HERE'S MY NEWSLETTER FROM LAST SUNDAY...I AM SMILING EAR TO EAR<vbg>...
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JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED AUGUST 11TH 2002
"ALERT" THE NYSE BP REVERSES UP!
Hello all my cybertrading friends, hope you and yours are healthy and happy this fine and fabulous weekend here in the east...I cannot remember a summer quite like this one..Every single day, every weekend has been glorious...Gee whiz..I wonder if we'll have to "run for the hills" this winter? hahahahaha..as we all know, all things seem to even out...even the markets<G>...
And on THAT note<vbg>, The NYSE Bullish Percent has reversed up for the first time since it rolled over and down in April...The "Offense" now comes on the field..ooohhh woo hoo...about damn time huh?...Now don't get nuts just yet..a couple of observations here first..The OTC/NAZ is still under performing the Big boys on the NYSE..The index looks very weak right here, BUT, I often see when the Bullish Percent makes this cumbersome turn up, the OTC will follow..and especially because several OTC short term indicators are moving up here too..all in all a VERY bullish set up for all of us...have I been saying this over the last few weeks?...
Now usually what happens is we selloff a few days after this event occurs, why I don't know, but it seems to happen often..we will buy any dip of course now with more vigor and vitality because we are in a more safe zone now and from very oversold levels..The Pundits out there are calling for a test of the July 24th lows of 7500 I doubt that will happen now, not right here..Maybe later in the Fall, but not now...There are TOO many nice chart patterns setting up for enormous breakouts right now, and believe this or not, both the daily candlestick charts and P&F charts are confirming this major move right here..
What I mean is this...the breakout numbers correspond with the Pennant Formations I see on the candle charts along with triple top and double top breakout buy signals on P&F..Comprende'?... I'll touch on these numbers as we go thru this entire newsletter one by one..This is the move we all have been waiting for.... I only wish Mr. & Mrs. America could get this letter, or at the very least try to REGROUP & RECOUP...
I am going to write a letter for my web site archive for all to read..Would you please have your relatives, retirees, new traders anyone that's been devastated during this horrific downturn in the markets for the last 2--2 1/2 years..Have them read this article I am starting to write..I think I can help in some small way to REGROUP & RECOUP some of those losses..I'll let you know via e-mail when I post it on the site...www.buyitbuyitsellitsellit.com..thanks...
As you know by now we have the FOMC meeting this Tues, Alan & Company will at the least move to an easing bias here. He may not cut till he sees the whites of the economies eyes, but they have to be frustrated what with all the cuts and NO CeeGar...There's no lift, no oomph yet, but it will come along in due time, until then? we trade, we plan, we focus on our own personal stocks, funds, and of course our MONEY...
I can say right here and now, if we can pullback a bit this week after the FED, as uncertainty will surely come out of this meeting, i will now feel compelled to buy and hold with stops and not scalp,. "selected trades" ... I will always daytrade & scalp for a days pay, that's my lively hood, and nothing can change that..#1 are the bio techs, and some solid looking NYSE stocks, the Blue Chippers, and maybe some drug stocks too..I'll address that later on...Don't get euphoric here just yet, I want all indexes to breakout together and I think they will..Remember we are at a double top in the DOW...A solid pullback as the NYSEBP reversed is a great time to buy...I'll be watching each and every day for important events to report to you as to what I am buying..Make no mistake about this everyone...Take a deep breath, we can rally here for a few weeks maybe into mid Sept or more, and then Macro Cycle lows hit in Oct to wring out the excess that this rally will create...That's a guess right now...I can say without a second thought, that IF the OTC BP reverses up too, then all shorts will dive for cover and I mean BIG TIME...We'll be monitoring this total picture on down the line...
OK LET'S CHECK THESE WONDERFUL INDEXES..WELL..SOME NICE ONES ANYWAY<G>..
DJIA---RIGHT AT THE DOUBLE TOP(DT) AT 8700, ON THE 100 POINT CHART 8800 IS THAT VERY NICE TRIPLE TOP BREAKOUT..AS WELL ON THE DAILY CANDLE CHART IT BREAKS THE PENNANT FORMATION TOO..ONE HECK OF A POP WILL ENSUE..HOLD ON TO EVERYTHING NOT TIED DOWN<G>...8400 IS THE PERFECT 3 BOX REVERSAL BACK DOWN(3BXRVDN)...
COMPX/NAZ---TRYING TO RALLY HERE BUT STILL VERY WEAK...1350 IS THE DOUBLE TOP AREA..SO 1360 WOULD START THE BREAKOUT PROCESS...THE COMPX HAS FORMED A DOUBLE BOTTOM ON THE DAILY CANDLE CHART...IF WE CAN GET SOME TRACTION HERE..I HAVE AN UPSIDE 1ST TARGET OF 1420/40...
SOX---GEE WHIZ, VERY VERY WEAK HERE AND NEEDS TO GET MOVING FOR THE NAZ TO MOVE...BIO'S CANNOT DO IT ALONE...SO AFTER CHECKING THE CANDLESTICK CHART THERE'S A DESCENDING WEDGE THERE THAT IF WE CAN BREAK IT TO THE UPSIDE ABOUT 330/40 AREA, THEN POP ABOVE 350/60 WE COULD BE OFF TO THE RACES HERE HARD..WATCH FOR THIS TO HAPPEN..I WOULD THINK THAT WOULD REVERSE UP THE OTCBP...WE NEED BUY SIGNALS OFF THE LOWS HERE OF THESE STOCK CHARTS...FOR THAT TO HAPPEN...
BTK---WHAT CAN I SAY FOLKS..I HAVE POUNDED THE TABLE FOR WEEKS ON THE BIO TECHS..EACH AND EVERY NEWSLETTER HAD 5-6 STOCKS TO TRADE WITH SOLID TRIGGERS..I ONLY HOPE YOU GOT INTO THE GAME..A BEAUTIFUL BREAKOUT OF THE BRL LINE..THE BEARISH RESISTANCE LINE AT 380..390 KEEPS IT GOING...TAKES IT UP TO 430 FAST...350 WOULD BE A NORMAL REVERSAL BACK DOWN...THERE'S SOLID SUPPORT AT THE UPTRENDLINE ON THE CANDLE CHART ALONG WITH THE 20 & 40 EMAS...
NDX---TRYING LIKE THE NAZ, BUT VERY WEAK...990 IS THE BREAKOUT...WAY UP THERE...920 REVERSES IT DOWN..
SPU2---THE SPOOOS<G>..THIS INDEX GAVE A SOLID BUY SIGNAL LAST WEEK AS IT BROKE A DT AT 912 FROM 832...I AM WAITING TO SEE WHAT A PULLBACK AND REVERSAL BACK UP LOOKS LIKE HERE..WE HAVE DEFINITELY MADE A HIGHER LOW..
SPX---RIGHT AT 910 THE DT HERE, AND IN A FABULOUS PENNANT FORMATION...930 IS THE BIG BIG VERY BIG SPREAD TRIPLE TOP BREAKOUT BUY THERE...960 WOULD BE MY FIRST TARGET...880 THE 3BXRVDN..
PLEASE SET THESE BREAKOUT ALERTS AS WELL AS THE 3 BOX PULLBACK NUMBERS TOO..
XAU---AT HEAVY R HERE AT THE TOP OF THE RISING WEDGE...68 KEEPS IT MOVING UP..60 REVERSES IT DOWN..
VIX---WELL WELL, MR. VIX...HAS MADE A LOWER TOP HERE AT 49 NOW SITTING AT 40...TO SET THIS INDEX UP RIGHT WE WOULD TYPICALLY LIKE TO SEE A RALLY UP HERE, BUT MAKING ANOTHER LOWER TOP SAY ABOUT 46/47 AREA THEN ROLL OVER AND IMPLODE<G>...
VXN---WHOA, THIS INDEX FELL RIGHT OUTTA BED HERE AS IT "FAILED" A TEST OF TOP AT 71..SOLD OFF AND WENT RIGHT THRU THE BSL TOO BOOT..TALK ABOUT A FALL FROM GRACE<G>..NOW WAITING TO SEE THE REVERSAL BACK UP AND WHERE IT STOPS AND THEN CRASHES AND BURNS..THIS COULD REALLY IGNITE THE NAZ..
OK LET'S DO OUR STOCKS TO WATCH LIST...THERE'S GOING TO BE MUCH VOLATILITY THIS WEEK..SO BE CAREFUL OUT THERE..PLEASE USE HARD STOPS...
MSFT----THE BIG BOY STOCK..I AM SS THIS STOCK AT 48.57, AND I'M HOLDING FOR THE SECOND...WANT TO SEE HOW THE FUTURES OPEN IN THE AM...THIS CHART IS SHAPING UP FOLKS..AS MANY OUT THERE THINK THE STOCKS GOING TO 20?...YEAH RIGHT...ANYONE WANNA BET?...IT RAN UP AND INTO THE BRL LINE ON FRIDAY THATS WHY I'M SS...49.20 THE BUY TRIGGER LONG(BTL)...47.40 IS THE SHORT SALE TRIGGER(SST)...46 IS A NORMAL 3 BOX REVERSAL BACK DOWN THAT "I WILL BUY AND HOLD"..GOT THAT!!! AND I MEAN LONG...
AMGN---WELL WELL I TOLD YOU THIS ONE LOOKED GOOD..IT BROKE OUT AT 38 AND RAN STRAIGHT UP ON GOOD EPS TO 46 BUT BROKE RIGHT THRU THE BRL...THIS LINE IS HARD RESISTANCE DOWNTREND LINE ON P&F...THE BEARISH RESISTANCE LINE...PULLED BACK LIKE ALL THE BIOS, INCLUDING THE BBH, AND THEN EXPLODED RIGHT UP BREAKING ANOTHER TOP..POWERFUL STOCK AND CHART...48.75 THE BTL---46.75 THE SST...
EBAY---I CATCH THIS SHORT ON FRIDAY FOR 77 CENTS, BEEN STALKING IT FOR DAYS AS IT CONTINUED TO HIT THE HIGH 56'S TO 57 AND SELL OFF..SCALPED IT AND AM FLAT HERE...BTW..EBAY HAS NOT MOVED A MUSCLE AND IS TREADING WATER ON P&F RIGHT NOW..58.25 THE BTL...56.50 THE SST...
KLAC---AS YOU ALL KNOW I SHORTED KLAC IN THE ROOM ON THURS AT 37.75 AND COVERED ON FRIDAY FOR $1.22, THIS STOCK IS A LOCK AT THE HIGH 37'S--38 AREA RIGHT NOW...I AM FLAT THIS STOCK...FRIDAY WAS A NICE DAY FOR ME...37.65 THE BTL...35.85 THE SST...IT IS ON A REVERSE PENNANT HERE...NEGATIVE...
QCOM---I AM STILL SHORT THIS STOCK BUT UNDERWATER HERE ABOUT $1.20..AM HOLDING FOR NOW AND MAY AVERAGE UP...STILL A WEAK CHART PATTERN, BUT IT SEEMS QCOM IS FARING A BIT BETTER THE LAST 2-3 DAYS SHOWING SOME STRENGTH..26.75 THE BTL...25 THE SST...COME ON DOWN<G> I AM SS AT 24.65<GULP>?
GM---I AM SHORT THIS STOCK TOO..BUT NOW WHAT WITH THE NYSEBP REVERSING HERE I MAY EXIT QUICKLY...IT'S MADE A BACKSIDE BOUNCE UP AND INTO THE 20 EMA..ALTHOUGH IT DID DOUBLE BOTTOM HERE TOO..45.25 THE BTL...43.40 THE SST...COME TO PAPA...
IDPH---JUST A FABULOUS CHART FOLKS...HIGHER HIGHS HIGHER LOWS, BROKE THRU THE DREADED BRL LINE TOO, AND NICELY...WE WANT TO OWN THIS STOCK AS A BUY AND HOLD ON ANY PULLBACK THIS WEEK..GOT THAT...44 IS THE 3BXRVDN...WATCH IT THERE...42/43 WOULD BE EVEN BETTER...SET ALERTS....46.75 THE BTL...TO STAY LONG IT MUST TAKE OUT FRIDAYS HOD...45.15 THE SST...THIS STOCK IS IN A PENNANT FORMATION...48/49 IS THE BIG BREAKOUT AREA...I'LL BE THERE EITHER WAY..
CEPH---ANOTHER PENNANT FORMATION WITH "BULLISH IMPLICATIONS"...BTW..I USED THAT TERM FOR THE ENTIRE SECTOR LAST WEEK..RIGHT??...46.75 THE BTL...49 KEEPS YOU IN THE TRADE LONG...,45.75 THE SST...44/45 THE GOOD BUY IN AREA...
MYGN---YOU CANNOT ASK FOR A BETTER LOOKING CHART PATTERN HERE ON P&F AND CANDLESTICKS..VERY VERY SOLID..BUY ANY PULLBACK IN THIS STOCK...21/22 WOULD BE SWEET...31 IS THE UPSIDE TARGET..26 THE BTL...24.20 THE SST..
GE---TRYING TO GET IT'S ACT TOGETHER..A NICE LOOKING CHART HERE...33.10 THE VERY GOOD BTL...STAY LONG TOO..31.75 THE SST..BUY THE PULLBACK TOWARD 29....
IBM---WE NOW HAVE A 2 MONTH SIDEWAYS BASE HERE, WITH POTENTIAL BREAKOUT HERE ABOVE 75..BUY ANY PULLBACK TO 69/70 AREA...72.90 THE BTL..MUST TAKE OUT 75 TO STAY LONG...71.30 THE SST...
MO---THIS STOCK WAS A FAVORITE OF MINE AWHILE BACK, JUST GAVE A NEW BUY SIGNAL AT 48...AND REVERSED THE TREND HERE...IT'S AT THE 200 EMA ON THE DAILY THOUGH...50.50 THE BTL...54 THE TARGET...48.40 THE SST...45 IS A GOOD BUY IN AREA...
JNJ---A SOLID DRUG STOCK WITH THE SECTOR IN X'S AT BULL ALERT HERE..AT 34%..THIS STOCKS CHART LOOKS NICE...55.25 THE BTL...57 THE TARGET...53.30 THE SST...51 WOULD BE IDEAL BUY IN..IT HAS SOME R RIGHT HERE AT 54...
MRK--IDENTICAL CHART AS JNJ..INVERSE HEAD AND SHOULDERS PATTERN...WITH POTENTIAL BREAK OUTS...52 THE BTL...53/54 O/H R THERE AT THE BRL...47/48 THE IDEAL PULLBACK TO BUY...
INVN--I'VE BEEN TALKING ABOUT THIS PLAY FOR WEEKS NOW...AND EACH WEEK IT INCHES UP MORE AND MORE HIGHER AND HIGHER...29.10 THE VERY NICE BTL...32 THE TARGET...27.30 THE SST...
FRX---THIS IS ANOTHER VERY VERY NICE DRUG STOCK TO OWN HERE...A BUY AND HOLD TYPE STOCK..IS BUILDING A LARGE BASE MOVING SIDEWAYS TO UP WITH A PRETTY ROUNDED BOTTOM<G>...73.25 THE BTL...71.40 THE SST...
BZR---AFTER A NICE PULLBACK OFF A BALLISTIC RISE TO THE TIPPY TOP..IT'S JUST GIVEN A NEW BUY SIGNAL...IT JUST MADE 2 HIGHER LOWS TOO...62.90 THE BTL...67 THE TARGET HERE...NOT BAD...60.70 SST...
VAR---IN THE HEALTHCARE SECTOR THAT JUST DID REVERSE UP HERE...A PERFECT CUP AND HANDLE FORMATION ON THE DAILY CANDLE CHART...SOLID PLAY HERE...43.50 THE BTL...41.85 THE SST...
CHKP---I AM STARTING TO LIKE THIS CHART...IT NEEDS A BIT MORE WORK BUT IT HAS UPSIDE POTENTIAL,,,17.50 THE BTL...18. 1/2 THE BTL LONG...AND WOULD BE A PENNANT BREAKOUT TOO...16.40 THE SST...
MEDI---THIS STOCK IS SHAPING UP TOO...READY TO BREAKOUT BIG MARKET WILLING...30.25 THE VERY VERY GOOD BTL WAIT FOR IT...28.30 THE SST...
OK MY TRADING BUDDIES THATS IT FOR THIS EVENING...I EXPECT THIS WEEK TO BE WILD AND EXCITING..HANG TOUGH..BE ULTRA CAREFUL..DO NOT GET WHIP SAWED...
WARMEST REGARDS
JERRY
Jerry Olson
MasterClassTraders.com
jerry@masterclasstraders.com
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