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Strategies & Market Trends : Trade/Invest with Options Jerry a Point & Figure Chartist -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (4210)	11/2/2001 7:25:13 AM
From: Jerry Olson	Read Replies (2) \| Respond to of 5893

GOOD MORNING ALL...THIS WAS LAST SUNDAYS NEWSLETTER FOR DA TROOPS...CAUTION IS IN ORDER HERE FOR THE NEXT 30-60 DAYS...GOOD LUCK GOING FORWARD...DO NOT FORGET TO TAKE PROFITS..PAPER PROFITS ARE JUST THAT..PAPER...BE ALERT, BE SAFE... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ JERRY OLSON'S "POINT" OF VIEW NEWSLETTER DATED 28 OCT 2001 "VOLATILITY ALIVE AND WELL" Hello Everyone...i hope all of you are doing well today..it's brisk here in the East..I was watching the Memorial Service at the WTC site and thinking, "this looks like what WW II in Europe must have looked like back then"..What devastation, what sadness, it was truly a moving experience....And it's far from over.... We move onward and upward here with new resolve for those lives that were lost...I feel such incredible anger, I am praying for the total destruction of those that perpetrated this horrific event...May they rot in hell for all eternity...We think about our freedoms and what this tragic event has done to all of us...I doubt this country will ever be the same again..I know our family will never feel that wonderful safety again living here in the USA... Ok let's do the one thing we all know and love so much, talking about, and trading the markets..we can throw ourselves into our work, hard than ever before, to help ease the pain...I love the markets as I know you do too...it helps me stay alive, mentality and psychologically...OK here we go... Last week the markets showed incredible power in the face of Macro Cycle Lows...But we will pay the piper very soon...We are not overbought here folks..not yet.. I'll give some upside targets as we move forward here...Based on my charts everything is nicely bullish at this point...The coming pullback hopefully will only be about a 50% retrace back down when it happens...Watch for Mondays lows as this is the last day of the cycles... Please remember....Earnings are horrible the worst I've seen in years, I have warned everyone that Q 4 will be worse than Q 3..bet on it..And at some point the super smart Fall Street Wizards will wake up one morning and sell there over bloated stocks once more...That's fine, we'll be there to buy them then....This past run up was on thin air..hopes and dreams and wishes and fairy tales...None of which will hold up under pressure on down the road.. Ok you say then why not wait for this pullback to get invested???..Well because there is no pre ordained time frame to start this game plan...If your going to use my dollar cost average to start your road to recovery then it matters not...But it's up to you folks..My goal is to begin to leg into the markets starting NOv 1st(give or take 1-2days) and continue to add each and every month using the leverage of LEAP Calls, index options, and of course stocks as well...You need to decide what your going to do, whets your game plan, whats your set up going to look like in your total portfolio...50% stock, 25% options, 25% indexes??? it matters not what you choose, but write down that plan, and get it set up for the future... There's no better time than right now to begin to put together what your going to do as an investment package...I'm going to use a major portion of my capital at this time, rather than daytrading...i believe even though we'll pullback here, and of course all during this next time frame, it matters not...The real risk reward is to NOT be INVESTED..that would be a crime...Folks the NAZ index is at 1750...down from 5200..,there a whole big upside there just waiting to happen...It's important that you make your own decisions as to what stocks options and indexs your going to use..i am going to try to give your 4-5 stocks in each sector i'm going to invest money into, and you can choose what stocks in that sector make the most sense... The Big cap techs are the safest to own..that will be my portfolio for sure...their downside risk is much less than those high flyers...Look you could use some of each in your game plan..Like one Big cap tech and one second or third tier in that same space...I will not do that..my real money is very important to me especially since I'm 60 years old..You younger yuppies types<g>, can be a little more risk adverse...Us oldies but goodies have to watch our waste lines and our wallets too<G> What i am going to do is send out in a private e-mail those stocks i like...i will not post this list publicly...you can share this with your family and friends if you wish..but I would ask you not to publish this on any site...Our goal is to use leverage where we can to help those that got killed on the way down by holding those stocks hoping for a rebound which of course did not come...I gave you an example last week of what a LEAP Call option play would be like...The reason you should use Leaps is because you'll be able to invest less dollars per stock/option. and get the most leverage out of this trade...I can foresee in the next 1-2 years that stocks we buy will be up 50-100% percent...Some stock will be higher and others will be lower..but I can assume they will be up... You must have patience, you must have control, you must NOT be stuck in the MUD everyone..Look nothing is written in stone..Can I be wrong on some selections???, of course I can..but as long as your have alerts for stops, as long as you have your head in the right place, you'll be fine...Remember this please..WE ARE NOT GAMBLING HERE...WE ARE INVESTING...when I said 1-2 weeks ago that ALL the P&F indicators were bullish, that my contacts in semis land gave me a small ray of hope that orders are trickling in here..albeit slowly at first...that gave me my signal to begin to leg into the abyss...I learned a long time ago to be patient...I wasn't that way 3-4 years ago and it cost me dearly...I will never make that mistake again... Ok let's look at all the important indexs we watch and love<g> DJIA---THIS INDEX CONTINUES TO BREAKOUT FOR THE 4TH TIME HERE AT 9500...IN THIS RUN UP IT EVEN HAD A BEARISH SIGNAL REVERSAL TO BOOT AT 9150...9800/9900 SEEMS DOABLE BEFORE ANY MEANINGFUL PULLBACK...THAT WOULD BE 1800-1900 POINTS OFF THAT 8100 BOTTOM...ONE HECK OF A MOVE.... NAZ/COMPX----THIS CHART IS DIFFERENT THAN THE DOW...THE RALLY OFF THE BOTTOM AT 1400 UP HERE TO 1750ISH IS OK BUT ANY GOOD TECHNICIAN CAN SEE IT WILL REVERSE SOON...THIS IS MORE THAN A DCB(DEAD CAT BOUNCE) THOUGH...THERE'S A CHANCE WE COULD GET ALL THE WAY UP TO 2000 THE 40 EMA WEEKLY BUT WE HAVE SOME R AT THE 20 EMA FIRST<G> 1600 IS THE 3 BOX REVERSAL BACK DOWN FROM HERE...THE CURRENT TOP OF THE 10 WEEK TRADING BAND IS AT 2050 RIGHT AT THE BRL LINE TO BOOT... SPX---BROKE A SERIOUS DOUBLE TOP LAST FRIDAY AT 1110 MY BREAKOUT TARGET...AND THIS POP CAME AFTER A SOLID REVERSAL BACK DOWN AT 1060, SO WE DO HAVE ROOM UP TO 1160/70 AREA IF THINGS HOLD UP RIGHT HERE...ANY REVERSAL BACK DOWN MUST HOLD 1060 AGAIN... SOX---SAME CHART AS THE NAZ...BIG BREAKDOWN THEN THE EXPECTED BOUNCE...520 LOOKS DOABLE HERE, THEN I THINK WE'LL SEE A PULLBACK INTO LATE NOV-DEC TIME FRAME.. BTK--BEAUTIFUL BREAKOUT AT 560 A SOLID CHART PATTERN FOR SURE..WE WILL OWN SOME BIOS FOR SURE...620 IS THE TOP OF THE 10 WEEK TRADING BAND SO THERE'S SOME R THERE...IT BLEW THRU THE 200 EMA ON THE DAILY CANDLE CHART TOO... VIX...THIS INDEX IS RIGHT AT THE BSL LINE IT BROKE A TRIPLE BOTTOM HERE...30 WOULD CRACK THAT BSL LINE AND SIGNAL THERE'S MORE UPSIDE TO THE MARKETS LATEST MOVE...35 IS THE 3 BOX REVERSAL BACK UP AND NEGATIVE FOR THE MARKET... SO ALL IN ALL THE MARKETS ARE LOOKING FINE HERE...ALL THE CHARTS LOOK GOOD..I AM EXPECTING SOME CORRECTION MID NOV TO MID/LATE DEC..BUT NOT AS SEVERE AS I ONCE THOUGHT...MAYBE A HIGHER LOW, AND NOT A FULL RETEST..THIS WILL HELP US DETERMINE WHAT WE'LL LOOK LIKE GOING INTO THE NEW YEAR..WE HAVE SERIOUS ECONOMIC REPORTS COMING IN THIS WEEK..SO LOOK OUT FOR MAJOR VOLATILITY... I AM BETTING THEY WILL "ALL" BE BAD...SO WATCH OUT FOR EARLY SLAMS AND THEN SOME RECOVERIES INTRADAY... LET'S CHECK OUR FAV'S FOR THE WEEK AHEAD... CSCO--I AM LONG THE NOV 15'S AHEAD OF THE EARNINGS REPORT ON THE 5TH...IT BROKE THRU THE BRL LINE AT 17 1/2..I WOULD THINK 17 1/4 WOULD BE A SOLID BUY TRIGGER LONG...15 3/4 THE SS TRIGGER AMAT---Solid DEVELOPING CHART HERE ON THIS BIG CAP SEMIS...HAS ROOM DOWN TO 32 AREA WITHOUT BREAKING DOWN YET...35 1/2 THE BUY TRIGGER LONG...33 1/2 THE SS(SHORT SALE) TRIGGER.. INTC---THIS STOCK HAS RALLIED RIGHT UP TO THE BREAKDOWN NUMBER AT 26...I'VE SEEN THIS TYPE CHART OVER AND OVER AGAIN & AGAIN FOR YEARS..THE PULLBACK IS A CERTAINTY...23 1/4 THE SS TRIGGER...25 1/4 THE BUY TRIGGER LONG... JNPR---I LIKE THIS CHART LONG IF IT CAN HOLD UP FOR A TRADE...PERFECT 3 BOX REVERSAL DOWN TODAY...25 1/4 THE LONG SIDE TRIGGER---23 THE SHORT SALE TRIGGER..IT HAS ROOM TO 21... QLGC---AFTER 4 CONSECUTIVE BUY SIGNALS THIS STOCK HAS PULLED BACK NICELY...I WILL TRADE THIS LONG IF IT REVERSES BACK UP...39 3/4 THE BUY TRIGGER....37 3/4 THE SS TRIGGER...WITH NAY BREAKDOWN OF 35 A NO NO... NVDA---IT RALLIED UP HARD RIGHT TO THE DOUBLE TOP AT 50..SELLERS WERE THERE FOR SURE...41 IS A GOOD SS TRIGGER...IF THE MARKET CONTINUES DOWN IT WILL FALL HARD VERY FAST...IT IS ABOVE ALL MVA'S ON THE DAILY CANDLE CHART THO...43 1/4 THE BUY TRIGGER... VRSN--THIS STOCK HAS BROKEN DOWN HERE....IT BROKE DOWN AT 44 THE TRIPLE BOTTOM AREA..IT HAS MORE DOWNSIDE HERE TOO...38 1/2 THE SS TRIGGER...40 3/4 THE LONG SIDE BOUNCE TRIGGER<G> GNSS---DOUBLE DOJI TOP, ON A SPREAD QUADRUPLE BREAKOUT..HIGH POLE<vbg> MAN THIS THING IS WILD...IN OTHER WORDS IT'S A SHORT TO ME...44 IS THE SS TRIGGER...WITH A GOOD PULLBACK COULD SEE THE BREAKOUT AREA AGIN AT 38...46 3/4 IS THE LONG SIDE TRIGGER..WAIT FOR IT... ELNT---THIS STOCK RAN RIGHT INTO THE INFAMOUS BRL LINE..THIS AGAIN FOR THOSE OF YOU THAT NEVER HEARD OF THIS TERM..IT'S THE BEARISH RESISTANCE LINE ON P&F..IT USUALLY STOPS A STOCKS RUN UP LIKE A BRICK WALL....34 1/2 THE BUY TRIGGER LONG...32 1/2 THE SS TRIGGER...NICE CHART THO... EBAY---ONE WILD STOCK HUH<G>?...51 IS THE SS TRIGGER...AND A GOOD ONE..WAIT FOR IT...53 3/4 THE BUY TRIGGER LONG FOR THE BOUNCE... KLAC---A BEAUTIFUL LOOKING P&F CHART..SYMMETRICAL IN EVERY WAY...A ROUNDED BOTTOM, THEN A QUAD TOP BREAKOUT, A PULLBACK THEN A TRIPLE TOP BREAKOUT RIGHT IN A ROW...IT'S PULLED BACK AGAIN...AFTER BREAKING THRU THE BRL LINE NICELY...42 1/2 THE BUY TRIGGER LONG...39 1/2 THE SS TRIGGER... TQNT---IT MAY BE A RISING WEDGE HERE...HIT THE TRIPLE TOP AT 20 AND HAS REVERSED DOWN 3 BOXES..SO FAR SO GOOD...17 1/4 THE SS TRIGGER..WITH ANY BREAK OF 16 1/2 A BIG NO NO THERE...18 3/4 THE BUY TRIGGER.. EMLX--NEAR THE TOP OF THE 10 WEEK TRADING BAND HERE...AND SOME R THERE AT 27/28...23 3/4 THE SS TRIGGER...25 3/4 THE BUY TRIGGER LONG... VRTS---A LOT OF CHARTS LOOK LIKE THIS ONE..SEVERAL BUY SIGNALS OFF THE BOTTOM, AS IN BOTTOM FISH PLAYS...30 3/4 THE BUY TRIGGER LONG...28 3/4 THE SS TRIGGER.. MYGN---HAD QUITE A RUN FROM THE RECENT LOWS....RAN INTO THE 200 EMA ON THE DAILY CANDLE CHART 2 DAYS AGO...46 1/2 THE VERY GOOD SS TRIGGER...48 1/2 THE BUY TRIGGER LONG.. HGSI---HERE'S ANOTHER STOCK THAT RAN RIGHT INTO THE BRL LINE AT 45...LAST STICK MIGHT BE DARK CLOUD COVER...40 1/2 THE SS TRIGGER...42 3/4 THE BUY TRIGGER LONG.. PDLI---THIS STOCK BROKE THRU THE BRL LINE AND NICELY TOO...IT'S PULLING BACK HERE...32 THE SS TRIGGER...34 THE BUY TRIGGER LONG.. IDPH--THIS STOCK FOUND SOME SELLERS AGAIN NEAR THE 61/62 AREA...CLOSED WEAK TOO...55 3/4 THE SS TRIGGER...57 3/4 THE BUY TRIGGER... IMCL---DYNAMIC SUPPORT(S) AT 55/56 AREA..THE TRIPLE BOTTOM AND THE BSL LINE..THATS THE BULLISH SUPPORT LINE(BSL)...60 1/4 THE BUY TRIGGER LONG...62 HEAVY R THERE...63 BYE BYE CITY UP...58 THE SS TRIGGER... QCOM---WHAT A NICE CHART PATTERN...BREAKS THRU THE BRL AND REVERSES BACK DOWN HERE...OFF A DOJI TOP AND A REVERSAL STICK...THIS 3 STICK PATTERN IS TRADABLE EITHER WAY LONG OR SHORT..RIGHT HERE AT THE TOP AREA THIS IS A SHORT...51 1/4 THE SS TRIGGER...53 1/2 THE BUY TRIGGER LONG.. I AM CURRENTLY WORKING ON THE STOCKS WE ARE GOING TO USE FOR OUR LONG SIDE PORTFOLIOS...IT MATTERS NOT TO ME WHAT YOU CHOOSE AS YOUR MAKE UP OF THESE STOCKS.... I WILL SEND OUT UNDER PRIVATE E-MAIL THOSE STOCKS I LIKE, AND OTHERS TO CHECK OUT AS WELL..BUT IF YOUR GOING TO DO THIS..PLEASE GET YOUR ACCOUNTS READY...EVERYONE SHOULD HAVE SOME KNOWLEDGE OF LEAP OPTIONS...I WILL BE USING THESE FOR ABOUT 50% OF MY LONGER TERM POSITIONS... PLEASE ACT CAUTIOUSLY THIS WEEK, AS NOT ONLY DO WE HAVE MAJOR ECO REPORTS COMING EACH AND EVERYDAY...AND THEN AS I'M WORKING THIS NEWSLETTER THEY WARN OF IMPENDING TERRORISTS ATTACKS... I HAVE WRITTEN ABOUT THE VERY NEXT ATTACK...IT WILL COMPLETELY DEMORALIZE THIS COUNTRY..NO IF'S ANDS OR BUTS...WILL IT STOP ME FROM MY GAME PLAN??..NOT A CHANCE..I AM NOT INVESTING 100% OF MY LONGER TERM MONEY HERE..JUST A VERY SMALL BEGINNING PHASE IN TYPE AMOUNT...I HAVE ALREADY TOLD YOU THAT THE COMING PULLBACK IN LATE NOV/DEC IS ALMOST A SURE THING...SO WHY AM I DOING THIS NOW??? BECAUSE NOTHING IS WRITTEN IN STONE...THERE IS NOT WAY TO PERFECTLY TIME ANY MEANINGFUL MOVES ONE WAY OR THE OTHER OVER THE LONG HAUL..EVEN THO I TRY VERY VERY HARD... I WANT TO SAY THAT USING THE LEVERAGE OF OPTIONS, LONG TERM OPTIONS WILL HELP YOU RECOUP YOUR LOSES...NICELY... ANYWAY PLEASE BE CAREFUL OUT THERE...BE ALERT, BE SMART, BE SAFE.. MY BEST TO YOU AND YOURS JERRY

To: Jerry Olson who wrote (4210)	11/2/2001 9:26:56 AM
From: Rich1	Read Replies (1) \| Respond to of 5893

Agree...I am looking at these IBD breakouts... AMRN..DP..RYL..HTLD..SRZ.. Spoke to Chuck yesterday I will email you..