NEWSLETTERS & RECOMMENDATIONS - October 24, 2010

Dear Friends and Fellow Traders,

The S&P 500 Index has gained almost 12% since late August when Bernanke said to the FED, "will do all it can," to sustain the economic rebound. Since then the GDP appears to be growing slightly more than the 2nd quarters at 1.7%. However, this pace of growth will do little for the over 14 million unemployed hence the reason the FED must act - hello "QE2"!

Investor Sentiment is running 2 to 1 in favor of the bulls and coupled with high investor complacency represents extreme optimism. Overbought markets and pressure on China to raise their currency while the U.S. is pressured to stop debasing our currency can create some heady volatility. I thought we'd see some mutual fund tax Loss selling but that has not happened yet.

The coming week precedes the election and the November 2-3 FOMC meeting. I'm guessing we may see sell the news activity leading up to these two events. We may even see a response to statements coming from the G20 meeting this weekend in South Korea regarding stabilization of world exchange markets.

I believe we still may have 50 S&P points up with 75 down sometime this year. I for one has replaced all my trading longs with calls especially BTIM into the current rally. I will use any serious weakness to sell option puts and buy calls again on selected favorites. Any declines should be moderated as large corporations continue to issue huge amounts of debt to buy shares. Right now investors, traders, whom ever want to own stocks. Fasten your seat belts.

Most economic reports this week will focus on housing with an early GDP and Consumer Sentiment read. Key for the investors is still "legislative gridlock" and any deviation from this could be a market mover.

BTIM Update:
BTIM continues to impress me technically. Almost every day the stock opens higher, drifts lower then closes near or at the highs. Friday BTIM opened at $6.32 traded down to $6.16 and looked like lit would close $6.31-.32 when a trade of over 8,000 shares closed BTIM at $6.36. Somebody knows something. Here’s the latest Biotime release.

BioTime, Inc. (NYSE Amex: BTIM) announced that the Company's CEO Dr. Michael West will present data today relating to 12 new cell lines, differentiation kits, and cell culture media at the GTCbio 4th Advances in Stem Cell Discovery and Development Conference in San Francisco, California. Dr. West's presentation titled: 'Fate Space Screening of Clonal Human ES-derived Embryonic Progenitor Cell Lines' will include a discussion of the Company's proprietary bank of more than 140 diverse human cell types made from human embryonic stem cells, the company's screening technology for discovering means of manufacturing human cell types, and the potential use of these cells for diverse new therapeutics and drug discovery. During his lecture, Dr. West will describe the 12 new lines: B28, EN23, Z3, EN5, RASMO19, EN27, T42, SK47, SM2, SK46, T44, and SK44 that will be launched beginning November 1, 2010. He also will disclose new data on the cell lines: SK17 that have the potential to differentiate into cells that express renin and smooth muscle cell-related genes characteristic of the juxtaglomerular apparatus of the kidney, Z2 that when differentiated using a proprietary protocol expresses relatively high levels of the bone growth factor genes BMP2 and BMP7 (also known as osteogenic protein-1 (OP-1), and J16 that expresses preadipocyte markers of interest to researchers in cosmetic dermatology and type II diabetes. In addition, Dr. West will disclose for the first time the Company's PureStemTM technology, with which the Company plans to expand its product offerings in calendar year 2011. The PureStemTM technology utilizes the expression of exogenous transcriptional regulators to control the differentiation of human embryonic stem cells and induced plutipotent stem cells, and may potentially provide many new human cell types needed in regenerative medicine. BioTime is seeking patent protection for the PureStemTM technology. Additional information about these new products will be found at www.embryome.com beginning on November 1, 2010. Dr. West's presentation is available on BioTime's website at www.biotimeinc.com. The annual GTCbio Stem Cell Research & Therapeutics Conference provides information regarding cutting-edge developments in all areas of stem cell research including the biology, medicine, applications, regulations, and business of stem cells. This year's conference will address recent developments in pre-clinical and clinical trials of stem cell therapy, regenerative medicine and tissue engineering, cancer stem cells, stem cell reprogramming, FDA and NIH policies regarding funding for stem cell research, and private funding from the pharmaceutical industry.

Friday’s Trading:
There were a few good hedging and parlaying long call trades but the only money made was on the hedge side as the calls expired worthless. We can do this the easy way (where options make the $s) or we can do it the hard way (where multiple hedged S&P E-mini trades make the $s). I’m not ashamed; I'll take my profits any way I can get them. The choice is yours. (No NET Weekly Money Chart this week.)

Have a great week. Keep those cards and letters coming. I read them all.

Good Trading,
Stan Moore
702.267.0396

P.S. I'm seeing more than a few bumper stickers on Nevada cars saying, “Can you seen my Hairy Reid?" Here's link to the TV interview where Harry tells us without him we'd be in a worldwide depression now. Our local cartoonist poked fun at his comment in the Sunday paper. Harry must be getting desperate. Harry must think he’s Al Gore, the inventor of the Internet?