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Re: Jerry Olson post# 4860

Tuesday, 07/31/2007 7:33:07 AM

Tuesday, July 31, 2007 7:33:07 AM

Post# of 4893
JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED JULY 30TH 2007
AND NOW THE BOUNCE COMES

Hi everyone this will be a short and sweet belated newsletter.

Ok we got the correction we wanted, all the bloat is out of the markets for the near term. We should try to rebound here right thru this week up and thru the employment report this Friday. Anything above 100,000 would be good despite all the talk of the demolished housing market. There are a slew of eco reports this week so we'll all watch with glee and see how their all treated by the bullet ridden street. Looks like a bunch of Swiss cheese out there if you ask me. We've had a major break down on the DJIA which I'll show you later down below as we broke very strong support at 13,300. My guess is we bounce here for a few days roll over and head down to retest that break. Probably move lower again to begin to form a new bottom here. What is so amazing to me, since the fall of the market in Feb-March of this year in a 6 week crash and burn scenario we have hit new highs. But it's the speed of these corrections that has me dazzled. This time it seems even faster to me and that means lower lows coming soon but that would form a good solid area of support to buy it there. The current move down in the bullish percents, and i mean all the BP's has been so fast it made my head spin. We are already in buy territory on 2 short term BP's and the others are being pushed down to that area as well with light speed.

I am going to say within a short period of time once i see the momentum begin to lift off the bottom like i did in March 2007 then we'll be able to roll back up with gusto that's for sure. There is a myriad of negatives out there right now that is hurting the markets, but as you all remember there was nothing but good news for months on end. The pendulum always is swinging in either direction all the time. When things get skewed to far to one side they always come back toward the middle. That my trading friends is what i call the ebbs and flows of the living breathing stock market. It's never going to change so you might as well "adapt" to it or close up shop altogether. The bottom line right now is we have not seen the lows yet, and we'll just have to wait till i call it on down the road.
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the password for this week is the same as last week............................ pullback
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DJIA---HUGE NEGATIVE BREAKDOWN ON THE P&F CHART BUT REALLY NO SURPRISE SINCE THE NYSE BP IS FALLING LIKE A STONE. http://www.buyitbuyitsellitsellit.com/OJ1.gif

NASD-COMP---RIGHT NOW THIS INDEX HAS NOT BROKEN DOWN YET THAT WOULD HAPPEN AT 2520. YOU CAN SEE THIS ON THE CHART http://www.buyitbuyitsellitsellit.com/OJ2.gif

NDX 100---I MOVED THE CHART BOXES TO 10 POINTS PER BOX FROM THE 20 POINT DEFAULT SET UP TO SPEED UP THIS PROCESS. SO TAKE A LOOK HERE. IF WE BREAK 1950 THEN WE HEAD MUCH LOWER, IF WE TAKE OUT 2000 THEN WE COULD RALLY UP FOR A BIT LONGER. http://www.buyitbuyitsellitsellit.com/OJ3.gif THIS INDEX IS RIGHT IN THE MIDDLE AFTER TODAY

RUT 2000 SMALL CAP INDEX---IF YOU CHECK THIS CHART WHAT YOU SEE IS A MASSIVE SELLOFF IN SMALL CAPS BUT THE CHART IS SUGGESTING THEIR GOING TO BOUNCE OFF THE BOTTOM HERE http://www.buyitbuyitsellitsellit.com/OJ4.gif

SOX INDEX---IT HAS SUPER SUPPORT AT THE BSL LINE AT 495. A PRINT OF 520 REVERSES IT BACK UP, THE SEMIS WERE STRONG TODAY FOLKS http://www.buyitbuyitsellitsellit.com/OJ5.gif

THE TLT LEHMAN'S 20 BOND INDEX, AND THE US U7 T-BOND FUTURES CHARTS BOTH HIT NEAR TERM RESISTANCE SO THEIR DUE FOR A SHORT BREATHER AFTER A GREAT RUN HIGHER. THE TNX HIT A LOCAL BOTTOM HERE AND IS DUE FOR A BOUNCE. BUT FOR ALL INTENTS AND PURPOSES I THINK BONDS CONTINUE TO RALLY AND RATES CONTINUE TO FALL.

CRUDE FOR SEPT IS STILL BULLISH HEADING FOR 80 ISH OR SO, AND GOLD HAS PULLED BACK AFTER A BIG RUSH HIGHER LATELY IT'S DUE FOR A SMALL RALLY SOON.

SPX 500 INDEX---OK THIS IS MY PROXY FOR THE MARKETS. WE BROKE A TRIPLE BOTTOM HERE ON THE P&F CHART AT 1480.00. WE NOW SHOULD REVERSE BACK UP 3-4 BOXES IN A COUNTERTREND RALLY. IF I AM RIGHT 1410 "COULD BE THE ULTIMATE DOWN SIDE TARGET SO REALLY NOT TOO BAD ACTUALLY. http://www.buyitbuyitsellitsellit.com/OJ6.gif

WE HAVE MASSIVE SELL OFFS IN ALL THE FUTURES CHARTS WITH A NICE RALLY OFF THE LOWS TODAY. SO FOR THE ES U7 CHART TODAY'S BOTTOM IS IMPORTANT. BUYERS SHOWED UP AT 1455-60 AREA...THEY NEED TO DEFEND IT AGAIN ON A RE TEST. IF NOT WE GO A LOT LOWER OVER TIME. 1432 WOULD BE A GOOD AREA TO BUY IF WE EVER GET THERE..
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QID---44.45 THE BTL---43.90 THE SST---HIT THE 50 DAY OVERHEAD AND FORMED A DOUBLE TOP I LIKE IT SHORT

SNDK---56.85 THE BTL---56.20 THE SST---VERY STRONG TODAY AND THROUGHOUT THIS SELL OFF GOOD STUFF

OMTR---24.85 THE BTL---25.30 THE SST---HAS HELD VERY WELL HERE ALL THRU THIS DECLINE IT SHOWS SOLID RS FOLKS

VDSI---28.20 THE BTL---27.65 THE SST---WOW WHAT A POP TODAY OFF THAT REAL NICE LIVE CALL IN THE ROOM WE NEED MORE

BEAV---43.10 THE BTL---42.65 THE SST---ONE NICE LITTLE RALLY HERE AND HAS HELD WELL THRU ALL THE TURMOIL

JASO---37.55 THE BTL---36.95 THE SST---THE SOLARS WERE ON FIRE TODAY IN EVERYWAY WE'RE LOOKING GREAT HERE.

NVDA---45.80 THE BTL---45.20 THE SST---ANOTHER SOLID SEMIS WITH A SOLID CHART LOOK GREAT FOR HIGHER TO ME

SMH---38.60 THE BTL---37.90 THE SST---DOUBLE BOTTOM AT THE 50 DAY ON THE DAILY CANDLE CHART MIGHT GO HERE

SINA---42.65 THE BTL---42.10 THE SST---SITTING RIGHT ON A TRIPLE AT THE 50 DAY ON THE DAILY COULD POP FOLKS

CROX---57.35 THE BTL---56.70 THE SST---WHAT A POWERHOUSE EVEN AFTER A 2-1 SPLIT? UNREAL UPSIDE HERE

CSCO---29.75 THE BTL---29.25 THE SST---PERFECT PULLBACK TO THE RISING 20 EMA DAILY POP GOES THE WEASEL
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HERE'S THIS WEEK ECO REPORTS

Jul 31 08:30 Personal Income Jun 0.5% 0.5% 0.4%
Jul 31 08:30 Personal Spending Jun 0.1% 0.1% 0.5%
Jul 31 08:30 Core PCE Inflation Jun 0.1% 0.2% 0.1%
Jul 31 08:30 Employment Cost Index Q2 0.9% 0.9% 0.8%
Jul 31 09:45 Chicago PMI Jul 59.5 58.5 60.2
Jul 31 10:00 Construction Spending Jun -0.1% 0.2% 0.9%
Jul 31 10:00 Consumer Confidence Jul 109.0 105.0 103.9
Aug 01 10:00 ISM Index Jul 56.5 55.5 56.0
Aug 01 10:00 Pending Home Sales Jun -0.6% -3.5%
Aug 01 10:30 Crude Inventories 07/27 NA NA -1103K
Aug 01 17:00 Auto Sales Jul 5.4M 5.4M 5.2M
Aug 01 17:00 Truck Sales Jul 6.9M 6.8M 6.5M
Aug 02 08:30 Initial Claims 07/28 310K 310K 301K
Aug 02 10:00 Factory Orders Jun 1.1% 1.0% -0.5%
Aug 03 08:30 Nonfarm Payrolls Jul 150K 135K 132K
Aug 03 08:30 Unemployment Rate Jul 4.6% 4.5% 4.5%
Aug 03 08:30 Hourly Earnings Jul 0.3% 0.3% 0.3%
Aug 03 08:30 Average Workweek Jul 33.8 33.9 33.9
Aug 03 10:00 ISM Services Jul 59.0 59.0 60.7


SEE YOU ALL IN THE ROOM TODAY WE SCALPS SHORT ALL DAY THE QID...IT WAS NICE..

LATER

JER & INNA
Jerry Olson
The Jog Group LLC
jerryo34@verizon.net

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