HERE'S LAST WEEKS NEWSLETTER FOR THE TROOPS...
PUKE CITY TODAY ....GET READY FOR FREDDY...OH YEAH....
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JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED JUNE 2ND 2002
"THE ECONOMY RALLIES...BUT!"
Hi there everyone, hope this letter finds you and yours in good health and spirits...Summer is on the way, how can I tell?..Arlene and me ran down to Margate NJ on Saturday, sat on the beach, soaked up some sun, and then ate a fabulous Dino's sub..oh that was the highlight of the day<VBG>...came home collapsed and feeling real good today....Started my exercise program last week, and I'm down 5lbs so far...salads suck..:-(..hehehehe...
Well folks what the heck is going on huh??..Let's think this thru..The economy without a doubt is really flying here..I wrote about this weeks ago as the recovery is not only on track but really picking up steam...We see it and hear it in ever single eco number that comes out each week..They continue to move higher and higher, and look better and better..So why isn't the market following suit?....Well I'll tell ya...
First, traders & investors alike are very nervous here..Heck the world is NOW talking about Nuclear WAR????..oh that's a nice one huh?..NEVER going to happen folks....The world coalition will swoop down on both countries like bees on honey and shut them down without a second thought..The consequences are too horrific...it won't happen...Next we still have the Al Queda effect, it's still here...Usama Bin Laden is probably still alive and will act again..Then there's the real underlying problem..Cap Ex spending from the big boy corps...no one has stepped up to the plate...well not until this week...INTC has a CC on the 6th, if they hold to their original number about 5.5 billion and DO NOT cut it..we should really rally up hard...Not a big summer rally but a nice slow gradual one right thru next earnings report time in July..
Btw I think the July reporting season will signal a return to profitability to many companies with better forward guidance...However if INTC cuts that Cap ex??? we are going down to test the Sept lows no doubt...Forget the May 7th lows..I said the Sept lows...That may be a bit contrary but INTC is not the only company in the world, they do however carry a lot of weight...But I am getting great info about BIZ right now and it's good..not sensational, not blow out, but building steam...Heck the SIA reported last week the semis are doing great with the first blurb about wireless chips starting to move..But then comes Barrons and has a roundtable discussion on the semis with 3 good analyst, 2 say we are weak in the semis 1 says were going up...so we'll see huh??? I'm on the side of that one bull<g>
Ok I wanted to touch base to all you traders out there...just some thoughts about what your doing during trading hours..If you're a daytrader, i'd like to address your current thinking here...
It matters not which direction the market takes us each day..we are just daytrading and scalping right now..we are NOT investing..i've been pounding the table on this for a good solid month or so..and IF we do rally up here..anyone holding LEAPS that breakeven for 2003..sell them or place stops under them or write calls against them..for the 2004's? hold them we will add at the Oct lows, a double position in all 2004 Leap calls....
Ok let me move on here...here are some very strict trading rules for all of us..and I mean ME TOO!
From my site, which I'm sure many of you have seen this piece there..I am asking you to re-read it...I want to add here...if you set a goal to make just $500 bucks a day, and take every trade as A SCALP TRADE ONLY..NO HOLDING OVER NIGHT...NO BEING TEMPTED TO "SEE" IF YOU CAN SQUEAK OUT ANOTHER 1/8TH OR 1/4 IN THE TRADE...YOU'LL DO MUCH MUCH BETTER...
stop worrying about a missed trade..or a missed 1/4 point..book every trade you can each day for a profit..if you get lucky and the stock is flying up, set a stop either at break even or for a profit...a lost profit is lost money, real money.. a lost trade costs you ZIP...so set your mind to scalp trading only..grab those singles and doubles forget home runs right now..it's very difficult to get 1 full point each day on any trade right now...and sellers are everywhere as a stock runs up...
you MUST scalp out quickly..take the money and run...if you make your 'DAYS PAY" go the hell out for the day, go hit some balls, go to the gym, take the wife to lunch...then come back rested and refreshed...Remember this please..THIS IS YOUR BUSINESS...YOUR ONLY LIVELY HOOD..TREAT IT AS SUCH...we can and will make a ton of money here...just be patient and think & focus...also..if your worried about a trade..if your scared..then your over trading the size of the lots...if you trade 500 shares cut back to 250 right in half, and relax...if your trading 1000 got to 500 right now..do not wait...you just may not be good enough at this point..so why push it???
if you need help with scalping let me know..classes start soon...OUR REAL TIME ROOM IS THERE FOR YOUR USE AS WELL...heck the cost is minimal..and you can try it for a month to see if it fits your style..the cost is negligible, for the potential...heck 1 trade can pay the whole fee for the month...it's a no brainier...I love the room, and the people there..it's too fantastic for words...try it you'll like it...
HERE'S THE LINK TO WHAT I WROTE ABOUT DAYTRADING FOR A LIVING..
buyitbuyitsellitsellit.com
OK LET'S CHECK THE CHARTS OF OUR FAVORITE INDEXS...
DJIA...UH OH FOLKS...GRAVESTONE DOJI DAILY CANDLE CHART...THIS COULD BE NOT TOO GOOD...ON P&F WE HELD THAT TRIPLE BOTTOM AT 9850 SO FAR...9800 IS THE QUADRUPLE BOTTOM BREAKDOWN AREA...IF WE BREAK USE THE OEX OR THE DIA'S TO SHORT THIS INDEX...WE DID REVERSE UP LAST WEEK TO 10K...WE NEED 10,100 TO KEEP THIS TREND GOING..
NAZ/COMPX---THIS INDEX HAS "NEVER" BROKEN UP AND THRU THE BRL LINE FOR AS LONG AS I CAN REMEMBER<VBG>....1600 HELD LAST WEEK SO FAR...WE HIT O/H R AT 1650 AND SOLD OFF...1680 THE REVERSAL BACK UP HERE...ANY BREAKDOWN WE TEST THE RECENT LOWS AT 1560...
SOX---WELL IT'S HOLDING CURRENTLY THE BSL AT OR ABOUT 480 SO FAR..AFTER THE BARRON ARTICLE WE COULD SEE THIS INDEX BREAKDOWN...WATCHING ON MONDAY FOR SURE...440 THE DB BREAK ON THE DEFAULT CHART...HECK THE BOTTOM OF THE 10 WEEK TRADING BAND IS AT 420...BTW..ON THE DAILY CANDLE CHART WE HAVE A 2 STICK PATTERN HERE...A HAMMER, AND AN INVERTED HAMMER SIDE BY SIDE...THIS LOOKS VERY BEARISH..."TOO THE BEARS"<VBG>...THE VERY NEXT BAR SHOULD TELL THE TALE..IF THEY GAP THE SOX DOWN ON MONDAY BUT IT COMES BACK AND CREATES A BULLISH BAR, GO LONG FOR THE WEEK, USE THE SMH......JUST ANOTHER THOUGHT...
BTW FWIW...ON ALL P&F CHART'S ON ALMOST ALL INDEXS..WE ARE VERY OVERSOLD HERE...BOTH THE DAILY AND WEEKLY...JUST A HEADSUP HERE...
NDX---AT THE UPTREND LINE BUT DARK CLOUD COVER ON THE DAILY CANDLE CHART APPEARED LAST WEEK..NOT A GOOD SIGN...1140 THE BREAKDOWN..1280 THE REVERSAL BACK UP..
BTK---SORTA IN LIMBO HERE, STILL IN A COL..OF X'S...390 THE DB BREAK...WE ARE AT THE BOTTOM OF A RISING CHANNEL HERE IT NEEDS TO GET UP FAST..
SMH---SAME IDENTICAL CHART AS THE SOX..SAME 2 STICKS...SAME SCENARIO..I AM LONG A FULL POSITION OF THE SMH AT AN AVERAGE OF 39 1/2...MY STOP IS 36 3/4...THAT'S BELOW THE MAY LOWS...I WILL CUT THIS IF WE DO NOT RALLY LATE MONDAY IN THE SOX...NO HARM NO FOUL...ON P&F WE ARE AT A VERY CRITICAL JUNCTURE, BUT THE RISK REWARD IS VERY INTERESTING TO ME ON THE LONG SIDE..
OEX---GRAVESTONE DOJI LIKE THE DOW...520/525 HAS BEEN SOLID SUPPORT..515 IS THE BIG BREAKDOWN THERE...540 THE REVERSAL BACK UP..WATCHING THIS INDEX FOR A TRADE...COULD BE A HELL OF A SS...
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ALRIGHTY LET'S DO OUR WATCH LIST FOR THIS WEEK...LONGS AND SHORTS..GEE WHIZ I SURE HOPE SOME OF YOU ARE TAKING THOSE TRIGGERS??? SHORTS WERE WORKING LAST WEEK FOLKS..
AMAT----THIS STOCK CONTINUES TO AMAZE ME...DO NOT KNOW HOW LONG IT CAN HOLD UP UNDER THE CONSTANT OUTSIDE PRESSURE OF ALL THOSE DOWNGRADES BUT HECK IT'S STILL STANDING<G>....IT'S CURRENTLY HOLDING THE BSL LINE HERE AT 22...22.90 THE BUY TRIGGER LONG(BTL)...21 1/2 THE SHORT SALE TRIGGER(SST)...ANY BREAK OF 21 HOLD THAT SHORT..
INTC--HECK WHAT THE HELL HUH?<G>...INTC HAS MADE 4 CONSECUTIVE LOWER TOPS..IT'S RIGHT AT CRITICAL SUPPORT(S)...AT 27...THE MAY LOW WAS 26..COMPRENDE'?...VERY INTERESTING DAILY CANDLE CHART HERE FOLKS...GOOD LOOKING 2 STICK PATTERN..BEARISH BAR, HAMMER, INVERTED HAMMER...TOMORROW IS THE KEY..THE STRUGGLE BETWEEN BARRONS AND THE JUNE 6TH MID QUARTER UPDATE..LET'S SEE WHO WINS<VBG>...WOO HOO...28 1/2 THE GOOD BUY(NO NOT BYE BYE) SIGNAL THERE...26 1/2 THE VERY SOLID SST..WITH ANY BREAK OF 25 YOU SWING THAT SHORT...
CCMP----MADE A HIGHER BOTTOM LAST WEEK...LOOKS GOOD HERE IF WE CAN RALLY NEXT WEEK IN GENERAL...49 3/4 THE BTL...47 3/4 THE SST...
CYMI---SAME 3 STICK PATTERN HERE ON THE DAILY...DID REVERSE BACK UP LAST WEEK....44 3/4 THE BTL...42 1/4 THE SST...IT COULD ROLL OVER AN DOWN HERE I TRIED TO SS THIS LAST FRIDAY...
EBAY---BIG BAD BEARISH ENGULFING, AFTER NO REAL NEWS IN AMZN...I LIKED THEM BOTH BUT THEY WENT NO WHERE SO I DUMPED THEM AT BREAKEVEN ++ A FEW CENTS...54 1/4 THE GOOD SST...56 1/4 THE BTL...
EMLX---I LIKE THIS CHART...ON BOTH CANDLE AND P&F...MARKET WILLING I THINK WE CAN MAKE SOME GOOD SWING MONEY ON THIS ONE LONG...31 1/4 THE PERFECT BTL...I'LL TAKE THAT TRADE...SET ALERTS...29 THE SST...27 GOOD S THERE...
EXPE---OOOH WOW..BROKE THE UPTRENDLINE LAST WEEK..A BIG NEGATIVE...HELD THE LOWER DOUBLE BOTTOM AT 71...EXCELLENT SST AT 70 1/4...WITH A SOLID BREAK ON VOL BELOW 70 KEEPS YOU SS...73 THE BTL...
MCHP---GOT UPGRADED LAST WEEK..NICE 3 STICKER THERE...WITHOUT A BULLISH BAR THO THESE STOCKS COULD PLUNGE ALL OF THEM...31 THE BTL..MUST TAKE OUT FRIDAYS HOD AT 31 1/5...28 3/4 THE SST...
MSFT---BROKE DOWN OUT OF AN ASCENDING WEDGIE<G>...LOOKS BAD TO ME FOLKS..52 1/4 THE BTL...I'D WAIT FOR IT...54 THE 3 BOX REVERSAL BACK UP..A MUST...49 3/4 THE SST...
QLGC---TOUGH CALL HERE..BUT?...SEEMS TO BE AT SOME SUPPORT..IT'S CONSOLIDATED AFTER RUNNING RIGHT UP AND INTO O/H R AT 52+++...NOW LET'S SEE IF IT BREAKSDOWN OR RALLIES BACK UP TO THE TOP OF THE RANGE...46 3/4 THE BTL..AND A GOOD ONE...44 3/4 THE SST...BSL LINE AT 43...
GILD---BROKE DOWN OUT OF A RISING WEDGE...MOVING SIDEWAYS FOR THE MOMMENT...BIOS ARE ALL OVER THE PLACE...36.1/2 THE BTL...34 1/2 THE SST...
MNLM---BROKE ALL SUPPORT LAST WEEK AS IT TOOK OUT THAT TRIPLE BOTTOM AT 15 1/2..VERY WEAK CHART AS ARE MOST OF THE BIO TECHS AT THIS POINT...14 1/2 THE SST...15 3/4 THE BTL...
MEDI-- I LOVE TO TRADE THIS LITTLE 30 BUCKS STOCK..GET IN ON THIS WILL YOU ALL???..IT RUNS AROUND ALL DAY UP AND DOWN 2-3 POINTS?..SAFE AT 30--- SELL AT 33+++..BEEN UN REAL...NOW IF THE MARKET RALLIES THIS WEEK..THIS STOCK COULD BREAKOUT...33 1/4 THE BTL..MUST TAKE OUT FRIDAY HOD THO...31 1/2 THE SST...
MYGN---ANOTHER WEAK ONE..GOT STOPPED OUT FOR A 1 POINT LOSS..DIDN'T LIKE THAT ONE BIT...BOTTOM FISHERS ARE ALWAYS DIFFICULT TO TRADE..AS THEY BREAK OUT FOR THE FIRST TIME SELLERS TAKE PROFITS QUICKLY...CAUSE THEY BE WAY UNDERWATER<VBG>...23.10 THE BTL...21 3/4 THE SST...
QCOM---VERY TIGHT TRIANGLE DAILY CANDLE CHART...BUT ON A LOW POLE WARNING ON P&F...SO THATS BULLISH...I THOUGHT IT WOULD PULLBACK SO WE COULD BUY IT..BUT IT'S SHOWING EXCELLENT RS HERE...32.60 THE BTL....MUST PRINT 33...30 1/2 THE SST.
NVDA---ONCE A GREAT CHART ALONG WITH GNSS<g><..THAT ONE FELL OUTTA BED<G>..THIS ONE IS STILL ALIVE..PULLED ALL THE WAY BACK DOWN HERE..SO CAREFUL..34.95 THE BTL...32 1/2 THE SST...36 THE 3 BOX BACK UP...IT'S HELD THE UP TRENDLINE ON THE DAILY TOO...
CSCO---DARK CLOUD COVER DAILY CHART...KEEPS BANGING UP AGAINST THE BRL LINE AND FALLING BACK..LOOKS LOWER TO ME...LET'S TRY THIS REAL CLOSE...15.30 THE SST...16 1/4 THE BTL...
IBM---PROTRACTED DOWN TREND SINCE THEY WARNED...79 1/2 THE SST...AND I'LL TAKE THAT SS...81 1/4 THE BTL..TIGHT STOP...
DELL---THIS STOCK HAS BEEN A ROCK<G>...23 TO 28 TRADING RANGE ALL YOU NEED IS PATIENCE..GOT ANY<g>?...27 3/4 THE BTL...25 3/4 THE SST...
OK THATS IT FOR NOW...I AM THINKING IF WE CAN GET THRU MONDAY & THE BARRONS ARTICLE ON THE SEMIS, WE DO HAVE A CHANCE TO RALLY THIS WEEK AS MANY OF "THESE" SEMIS ARE HAVE MID Q'S CC'S...INTC THE BIG ONE..XLNX AND ALTR TOO...I LIKE IT UP...BE COOL TRAIL UP STOPS AND SCALP TILL THE COWS COME HOME...
WARMEST REGARDS TO YOU AND YOURS
JER
PS: I'VE RECIEVED SOME INFO ABOUT SOME NON PAYEES GETTING MY NEWSLETTER FOR FREE...HECK FOLKS IF THEY CAN'T AFFORD THIS LETTER AT THIS PRICE...WELL WHAT CAN I SAY...IF YOUR HERE AND PAYING ME, KEEP IT TO YOURSELF...THANK YOU...
Jerry Olson
MasterClassTraders.com
jerry@masterclasstraders.com
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