BAC and GS on Tuesday. With the numbers we saw out of JP Morgan, it is a good time to look at calls on the FAZ. AAPL reports after the bell on Tuesday. Don't expect a Google like move for Apple. Apple is already near an all time high. I don't see it gapping up that much. In fact, we could see it sell off. Google is stealing some market share from Apple. This might show up in their report. I'm still bearish in the short term on silver. I've included an update from Chaz and he seems to agree. He feels there could be a possible short term sell off that could be followed by a big move up. Make sure you use good money and trade management.

TOP OF THE RANGE

The rally today did surprise me a bit. I was looking for more of a corrective move upward over this last week. The sharpness of this rally makes it look more like a wave C (end of the correction) rather than a wave A (beginning of the correction). If it is a wave C, it will mark the end of the sideways correction that started back in early August. It would also mean that we could see a triple digit S&P 500 index by the end of the year. The price action and volume today suggest that the market could reverse in the next day or two. There are some really good reward to risk bearish trades setting up. SLV, GLD, WYNN, GMCR, SINA, AAPL, LULU, SOHU, CF, PCLN, and FOSL. I also love the reward to risk right here on FAZ and TZA for call option trades. JPM reports earnings before the open tomorrow. We'll see what affect it has on the market movement. The VIX is sitting at a key support level around $31. I'd like to see the VIX start to spike up and the Dow Transports start to sell off. This would confirm a bearish trend.

UPDATE

Just a quick update. The market did rally strong today, but on very light volume. This type of price action is usually very bearish. With the market now up quite a bit from the October 4th low, we might get a pull back in the next day or two. This possible pull back should be a "B" wave in a bearish ABC pattern. I wouldn't try to trade that move down unless there is big volume behind it. If there is big volume behind it, it wouldn't be a "B" wave....but rather the possible start of a bigger move down. If we sell off on average volume within the next few days, we should then make another push for that 1227 to 1228 area on the S&P 500. Keep in mind that we could drop 60 points on the S&P 500 (600 points on the Dow) and still only retrace this latest move up by 50%. We could see some wild swings over the next few days or weeks. I'd stay mostly in cash until a clearer trading environment emerges. If the market starts to chop back and forth, you can end up losing a lot of the money you made over the last few weeks...especially if you are on the wrong side of those swings. I don't like the price movement in silver over the last week. We had a big rally in the market and silver didn't move up much. It is beginning to look like it will make another move down soon. The longer it takes to make a significant move up, the higher the probability that it will move lower.

NOT SO FAST BEARS

The market sold off at a key resistance level on Friday. I added to some of my bearish positions. As of the time of this posting, the S&P 500 futures are up over 13 points. If this holds through the night, it would mean that the Dow would open up by about 130 points. That would not be the sign of a bearish move. In fact...if we close above Friday's high tomorrow, I'm anticipating that the market will move up and test the September 1st high...around 1227 to 1229. If we gap higher tomorrow, I will likely stop out of those bearish positions. This possible rally was anticipated a few days ago. I felt that we would drop down to 1040 before starting that rally. If we close above Friday's high tomorrow, we would likely be in that expected rally. If somehow the market drops at the open, I will stay in my bearish positions and look to see if the selling intensifies. If you are short this market, stop out if it rallies higher! Don't try to wait it out. This potential rally could last a few weeks. I might even look at some bullish trades if we close higher tomorrow. I'll post something on the blog if I see anything that I like.

ELLIOTT WAVE

I have a morning and evening Elliott Wave course coming up in a week. They will likely be the last ones I do this year...meaning 2011. If you are interested in taking that course, please email me at jerry@myoptionmagic.com by next Friday. I might be able to get you an end of the year holiday discount. I use a lot of Elliott Wave when analyzing potential market reversal points and when looking at the psychology of group behaviors in the market. Hope to see you there.

NOT YET

The market rallied for the third day in a row. I exited most of my positions yesterday so I missed today's move up. That's okay. My plan was to just get in an out quickly on this rally. I don't want to miss the next move down. I was looking to get in near the close today, but I still think we could move up a bit more. Volume was lighter today, but some of the market leaders showed some strength. BIDU, PCLN, AMZN, and WYNN (just to name a few) all advanced on equal or heavier volume. I don't need to build a big bearish position yet. That said, I did buy a few calls on FAZ and TZA. I would still like them to pull back a bit more before increasing the position. We are in the resistance area on the S&P 500 that I mentioned earlier in the week. What I'm looking for now is some signs of weakness. If we move higher tomorrow on lighter volume, that would be a nice bearish sign. I'd also like to see some weakness in the Dow Transports (IYT). A small move down on the VIX (or even a little spike) would also be a good sign. You can look at that 5 day rally back in early September as an example. The VIX dropped pretty big during the first few up days. As the rally started to stall, the VIX moved down in smaller amounts. On this latest rally, each move down in the VIX has gotten smaller. If we get a very small move down tomorrow in the VIX(and the market rallies higher on lighter volume), I will likely be ready to load up again on my puts. If we move higher tomorrow (or even Monday) on heavier volume, this rally might move up much further. Be patient though. If it does look like the rally could go up further, we would still be looking for a pull back before getting into any new bullish positions.

I want to thank all of you that have sent me success stories over the last few months. It has been great to see your success. It is the motivation I need to keep coaching. It should also serve as motivation for those of you trying to create your own success stories. Use these stories as motivation...not jealousy. For those that are still a bit scared to enter the market, try using your simulated trades. Buy some FAZ, TZA, and SLV calls in your virtual account and see how those trades work out. Those simulated trades will help you build the confidence to make real trades.

REVERSAL?

That was a pretty amazing reversal during the last hour of the market. There were a couple of signals that showed up about an hour before the close that predicted the possible turn around. First, the Dow Transportation Index was up 1% (about 60 points) when the Dow Index was still down 150 points. The Dow Transportation Average is often a leading indicator of the market...especially when it diverges (positively or negatively). Second, I checked the VIX and the VIX was down about a $1 with the market still down big. When the VIX is moving in the same direction as the market...pay attention. Volume was pretty strong. I don't think this is the start of a major rally, but we could get a short term bounce off of this day. The sharpness of the late day rally looks to be the result of "short covering". This can last a few days as the short sellers take profits from this recent move down. Trading the rallies within downtrends is a very dangerous game. I've seen traders give back all of their profits trying to time short term rallies. If you didn't get into any short term bullish trades at the close, be patient. Wait for a rally and buy more puts for the next move down. The market was extremely oversold so this reversal was somewhat expected. The big question is how high can we rally. A lot will depend on how we trade tomorrow. I'd look at the 1150 to 1172 area. If the European markets stabilize...and if we move above 1172, it is possible that we could move back up to that 1220 area. If the rally fails tomorrow, we will likely move down and test that 1040 support area. I still feel that we need to test 1040 before the markets can mount any significant rally...but today's reversal was impressive. If you are in any bullish trades, take the bulk of the profits off the table on any significant move up. Keep stops fairly tight. You could use the 1100 area on the S&P 500 as a stop loss point. TZA and FAZ are pulling back. This is good news if you are looking for another trade. Wait for them to drop a bit further. I hope you took my advice, after last night's posting, and took profits on TZA and FAZ. If not, you likely gave back a lot of profit today....and hopefully learned a good lesson from getting too greedy. LVS looks like a good short term bullish trade if you use the $36 support area as a stop. I'll emphasize short term bullish trade.

SUCCESS STORY

Jerry,

What a great day and 5 months since taking your classes. I closed out most of my trades late Monday afternoon in my trading account and my wife’s account. Between the two accounts Monday was a culmination of an $80,000 gain since taking course 1 and 2. My wife said to me when I showed her where we stand in our two accounts “ you would never have been able to do that if you would not have taken the two courses from Jerry”. She went on to say “ I was skeptical when you wanted to spend all that money for those courses, I am no longer skeptical”. I closed out 8 trades in my account yesterday for a gain of $20,000 and my wife’s account had 12 trades of $30,000 gain.

Here are the trades closed Monday from my trading account:

10 PACAR puts buy @ 2.25 sold @ 3.40 for a gain of 1050

10 FAZ puts buy @ 10.70 sold @ 21.20 for a gain of 10,500

10 SPY puts buy @ 4.07 sold @8.20 for a gain of 4130

10 SPY puts buy @ 5.27 sold @ 6.90 for a gain of 1630

10 DIA puts buy @ 4.90 sold @ 5.70 for a gain of 800

10 SPY puts buy @5.57 sold @ 12.00 for a gain of 6430

10 DIA puts buy @ 3.21 sold @ 6.55 for a gain of 3340

10 DIA puts buy @ 3.85 sold @ 7.25 for a gains of 3400

Thanks for your classes and the BLOG

Dan

SUCCESS STORY

Good Morning Jerry, You were absolutely right about FAZ and TZA calls and I sold both at the last 10 min of the market yesterday.   FAZ - 100% return sold at 25.40 TZA - 100% return sold at 20.65  These trades alone meant a profit of nearly $7k in 1 day! I had to excuse myself from a meeting to make a "personal" call before 3pm. Man, was it worth it!!! my first 2 100% return trades. I'm a believer.   I managed to have a lot of patience these last few days and watched my trades get progressively profitable over the last 4 days. I was sticking to my plan and my targets and they were completely shattered with that drop on the market.   My account has grown 35% in the last 4 weeks. I'm very excited and grateful for your teachings and look forward to more everyday.   -Andy  

SUCCESS STORY

Jerry, you and your OptionMagic course Rock! I just finished course #1 and feel like a light has been turned on.

A new trader, I muddled around for a year and lost all confidence last Spring. I was vectorless … inexperienced and searching for a strategy that would work in any market. Since starting your course, I believe I’ve found such a strategy with a means to leverage other’s experience… and regained my confidence.

I am very pleased to report a Success Story! Over the last 6 weeks, I’ve recouped all my losses (over the last year). I’ve doubled my liquid trading account value and banked some profits, covering half of the cost of the three OptionMagic courses, to date. I’m batting .900 for winning trades over the last 6 weeks, and have had effective stops/exits throughout. (So far I’ve had success on these markets: FAX, TZA, GE, WFC, JPM, XOM, DOG, SDS.)

I’m currently re-running the course 1 videos while waiting for course #3 to start in a few weeks. My trading path forward seems very bright now.

I HIGHLY recommend your course to anyone. Thank you for the outstanding instruction coupled with real-time sage wisdom … a killer combination and recipe for continued growth. That’s the edge that makes for effective learning.

Respectfully,

Steve

SUCCESS STORY

Good morning Jerry! Here is another success story to post. I bought FAZ,TZA, and LVS last Wednesday, set the target for LVS at 37 like you suggested. On Monday morning, LVS triggered and I made a pretty penny. Then I watched the market throughout the day, sold FAZ and TZA around two o clock, when I thought the market was at it's lowest- I almost doubled my money in 4 trading days ! Wow! Thanks !

Jennifer R.

SUCCESS STORY

Dear Jerry;

I obviously read the :BlogSpot" each time there is a posting. Lately I have paid close attention to the success stories. I do not write this out of any jealousy nor envy, and want you to know that I actually enjoy seeing the successes, even though I have not personally achieved anywhere near the levels of success that I read about in the "Blog".

In my past life/career I was undoubtedly a "quick study", and gained a respectable degree of success., yet it occurred over a 35 + year period of time. I have completed all three courses at this time, and continue to participate in the learning process each and everyday.

Although I can't boast of success (at least applying my definition of that word), I want to express certain things to you as stated simply below;

You are amongst the best teachers I have ever had, during a lifetime of learning. You are patient, understanding, highly competent, and as thorough as any Teacher/Mentor with whom I have ever been associated. I have worked with many high level educators. You are in a very small class of the "top of the top". I'm proud to be your student.

I have been under your tutelage since mid-September of 2010, and through all my frustrations over winning/losing trades, I have enjoyed every minute of the process.

Now for the good part. I feel as though I am coming into my own. I was negative quite a bit of money, and my win/loss ratio was too embarrassing to describe. During the past two months, I have become more relaxed, significantly more confident, and feel as though a momentum has kicked in that in my opinion would not have happened if it were not for my very hard work coupled with your guidance. I attribute 50% to each.

You will be happy to know that almost every trade during past eight weeks has been successful. You are aware that I am holding quite a few SLV contracts, but admittedly, not acquired through technical skills. I'm looking at those as "Crap Shoot" dollars, and I have developed in my mind little or no concern over them.

The fact of the matter is that I have momentum and I feel the skill kicking in more and more each day, and, most importantly, my daily or weekly trading decisions are well planned, my trade management practices are in full sinc, and my money management skills, are merely a continuation of past practices, which were successful, but fell through the cracks for a short period of time.

For my fellow students, should Jerry decide to publish this: I know the meaning of hard work. To some of you, making money as a Trader will come easier than for others. For many of us, it will not be as easy, and may take longer to become successful. But whatever the case may be, I have no doubt that if you are amongst the privileged students whom have learned under the teachings of Jerry McCann, and you use that knowledge carefully and professionally, you will succeed and most likely in a grander, more meaningful and successful way than you may ever have dreamed possible.

Jerry, your the best of the best!! What else could one say except thank you.

Sincerely,

Michael / Arizona

SUCCESS STORY

Hello Jerry

its been great and i hope stays like this , you made another brilliant call last week that's what you wrote in your blog (there is always a possibility that we go back to 1220 but i feel too many traders are expecting that so i think we rally up just a bid more) and that's what happened exactly . AMAZING that's really magic

these are my last week trades

53 lvs puts at 1.22 sold at 5.40 profit $ 22,100

20 wynn puts at 4.80 sold at20.75 profit $35,000

20 aapl puts at 6.58 sold at 8.70 profit$ 4,200

13 faz calls at 8.80 sold at 11.50 profit $$3,500

20 faz calls at 6.85 sold at 12.95 profit $ 12,200

20 tza calls at 6.15 sold 9.90 profit $ 7.300

20 crm puts at 5 sold at 9.70 profit $9,400

11 cmg puts at 10 sold at 14.8 profit $5,200

15 gmcr puts at 8.35 sold at 14 profit $8,400

20 aapl puts at 7.65 sold at 9.70 profit $ 4.400

20 amzn puts at 5.40 sold 7.80 profit $4,800

that's total of $116,500 thanks Jerry

SUCCESS STORY

Hey Jerry,

here are some more success trades which I did. I traded the quick few days rally while getting ready for the downside.

BIDU buy 124.77 / sold 129.22

CF buy 147.08 / sold 156

BGU buy 49 / sold 55

TNA buy 35.81 / sold 41.20

so far the downside position which I took look pretty good so we will see the final results next week. I also got some SLV which I have acquired on several lots. it is not looking pretty right now for SLV position, but the green light on the XAU yesterday may be is showing that the tide is turning. the proof in the pudding in the eating after all.

thanks again for everything Jerry

brgds

Roman

SUCCESS STORY

Jerry,
another great week of trading.

I sold my LVS PUT at 61.5% return ($2000) - my largest single trade return so far. My target was 40 and sold at around 38.
Still holding on to AMZN put, FAZ and TZA calls for a profit of $3500 and dec SLV call.
I could have done CMG as well, but i invested about 1/3 of my account this week.

I do have 2 puts that are not profitable yet, SRCL and JPM, but only losing $250. The beauty of small losses and big wins.

Looks like a lot of stocks are hitting some new lows closing below 50 and 10day. most trends are down, but they are sliding pretty far from MAs. Not sure if these are good trades, since we never know how low can they go. Certainly if the market takes another hit, and moves to the bottom of that channel, you mentioned the possibility of going down to 1040. i might have to wait to enter new trades, because it can go either way. looking forward to your blog post this weekend.

thank you again,
Andy

MIXED SIGNALS

The market had another strong drop today as the S&P 500 closed below the 1120 support. The Russell 2000 shattered it's support with over a 5% drop today. Although this break of support likely signals an eventual move down to 1040, it also puts the market in an extremely oversold condition. We could rally a bit tomorrow. We could also have a panic sell off with the Dow down over 400 points. I don't like to place a lot of trades when the market could go either way. I'd like to buy more puts if we get some kind of snap back rally. We'll see if we can get one tomorrow. If you made a lot of money with this last drop in the market, you need to start taking some of those profits off of the table. They can disappear quick if the market gets into some sort of choppy rally. Those that traded the FAZ and TZA recommendations made a lot of money today. I'll expect some of those success stories.