HERE WAS LAST SUNDAYS LETTER...FOR THE NEXT FEW MONTHS THESE WILL APPEAR HERE 2 WEEKS LATE...THE NEAR TERM FALL TIME FRAME IS CRITCAL AND I WANT MY SUBSCRIBERS TO BENEFIT WELL IN ADVANCE OF NON PAYING PUBLIC...
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JERRY OLSON'S
"POINT" OF VIEW NEWSLETTER
DATED AUGUST 18TH 2002
"THEY'RE BUYING BAD NEWS"
Hello my cyber trading buddies...Man the markets hot as the weather here in Philly..Whew!..Gee whiz I cannot remember a summer this hot?..course I've been having memory problems for years<g>...that was the SECOND thing to go<VBG>...hehehehehehehe...oh it must be the heat right?
Hey guess what?, we got ourselves a rally going on here folks...and it looks great..I love it when the BEARS out there are still crying sell sell sell...the sky's falling..heck it already fell for 2 years plus, enough already right?...All I'm seeing is one terrific opportunity to make some serious money on the long side and have talked about it and written about it right here for weeks...When the NYSE Bullish Percent turned up 3 boxes on Point & Figure after being down and out since rolling over in April, that was the sign to leg into longs...and that's exactly what I'm doing...
It may turn out to be buy and holds, and maybe not..but I am determined to let my winners run...I will from time to time take profits or raise my stops for solid gains like in IBM & BZH and others...You do not have to be afraid to buy here and hold...Invest?? it may be too strong a word just yet..but trade? swing it or position it, you betcha...Now listen up here...we are less than 1% away from the OTC BP from reversing up as well...that means all those beaten down NAZ stocks IN THE RIGHT SECTORS, can be bought with stops..and loose stops at that...There are 3-4 OTC shorter term indicators that have already reversed up here, so I am confident we'll move higher very soon...
It's up to you to be ready...I have pounded the table for months to sell those dogs with fleas and raise cash..if you have not done that yet..do it RIGHT NOW!!!!!..please..do not wait..those losses can be carried forward on next years tax returns against gains I fully expect us to make on the long side...ARE YOU LISTENING???? You will pay NO TAX ON THOSE STOCK SALES FOLKS...since they are well below your buy in price...got that? Raise the cash right now..I mean tomorrow...Do it in your IRA's too..sell those Mutual Finds and buy the ETF's or the IShares...
Then what you can do if your nervous, is buy and hold the ETF's or IShares I've been talking about so much lately and not individual stocks..This will be a conservative way to make some of those terrible losses back...I am saying to you right now DO NOT WRITE COVERED CALLS, I want those stocks you're underwater in near term, to move higher first before you write CC's...Let these stocks and sectors get overbought, THEN WRITE THEM, heck it may only take a few weeks for this to run it's course before Cycle lows in Oct arrive...we'll see, I am NOT predicting anything here..Let's take what the markets are giving us...AND THAT'S NOT TO BE SHORT...
Do not fall in that trap of emotional bias that can make you freeze to your seat here..trying to MAKE SENSE OF ALL THIS...who cares what anyone out there is saying folks..it's nothing but MARKET NOISE..ignore it...What we are witnessing is the street is BUYING BAD NEWS, VERY CONSTRUCTIVE, and the short sellers are still predicting doom and gloom, ya gotta love it<g>...If your a chart reader, what we are seeing is demand is in control here over supply..KISS THIS folks...meaning...WHAT IS......IS.... ok? We can see it in all the bullish percent charts of all the sectors they are reversing up more and more each week...we could not get more positive than this...
Remember this, nothing goes up or down in a straight line..so we will get pullbacks, and of course we have NO CONTROL OVER OUTSIDE INFLUENCES SUCH AS 9/11...So we trade with prudence care and confidence as the indicators tell us to get long and stay long...I wanted to say that many of the daily candle charts of the indexs and stocks that have run up here have overbought Stochastics reading..but it matters not..as we pullback a bit that will be relieved...got that???
LET'S CHECK OUT ALL THE INDEXS...
DJIA---BECAUSE OF THE NYSEBP REVERSING UP FROM VERY LOW LEVELS HERE WE HAD A TRIPLE TOP BREAKOUT ON THIS INDEX AT 8800..THERE'S SOME O/H R AT 8900 RIGHT AT THE BRL LINE, SO I WOULD EXPECT SOME SMALL PULLBACK TOWARD 8500/8600 FOR YOU TO BUY THAT DIP...I CAN "SEE" THIS SET UP CLEARLY..WE PULLBACK, AND THEN REVERSE BACK UP AND OVER THE RECENT HIGHS FOR "ANOTHER" BREAKOUT TOWARD 9400..THIS WOULD TAKE THE DOW WELL ABOVE THAT BRL LINE IT MUST BREAK THRU...IT WILL...
NAZ/COMPX---THIS INDEX HAS NOW BROKEN THAT HORRID DOWNTREND LINE SINCE WAY BACK..WAY BACK<G>...IT'S TOUCHING THE 40 EMA ON THE DAILY CANDLE CHART(DCC)...IT DID TAKE OUT 1350 THAT DT(DOUBLE TOP)...I'D LIKE TO SEE A SHORT PB(PULLBACK) TO 1310/20 AREA THEN RALLY UP AND KEEP ON TRUCKIN TOWARD 1 ST TARGET OF 1420...NOW GET THIS FOLKS..IF I'M RIGHT ABOUT THE OTC BULLISH PERCENT(BP) THEN THIS INDEX WILL DO JUST THAT, BREAK OUT...AND ANOTHER PIECE OF THE PUZZLE IS THIS...THE BEARS ARE NET SHORT THIS INDEX BIG, THEY'RE GOING TO GET HUNG OUT TO DRY<VBG>...
SOX---GAVE A BUY SIGNAL AT 350 AND BROKE THE DOWNTREND LINE AS WELL...CHECK THE DCC...400 IS THE FIRST TARGET...TO HELP THIS ALONG THE SEMI BP REVERSED UP AND RALLIED TO 30% LOOKING VERY SOLID HERE FOR THE FIRST TIME...YOU CAN BUY EITHER THE SMH OR THE IGW AS A PROXY FOR THE WHOLE ENCHILADA...
BTK---WHAT A CHART HERE..IT'S RIGHT AT O/H (OVERHEAD) R(RESISTANCE) AT 380 AT THE BRL LINE THE (BEARISH RESISTANCE LINE) & TOO BOOT A DOUBLE TOP, SO SOME OF THE EXCESSES WILL BE TAKEN DOWN ON AN EXPECTED PULLBACK...I HAVE TIGHT STOPS IN FOR THE BBH..AND SELECTED BIO TECHS..BUT WILL RE ENTER WITH A VENGEANCE THE VERY SAME STUFF ON THIS PULLBACK...350 WOULD BE PERFECT FOR THE BTK...
BBH--I AM MAKING 4+++ POINTS ON THIS TRADE...AND WILL SEE WHAT TO DO ON MON/TUES...IT GAVE YET ANOTHER BUY SIGNAL BUY PRINTING 90 & IT'S 5TH CONSECUTIVE BUY SIGNAL FOR THAT MATTER...ANY PULLBACK TOWARD 84/85 BUY IT AND HOLD IT WITH A LOOSE STOP AROUND 82-83ISH...THEN TRAIL IT UP FOR A BLOW OFF RUN TO 102 MY UPSIDE TARGET..HELLO?
NDX---THIS INDEX HAS THE SAME LOOK AS THE NAZ CHART ON P&F...IT BROKE OUT AT 960 AND THEN RAN RIGHT UP AND OVER MY 990 TARGET TO 1000, THAT'S NICE<G>..950 TO 960 WOULD BE A GOOD AREA TO GET HEAVILY LONG THE QQQ'S...MY NEXT TARGET UP IS 1070...
QQQ'S---JUST REVERSED UP 3 BOXES...I'D LOOK FOR A SHORT PULLBACK AND THEN BUY IT AND SET STOPS JUST BELOW 21..A DOUBLE BOTTOM BREAK AND THEN LET IT RUN AS THE MARKETS CONTINUE ON UP...
SMH---THERE WAS A TON OF BUYING INTEREST IN THIS INDEX ON FRIDAY..I WAS ONE OF THEM<VBG>..HAHAHAHAHA..I AM LONG AT 26.35 AND WILL HOLD THIS ALL THE WAY..I LIKE 32 AS THE FIRST TARGET...THE BP SEMI HAS REVERSED UP HERE LIKE I SAID...STILL THIS INDEX AND SECTOR NEEDS A LOT OF WORK..BUT IT'S BEATEN UP MAJOR LEAGUE..
SPX---LIKE I'VE BEEN SAYING IT WAS GOING TO BREAKOUT AND IT DID..A SPREAD TRIPLE TOP AT 930, WOULD LOVE TO SEE A SHORT PB TO 890/900, THAT WOULD BE AT THE BUY IN AREA FOR A BIG TIME RUN UP TO 1010/20 AREA...
MR. VIX---SHOT AT DAWN..HEH HEH..WE SAID IT WAS GOING TO CRASH AND BURN..NO ONE BELIEVED ME..WHY? HAHAHAHAHAHAHA...HEY THE CHART SAID SO FOLKS..I SAID IT WOULD RALLY UP TO ANOTHER LOWER TOP AT 46/47 THEN ROLL OVER AND FALL LIKE A STONE..YES? WELL IT DID & IT BROKE ANOTHER LOW HERE..SO IF IT RALLIES UP AGAIN, IT'S GOING TO COME DOWN EVEN HARDER..MAYBE WE SEE 20 AGAIN???
MRS. VXN---WOW!!!! THIS INDEX COLLAPSED FROM EXHAUSTION..IT DT AT 71 AND NEVER LOOKED BACK ALL THE WAY DOWN TO 49..IT'S DUE FOR A DCB(DEAD CAT BOUNCE) MEANING A SHORT MOVE UP AND THEN SEE YOU LATER ALLIGATOR BACK DOWN AGAIN...MAN THIS IS SETTING UP AS ONE HELL OF A SEPT OCT TIME FRAME...LET'S SEE WHAT HAPPENS AS IT RALLIES UP TOWARD 56...
OEX---FOR YOU INDEX TRADERS...THIS INDEX BROKE OUT AT 470 A SPREAD QUADRUPLE TOP...450/455 IS A SOLID PB TO BUY THIS LONG SAY THE SEPT 450 CALLS..YOUR STOP SHOULD YOU TAKE THE TRADE WOULD BE A BREAK OF 440...I WILL MAKE AND TAKE THIS TRADE LONG ON THAT PB..
OK LET'S DO OUR FAVORITE STOCKS ON OUR WATCH LIST...PLEASE USE TRAILING STOPS IF YOU'RE LONG..
MSFT---RIGHT AT THE BRL LINE HERE..I AM LONG AT 48.25 WITH A STOP AT 49.25 TO LOCK IN 1 POINT...I WILL RE ENTER ON ANY PULLBACK AS I THINK IT'S GOING MUCH HIGHER..AND THAT'S AGAINST ALL THE SI GURU'S THAT ARE "PREDICTING" $20.00?....51.25 IS THE BTL(BUY TRIGGER LONG) AND BREAK OF THAT DREADED LINE...IT ALSO TAKES OUT THE TOP OF A HANGING MAN ON THE DCC...48.75 THE SST...
AMGN---FABULOUS CHART HERE ON BOTH P&F AND DCC...AS THE BTK PULLS BACK A BIT WAIT FOR 45ISH TO TAKE THIS LONG..AND THEN LET IT ROLL..48.55 IS THE BTL WITH 49 ANOTHER DT BUY SIGNAL ON P&F...46.45 THE SST...I AM LONG AT 45.40 WITH A STOP AT 46.45..WONDER WHY?<g> LOCKS 1 POINT..
CHIR---TO THINK I HAD THIS LONG ON A SCALP AT 33.50???..HAHAHAHAA..I DID BUY IT LAST WEEK AT 37.52 AND GOT STOPPED OUT AT 38.52 FOR 1 POINT..I WILL RE ENTER THIS ON A SOLID PULLBACK...IT'S ON A HIGH POLE AT THE BRL LINE..THIS IS NOT A LONG HERE...34/35 IS THE PERFECT PULLBACK TO ENTER THIS STOCK...DAYTRADERS HERE WE GO...39.70 THE BTL...37.55 THE SST...
MYGN---I WAS LONG AT 23.57 WITH A STOP AT 24.60 AND GOT STOPPED OUT ON FRIDAY..I ABSOLUTELY LOVE THIS STOCKS CHART...IT HAS EPS THIS WEEK ON THE 22ND...AND BREAKS ANOTHER TOP AT 27..GOSH THIS IS GOING TO BE WONDERFUL...25.50 THE BTL...23.75 THE SST...WATCHING FOR AN ENTRY LONG HERE...
IBM---GOSH WHO'DA THUNK IT HUH??? HOLY COWSKI..I BUY THIS AT 72.50 IT'S IN LAST WEEKS LETTER TOO...I SAID IF IT TAKES OUT 75 TO "STAY LONG" RIGHT?..WELL I TOOK MY OWN ADVICE ESPECIALLY AS THE NYSE BP REVERSED UP..AND LOOK WHERE THIS STOCK TOUCHED FRIDAY? ALMOST 80...IT BROKE A TRIPLE TOP AND THE BRL LINE TOO BOOT...I HAVE A STOP IN AT 76.50 BUT MAY TAKE THE WHOLE TRADE OFF HERE..HEY WHEN'S THE LAST TIME ANY OF US MADE 7 POINTS IN ONE STOCK???...80.35 THE BTL...78.25 THE SST...FABULOUS POWERFUL DCC AND P&F CHARTS..
JNJ---I DOUBT I'VE SEEN A BETTER LOOKING INVERSE HEAD AND SHOULDERS PATTERN ON THE DAILY CC..CHECK IT OUT...THE NECKLINE IS RIGHT HERE AT ABOUT 56/57...FOR THE BREAKOUT...I AM LONG THIS NYSE DRUG STOCK AT 53.35 STOP 54.50 FOR NOW...I COULD TAKE IT FOR 2 POINTS AS WELL..I'LL SEE...DRUG SECTOR LOOKS VERY GOOD...56.35 THE BTL...54.70 THE SST..BTW THIS STOCK RAN RIGHT UP AND INTO THE 200 EMA ON THE DAILY...
BZH---SO HOUSING STARTS WERE BAD?...HMMMM SURE DIDN'T HURT THIS STOCK??? GOOD GRIEF...IT EXPLODED AFTER A SHORT PULLBACK EARLY ON FRIDAY, I WAS STUNNED...I OWN THIS AT 61.00 MISSED THE WHOLE MOVE IN THIS SECTOR BEFORE..THE SECTOR TOPPED OUT AND CRASHED RECENTLY AND THEY ALL CAME DOWN TOGETHER..BUT THE BP REVERSED BACK UP AGAIN SO I TOOK A STAB AT THIS ONE BECAUSE OF THE CHART...MY STOP HAS BEEN RAISED TO 64.00 TRYING TO LET IT RUN FURTHER...I MAY TAKE IT ALL OFF THO SOON...IT'S RIGHT AT A DT HERE AT 67..SO SOME R MAYBE THERE..IF IT PRINTS 68..THEN I'LL HANG AND TRAIL IT UP...68.50 THE BTL...66.20 THE SST...
MO---THE BIGGEST OF THE BEST STOCKS FOR ALL THE FUNDIES..THEY LOVE THIS STOCK..IT'S POWERFUL DESPITE ALL THE NEGATIVES OUT THERE AND IT PAYS A DIVIDEND EVERY YEAR...SOLID AS A ROCK...I AM LONG AT 50.10..I THINK IT'S READY TO STAIR STEP IT'S WAY TO HEAVEN<G>...51.60 THE BTL...50.30 THE SST...I HAVE A BREAKEVEN STOP HERE...
PTEN---LIKE I SAID THE OIL & OIL SERVICE SECTORS HAVE GIVEN BUY SIGNALS...WE MENTIONED PLAYING THE OIH, YOU CAN BUY THAT HERE...I AM GOING TO THIS WEEK..I LOVE THESE HOLDERS..OR ISHARES..VERY NICE TO TRADE...I REALLY LIKE THIS CHART...IT'S PULLED BACK ALL THE WAY TO THE BSL LINE RECENTLY AND NOW IS BEGINNING TO MARCH UP...NICE DOUBLE BOTTOM AT 21 TOO...AND A SOLID BUY SIGNAL AT 25 HEADING FOR MY TARGET OF 35...NOT FAST BUT IT WILL GET THERE...BTW..ALL OIL FUTURES ARE BREAKING OUT HERE..ALL...27.10 THE BTL...25.20 THE SST...I AM LONG HERE AT 24.20 SO MY STOP IS MT SST...
SII---HOLY COW ANOTHER SURPRISE HUH??? JUST EXPLODED UP HARD..MAYBE TOO HARD<G>...I AM LONG AT 33.40...HECK IT TOUCHED 36???....LOOKS OVERBOUGHT HERE..35.60 THE BTL...34.50 THE SST..AND MY STOP...
BBH---HEY WE'VE TALKED ABOUT THIS INDEX SINCE 68..THATS 68 FOLKS...I AM LONG FOR THE UMPTEENTH TIME AT 85.20...JUST REVERSED DOWN 3 BOXES TO 87...MY STOP IS AT 87.50 FOR 2 MORE POINTS...I MAY JUST SELL IT IN THE AM TOO...I WILL DEFINITELY BUY IT BACK FOR THE NEXT MAJOR RUN...89.50 THE BTL..91 WOULD KEEP YOU IN THIS TRADE...ME TOO<VBG>...87.50 THE SST..AND MY STOP..
SMH---I AM LONG AT 26.35 FOR A SWING POSITION TYPE TRADE HERE..SO MY STOP IS WAY DOWN THERE...AT 23.00 BUCKS...ABOUT A 10% STOP...ON ANY PULLBACK THIS WEEK..I WILL DOUBLE UP HARD...28.40 THE BTL..29 THE NEW BUY SIGNAL ON P&F STAY LONG...26 THE SST...
FRX---THIS DRUGS STOCK EXPLODED AND THEN IMPLODED ON FRIDAY..I TOOK IT LONG EARLY AT 74...AND HAVE A STOP IN PLACE AT 68.75 A BREAK OF THE BSL..THIS STOCK IS A BUY HERE..AND I MAY ADD TO IT...71.90 THE BTL...69.75 THE SST....IF NOT AND I GET TAKEN OUT..THEN I MADE A BAD TRADE...IT HAPPENS FOLKS...I LOVE THIS CHART AND THE DRUG SECTOR..
QLGC---NEEDS A LOT OF WORK..BUT IT'S TRYING AFTER THE BRCD REPORT CAME IN OK...IT'S RUNNING UP AND INTO O/H R AT THE BRL HERE...37.50 THE BTL...IT MUST PRINT 40 TO BREAK OUT AND THRU THE BRL...35.50 THE SST..
EBAY---IT LOOKS AWESOME RIGHT HERE...HIGHER LOWS AND RIGHT AT THE TRIPLE TOP...SETTING UP AN EXPLOSIVE "POP" GOES THE WEASEL TRADE..I'LL BE THERE FOR IT FOR SURE...60 IS THE BTL JUST WAIT FOR IT THAT'S THE BREAKOUT NUMBER...57.20 THE SST...WILD SWINGS IN THIS STOCK...
KLAC---BROKE A TRIPLE TOP ON FRIDAY AS A BOTTOM FISH PLAY IN THE SEMIS..HECK I'LL TRADE IT..YOU?...40.10 THE BTL...38.10 THE SST...
QCOM---INTERESTING CHART PATTERN ON P&F...BROKE A TRIPLE BOTTOM AT 24 AFTER HAVING HEAVY SUPPORT AT 25 BY ONE BOX...THEN REVERSED BACK UP IMMEDIATELY 4 BOXES...THIS IS A TRIPLE BOTTOM FAILURE PATTERN THAT'S VERY SUCCESSFUL ON THE LONG SIDE...THE BUYERS OVERWHELMED THE SELLERS ON THIS LAST 4 POINT MOVE AND WE'VE BEEN TALKING ABOUT HOW STRONG THE STOCKS BEEN ACTING THE THE REAL TIME ROOM FOR A WEEK NOW...30.20 THE BTL...32 THE BREAKOUT BOTTOM FISH BUY SIGNAL THERE...27.70 THE SST..
CEPH---ANOTHER SOLID BIO TECH CHART...EXPLOSIVE POTENTIAL..AND I AM GOING TO TAKE THIS TRADE WITH LOOSE STOPS...47.50 THE BTL...OR IF THE BIO'S PULLBACK BUY IT AT 45ISH AND PLACE A STOP AT 42...45.25 THE SST..
VAR--IN THE HEALTHCARE SECTOR WITH A GREAT CHART...TRADES ERRATIC..BUT I LIKE IT LONG WITH TRAILING LOOSE STOPS..VERY LOOSE<VBG>...44.50 THE BTL AND A P&F BREAKOUT BUY SIGNAL TOO...42.30 THE SST...ACTUALLY I LIKED IT LAST WEEK AS IT PULLED BACK BUT WAS SO DISTRACTED BY SO MANY OTHER LONGS..CHECK OUT THE DAILY CC AND YOU'LL SEE THAT PERFECT RETRACE TO THE RISING 20 EMA AT 40 BUCKS..DAMN!!!
CCMP---WILD AS ALWAYS BUT HAS BROKEN OUT HERE BIG TIME AT 44...LOOK TO BUY IT ON A RETRACE HERE..A FABULOUS DEVELOPING CHART IN A GREAT SECTOR...48.25 THE BTL...COULD KEEP RUNNING TOO<VBG>..46 THE SST...
WELL THAT'S IT FOR THIS WEEK EVERYONE...I AM HOPING YOU'RE DOING WHAT YOU NEED TO DO RIGHT NOW..AND PLEASE TELL YOUR FAMILY AND FRIENDS..THIS IS TOO NICE A RUN TO BE OUT OF..TELL THEM DON'T BE AFRAID...
BTW FWIW..ANY REAL TIME ROOM MEMBERS THAT BRING ANOTHER PAYING CUSTOMER TO OUR ROOM WILL GET A $50.00 REBATE CHECK FOR A THANK YOU...THIS OFFER IS GOOD TILL THE FIRST FRIDAY IN SEPT THE WEEK OF LABOR DAY...AND WILL BE SENT OUT WHEN THAT PERSON SIGNS UP..
WARMEST REGARDS
JERRY
Jerry Olson
MasterClassTraders.com
jerry@masterclasstraders.com
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