Trading with Jerry Olson

[Jerry Olson]

Here's my Sunday newsletter i hope it helps..If you want the password e-mail me...

JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED 19TH FEB 2007
"THE REMARKABLE RALLY CONTINUES"

Hello out there all my cyber trading friends. I am 1 week away from some sun and fun in St. Martin it's been waay too cold here in Philly for a long time. A rest will do us good. Hope all is well with you and yours.

The markets are just unbelievable right now folks. I cannot remember a stretch like this that has everyone on the street bulls and bears alike totally baffled. More over based on everything I see on the charts there is nothing to stop this fabulous market from moving even higher. Of course we would dearly love a small shallow nice little ole' pull back to reset the charts. But I do not think it's going to happen. In fact if a couple of stars move into proper alignment this could jolt even the most entrenched bears all over the world. They might have to hibernate for another whole year. Last week in all his glory our omniscient infamous FED Chairman told the markets he's dating Goldilocks and just feeling young and restless. His amazing comments up on the hill sparked a wild rally in all the markets all at once. Once we got the bond and stock market moving higher in tandem then I knew this thing had serious legs. Along with that the Tranies are at all time highs for you Dow Theory folks. In fact as you'll see in the charts below if the SOX can muster a solid move higher along with the NASD over 2520 we could se one crazy blow off top.

What does a blow off top look like? Probably one gigantic "outside reversal day" when on huge volume on all exchanges the bulls push the markets to new highs and on the same day the bears attack those highs and shove it back down to finish on the lows of the day. This type of reversal day will signal the start of correction and nothing else. So for all intents and purposes based on the charts, the P&F bullish percents on the 3 main indicators, and the FED who will now stand pat all the way thru 2007, placing a serious floor under this phenomenal rally this market is going a lot higher. To my way of thinking this is exactly what a shark feeding frenzy looks like as the public is pouring funds into this rally with "reckless abandon" and at breakneck speed. The fund managers are being forced to invest these funds as soon as they possibly can chasing and pushing the envelope higher and higher. This sideline cash has not grown smaller it's growing larger. When you continue to fuel the fire, when you continue to push prices and markets higher all over the world, it seems to me this runaway freight train cannot be stopped right now.

There is of course only one outside catastrophic event that can derail this bull market, we all know what that is, but cannot trade it anyway. Look we'll correct everyone but if we stay in this monster buying spree any and all pull backs have to be bought. I have pounded the table for months on end to continue to buy the dip, that's any dip and all dips. The bottom line to the exceptional technical chart patterns i can see just do not end badly this way. Not the way they look right now. So we stay the course, we buy the dips, and we thank the whole wide world for this exceptional bullish movement. This global bullishness folks, has "never" been seen before and may not be seen again. I think 2007 will be as good or better then 2006. Stick and stay, work hard, our rewards are very close right now.
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The password for this week is xxxxxxxxx one word lower case letters. I mean it folks, just do it.
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DJIA---LOOKS LIKE 13,000 IS A GOOD UPSIDE TARGET. THE CHART SPEAKS FOR ITSELF http://www.buyitbuyitsellitsellit.com/OJ1.gif

NASD-COMP---2520 IS A VERY IMPORTANT BREAKOUT ON P&F WITH AN UPSIDE TARGET TOWARD 2580-2600 HERE'S THAT CHART http://www.buyitbuyitsellitsellit.com/OJ2.gif FANTASTIC HIGH LEVEL FLAG WORKING HERE. 2380 IS THE LINE IN THE SAND.

NDX---NOW HERE'S A CHART THAT HAS AN INVERSE HEAD AND SHOULDERS PATTERN WITH THE PRICE RIGHT AT THE NECKLINE LOOKING TO EXPLODE HIGHER ON A BREAK OUT OF 1850. NOTE THE BEAUTIFUL SIDEWAYS BASE HERE. http://www.buyitbuyitsellitsellit.com/OJ3.gif

SOX---IF THE SOX CAN TAKE OUT 495 "AT ANY TIME" IT DOES NOT MATTER WHEN, THIS EVENT WILL POP THE WHOLE TECH SECTOR TO NEW LOCAL HIGHS VERY FAST. THE SOX HAS LAGGED THIS ENTIRE RALLY. http://www.buyitbuyitsellitsellit.com/OJ4.gif

RUT 2000---THE SMALL CAPS ARE RIGHT AT ALL TIMES HIGHS INVOLVED WITH THE WHOLE RALLY WITH MONUMENTAL BULLISH IMPLICATIONS BASED ON THE CHARTS http://www.buyitbuyitsellitsellit.com/OJ5.gif

CRUDE CONTINUOUS CHART---61.00 IS A BIG BREAKOUT, WITH 57.00 A MAJOR BREAKDOWN. WATCHING WITH INTEREST BUT NOT FOR MARKET MOVEMENT LIKE BEFORE. http://www.buyitbuyitsellitsellit.com/OJ6.gif

GOLD CONTINUOUS CHART---JUST BROKE OUT LARGE LAST FEW WEEKS WITH MAJOR UPSIDE ON THE CHARTS. I PUT A LOT OF INVESTORS INTO THE GLD ABOUT 64.50 ISH OR SO. HOLD IT ALL THE WAY TO 776.00 http://www.buyitbuyitsellitsellit.com/OJ7.gif

SPX---MY PROXY FOR THE WHOLE MARKET. THIS INDEX HAS NOT PULLED BACK TO THE 50 DAY ON THE DAILY SINCE LAST AUGUST. YOU GOT THAT? http://www.buyitbuyitsellitsellit.com/OJ8.gif

THE ES H7 FUTURES JUST NEEDS TO STAY ABOVE 1460 FOR THIS WEEK AND CONSOLIDATE AT THE HIGHS.

THE NQ H7 BROKE OUT LAST WEEK OVER 1825 LOOKS TO BE HEADING TOWARD 1860 PLAYING CATCH UP TO THE NYSE.
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CROX---55.50 THE BTL---54.80 THE SST---HAS EPS DATE TUES AH 56.00 A LARGE BREAKOUT NUMBER

HPQ---42.90 THE BTL---42.60 THE SST---HAS EPS DATE TUES AH THE CHART IS STRAIGHT UP IN THE AIR

OSIP---35.35 THE BTL---34.80 THE SST---HAS EPS DATE WEDS AH SEEMS VERY CHEAP AND COULD POP AHEAD OF THE NUMBER

WFMI---46.70 THE BTL---46.00 THE SST---HAS EPS DATE WEDS AH(CHECK IT) IT'S VERY BEATEN DOWN

BOOM---33.30 THE BTL---32.70 THE SST---HAS EPS DATE THURS AH THINLY TRADED BUT IT CAN POP LARGE.

RMBS---22.90 THE BTL---22.30 THE SST---HAD GOOD NEWS FRIDAY STILL JUST BACKING AND FILLING

YHOO---32.10 THE BTL---31.75 THE SST---I CALLED THIS IN THE ROOM SOLD IT TOO SOON AND THEN ALL HELL BROKE LOOSE

CIEN---31.80 THE BTL---31.25 THE SST---BROKE OVER THAT 31.00 LEVEL LOOKS STRICTLY BULLISH TO ME

BRCM---35.50 THE BTL---34.80 THE SST---ANOTHER GRAVESTONE DOJI ON THE DAILY WHAT GIVES HERE???

MRVL---20.00 THE BTL---19.60 THE SST---BEEN ACTING BETTER SINCE CRAMER PUMPED IT LAST WEEK
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THE PASSWORD FOR THIS WEEK IS xxxxxxxxx one word lower case letters

OK WE HAVE SOME MORE ECO REPORTS THIS WEEK BUT I THINK WITH SOME VOLATILITY WE SHOULD NOT HAVE TOO MUCH TROUBLE WITH ANY OF THE NUMBERS. PLEASE MAKE SURE YOU ANNOUNCE ANY AND ALL TRIGGERS AS THEY HAPPEN IN THE ROOM

SEE YOU ALL ON TUESDAY

BEST

JERRY & INNA




Jerry Olson
The Jog Group LLC
[e-mail]