Trading with Jerry Olson

[Jerry Olson]

Good Morning all

The markets sold off early down to solid support areas in what was a "retest" of the recent lows. At the 200 ema's yesterday on all the indexes we know and love the street came off the sidelines and began to buy with a lot of conviction. When the smoke cleared at the close we saw a slew of "hammers" off those 200 EMA moving averages and that set up could morph into a Morning Doji Star pattern which means we are going a lot higher well above the last backside bounce toward the 20 ema daily chart. We need to see follow thru today even though we have the PPI at 8.30 and that could set the tone quickly pre market. We called this reversal as it happened intraday at about 1-1.30 yesterday I told everyone not too hold any shorts and to go long right then and there. There are some internal problems still out there in the Bullish Percent area on P&F that needs to be watched. Some short term indicators are getting nearer to buy territory below that 30% level. Only time will tell when they will reverse back up in the days and weeks ahead. However the caveat here is all the main BP's are in O's and moving lower. We need to see some traction in the depth of these moves so they begin to stop going down and start going up. I do not think we're completely out of the woods just yet so I'm cautious right now. But what is out there on the horizon is the FOMC meeting next week and my guess is the markets are starting to think "cut" sooner rather then later which could set the street to rally the markets ahead of the 20th & 21st time frame. It would not surprise me to see a major push higher after Friday's op ex extreme moves all the way into the FED next week. So we wait for confirmation of today's or tomorrows candlestick to set these daily charts up for an expected bounce. I think we're headed up toward the 61.8% Fibo retrace mark on the indices off the top and recent lows. Only time will tell us where they want to take us based on current sentiment and perception.
==================================================================================================================

SNDK---41.20 THE BTL---40.55 THE SST---WE NAILED THIS STOCK FOR 5-6 WINNERS YESTERDAY IT RAN POST CLOSE TOO

KLAC---52.30 THE BTL---51.70 THE SST---I KNEW THEY WOULD BUY THIS NAME LATE AFTER THE RECENT PULL BACK

RMBS---20.50 THE BTL---19.95 THE SST---SHOULD CONTINUE TO TRY TO TAKE OUT 21.00 THE NEXT 2 DAYS

BRCM---34.40 THE BTL---33.85 THE SST---HELD WELL DURING THE SELL OFF AND COULD BEGIN TO LEAD HERE

AMZN---38.40 THE BTL---37.80 THE SST---LATE BUYING IN THIS STOCK YESTERDAY WE COULD SEE ANOTHER POP EARLY

HANS---35.35 THE BTL---34.75 THE SST---HELD AND CLOSED OVER 35.00 COULD RALLY SOME MORE EARLY TODAY

JSDA---19.05 THE BTL---18.45 THE SST---A NEW STOCK TRADING BETWEEN 18.50 TO 19.50 LET'S WATCH IT

QCOM---43.60 THE BTL---42.95 THE SST---A PRINT OVER 44.00 IS BLOCKBUSTER FOR THIS SOLID STOCK

ASTI---9.05 THE BTL---8.45 THE SST---THIS WAS IN PLAY YESTERDAY AS A SOLAR PLAY IN THE NEWS UP 4+

NVEC---26.80 THE BTL---26.20 THE SST---LOW FLOAT LOW VOLUME BUT COULD SEE 29.00 SOON