Trading with Jerry Olson

[Jerry Olson]

Hello everyone, hope you;re all doing well...if you're not then come into the room we nailed it today. you can hang out for a couple of weeks to get the flavor of the team. here's my Newsletter form Sunday.
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JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED FEB 11TH 2007
OH HECK IS THAT ALL THE BEARS GOT?

Hello out there all my cyber trading buddies from around the world on this cold day here in Philly. Just this morning Inna said to me "honey can we sneak away for 1 week before I freeze my a$$ off"? I think she said it in Russian<g> We are going to St Martin as we always planned to do Feb 24th thru the 3rd of March, but we'll be trading each morning there for sure like we did last year. Hey when the boss says do something then I guess we honeydo it<vbg>

The bears tried to pummel the markets Friday in what "looked" like a normal pull back to me. For the last week or so I've been writing here in this letter about afternoon distribution after early morning gains. It seems like it was happening right past 2 pm est. Stock charts were showing important patterns last week such as a double tops around 12-1, then a lower double top around 2-3 and so on. I was trying to see if these were what I call buying climaxes. A buying climax is when a stock hits a weekly high early, then tanks and close at the low of that week. I suggest we all take a hard look right now at the stocks we love to trade and see if this is the case. If in fact buying climaxes are beginning to emerge in the markets then we're going to see lower and lower numbers as the days and weeks go by. However, and pardon me for being so bullish "still". Not one index chart, not one bullish percent, not one basic indicator has triggered an outright sell signal. Until my lines in the sands break down i'll reserve my bearish call.

We are accustomed to pull backs, corrections, sell offs etc, they are a part and parcel of the ebbs and flows I always talk about in the markets. This is the true life's breath of the streets sentiment and perception. In fact all of a sudden the Guru's of Fall Street are already writing about the VIX index being so low and how it popped last week. They are scared of the market being too bullish, too long in the tooth, too this or that, interest rates are going higher, the Fed will definitely "have to raise" because of rampant inflation in the system. We are going to NUKE Iran, or at least any day now Israel will do it, the world is coming to and end by Fen 16th because that's option expiration Friday, blah blah blah. The worry warts(last weeks password) <vbg>, will worry about anything or everything possible to spook the markets, jawbone the prices lower to BUY THE FREAKIN DIP FOLKS. How else are the pundits, those brave mutual fund managers going to get on board huh? Are they going to chase this market higher? Oh btw did not James Cramer say 1 week ago tech is dead? Yeah I think I remember that bit of noise somewhere in the recesses of my smog filled mind.

Now for some reason or another I think he said tech is back? Now please do not get me wrong. Jim Cramer is no joke folks. This guy is the real deal. He's helping those folks out there that cannot help themselves, but what really got my attention is the current spat with none other then the infamous Henry Blodgett of the AMZN fiasco & Cramer. Hey all I am saying is this, the press, TV CNBC Barrons etc, have to sell papers, if they aren't crying wolf each week what the hell is a trader to do huh? Everyday on TV this constant parade of analysis's come together to give their opinions(we all know what there worth), about all sorts of things pertaining to this rally. Gee golly whiz, ya think they might have missed it? Ya think they have gobs of cash that they were supposed to place in the markets but freaked out and said no way? The bottom line to this entire tirade is to say phooey on them. NOISE is NOISE no matter what form it comes in, and until and unless I can see the white of the eyes of the sellers, this market is still going higher. So for all intents and purposes I am buying dips till the damn cows come home, albeit will now be shorting a lot harder each day since I have to get on the other side of the street once in awhile. It seems to me my way of trading comes in 3 years cycles. From early 2000 thru the March 2003 lows I shorted every thing and only went long using options.

Then I decided right here in this room, to go heavily long late March early April 2003 and have stayed that way till last week. My thought processes take time to evolve since I'm no Mystic Merlin, no soothsayer, no Wall Street Guru, I have NO CRYSTAL BALL FOLKS. But what I do have is the guts and determination & the skill to make subtle changes to what I trade and how I trade for the betterment of this group. My P&F out look is bullish till something triggers it different. WHAT IS......................IS!
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THE PASSWORD FOR THIS WEEK IS xxxxxxxxx one word lower case letters...

DJIA---UNTILL THIS INDEX BREAKS 12,300 ON THIS P&F CHART IT'S JUST DOING A NORMAL PULLBACK. AND BTW IF IT BREAKS DOWN 12,000 IS THE BOTTOM OF THE 10 WEEK TRADING BAND A WHOLE 5% OFF THE TOP http://www.buyitbuyitsellitsellit.com/OJ1.gif BOY OHH BOY THAT'S REAL SCARY HUH? NOT!!!!!!!!!!!!!!!!!!!!!! WRONG!!!!!!!!!!!!!!!!!

NASD-COMP---THIS INDEX FELL A WHOOPING 28 POINTS FRIDAY HMMM AHH 1% GEE THAT'S BIG HUH? YEAH RIGHT! IF AND WHEN THE NASD BREAKS 2380 AS ADVERTISED RIGHT HERE FOR WEEKS ON END THEN WE HEAD TO 2300 A WHOLE 200 POINTS DOWN AND A NICE 8% CORRECTION. I DID SAY WHEN AND IF RIGHT? http://www.buyitbuyitsellitsellit.com/OJ2.gif BUT FOLKS HOW ABOUT IF THE NASD BREAKS 2520 EH? WE'LL EXPLODE UP TOWARD 2580 LIKE A MOON SHOT. WE IN DA MIDDLE HERE!

NDX---IF WE BREAK 1720 ON THIS CHART WE'LL PLUNGE TO 1660 A FULL 200 POINTS OFF THE TOP. THAT'S RIGHT AROUND A 10% CORRECTION EVERYONE, THINK THAT'S GOING TO HAPPEN? http://www.buyitbuyitsellitsellit.com/OJ3.gif LINES IN THE SAND FOLKS YOU HAVE THEM SET ALERTS

RUT 2000 INDEX---A PICTURE IS WORTH 1000 WORDS FOLKS. THIS INDEX BROKE OUT 2 WEEKS AGO ON HIGH VOLUME TO TOUCH AN "ALL TIME HIGH" AT 816. JUST LAST WEEK PULLED BACK TO 804 OK? IT HAS SUPER SUPPORT AT THE BULLISH SUPPORT LINE(BSL) THE RED UP TREND LINE AT 784-788. WE WATCH TO SEE IF IT GETS THERE I DID SAY "IF" WILL BUYERS SHOW UP?. THE LINE IN THE SAND NUMBER FOR THE RUT IS A BREAK OF 768 http://www.buyitbuyitsellitsellit.com/OJ4.gif

SOX INDEX---THE MAGIC OF A "PIFFERS" POINT OF VIEW(HMMM THAT'S MY NEWSLETTER TITLE)? IF YOU CHECK THE CHART OF THE SOX ON P&F IT CANNOT BREAK THRU OVERHEAD R(RESISTANCE) AT THE BLUE BEARISH RESISTANCE LINE(BRL). IT HAS MADE A RUN UP TO 475 LAST WEEK AND GOT STOPPED LIKE A CLOCK. EVEN THO 2 BROKERAGES UP'D THE WHOLE SEMIS SECTOR<G> ARE WE HAVING FUN YET?, YEAH A LOT OF CLOUT THEY HAVE. IF WE BREAK 445 WE GO STRAIGHT TO 420 THE BOTTOM OF THE 10 WEEK. NO HARM OR FOUL REALLY. http://www.buyitbuyitsellitsellit.com/OJ5.gif THE MARKETS HAVE MOVED UP WITHOUT THE SEMIS SECTOR ANYWAY.

HUI THE GOLD BUG INDEX---IT BROKE OUT LAST WEEK ALONG WITH GOLD FUTURES AND THE GLD( I PUT A LOT OF TRADERS LONG THIS INDEX WEEK AGO AT 64.00). WE NEED TO SEE WHAT'S UP THIS WEEK. http://www.buyitbuyitsellitsellit.com/OJ6.gif I CAN SAY THAT THE GC CONTINUOUS CHART BROKE OUT LAST WEEK AS WELL.

CL CONTINUOUS---CRUDE BROKE OUT LAST WEEK TOO AT THE SAME TIME AS GOLD. LOOKS LIKE A TEST OF 64.00 IS COMING AFTER A PULLBACK MAYBE THIS WEEK OR NEXT. http://www.buyitbuyitsellitsellit.com/OJ7.gif

SPX---MY PROXY FOR THE WHOLE MARKET---WHEN AND IF THE SPX BREAKS 1400 THEN GET SCARED OK? THIS CHART LOOKS LIKE THE DJIA CHART WITH HIGHER HIGHS AND HIGHER LOWS. http://www.buyitbuyitsellitsellit.com/OJ8.gif

ES-H7 FUTURES---A BEAUTIFUL PATTERN OF A BULLISH NATURE TILL IT BREAKS BELOW 1412 AND NOT TILL THEN FOLKS http://www.buyitbuyitsellitsellit.com/OJ9.gif

NQ-H7 FUTURES---OK NOW HERE'S WHAT A BUYING CLIMAX IS ALL ABOUT. THE ONLY FLY IN THE OINTMENT RIGHT NOW FOR ME, THE WILD AND CRAZY MOVES IN THE NQ FUTURES CAN ROCK YOUR BOAT. NOTE IT TOUCHED A BREAK OUT AT 1825 I CALLED IT LIVE IN THE ROOM THEN LOOK AT THE LAST COLUMN OF O'S ALL THE WAY BACK DOWN TO THE LOWS OF THE WEEK IN A BEARISH ENGULFING CANDLE ON THE DAILY. THIS IS EXACLY WHAT I MEAN BY THAT PATTERN IF IT BREAKS 1760 RUN FOR THE HILLS http://www.buyitbuyitsellitsellit.com/OJ10.gif
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THE PASSWORD FOR THIS WEEK Is one word lower case letters...
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RMBS---22.65 THE BTL---22.00 THE SST---MORE NEWS THIS WEEK I THINK 24 IS THE KEY TO 29.00 ON THE CHARTS

HANS---39.90 THE BTL---39.15 THE SST---WE NAILED THIS STOCK ON FRIDAY HAVE A BUD ON ME<G> BIG TIME NEWS FOLKS

AKAM---56.60 THE BTL---55.80 THE SST---OK THIS MAY BE A PRIME BUYING CLIMAX STOCK FROM LAST WEEK

SNDK---40.70 THE BTL---39.95 THE SST---THIS STOCK TOOK A HIT OFF MU NEWS I THINK IT GOES TO 36.00

AMZN---39.00 THE BTL---38.35 THE SST---ACTUALLY THE WHOLE INET SECTOR LOOKS VERY STRONG RIGHT NOW

EBAY---33.80 THE BTL---33.20 THE SST---REALLY TRADED WELL LAST WEEK OFF A GREAT EPS REPORT 2 WEEKS AGO

NVDA---32.95 THE BTL---32.30 THE SST---HAS EPS DATE TUES AH WAS A BIT SURPRISED AT THE ACTION ON FRIDAY

SNDA---22.05 THE BTL---21.40 THE SST---HAS EPS DATE MON AH A BIT OVERBOUGHT ON THE CHART SO BE CAREFUL

PCLN---45.95 THE BTL---45.20 THE SST---HAS EPS DATE AH MONDAY AND THE CHART LOOKS GREAT MIGHT POP DURING THE DAY

CROX---54.50 THE BTL---53.70 THE SST---HAS EPS DATE THURS AH BUT WE NEED TO CHECK IT. MIGHT HAVE HAD A BUYING CLIMAX LAST WEEK TOO. COULD BE A WILD SHORT...I DO MEAN WILD...

OHH YEAH BIDU ON WEDS, HAVE FUN FOLKS<G>
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AT 4.00 PM TOMORROW POST CLOSE WILL ALL THE LASER USERS ATTEND A QUICK CLASS TO SET SOME INTERNALS ON THE PLATFORM UP PROPERLY. WON'T TAKE US TOO LONG BUT I NEED TO GET YOU SET UP LIKE ME.

EVERYONE PLEASE WORK HARD THIS WEEK AS A TEAM. LOT'S OF CHOP LAST FEW WEEKS I WOULD SUGGEST TRYING TO MAKE A DAYS PAY AND THEN GO DO SOMETHING OTHER THEN TRADING.

HAVE A GREAT WEEK ALL

BEST REGARDS

INNA("THE BOSS") & ME


Jerry Olson
The Jog Group LLC
[e-mail]