Replies to post #4762 on Trading with Jerry Olson

[Jerry Olson]

good luck today folks

Good Morning all

The backside bounce up and into the 20 & 50 emas on all the daily charts of all the indexes found sellers there as I predicted. This is exactly how it's supposed to react if your a chartist. The supply and demand factors are always evident at areas of support and resistance and we as chart followers not fundamentalists expect reactions to happen. NOW add the quadruple witching angle to the mix during op ex week and bingo we rolled over at 12.00pm and went down the drain fast. I wanted to mention that if you do not follow or understand the ES real time futures or do not subscribe to it, get them today. They always lead the markets up or down folks. While other traders use other sources I have found over the years that the big money guys on wall street use the BIG Contract of the S&P for everything to trade and watch during the day. That's why we call it and watch it religiously each day in our real time room. Now look we are heading down for a potential retest of the 1368.75 level of the recent lows. We have breakdown prices on all the indexes that I'll mention here, THE DJIA BELOW 12,000=TARGET 11,800, THE NASD-COMP 2340=TARGET 2280, THE NDX 1710=TARGET 1640, but the index that has me holding my nose before I turn bearish is the SOX index. It's holding quite well right now and until it breaks below 450 I'll stay longer term bullish. Ok now we get to this "NEW Improved" Worry Wart for the markets, called the SUB Prime Lenders fiasco. Folks the entire national sub prime market that could create large amounts of foreclosures is a whopping 1% of the whole financial industry. Did you get that everyone? So while the street always looks for "excuses" to sell at the drop of a dime, I am thinking the other way, like in a contrarian way? Guess what folks, DA FED will be forced to step up to the plate sooner then later in my opinion to cut rates and "save the day" just like Superman saved Gotham City right? Well all kidding aside we are getting pummeled with outside junk that creates these buying opportunities if you're astute and watching the tape. Did you see in the midst of all this carnage that stocks like SNDK was holding up so well??? Could it test 36.00 again, maybe but for all intents and purposes this could be a great LEAP Call trade for Jan 2009. Yeah that's right a long call for SNDK. On top of all this negative sentiment is the shorter term BP's I watch and they are getting down there toward 30%, the buy area. Now on top of that news the NYSE BP, having withstood a 240+ down day in the DJIA the NYSE BP was only down .62%. This was a huge tell for me. ON that Tues of the first major decline it fell almost 5% in one day. Let's see if we can hold the recent lows setting up a major rally despite the sentiment and perception of the markets today. We are not out of business folks, we are getting ready to attack this decline with gusto and verve. Be ready for Freddy ok?
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SNDK---40.75 THE BTL---40.05 THE SST---THIS STOCK IS BACK EN VOGUE FOLKS I WANT TO BUY ANY DIP TODAY

JSDA---18.95 THE BTL---18.40 THE SST---THIS STOCK HELD WELL DURING THE AFTERNOON CARNAGE WATCHING

KLAC---51.80 THE BTL---51.20 THE SST---CORRECTED NICELY AFTER THAT SWEET 53.00 BREAKOUT BUY THE DIP

RMBS---20.05 THE BTL---19.65 THE SST---HELD WELL DURING THE CARNAGE YESTERDAY SHOULD POP BACK

AKAM---51.85 THE BTL---51.25 THE SST---THE DARLING OF WALL STREET AND A CRAMER PUMP JOB

HANS---34.95 THE BTL---34.40 THE SST---HELD WELL ALSO YESTERDAY AND COULD REGAIN SOME UPSIDE TODAY

SMH---34.55 THE BTL---33.95 THE SST---ANOTHER STOCK THAT HELD WELL IN FACT ALL THE SEMIS ARE LOOKING GOOD

TTWO---20.60 THE BTL---20.00 THE SST---SEEMS TO BE IN PLAY NOW SO WATCH FOR A DIP TO BUY TODAY

CROX---44.55 THE BTL---43.90 THE SST---SEEMS VERY CHEAP TO ME FOLKS WATCH FOR AN UPGRADE ON VALUATION

QCOM---42.10 THE BTL---41.50 THE SST---MAJOR UPGRADE YESTERDAY AND ANOTHER THIS AM SHOULD GO NICELY
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THERE ARE A MYRIAD OF ECO REPORTS COMING OUT THE REST OF THE WEEK. SO THE VOLATILITY WILL BE EXACERBATED FOR SURE. PLEASE STAY SHARP AND DO NOT GIVE BACK HARD FOUGHT GAINS. SET YOUR DAILY PROFIT TARGET AND ONCE YOU GET THERE CLOSE DOWN AND WALK AWAY.

SEE YOU ALL IN THE ROOM

JER & INNA
Jerry Olson
The Jog Group LLC
[e-mail]