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NEWSLETTERS & RECOMMENDATIONS - January 16, 2012

Dear Friends and Fellow Traders,

Where's the volatility? We've had 1 out of 8 days with a 1% move this year. Last year we had 54 or 55 days with the market having a 90% bias up or down with 25-40 S&P point moves intra-day. Where is the love?

I remember times when the markets used to look ahead 6 months to a year. Today we're lucky if the market looks ahead more than a week. Right now we are re-discounting old news. This gives us great opportunities for profits. Take Friday for instance. Rumors of Euroland downgrades swirled through the markets early. Overnight the S&P hit resistance at 1295 only to fall over 20 points lower to 1272.75 by early Friday morning then the market promptly rallied back almost 15 S&P points.

We've been hearing downgrade rumors for months. Friday morning broadcasts over French TV stations reporting a French downgrade will happen. I jump on my keyboard and popped out a quick buy Email Alert then I watched the 128 SPY W recommended calls under $0.40 hit a low of $0.25 well after the Email Alert reached you. The 128 calls hit $1.19 near the close.

There were even move profits from hedging but who's counting. We don't need no stinking long term investing. These trades have been happening most weeks since October 2005 when Weekly options started to trade. More on this week’s Weekly trade below.

BTX one of our favorite stocks has got on Mr. Toad's wild ride this last month. It's back to coining $s for us again if you trade any stock as I recommend on the edges against a core holding. Nothing wrong with using options either.

A month or so ago I wrote an Email Alert telling you that BTX's short position went up over 500,000 shares last month or the report for November so get ready to buy the short push down that was certainly coming. BTX was cut from $4.40 to $3.55 in a very short time only to rally back to $6.35 early this week when presenting at the JP Morgan's health care conference last week. Recent long purchases gave us a great profit-taking and an even better time to just sell calls against our core holding.

The stock's not going straight up with the shorts as big as they are. They haven't learned yet. They're still posting great doubts out their on the Yahoo message boards.

Sure enough, the expected profit-taking bout from this run-up occurred Friday and BTX dropped $0.40 to $5.60. The new December short interest shows that the shorts added over 1 million total new shorts these last 2 months to over 5 million shares. There are slightly over 20 million shares in public hands. That's big! Insiders still own over 50% of the outstanding shares.

Fasten your seat belt it's going to get quite bumpy out there in BTX land. Just remember none of my stock recommendations are Buy and Hold. We've too opportunistic for that. Just trade and learn to take what this market gives us.

Trade of the Week in Review
Early Thursday morning I sent an Email Alert buy for the purchase of the 129 W calls under $0.45 and as usual E-mini hedge. We got long as calls hit $0.40. There were numerous hedging opportunities to make nice profits. The calls closed near $0.85 for a double but we wanted the possible hedged E-mini short into resistance that night. It happened in the overnight session which made a higher intraday high but failed just under the previous 1297 high reaching only 1295.

Sell those E-minis. I've been noting for months to expect negative news into large resistance areas. (See Euroland rumors about downgrades above). We normally sell between 2-4 E-minis per 10 calls. When the rumors started the E-minis were down over 22 points by 10:30 Friday morning. That's a $2,000 to $4,000 potential profit trade against 10 calls that cost only $450! Now that’s hedging NET style!

I sent another Email Alert before 10:30 to sell the 129 calls because they were too far OTM and buy the 128s as noted above. These calls were mostly sold above a $0.90 average when scaling out into strength as I suggested in my final Email Alert. See attached 5" C chart for Friday, NET Weekly Money Chart 2012-01-13.

For those in the NET Chat Room, I plan to be out next Monday, Tuesday and Wednesday. The room should be open on Monday but may be closed on Tuesday then back open on Wednesday. The final schedule has not been completed so just be aware of some flux and plan accordingly.

No Stan’s Blog or NET Charts thru next Wednesday due to my absence.

I hope all of you had a great Holiday weekend.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - December 04, 2011

Dear Friends and Fellow Traders,

That's the $64,000 question everyone's asking this coming week. This week's meeting on Thursday-Friday will be the last opportunity of this year for action that will begin to address the crisis. The perception is that the time to act has come even at this late stage.

As I have noted many times that this will take anywhere from 18-24 months to get a true workable solution. So a clean, clear, achievable or even sustainable fix is unlikely. Yes, certainly a positive move forward but will it be enough for the market after last week's 7% rally? I believe the investor sentiment has improved but the crisis tensions won't easily go away. I'm guessing not but I'm hopeful.

The world markets last week were jolted into action by 6 central banks in a coordinated move to ease liquidity. Anytime the market makes an outsized move in any one direction, I've seen continuing moves of upward of another 10%. This is why it was so easy to setup trading NET Alert Emails that were going to help you ton money. I've seen hundreds of these moves over my 45+ trading years and it works over 90% of the time. I trust you personally profited from my Alerts.

Given the news, the expected up-coming meeting and last week’s 400 DOW point rally we could expect some consolidation or even a small selloff last week. This happened exactly and for now the bulls have scored a victory.

I aggressively recommended in an Alert Email buying puts into that 400 point up move late Wednesday but hedge aggressively. I also notated on a chart the expected coming price movement - “Up Sharply, Sideways and Up Sharply again”. The same applies to big down moves but in reverse. The puts also protect against any negative surprises for very little money given the low cost of weekly options.

I also like using puts into resistance and after a huge up move because the market will now mark time and the puts are cheaper while our Oscillator (indicator) is much better at signaling buys and sells in a trend strength-up consolidation. Furthermore, the hedged buy profits tend to be larger than the hedged sells so the overall hedged profits are bigger. I also like the fact that, on balance, weakness will be limited. So, I'm even more comfortable adding more buy hedges into further weakness than selling higher highs that are expected and price can blowout to the upside at any time. Long calls and short E-minis can limit our profits if the up move reasserts itself too early. This action hedge then only served to lock in a profit once the up move reasserts itself. In rising markets I look for the low risk and opened-ended long side trade. Hence the long put (small defined risk) and unlimited up of the long E-minis.

For the coming week it's all about Europe. So stay alert early. Who knows what can happen over there before the meetings starts.

Trade of the Week in Review
There was a rather large rally into Wednesday’s close worth over $350 hedged long profits alone that more than paid for the puts. The markets continue to consolidate higher into Thursday as well. The hedging profits on the E-mini longs were rather large. I Alert Emailed on Thursday that we would load the boat with puts near the 1260 or 200 DMA level given that a good jobs number could be expected and after the ADP number that came out. Besides the market would be up over 1000 DOW points for the week making the market vulnerable to selling as traders moved to lock-in these enormous profits.

I also Alert Emailed Thursday afternoon and on the Chart that we should hold all puts over night and buy any weakness then, before the jobs release at 8:30 Friday morning, sell the long E-minis into the expected rally. The overnight markets given the good number only came in a few points to strong support. After the jobs number was released I send another Alert Email to sell all hedges as the S&Ps rallied nearly 20 points or a $1,000 profit per hedge! Who says this isn't fun and you could long E-minis in size because you owned fully paid for puts and then some. If you weren't long puts would any of you really buy and hold long E-minis while asleep? Not many would I assume. As for me I sleep like a baby. I wake up every hour and cry. I've been doing just that for years. However, they are tears of joy!

In that same Friday pre-market Alert Email I suggested we closeout all our long 125 SPY puts and buy the 126s. I always want to be in ATM options on the option’s last day. We usually can roll for only $0.30 additional premium. I'm more than willing to pay that extra premium especially today because the 125s went out worthless while the 126s closed at $0.92.

The 126s were originally bought near $0.45 to start. I lost about $0.30 when I sold my 125s near $0.15. I like these trades, lose pennies make thousands of $$$s on hedges. We further scaled into the 126 puts into the rally high near the 200DMA as outlined in previous Alert Emails which traded as low as $0.18. I send another Alert Email later in the day while the puts were trading near $0.80 to start selling them. The 126s hit a high of $1.24 before selling off to close at $0.92. Assuming an average price of near $0.30 that's a possible 3-4X return plus $1,000s more on additional hedges per $300 (assuming 10 puts)! See attached Friday's final "C" chart, NET Weekly Money Chart 2011-12-02.

I will be announcing a few special Holiday Deals on a few of my services that I've never done before. So look for a few extra emails as a way I thanking each and every one of you for your support these many years.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - November 20, 2011

Dear Friends & Fellow Traders,

"This is where it gets serious," writes Peter Zeihan, VP of analysis at Stratford, a geopolitical research center, "This is not purely economics. This is about Germany's position in Europe and whether they control the institutions or not."

The financial stability of Europe has come down to one institution, the European Central Bank and its one mandate and who controls it. Germany knows what hyper-inflation is all about and has resisted letting the ECB take-up the role of lender of last resort as our Fed has. Yet, only the ECB has the firepower to save Europe. I'm betting Germany wins but realizes the ECB will have to print money.

Stocks fell on fears on a combination of new possible downgrades tied to European debt and a new found fear of our do nothing Congress. No one expects Congress to do anything. Yet they may surprise us. We'll see soon. Absolutely no attention was paid to this past week’s good economic news.

People are beginning to realize that many well-intentioned people come to Washington looking to fix government only to get caught up in the game. These newbies realize they can become rich beyond their dreams or have so much power they spend every waking hour doing and saying anything to continue in power. They are constantly running for office. Just look at Obama. He's not governing or leading our nation, he's been running for a second term since January. He'll leave office a whole lot richer than he came in.

I have one fear out there right now. I see funds being pulled out of many European Banks. I see European bonds being dumped by the billions. Trillions of worthless assets have to be dumped on the markets over the next 2-5 years at distressed prices to raise needed capital. The good news is that many of our own financial institutions are flush with funds looking to buy this truly depressed paper.

I therefore see the ECB coming in, maybe with the help of the IMF buying unlimited amounts of Euro debt and printing money until the cows come home to save Euroland. There will be an awful price to pay down the road. The one thing I know this crisis has taught me these last many months is that paper money will be worth less (maybe worthless) in the not too distant future.

Paulson, a very large hedge fund manager, has made this bet big time perhaps too early maybe since he has liquidated as much as 1/3 of his GLD positions to meet margin calls and redemptions. However, all his personal dollars remain in gold and has not be sold. I too may have been early as I was looking at January 2013 options. Remember, he was early with the Mortgage Crisis but netted billions later on. I truly believe his huge selling has hurt the gold markets short term. I recently read that worldwide Central Banks were large buyers of gold this past year.

Overall given the news day-to-day we live with maybe further margin selling the markets can trade lower in the short term to retest those October lows. On the other hand, there is so much cash out there looking for returns and investors are so bearish I find it very difficult for the market to breakdown very far. I'm a buyer.

Trade of the Week in Review
The markets pretty broke good support on Wednesday. That was one ugly day. Thursday morning before the markets opened I Alert Emailed subscribers to buy the 124 SPY puts under $1.00 and hedge as usual. The puts opened at $1.15 and we missed them in the Chat Room. So I sent another Alert Email suggesting we start near $1.05. Shortly the puts fell to $0.90. Everyone should have been long by then.

The S&Ps broke even larger support at 1225 shortly thereafter falling as low as the 40% buy of 10/4 low and then held just above the 50 DMA near 1204.The SPY puts hit a high of $2.93. That's a 3X return in a matter of hours! I send another Alert Email suggesting that if the S&Ps were not making lower lows by 3:30 to exit most of the puts but hold a few to go long any overnight weakness.

Thursday’s hedging was nothing to sneeze at either. You could have added another $4,000 to $5,000 more in profit per 10 option contracts to potentially the triple earned with the long puts!

The market rallied back more than 13 points into the close. We got lucky overnight as some news out of Euroland caused the S&Ps to sell off to 1209, near Thursday’s lows. We could have gotten long E-minis again to lock-in our short gains. Our markets promptly rallied back on some good economic reports close to the 1240 break down level where I Alert Emailed before the market opened to sell any long E-minis and hold the puts. That's almost another $2,000 hedged profit! The last of your puts could have been sold near $2.40.

So you made another $2,000 potential profit holding some puts overnight but on the other hand you could have lost $500-1,000 selling your puts Friday morning versus Thursday. See attached Thursday "C" chart, NET Weekly Money Chart 2011-11-18.

I will be out all next week for the holidays. The Chat Room will be open but there will be no notated charts and no Stan’s Blog next week either.

Have a great holiday because we have much to be thankful for.

My best goes out to each and every one of you. Have a Happy Thanksgiving. I will be back the following week.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - November 13, 2011

Dear Friends & Fellow Traders,

October was the best, going-long, trading month in 25 years for the markets! It seems from reading a number of investment letters and reports I received most investors missed this rally. Traders are uncertain about uncertainty. The markets fall apart one day only to rally sharply the next. It's a traders dream but an investor’s nightmare.

Today bears are as loud as ever and increasingly confident. Why shouldn't they be? Doug Kass writes, "We've been in post-Lehman holding pattern for 3 years now." Europe can implode any day. We all know the bear case by now. Maybe they will be right down the road.

Today I believe the bear case is already be priced in the markets. Recent political and financial developments in Euroland may have already reduced the likelihood of a severe downdraft over there. Our economy is moving along reducing the threat of a double dip. China, the world's economic driver may be poised to grow again. Rates are coming down across the globe.

Right now I believe money is moving out of bonds and into equities and may accelerate next year if the GOP can get its act together and take its show on the road. PMs (portfolio managers) will be chasing performance into year’s end as most PMs are generally at maximum levels of defensiveness. So between now and yearend could prove more bullish than the bearish crowd believes.

Trades of the Week in Review
Primarily when it comes to trading for a living NET traders don't care whether the markets go up or down short term. Of course, over the longer term this time we much prefer an up market given our current open long positions in our favorite stocks.

Last week saw the market opened higher, declined some 50 S&P points only to rally back 40 points to end the week. Recently I noticed there was and interesting trading pattern developing the last 6-7 trading days. The markets mostly opened, traded lower but finished higher. Could this be PMs buying dips to create some performance and be playing catch up? Seems likely enough for me.

Tuesday morning after the market sold off I Alert Emailed to buy the 127 SPY calls under $0.80 with hedging as usual. The market rallied right to major resistance at the 1275 level or the 200 DMA. Calls could have been sold as high as $1.70. However, I was expecting good news from China after 8:00PM EST so I suggested we hold some calls overnight looking to hedge the "good news" similar to the "Buy the Rumor, Sell the News", a favorite NET trade. The news was as good, as was expected, but the markets didn't respond. So, it’s time to hedge one’s position. I then sold some E-minis short only to wake-up and find these contracts down over 30 points. I recommend taking profits.

That Wednesday morning before the markets opened I Alert Emailed and recommending taking the $1,500 profit per hedge and selling the calls which opened at $0.40. There were other smaller hedges during the day but you get the picture. We lost $400 per 10 calls but earned over $4,000 by hedging just 2 E-minis! Traders could have sold as many as 4 E-minis short for an $8,000 profit. Great work if you can get it. The market sold-off even harder some 20 more points, later in the day. We left a lot of money on the table that day.

The next morning the market gapped over 20 points higher on the opening I Alert Emailed to buy puts near the opening per trading rules taken right from the Trading Bible. The 125 SPY puts hit $1.08. Less than 90 minutes later the S&P price retested the previous day's low and most profits could have been taken near $2.36. Both option trades doubled over a short time frame but there was some great hedged profits taken as well. See Friday's "D" chart, NET Weekly Money Chart 2011-11-11.

I thought of recommending a call trade Thursday which tripled by early Friday morning but then hedged my remaining puts instead. At least you see the trading potential offered every week to earn a good living. I'm not perfect just good enough and earn a few dollars nearly every week.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - November 06, 2011

Dear Friends & Fellow Traders,

The G-20 talks fail to ease the crisis but the shaky Greek bailout plan appears back on track. It's alive! Our economy is still muddling through. Germany's manufacturing numbers fell off the page so the new ECB head cut rates. Every little bit helps. The market will continue to trade news to news with an outside chance we have a new and higher trading range from say 1195-1300. We can handle that.

All I can add to this lunacy is to quote David Letterman referring to Obama giving Europe advice on its debt crisis."That's like J.Lo getting marriage advice from Kim Kardashian." I can't top that one.

The real winners in the crisis appear to be Russia and China. While we were out there pissing away billions of dollars on two wars or what have you. Meanwhile both Russia and China were picking off prime assets, like energy supplies across the global or building new friends in faraway places.

China was loaning money across the globe for whatever project another country needed thus creating IOUs to be called in later I'm sure. I was also thinking that if the Chinese helped Europe, especially France, we might find the Mona Lisa, the Notre Dame Cathedral or even the Eiffel Tower moved to China. You get the idea. Just remember what happened to Japan back in the late 1980s. That didn't end well for them either.

So what's the trade? Greece should be handled. That leaves Italy.

If Italy continues to screw up and the "Big Gun" Hank Paulson, our former Treasury Secretary, talked about during our crisis is not available from the European financial institutions then down the road Europe could break up into north and south unions. However, the mostly likely choice will be a massive ECB bond purchase program. Duh! Europe will choose the later. So that makes selling the Euro against the dollar and gold a great buy in my opinion.

Trade of the Week in Review
Trading options has now come full circle and I love it. When I wrote Option Magic nearly 20 years ago our trading life was rather simple. I used simple fixed (steady parallels) moving average envelopes because unlike Bollinger Bands which expand and contract and tell me little. I knew moving averages worked because price never went straight up or down for extended periods of time. Price always reverted to a mean or returned to some midpoint after moving away from its midpoint.

Then the question became how far is far? After considerable testing I found that 3 large Fibonacci numbers worked better over time. They were 1.4, 2.3 and lastly 3.7. I started with lower numbers and had limited success. After 1987 I found there were a few occasions that price reached the 6.0 Fib limit. Overall price hit the outer 6.0 bands happened 11 times down with the majority of times in October but only 2 times up and, right now, I don’t recall the upper hits.

I noted two definite high-probability strategies: 1) the 3.7 bands contained price over 99.9% of the time since 1987 and 2) I needed price to retest the lows on the bands with some sort oscillator divergence needed as well. Later I found that price at extremes near the 6.0 bands with extreme tick divergence and a VIX reading over 45 pretty much nailed major bottoms until March of 2009 when the VIX reached over 80!

Today we have even more help finding the turning points along the bands. I refined the Oscillator to give us a new divergence called “leading divergence" as opposed to any simple divergence in the past. These setups give us trades with over 80% probability of success on a 30 minute chart.

In the past this price-at-extreme-band strategy setup gave us 3-5 good trades a month using monthly option expirations. We bought the extreme bands and set a 50% option loss stop. If the option moved up at least $2.00 we moved the stop to breakeven. We took 50% profits at the mid-Uni band and expected to sell the rest at the same number band in the opposite direction. Averages winners were over 3X over 70% of the time. Losers were less than $1.00 per option. There are a substantial number of these trades from the Historical Charts available in the New Era Trader web site.

It didn't take long to revert back to band trading once I turned to trading the weekly SPY options. Before, volume was only sufficient to trade the weekly OEX options on Thursday and Fridays. Now we can trade the SPY weekly any day, any time. These ATM weekly options trade over 40,000 early in the week and near 100,000 on Thursday and Friday.

In addition, the profits are now much larger with smaller risk given the lower prices. We no longer sell half the options at the mid-Uni anymore and leave sometimes half again as much profit on the table like before. Furthermore, we can ton money like never before with E-mini or SPY index hedges. There were at least 20 hedge trades possible the next 4 days after the Alert Email to buy calls Tuesday morning was issued at the 3.7 Uni bands and the daily chart 20 DMA. Also note the Oscillator’s "Leading Divergence" too.

The hedges could have earned as much as $5,000-10,000 for every 10 SPY $0.83 calls, an $830 investment. The calls themselves were scaled-out per Thursday’s Alert Email into strength before Friday’s jobs number. I wrote on the 3:45 Thursday C chart to hold a small position overnight. We started selling the calls over $2.20 and as high as $2.68 for a 3X return! I continued to hedge Friday before selling the last calls near $1.70. These same 124 calls hit $0.57 at the Friday morning lows. That's another possible triple! Sorry, that good I'm not. See attached Friday Final "D" chart, NET Weekly Money Chart 2011-11-04, for band trading and leading divergence too.

Keep those cards and letters coming.

Good trading,

Stan Moore
702.558.1814

---

Again It's Buy the Rumor & Sell the News

Dear Friends & Fellow Traders,

The G-20 talks fail to ease the crisis but the shaky Greek bailout plan appears back on track. It's alive! Our economy is still muddling through. Germany's manufacturing numbers fell off the page so the new ECB head cut rates. Every little bit helps. The market will continue to trade news to news with an outside chance we have a new and higher trading range from say 1195-1300. We can handle that.

All I can add to this lunacy is to quote David Letterman referring to Obama giving Europe advice on its debt crisis."That's like J.Lo getting marriage advice from Kim Kardashian." I can't top that one.

The real winners in the crisis appear to be Russia and China. While we were out there pissing away billions of dollars on two wars or what have you. Meanwhile both Russia and China were picking off prime assets, like energy supplies across the global or building new friends in faraway places.

China was loaning money across the globe for whatever project another country needed thus creating IOUs to be called in later I'm sure. I was also thinking that if the Chinese helped Europe, especially France, we might find the Mona Lisa, the Notre Dame Cathedral or even the Eiffel Tower moved to China. You get the idea. Just remember what happened to Japan back in the late 1980s. That didn't end well for them either.

So what's the trade? Greece should be handled. That leaves Italy.

If Italy continues to screw up and the "Big Gun" Hank Paulson, our former Treasury Secretary, talked about during our crisis is not available from the European financial institutions then down the road Europe could break up into north and south unions. However, the mostly likely choice will be a massive ECB bond purchase program. Duh! Europe will choose the later. So that makes selling the Euro against the dollar and gold a great buy in my opinion.

Trade of the Week in Review

Trading options has now come full circle and I love it. When I wrote Option Magic nearly 20 years ago our trading life was rather simple. I used simple fixed (steady parallels) moving average envelopes because unlike Bollinger Bands which expand and contract and tell me little. I knew moving averages worked because price never went straight up or down for extended periods of time. Price always reverted to a mean or returned to some midpoint after moving away from its midpoint.

Then the question became how far is far? After considerable testing I found that 3 large Fibonacci numbers worked better over time. They were 1.4, 2.3 and lastly 3.7. I started with lower numbers and had limited success. After 1987 I found there were a few occasions that price reached the 6.0 Fib limit. Overall price hit the outer 6.0 bands happened 11 times down with the majority of times in October but only 2 times up and, right now, I don’t recall the upper hits.

I noted two definite high-probability strategies: 1) the 3.7 bands contained price over 99.9% of the time since 1987 and 2) I needed price to retest the lows on the bands with some sort oscillator divergence needed as well. Later I found that price at extremes near the 6.0 bands with extreme tick divergence and a VIX reading over 45 pretty much nailed major bottoms until March of 2009 when the VIX reached over 80!

Today we have even more help finding the turning points along the bands. I refined the Oscillator to give us a new divergence called “leading divergence" as opposed to any simple divergence in the past. These setups give us trades with over 80% probability of success on a 30 minute chart.

In the past this price-at-extreme-band strategy setup gave us 3-5 good trades a month using monthly option expirations. We bought the extreme bands and set a 50% option loss stop. If the option moved up at least $2.00 we moved the stop to breakeven. We took 50% profits at the mid-Uni band and expected to sell the rest at the same number band in the opposite direction. Averages winners were over 3X over 70% of the time. Losers were less than $1.00 per option. There are a substantial number of these trades from the historical charts available in the New Era Trader web site.

It didn't take long to revert back to band trading once I turned to trading the weekly SPY options. Before, volume was only sufficient to trade the weekly OEX options on Thursday and Fridays. Now we can trade the SPY weekly any day, any time. These ATM weekly options trade over 40,000 early in the week and near 100,000 on Thursday and Friday.

In addition, the profits are now much larger with smaller risk given the lower prices. We no longer sell half the options at the mid-Uni anymore and leave sometimes half again as much profit on the table like before. Furthermore, we can ton money like never before with E-mini or SPY index hedges. There were at least 20 hedge trades possible the next 4 days after the Alert Email to buy calls Tuesday morning was issued at the 3.7 Uni bands and the daily chart 20 DMA. Also note the Oscillator’s "Leading Divergence" too.

The hedges could have earned as much as $5,000-10,000 for every 10 SPY $0.83 calls, an $830 investment. The calls themselves were scaled-out per Thursday’s Alert Email into strength before Friday’s jobs number. I wrote on the 3:45 Thursday C chart to hold a small position overnight. We started selling the calls over $2.20 and as high as $2.68 for a 3X return! I continued to hedge Friday before selling the last calls near $1.70. These same 124 calls hit $0.57 at the Friday morning lows. That's another possible triple! Sorry, that good I'm not. See attached Friday Final "D" chart, NET Weekly Money Chart 2011-11-04, for band trading and leading divergence too.

Keep those cards and letters coming.

Good Trading,

Stan Moore

702.558.1814

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NEWSLETTERS & RECOMMENDATIONS - October 31, 2011

Dear Friends & Fellow Traders,

I was surprised to read in Barron's this week that there was surprising confidence among market pros, especially since their survey was conducted late September near the market bottom. If their survey is right we could see a possible target near 1343 for the S&P.

The market didn't rally because Europe solved all their problems. Mainly stocks just got too cheap with all that double dip talk and earnings estimates falling to $75 next year. I wrote that was all crap – see my recent blog entries. I even noted awhile back that the economic numbers we started to see predicted a 2% 3rd quarter GDP. I was too low. GDP in the quarter so far grew 2.5%. It may be a soft number but it's better than the first 6 month’s 0.8% growth.

All that’s really happened is now stocks are getting the benefit of good domestic economic and earnings news coupled with a very skeptical investor class that continued to sell stocks and buy bonds. Besides stocks are only slightly higher for the year while corporate profits have been quite strong and the global economy is still growing.

Still most professionals are predicting slow growth. So what? What wrong with slow growth? Portfolio Manager (PM) Meryl Witmer writes in Barron's, "It could be Nirvana for the stock market because companies are growing and generating free cash, and they don't have to invest much in capital spending or inventory. They can pay their cash out to shareholders or buy in their shares. A slow-growing economy creates a lot of opportunities for smart capital allocation. In the course of my career, corporate managers have gotten a lot more logical about what they do with the company's money. In fact, the capital-allocation ability of the CEO is probably our No. 1 investment criterion." I know much of the market moves are highly correlated but I believe that may change next year as investors move more to specific ideas and not indexes or EFTs.

There may be more upside for the stock market than I previously thought. Stocks are attractive because most alternatives are so bad. Furthermore, good news from a Barron's survey has 90% of PMs saying they expect to be net buyers of stocks over the next 6-12 months. Conversely, allocations to bonds and cash are set to fall. JP Morgan notes that 40% of the PMs are lagging their bench marks by more than 2.5%, the second-worst showing since 1998. I read that HFs (hedge funds) may even be further behind. I can smell performance chasing into the 4th quarter should this rally get legs from here.

Still this rally doesn't lack for non-believers. With almost 95% of stocks over their 50DMA the market is momentarily really extended. So a pause shouldn't surprise anyone. It's difficult not to be cautious. I now spend most of my trading hedging puts. I only trade my equity portfolio small around the edges lately. If I'm right and the market sells off I setup a no cost way to buy protection. If I'm wrong I can ton money on the long E-mini hedges. See the ES charts below. As always, I'll let the market tell me what to do.

This coming week’s trading attention should move to our markets with headlines from a 2-day Fed meeting, a BB press conference and the ISM number. Finally, the all important jobs number on Friday morning.

Trades of the Week in Review
I've been talking all last week about buying puts in front of the Euro ministers meeting expecting the expected minor whatever news to sell the market off later in the week. So, we get our Monday rally into resistance. Later that same day I sent an Alert Email to buy puts into Tuesday morning. Why not then into the Monday's highs? I don't know but every day that passes erodes option premium. The put should be cheaper the next morning - all things being equal. Sure enough, the ministers can't agree. Tuesday morning their meeting is postponed. Expect the expected - stocks sell off the next 2 days. I don't own the puts. My ATM 128W put recommendation doubles going from $3.00 to $6.00 by Wednesday morning. The OTM puts almost triple. Cie la vie. See Wed D chart, NET Weekly Money Chart 2011-10-28.

Pre-market Thursday morning we get a surprisingly good Euro announcement. Europe is saved for a few more months. The ministers kicked the can further down the road. I send a pre-market Alert Email to buy the 128W ATM puts under $1.00 and hedge.

We get lucky the puts open at $0.57. We're in, shorting the 200DMA retest. We start hedging long E-minis down about 8 points make a few $s on a shallow rally then we approach the mid-Uni down 10-11 points from the opening high. The Oscillator hit Jammed and returns to 44 telling us we're looking at a possible trend-up day. Besides the A/Ds are 10-1 positive. Of course, it's also written in the "Trading Bible" that when price gaps a great distance from the mid-Uni we should buy or sell the 1st time back. This trade works over an 80% of the time. Hedge big. Non-hedgers might want to exit here. The put hits $1.66.That's nice work if you can get it. See Thursday C chart, Chart 2011-10-27.

If a NET trader sold the puts, he/she could have repurchased them for as little as $0.72 11 to 12 hours later. The rest of the day played out as expected. The S&Ps made higher highs and lows until 3:30. There were another 4 long hedges possible at the mid-Uni with the oscillator pulling back to 44. We rallied back to the Aug 2 highs at 3:30 for a possible EOD (end of day) trade setup where longs generally look to close their day trades out. We get lucky. We buy more puts under $0.35. We even get an 8 point rally back from a 50% selloff from the highs. Another possible $400 hedged profit per E-mini!

The hedged trades continued throughout Friday. I sent another Alert Email Friday before the market opened that I expected the market to rest after yesterday's huge rally. I noted a range for the day between 1273-74 and 1282-84. I nailed that one and you could have added another 5-9 possible hedged trades in that range. Any remaining puts could have been sold as high as $0.62 in the 1st hour Friday. I finally sold mine for $0.05. See Friday C chart, Chart 2011-10-28.

All in all it was a hedged traders dream 2 days! I put some possible returns based on long 10 puts on Thursday’s C chart but here's what I want you to really focus on. Think some day you can be trading 50-100 E-minis for 3-4 points a try with nearly full protection all day long against 200-300 long puts that costs less than $0.50.  Each 1 E-mini hedge could be $3,000-5,000 profit per trade. Think 2-4 hedges a day. You won't trade this many contracts ever for this type of profit potential.

Keep those cards and letters coming. I read every one.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - October 23, 2011

Dear Friends & Fellow Traders,

I believe anyone who thinks there will be a simple and defining answer to Europe's sovereign-debt problems these next few weeks will surely be disappointed for months if not years. I believe, at best, Germany and France will buy a little time and kick the can further down the road. However, for now, at least the risk trade may be back. Bond yields have risen from near record lows of 1.70% to 2.22% while US equity markets have broken through the top a 3-month trading range.

Presently, we have an absence of bad news and at least 64% of S&P 500 companies reporting have beaten EPS and sales expectations. The earnings numbers are the best of the last 3 quarters. Even the CPI inflation is slowing giving the Fed some breathing room but it's not all good as European GDP numbers continued to get lowered looking ahead into 2012.

There are two other events out there that have me worried just a bit. First, we have the "Super Committee" expecting to cut $1.5T out of the deficit. If that fails for any reason we may have to think another rating cut or two for the good old USA may be forth coming. Next, in case no one noticed the Chinese equity markets last week hit a new low since March 2009. Their economic growth has slowed materially but is still better than most in the world. There are a number of analysts telling us that a credit bubble is about to burst over there. We can assume none of that is good news for our markets or anyone else's for that matter. I'd hate to think what that would mean for commodities especially our gold trade.

Trades of the Week in Review
Right now the market is in a trading sweet spot having just broken out the top of a three-month trading range. European finance officials have let it be known there will be no ultimate crisis solution this weekend or by Wednesday. However, a deal could come in time for the Nov 3-4 Group Summit of 20 in Cannes. Talk about kicking the can a little further down the road. Markets will now continue to trade news release to news release.

Zero Hedge writes Sunday "European Finance Ministers Driven to Despair as Reality Returns." It sounds ugly and it is. I'll quote the final thoughts from editor Tyler Durden, "For those expecting any solution that is more than a simple kick-the-can hold-your-breath for the final solution, we suggest hedges ASAP on Sunday night as it is crystal clear that nothing of substance will be created soon and furthermore, we wonder whether this is some elaborate global game to force the Fed to rescue everyone by flooding it with greenbacks." I'm wondering the same thing. Just suck us in too.

With the above understood, I Personally, I've been a greedy coward lately. I been buying and recommending puts aggressively in case people like Durden are right and traders stop drinking the "Kool Aide" and then buying the E-minis to get long. My strategy has turned out to be just right - I get to have my cake and eat it too.

Tuesday the 18th on the 3:45 "C" chart I recommended buying the 123 ATM SPY W puts near $1.00 at the largest resistance near 1229-30 level. The market sold off a little but rallied back to that level near 4:00. The puts hit a low of $0.98. I send an Alert Email confirming this further Wednesday before the opening. I reminded everyone to hedge aggressively in case I was wrong. We got lucky Thursday morning when Sarkozy mentioned that nothing would get done this weekend. I Alert Emailed to close out the puts. The 123s hit $3.27 for a possible 3X return plus huge hedging profits! See Thursday 4:00 "D" chart, NET Weekly Chart 2011-10-20D.

I also wrote after the correction we may get a rally into the weekend in hopes of a deal. I never really felt comfortable recommending calls. I'm biased that trying to get 17 countries to come to some deal would take many years and votes to conclude so expect a number of fits and starts to this process. My strategy was simple: favor puts with the market near tops of the trading ranges and calls near 1100 or the bottom of the range and hedge your brains out.

I have to say if you have even part of a working brain and can understand what's happening just a little bit then fade the news with the hedging techniques I teach. You can make a small fortune in this market and you don't have to start with a big fortune either.

This week most professionals believed as I did and got short. They too thought no deal this weekend. This strategy worked early but if one didn't hedge or take profits all was for nothing. Europe pulled a rabbit out of the hat and put the deal off and the shorts were forced to cover. Hence the nice breakout rally we got Friday morning after I sent an early pre-opening Alert Email to get long puts and to buy the E-minis. See attached Friday 4:00 C Chart, NET Chart 2011-10-21C.

This trade had at least 7 potential hedges and a possible double in the puts themselves. If you bought say 70 123 SPY puts and you bought 10 options on the opening near $0.50 after my pre-opening buy put Alert Email. Then you bought another 20 at $0.35 then a final 40 at $0.20. The low was $0.13. You're now long 70 puts for $2,000 or less with a $0.30 average cost. Hedging started right after the second put purchase.

The trade gave you hedging profits of more than $3,500 with only 3 long E-minis (4 max) per 10 puts purchased for only $300. The 70 puts expired worthless could have earned over $22,000 on a total risk of only $2,000. That's a 10 bagger in my book. However, I Alert Emailed to sell the puts into weakness. These could have sold for a high of $0.53 adding to your overall profits. Go NET trading!

Please keep all your cards and letters coming.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - October 16, 2011

Fellow Friends and Traders,

The US stock market has withstood a massive dose of bad news to stay even this year while most other world markets are still down well over 10% for the year. The S&Ps are up some 150 points since the 10/3 lows. Ten weeks ago the S&P was near 1200, now it’s around 1220. There was a lot of trading excitement in between for NET traders.

Most traders are very skeptical of the latest rally given it came on very low volume with massive short covering and with minimal positive economic news. I see the glass as half full. The market quit pricing-in a Lehman-type disaster and a system meltdown. We will muddle through is my best guess.

I noted earlier in the Chat Room and on my Intraday Charts that if the jobs numbers were better than expected the rally could just be extended with good earnings. AAPL's record iPhone 4S pre-sales set a record. GOOG's blowout sales and EPS numbers gave the market further hope as well.

While most of the world is still focused on Europe the US economic data coming out was mildly surprising. Somehow a zero growth number for the 3rd quarter has morphed now to a 2% positive. Right now recession talk is off the table.

However, we're closer to the top of the trading range. To get much higher than 1230-50 will require really good economic news and fresh money and not just the absence of sellers and bad news. Furthermore, the G20 has three weeks to solve the Eurozone debt crisis. The countdown to the November 3 Cannes Summit begins this weekend. Don't expect any real news this weekend as the Eurozone ministers meet next weekend. I really see a long series of meetings and many member votes before anything meaningful happens. Just as long as a Lehman-type event is off the table and with TARP-like talks to bail out the European banks the world markets should continue to trade news event to news event and we love the volatility.

I've been looking for a massive asset allocation out of bonds and into equities to really pop the market over 1300 for awhile now. Rates have risen from 1.75% on the 10 year to 2.25% but the re-allocation hasn't happened yet. I'm guessing corporations are sitting on their hands waiting to see if the GOP can get their act together before opening the floor gates with a much better economic and regulatory outlook ahead. Patience ahead and trade!

Trade of the Week Review
As I promised last week here's a trading video of last week’s great hedging and parlaying trade dated 2011-10-07. Learn and enjoy the profit-making opportunity this video presents.

There was more of the same again this week so I won't spend a whole lot of time on the trade. Since we've been using the SPY weekly options I find the trading with these particular options give us a 5-day versus 2-day opportunity to make real money every week.

This 150-point rally over the last 9 days was a thing of beauty to watch. Check out a 30-minute chart to see the up sharply, sideways and up sharply again. We identified support, found a resistance level and bought puts to get long the E-mini hedge. The market obliged and rallied to resistance went sideways where we hedged our brains out to more than pay for the puts then as the market continued higher we rolled up to a higher put to continue the game or traded the E-minis.

Wednesday I alert emailed our subscribers to buy the 121 W puts and to hedge. We started buying under $1.00 and added to our holding into the low $0.60 area. Thursday I alert emailed to close the put trade out early. The 121 puts got as high as $2.05 making it possible to earn nearly a 3X return overnight plus substantial hedged profits! See the Thursday "A" Chart, NET Weekly Money Chart 2011-10-14.

Keep those cards and letters coming. I read them all.

Good trading,

Stan Moore
702 558.1814

NEWSLETTERS & RECOMMENDATIONS - October 9, 2011

Dear Friends and Fellow Traders,

So far the October low sets up a perfect seasonal tendency to rally strongly into the 4th quarter after maybe a few fits and starts. If we clear our current "red zone" resistance between 1175 and 1195 we can rally back toward 1260 or the top of my earlier trading range.

Heading into 3rd quarter earnings investors are faced with a lot of contradictions. Most corporate executives I read are downright bullish compared with the market gloom out there. Insiders have started to buy on balance however we don't have an all clear signal just yet. Analysts on the other hand are busy knocking numbers down rather hard for the balance of 2011 and next year. Friday's jobs numbers doesn't support such bearishness. Any good quarterly earnings surprises or favorable outlooks could be just the spark needed to take the markets higher.

Until then I expect our trader’s dream market will continue. We have reasonably valued stock prices against a backdrop of a European banking crisis. It's no longer just a Greek problem. This puts the global economy at some risk. Merkozys are meeting Sunday to discuss efforts to prevent a Greek default. It would seem the news is getting some positive traction now. Besides our banks are in great financial shape to carry on not like 2008 at all.

Trades of the Week in Review
Last week the market retested the August 8th overnight lows with lots of divergences, especially no increase in the number of new lows over the last time. I started Thursday early with an Alert Email to buy puts but you must hedge given the upward bias. I just love the defined risk of the put against the opened-ended up move of the long indexes. We began to buy the 115W strike puts near $0.85. I averaged down double the number of puts every $0.13-.14 into the close near $0.40 – for example: 5, 10, 20 and 40. We had 5-7 hedged trades after the morning Alert Email. If a NET trader just did 2 long E-minis trades per 10 long puts they made over $6,000 profit per $550 average put cost!

The best was yet to come. I noted on Thursday’s "B" chart emailed at 2:00 that the "whisper" jobs number was being raised throughout the day. GS started to lower the number Monday during the sell-off to below 50,000. By Thursday afternoon I heard numbers nearing 100,000. That meant a positive surprise. I send another Alert Email telling all to hold all your puts overnight and hedge with long E-minis into any overnight weakness. See attached Thursday’s C chart, NET Chart 2011-09-06 C.

I thought there was extremely low risk down. We had put protection but to get long for the possible upside surprise. Near 7:30 Friday morning we had a retest of the overnight low of 1152.50. This was a perfect place to get long. We owned the 115 puts which were now ATM. We could have bought between 3-4 E-minis with this setup not the usual 2. There was also strong support at Thursday’s upside breakout from the 1146-8 area so we were only risking about $75-100 per E-mini long contract if I was wrong.

On the upside, I expected a 10-20 point rally from 1152. If I was right that's as much as $3,000-4,000 profit per $130 worth of long puts. We hold 2.5 puts for each E-mini long. (I hope to have an educational trading video on Thursday and Thu-Fri overnight trade). At 8:30 Friday the jobs number showed non-government jobs grew 103,000. The S&P's popped immediately to 1173.75 right into the bottom of our Red Zone Resistance (per an earlier Alert Email Thursday afternoon). I immediately sent an Alert Email a few minutes later to sell all hedges and close the puts out into expected profit taking. I was gone at $0.15. Later in the day I believe these puts hit $0.47.

Friday morning the market never reached the overnight highs where I had hoped to recommend buying puts. After the market was open for awhile I sent another Alert Email that I was going long the 117 puts. These hit a low of $0.42 shortly afterwards. I did mention I thought the range might be too narrow but we could hedge again. I was wrong on a low-priced call recommendation for non-hedgers there. These calls expired worthless.

I did send another Alert Email confirming the strong support near 1146-48. I was looking to sell puts but just maybe we could look at the 116 calls under $0.50. I started scaling out of the puts over $1.75. These hit a high awhile later at $1.93. The market bottomed out just under our 1146-48 support area. The 116 calls hit $0.08 but I never bought them. The calls on a late rally back to the day's highs reached a high near $1.00 before falling back. The calls expired worthless on the more than 10 point closing decline. See attached Friday’s C chart, NET Weekly Money Chart 2011-10-07.

Keep those cards and letters coming. I read them all.

Good trading,

Stan Moore
702 5581814

NEWSLETTERS & RECOMMENDATIONS - September 5, 2011

Dear Friends and Fellow Traders,

Last Minute Market Update, Labor Day 2011, Monday, September 5, 2011
As of this writing, Monday, it is unclear what just spooked the markets. It appears the ECB just announced that it had monetized a whopping E13.3 billion in bonds in the past week, nearly double expectations, and a total of E134 billion since the SMP program's (a European bailout plan) inception, the market took one quick look at just how effective this program has been, shuddered and plunged. Investors realized that neither ECB intervention nor the shorting halt is doing anything at all.

As a result, S&P is now down 23 point, the EURUSD just dropped below 1.41 and the rolling halt of Italian bank stock has started with Intessa, Mediaset and Impreglio - all trading has halted. We expect UniCredit, another Italian bank, to follow suit as usual. To me it looks as though the negative market sentiment is unlikely to change for the better in Europe any time soon. Fasten your seat belts please.

---

I thought I'd start with reasons to help you understand a little better why I believe there will be no recession this year or next. Many of the experts, some of whom I greatly admire have given their reasons for a recession. The TV news and papers are full of the reasons.

Here is the problem that is perplexing investors today. I have chosen to list the reasons Doug Kass from Real Money Pro has given because I have been around long enough to find most of what Doug says to be quite informative. Per Doug,
“As it relates to job growth, initial jobs claims, corporate profit growth and capital spending all point to improving and better payroll growth than we saw Friday. But what is happening is that the negative feedback loop that I have been writing about is taking a turn for the worse and we don't yet know its impact on business and consumer spending. When we figure out the disconnect between data and sentiment we'll have a lot more clarity on what the markets will do.”
I could not have summed it up better myself. Thank you Dougie.

We will only know for sure in the fullness of time. Right now my biggest concern is Greece. As reported in both the WSJ and Reuters Friday it seems that things in Europe have fallen off the cliff. The European markets were down sharply Friday, well over 3%+. One senior IMF official was quoted, "I expect a hard default (Greece) definitely before March, maybe this year." Greece and now Italy are softening their austerity packages. Germans don't want to bailout anyone anymore. I'm concerned. I haven't a clue as to how all this really plays out and how it really will hit the US stock market. We've been hearing about this for some time now and markets after an initial shock may do what they were doing in the first place.

Stocks, especially growth stocks, have been out of favor for the last 10 or more years. Growth is cheap. Morningstar-tracked mutual funds have seen equities as an asset class go from 60% holding to 40% at the end of 2010. I can't remember equity sentiment this low. Bonds and commodities have exploded for the last 5-6 years. Many high-quality growth companies sitting on tons of cash are selling only slightly over a 10 multiple when cash per share is backed out. I am looking forward, at some point down the road, to doing massive bull calls spreads in stocks like AAPL that I once tried to buy not too long ago near the AAPL lows. Add Qualcomm to that list. They are a huge beneficiary of AAPL's product cycle. I love QCOM under $50 better if it ever drops to $45-47. I can see the stock over $70 within 18 months.

Corporate fundamentals remain strong and may even get better as costs remain low in this economic environment while selling their products to the faster growing overseas markets. These companies are seeing huge benefits from internet technology.

I like stocks heading into year end. Right now 47% of all equity managers according to JPMorgan strategist Tom Lee are lagging their benchmarks. That's a lot of possible performance chasers coming to our market ups. Combine this with further asset allocation sales of bonds and buying stock, I'm pretty excited about stocks this year into any weakness back to the 1125-50 area.

There is very little in the way of news. I'm expecting the German Supreme Court to help support the German investments into the PIIGS countries then on to the BB speech Thursday. I'm not expecting a possible Greek implosion for at least the next 10 days.

I saved the best idea for last: China can kill two birds with one stone with much higher gold prices. This article is a must read and an added bonus for considering owning gold and gold stocks big time. I told you what I'm doing with SA and the GDXJ Index.

Trades of the Week in Review
When I finished writing my last book, The Definitive Trading Bible, I never thought "The Bible" could explain trading successes by just helping traders better understand what makes markets behave the way it does and when to expect the market to do its thing. Of key note is my detailed discussion of asset allocation and EOM (End of Month) markups/markdowns, AKA portfolio manager sheninagings. Informed NET traders have the perfect trading vehicle, expiration week option trading, that limit risk while maximizing profits.

Given the current volatility, a few weeks ago I started to trade and recommend the SPY weekly options. They cost more to trade but they do offer size regardless of the day of the week. This was the first week I traded them every day given the strong fundamental reasons to trade options every day this week. See attached Friday 30-minute chart here, NET Weekly Money Chart 2011-09-01-D 1 of 3.

In last week’s Stan’s Blog I mentioned the lousy economic fundamentals coming out. We would have plenty of volatility to trade. I even mentioned I might leg into a bearish SPY put spread later. NET traders also know all about EOM, EOQ and EOY market ups or downs as the case may be. Since August was down almost 14% coming into the EOM period NET was looking for a good rally attempt into Wednesday morning. There is usually an afternoon sell off that day when the buyers step aside from this illegal markup. No one really tries to get in the way. Even the shorts know they can wait their turn. Let the bulls mark the market up and then they can sell it short higher.

There are many ways to trade the markup in this case. We can go long futures (S&P E-minis) but margin requirements have most traders selling out by the end of day (EOD) then the trick is to get back in the next day. Hopefully the market hasn’t gapped away from you. Optionally, we can buy calls and hang on. This works but if you don't hedge or are wrong traders can lose most or all of their money. On Friday the market had a massive melt-up then gapped-up through resistance. This made calls even more expensive.

When I'm looking to get long the market for a markup rally I'm looking to buy cheaper puts as the demand isn't as great as the calls at that moment. I like the fact that my risk is clearly defined as the cost of the put. I then go long the E-minis. If I’m right my upside is unlimited. I can create a simultaneous entry or, restated, go long puts and long E-minis at the same time. However, I prefer the leg-in trade. I get long the puts into a clear resistance area then wait for the appropriate retracement then I go long with E-minis. The market rallies back to resistance and I sell some E-minis but not all and repeat this strategy until a breakout comes. In the previous week the market repeatedly made higher highs and higher lows. As prices moved higher we sold all the futures in a leg-out fashion and on weakness sold the puts and continued this into strength. Then we bought the next strike put.

In this week’s example we started buying the SPY 118 OTM puts on Monday. We made a few $s on these puts but made over $3500 on the E-minis using 10 options and 2 E-minis for hedging. We continued on Tuesday with the SPY OTM 120 puts and had basically the same results. Wednesday, I sent out Alert Emails to buy the SPY 122 NTM puts under $1.00. We were long averaging around $0.88. We were long puts at massive resistance as the market retraced 50% of the entire down move by 1:00 PM. That afternoon the market fell over 20 S&P points. Thursday morning we were hedged long with the E-minis in front of the PMI 10:00 number. The number was a surprise. The markets rallied back to the Wed highs where the 122 SPY puts could have been purchased for as little as $0.57. Hedged profits were taken on that last rally. GS came out and lowered the Friday Jobs Number from 50K to 25K.The markets sold off hard the rest of the day. I alert emailed and noted on the charts I would stay long puts and hedge to make more money while we waited for the Friday numbers. See attached Thursday "C", 9/01Chart, NET Weekly Money Chart 2011-09-02-C Thu 2 of 3.

Friday morning Europe was weak with our E-minis down over 10 points before the Jobs Number. I sent an Alert Email before 8:30 to put on a small hedge. The number came out and was pretty ugly. I sent another Alert Email saying to buy more E-minis now down another 10 points. Start selling some puts when market broke 1179-80. I mentioned that I thought the low would be made early as the news was pretty much in the decline. I did write to start selling the puts below 1179-80. The low was 1178ish. Puts could have been sold for as much as $3.93. This was over 5 times our average entry price. I must have sent out at least 5 Alert Emails before 11:00 AM. I mentioned to sell half of one’s E-minis holding (or 10) that were trading 1184-5. The rest were sold lower later. The remaining puts could have been sold for as much as $4.40 or nearly a 7X return from Thursday low purchase near $0.60. See attached Friday "C" Chart, NET Weekly Money Chart 2011-09-02-C 3 of 3.

In summary, there was at least $3,500 a day made on the first 3 days with the E-mini hedges coupled with small profits coming on the actual put trade during our End of Month (EOM) market. GS told us early Monday that an asset allocation out of $153 billion in bonds was taking place. Stocks must have gotten their fair share plus short covering jammed the market into resistance where substantial $s could have been made betting smartly on the weak economic numbers coming out late in the week after the markup. Here the hedging profits were much bigger given the many huge short term swings. Even after giving back a $1,000 on the earliest Alert Email hedge from Friday morning. The put profit was icing on the cake.

If you have no idea of what information is coming or don’t know how to use it you are just playing at trading with both hands tied behind your back. If you don’t know or don’t understand that the market was just artificially marked-up over 100 points in front of major negative news (Employment and a weak PMI numbers) how were you to ever going to buy puts for the (NET) expected decline. Read my "The Bible" and profit. Call me if you need to. I know it’s a lot of data.

Keep those cards and letters coming. I read them all.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - July 24, 2011

Dear Friends & Fellow Traders,

The EU and IMF just kicked the can so far down the road that our Greek friends won't have to go to the bond markets until 2016 or 2017. Investors and traders can now exhale. Now if only our leaders can punt as well as the Germans. We don't need any short-term fixes that only prolongs the agony. If Washington gets its act together soon our market can breakout through the top of my expected trading range and just maybe challenge 1400 for the S&P.

Normally we'd expect some seasonal weakness into Sep/Oct but this time it won't be so deep. I'm assuming the "Boys" can get their act together this week.

I thought you'd enjoy the comments below from someone who was one of the best bears out there for a long time before coming over from the dark side a few years ago. He feels the marketplace has almost become a random walk.

As an example, Bill Fleckenstein succinctly describes "the overriding game theory at present relating to the Washington, D.C., circus":

• Debt ceiling debate matters and is resolved one way or another: It gets raised, stocks knee-jerk rally, bonds tank as the slosh ebbs and flows. Or maybe the reverse happens.
• Debt ceiling does not get raised on time, stocks tank, bonds rally, dollar goes nuts in some fashion, or maybe everything tanks.
• While all the debt ceiling hype churns around, jerking players back and forth, Europe implodes and various parts of the "circus" go nuts in assorted directions.

Not quite my thoughts but you get the idea just how hard it has become for investors out there.

Surprisingly good earnings have helped lift the markets back to near the yearly highs. I can remember analysts falling all over themselves lowering expectations just weeks ago. So far so good but there is always another wall of worry to climb. I'm happy to say the worst things get economically the longer interest rates stay down and the Fed will have to implement QE3. Say hello to $1,800 gold and higher stock prices.

A Quick Review of YHOO, BTX and CIGX
First Yahoo got crushed and is now trading back near $13.50 where I recommended selling the deep in the money puts and out of the money calls. The premiums have greatly eroded and the idea is still profitable but barely. However, the more screwed-up the company gets the more likely someone will put this sucker out of its misery. The bad news is that I no longer think the price will be over $22, more like $18. I will get out a new strategy shortly along the same lines.

BTX will present at the Agora Conference this week. Again the stock rallied back to the $5.75 where I took some profits. Someone didn't like the price that high and in the last 10 minutes of Friday's trading closed the stock near $5.20ish. I think you know my thoughts.

And, CIGX is the lead stock recommendation from the Agora Conference.

Trade of the Week in Review
We have an early buy put Alert Email to own the OEX 600Ws under $0.75. We purchased them as low as $0.60 yet they hit $1.90 in less than an hour on news that there was no debt agreement. This was not the surprise I was looking for. I really wanted to be long E-minis for what I thought was going to be an up day. The market refused to follow through on the downside. I exited all my puts. However, the long E-mini hedge, if puts were held could have earned almost $250 with a 75% hedge nearly a 300% return on this 1 trade alone.

I quickly sent another Alert Email to buy the 600W calls under $1.40. These calls traded down to $1.15. The calls hit a high of $3.20 by 1:30 and closed at $2.60. The market traded in a 2-point range pretty much the last 3 hours limiting E-mini hedging profits. Overall it was another Good Friday expiration day. See Friday's 5 Minute C chart, NET Weekly Money Chart 2011-07-22.

Keep all those cards and letters coming.

Good trading,

Stan Moore
702.558.1814

NEWSLETTERS & RECOMMENDATIONS - July 17, 2011

Dear Friends & Fellow Traders,

It's great to be back. Should we expect the European Crisis to be in the headlines for months to come? Yes, but looking ahead it will be handled. Beyond the next 18-24 months is another story. Michael Darda writes in Barron’s this week, "If the entire periphery—which includes the usual suspects, Italy, Greece, Spain, Portugal and Ireland—were to default, he cautions, it would be the equivalent of the Mexico crisis in 1994, the Russian crisis in 1998 and the Argentina crisis in 2001-2002 all rolled together, five times over. That'd make quite a splash." During the remainder of the summer, world stock markets will be held hostage by European developments, moving up or down with each new news event. Trade your brains out. See Trade of the Week below.

While I was on vacation last week the U.S. markets rallied back near the top of the trading range. All the S&P did was pullback 7%, get oversold and then rally over 7% and get overbought on our Oscillator. Now, this NET indicator is in the middle of the page with these deep versus deep moves against the last range confirming a trading range. Furthermore, all the moving averages are congesting near current levels. This action further confirms a trading range. Given any good economic news over the summer and we can expect the market to continue higher later on.

Right now the market is facing a lot of uncertainty. The good news is that most traders and professionals have bought lots of protection and perhaps way too many puts. The market I have come to know these last 48 years never rewards the many but does what it can to screw this majority time and time again. I expect this time won’t be any different.

The Chinese market has now risen 4 weeks in a row. I have found their market to be a good short-term leading indicator. It remains to be seen whether or not second quarter S&P earnings will give the market a lift. I know economists and analysts have been revising their numbers lower for the last 10 or so weeks. Just maybe after a bit more possible selling down to the 1290-95 level the markets could just give us a pop back to the 1350 area. Patience is the key word here. Buy the "Dips" and sell the "Rips" has always worked for us.

The video below was done to show you just how successful trading the expiring weekly options on Thursday/Friday but primarily Friday. I've mentioned here many times we really only need to work 2 days a week to earn a respectable living.

I've always felt we were missing something by not trading the weekly options earlier in the week. Before I left on my July family holiday I mentioned in my last June Blog there would be a great End of Quarter (EOQ) Markup since June was so bad. Well, the market rallied 5 straight days the following week. This probably was one of the best Markup periods I have seen in many years. We could have bought $5.50 ATM options on Monday I'm sure the OTM options 1-2 strikes worked equally well. On Friday the calls closed at $30.00. Wow you say! Yes Wow but this was the best expiration week I've seen in the last 6 years. We could have increased the returns with intraday S&P E-mini hedges too. But in the end I'm not sure any of us would have lasted until Friday.

On Friday, July 1st (remember large new monies come into equity funds on the 1st day of a new quarter) in my Alert Email I recommended shortly before the market broke out of its multi-month down trendline to go long calls near a $1.00 (which hit a low of $1.10) or the puts near $0.75-.80. As always recommended NET style - hedge. I took the low road and bought puts and hedged. The trade worked well into the rally. The calls hit $5.70. These same OTM calls hit $0.20 sometime during the 1st 30 minutes. That's over a 27X return if you caught this trade.

My conclusion: trade Thursdays and Fridays because not only is the performance there but more importantly we can buy many more options Fridays then we could ever hope to buy earlier in the week. Good trading.

The latest video was uploaded to my Youtube channel. The video will be the “featured video” when someone goes to the site.

Current NET Stock Thoughts
Gold hit new all time highs. SA did well but the Junior golds did better. In previous blogs and especially the NET Chat Room I mentioned selling Deep ITM puts on the GDXJ index when the Juniors traded down to $32-33. The gold index approached the 32 low and closed over 38 on Friday. I'm hoping the Jan 2012 puts all expire worthless.

BTX won another small grant for their cutting edge work. I continue to sell puts aggressively whenever BTX goes under $5. I try to buy stock under $4.50. I just can't see any risk from these levels. I just don't know when Investors start to become aggressive again. The stock will work for sure. See this interesting clip called “Cancer patient receives first synthetic organ transplant.”

I can't for the life of me figure out PIP or SIGA. I guess we'll know shortly from the judge what happens there. SIGA is trading like they will never win an add-on contract and the $480 million is all there will ever be. The shorts are all over both these stocks.

I just love CIGX. Besides being the featured stock idea by Patrick Cox. Patrick commands the largest standing room only talks at these conferences. At the July 26-29 Agora Financial conference in Vancouver I'm expecting many great news announcements starting any day now. I will be buying cheaper closer September 4&5 strike calls this time around adding to my rather large Jan call position.

Trade of the Week
Early Friday morning after the market sold off. I sent an Alert Email to buy the ATM 585 calls near $1.00. They never really came close that early. Before I posted the Friday "B" chart at 2:00 I noted I would be buying those same 585 calls starting at $0.75. The 30 minute chart was giving us a Triple "D" buy (Oscillator) signal that has worked over 85% of the time. Reference the NET Weekly Money Charts 2011-07-15C.

Shortly near 2:30 we were averaging down our $0.75 purchase at $0.60. I told the Chat Room I was buying much larger size under $0.60. We could have bought all we wanted under $0.75 where over 800 calls traded. I never bought 1 lower. I sent an Alert Email to scale out after 3:00 when price broke out to the upside. The calls closed $2.75 bid. The trade lasted less than 2 hours. A 4 bagger trade! Nice work if you can get it. Welcome back Stan!

Keep those cards and letters coming. I read every one.

Good Trading,

Stan Moore
702.558.1814

dcheslin2000@netscape.net

NEWSLETTERS & RECOMMENDATIONS - June 26, 2011

Dear Friends & Fellow Traders,

I believe we are in a Fed no fire zone. Here's hoping all is well but there will be a lot of watchful waiting going on to see if the economy can stand on its own. I personally believe there is a QE2 lag that will manifest itself with higher growth but not much over the next 6-12 months. I don't know too many Fed policies that operate without a lag.

There are two serious problems out there preventing investors from obtaining Alpha (performance measure on a risk-adjusted basis). Achieving adequate investment returns, I've mentioned countless times over the past years, will be extremely difficult over the next 10 years and probably longer.

The first serious problem is the Eurozone sovereign debt crisis. Markets rally on news Greece will get funds and then decline when rating agencies threaten to downgrade all 16 Italian banks or something like that. This crisis has been analyzed 65 ways to Sunday by everyone. All I'll say is that it is in the interest of all parties for at least the next 3-5 years for this Union to persevere. Euro land has proven that it has the tools and the flexibility to do so. After that time we have to see just what the Germans and possibly the French want to do.

I'm guessing Greece will be once again become a great tourist attraction with its own cheap currency - even I might want to spend considerable time there. The best real solution, in time, is for Greece to exist gracefully from the Eurozone.

The second problem I believe is the Great Unwind of the largest hedged trade we have seen in our lifetime. Get short the dollar and go long commodities. After listening to Gentle Ben last week traders found a new religion for now. Sell now or be forced to later on by the margin clerks. There is no new Fed policy. Even world governments piled on the speculators announcing their intention to sell 60 million barrels of oil from their strategic reserves. If this happened during a football game the refs would have thrown a flag for unnecessary roughness, AKA piling on, and marked off 15 yards.

Governments of the world cannot stand idly by and see speculators, OPEC or others push oil over $100 and expect to see their economies grow. So governments in their infinite wisdom decided to release some oil. They want to break the back of this energy inflation. Lower oil prices should be good for everyone. If these new lower prices are sustained, it'll be like a tax cut. Everyone likes a tax cut and this would be good for stocks and bonds.

Crude oil fell for the fourth straight week and is off 20% in 2 months. Even $80 oil isn't bad for the oil companies. Unfortunately, oil is getting harder and harder to find and supplies are very tight. Therefore I'm sure we will see oil prices as well as other commodities sharply higher over time.

Risk and fear hang over the markets now. At least the dollar should get a lift. Gold down over $50 last week tells us short term that the dollar will no longer be debased. Trust me gold will trade somewhere between $1600 and $2000 over the next 3-5 years or maybe even higher. No one trusts paper money any longer. India alone imported over $8 billion of gold in May alone. India imported only $22 billion all last year. China has become one of the largest importers as internal demand has greatly out stripped their own huge production.

Hedged funds the largest seeker of Alpha and are barely holding their own so far this year. These are the firms that promise "absolute returns" while most others get rewarded if they beat their peers. The market’s down 10% I'm only down 6%. I win. However you, the investor, lose.

Everyone faces the same return problem. That’s why some of the largest stock companies sell for single-digit multiples even with tons of cash on the balance sheet. There are few alternatives to buying back stock which in the long run has not worked well. One doesn't have to look very far to see that CSCO is down 80% from its high after buying back over $70 billion of their stock. Investors are screaming for more dividends. Managements, given the uncertainty of Obama government policies, are sitting on their hands. I see only takeovers as one of the greatest benefits of these fortress-like balance sheets. Acquisitions should put a floor under this market now that the BB put is in limbo.

Stock Updates
CIGX was recommended by its 1st brokerage firm ICM Capital Markets. CIGX managed to get over $5.00 but closed at $4.95 up 5-6 days in a row in a very weak market. The report mentions 4 near-term catalysts anyone of which could pop the stock nicely. We can then sell higher strike calls.

BTX held their annual meeting in NYC Thursday. I can only say Dr. West is one of the most brilliant scientists and CEOs out there in medicine today. In time I believe he may be to BTX what Steve Jobs is to Apple. There should be a replay of his hour long talk posted soon to BTX's web site. There is no doubt that BTX is by far and away the best positioned stem cell company on the planet.

Dr. West mentioned he thought that a 2nd big pharma deal could be done by year's end. If this deal is with the right company I can see BTX back closer to the highs. BTX has enough money in the bank to last the next 2-3 years. I'm guessing the company has grown so fast these last 18 months that somewhere in the next 18 months BTX will obtain brokerage coverage. I would then expect a small $25-$50 million fundraising offering to expand their shares to get more institutional ownership. There are only 48 million fully-diluted shares outstanding.

BTX also expects to have its 1st significant product on the markets within 2 years. I continue to sell BTX Sep/Dec puts with various strikes on weakness so I can own more BTX well under $4.00. I continue to like the cheap Dec 5 strike calls under $0.70. BTX was up nicely Friday on rather large volume. BTX should have closed lower given BTX's price decline since being included in the Russell 3000 last June. Instead there were buyers into the rebalance of the Index on the close Friday. I was looking to buy size on any weakness - it never happened. Sometimes we don't get what we wish for.

SIGA is still mired in political turmoil but this too will end. I continue to sell puts into Sep and trade the stock under $11.

PIP somehow got a brokerage recommendation and comment from Seeking Alpha. These popped the stock from $2.41 to $3.29. Can't help but love that move. I continue to sell 2.50 strike puts on weakness and the 5 strike calls into strength. I can see PIP nearing $5.00 with a little luck by year end.

What's a guy supposed to do to make returns today in addition to buying your small "Event-driven” ideas? That's a great question. First there's the obvious trading expiring Index options with a hedging strategy every Thursday/Friday. Join the NET Chat Room to accelerate your learning and income.

Secondly, if you want to do an enormous amount of work and have a large portfolio you can chase fast growth stocks. Growth momentum never goes out of style. You can own AAPL, CRM, CMG, GMCR, NFLX and others of this ilk. You can sell calls and puts to increase your returns. Just don't get caught in the next major decline. The current leaders are normally not the new leaders coming out of a major bear market. Trust me I've seen my share of major bear markets.

My best choice for all of you now if none of the above appeal to you, would be to start looking at aggressive option trading strategies. I already told you that I'm looking at a trading range market for the next 2-4 months, higher into year end. This means buying longer dated long options and selling in closer ones equal to your strike or higher. This should work well for you. I make quite a bit doing this recently with CIGX. I'm long Jan 2012 call with 4 and 5 strikes. So far I've sold the May 4s over $0.65. I bought them back at expiration for an average of $0.075. Next I sold the June 5s, 5.50s and 6s over $0.35 average. These expired worthless. I'm expecting news shortly so I'm selling the Jul 5s over $0.45. On further strength I will sell higher strikes into Aug/Sep like 7s and 8s. I expect to sell calls against CIGX well into the future.

I've mentioned a very successful strategy one of my students has been doing with a metal ETF in the Chat Room. He's long the 2013 calls and is selling 1-2 strike calls OTM against his longs on a weekly basis. He's making about a $1.50 per contract on 30-40 calls every week since he told me about it awhile back. That's $4,000+ a week! I'm looking at it. Shorter term, next 2-4 months, it's perfect. I’m leaving out a few details as he asked me not to tell the world and kill it for him.

There's another option strategy I love and it's perfect for today's market. I'm continuing my AAPL research. I've known about AAPL since $90; I kept hesitating. This and another 10 ideas I had as well. AAPL has $50 a share in cash. AAPL will earn $30 this year and $40 next. I believe AAPL will sell near $280-$300 on the down side and probably $450 on the high side. I'm thinking sell either the $300 or even the $320 puts out to Jan 2012 on weakness say $23-25 for the 300 strike. Use the proceeds to buy an April 2012 call 350 strike say near $25. Then let the fun begin.

There are AAPL weekly calls to sell OTM against your longs. In the current market environment I can see AAPL going nowhere for next 2 -3 months. You may even make enough money to buy more calls. I fully expect AAPL puts by Jan 2012 to go out worthless and if they don't roll to the Jan 2013 down and over. Just don't take delivery.

Trade of the Week in Review
I started the week buying the OTM 570 weekly puts under $2.00 on Tuesday something I haven't done this early in quite awhile. These same puts hit $8.00 by Wednesday morning. The 565 puts mentioned in the Chat Room as well later were trading near $2.00 and were mentioned as the better buy than the $1.10 570Ws at that moment. Obviously I should have emailed an Alert Email but I never expected the very heavy liquidation selling across the board as outlined above. The 565s hit a high of $13.00. I'm trying to do a multi-time frame trade setup video. It's as perfect as any trade setup I've ever taught in my 22 years. The only problem was it was a Tue/Wed option trade versus our perfect Thu/Fri ones with much less risk.

Again on Thursday, as usual one day has nothing to do with the next, it would be time to buy calls. I thought we'd spend the entire day trading sideways and therefore I did not send an Alert Email because of all the hedging that would be needed to pay for the OTM $2.00 calls. The Chat Room got the idea to buy calls after 10:00. However, my Intraday Chart/Alert Email subscribers saw the trade recommendation at 12:00 and again at 2:00. After the 2:00 posting the S&Ps pulled back and allowed another re-purchase of the 570 calls near $1.90. These calls hit $6.35 in less than 1 hour. Again nice work if you can get it. See attached Thursday "C" chart, NET Weekly Money Chart 2011-06-24.

There are a few market moving news events coming next week late. We have the Chicago PMI and the ISM Manufacturing numbers coming out. Both are expected to be lower. However, we are looking for a favorable EOQ mark upcoming by Thursday. Every money manager can use some help here. There is a massive Oscillator leading buy divergence on NET Daily charts. Then on Friday, the 1st day of a new quarter, we expect positive money flows to give us a positive bias for early Friday trades.

As always keep those cards and letters coming. I read every one of them.

Good trading,

Stan Moore
702.558.1814

P.S. There will be no Stan’s Blog for the next two weeks but please email me if you have questions. If I see the need for an Alert Email on our research idea(s) I will send one out.

NEWSLETTERS & RECOMMENDATIONS - June 19, 2011

Dear Friends & Fellow Traders,

I guess the big story is that at least the sky didn't come crashing down. We saw plenty of Chicken Little's running around without their heads scaring investors. Still the S&P managed to hold above the 200 DMA. The "Trading Bible" notes that when the S&P has been away from its 200-day Average for an extended time we usually get a 35-50 point rally. So a further bounce should be expected at almost any time.

On the downside and having the markets come into last week's expiration trading short-term oversold and considering the mixed news backdrop including the better-than-expected retail sales, the leading economic indicators in the US and a unified front from France and Germany on the Greek debt crisis, the markets quite frankly weren't overly impressive after six consecutive losing weeks. It was instead like your typical weekly expiration we have grown accustomed to experiencing at NET with some very good short-term trading opportunities for those catching the highs and lows. Last week was one of the best in the last few weeks. Still we can thank the trading "Gods" for another most profitable week.

Let's focus on the big picture for a moment. Investors are still focusing on past fears more that looking ahead to a better economic environment over the next 6-12 months. Why? Because over the past 10 years the markets have suffered through two 50% or more corrections so just maybe investors have a right to be nervous. However this causes investors to err on the side of caution - selling 10s of billions of stocks at the March '09 bottom and putting the funds into bonds didn't help either. Then they re-entered the markets early this year near the highs only compounded the problem. Now investors have pulled out $15 billion from stocks and selling over $6 billion from commodity ETFs since April to put $29 billion more into bonds at the worst possible time.

In addition to the above, the stock market has suffered through 10 5% corrections during this recent two-year rally. Each time investors fret the rally is over, the rally again continues higher. It didn't help either that during this time we suffered through sharply higher energy prices followed with the Japanese disaster. However, as Japan slowly starts to recover, you will see brighter economic numbers across the globe this summer and over the rest of this year. None of this hasn’t been seen before.

All this negative news will pass. Congress will extent the debt ceiling and Greece will get their loans and we can reach higher highs into year end. Whether the markets correct some more doesn't matter as we want to own stocks for what I expect will be a 10-15% rally later this year.

I would own all the SIGA I could near $11 and if you are nervous I would sell OTM calls with Sept/Dec strikes. I fully expect Congressman Issa's look into the BARDA contract will only delay the deal and not cancel it. I believe he's trying to get Obama's attention on the Boeing plant situation by this focus on democratic political contributions of Ron Perleman.

I love buying PIP here, of course it's lower on the troubles of SIGA and burying some shareholders in a $3.50 spot secondary offering two weeks ago didn't help. That's why I recommended we sell all the Sept 5 strike calls we could between $0.75 and $1.00 a few weeks back. I'm also selling the 2.50 strike puts near $0.60 for Sept. I sold both puts and calls Mar and June options big time on PIP and all expired worthless. My PIP shares are nearly paid for with these premiums and the opportunistic fringe trading I teach. Buy hold and pray doesn't work anymore. I knew this over 25 years ago. Investors are only now learning this.

Starting Monday I will do a 3-2 ratio buy right on PIP at these levels against the Sept/Dec 5 strike calls. We want to take in as much premium that we can. Somebody bought 2,200 Sept 5 calls at $0.40 on Friday. The open position was nearly 7,000. We'll know tomorrow if this was a new buy or close of a losing long.

There was an interesting deal with an investor in SA, our gold stock. It seems the Investor put up $100 million to buy stock higher near $30 and he gets a 1.5% royalty on all gold production. I have more research work to do here. The stock popped over $3.00 early in the day. I am a seller of 2012 and 2013 SA puts and a buyer of 2013 30-35 strike calls. Here’s the story link.

I saw all the new Patrick Cox comments on BTX. It’s still the best longer term idea I have ever found. Yes, everything I sent you or wrote on the Yahoo message board is true. Nevertheless BTX and all the stem cells companies still have not recovered from the heavy short attacks and that NY Times negative article on stem cells. The good stories get buried on page 92 while the negative ones are page 1. We will know more after the annual meeting. I will keep you posted.

CIGX is my current love squeeze because there is so much short-term potential given the expected positive news releases coming out shortly. I have now paid for my Jan 2012 long call options after selling both the April 4 strike and, then 2 weeks ago, the June 5 strike options both for a total over $1.00. Both strikes written against my long calls expired worthless as expected. Now let the games begin. The news can start coming at any time now.

Trade of the Week in Review
This really should be called trades of the week. I started off the week with a call buy alert late Wednesday morning to buy the 570 strike calls near $1.70 but one must scale-in and especially hedge. I won't bore you with all the details except the calls hit a $1.10. There were at least 8 hedging opportunities that netted more than $400 per call profit. I'm assuming only a 50% hedge even with these near the money options. I recommended selling the calls Thursday morning. The calls traded as high as $2.15.

There was, in hindsight, a great 565 put purchase at that time. These OTM puts went from $2.00 to $5.00 in less than 3 hours. Still great work if you can get it. NET traders were focused on selling the E-minis short while waiting to buy back the 570 OTM calls staring at $0.85 and scale-in as noted on the Thursday "B" chart posted at 2:00. The calls hit $0.60 within an hour. There were 4 hedges that could have earned over $200 over the next 2 trading hours.

There were 2 Alert Emails Friday morning. The first before 8:30 was to sell the E-minis near 1275 to hedge the calls. I noted I was 80% hedged. The second Alert was sent out after the opening with instructions to start legging out of the hedged trade. We were at a Tenet #3 sell level and I expected that the market would be in a trading range for awhile. If you covered the E-minis lower and sold the calls at the opening and had sold subsequent market rallies the profits could have been much larger or at least $200 more per $0.65 long call or $600 for an 8-10X return! The calls traded as high as $2.45 but I assume most were sold over $2.00 giving a trader a potential 11-13X return in about 4 trading hours! See Friday "A" Chart, NET Weekly Money Chart 2011-06-17A.

In the Chat Room I mentioned after 1:00 to try to get long the 565 puts starting at $0.40. These puts had a low at $0.15 by 2:30. Shortly after 3:00 the puts were $0.65. (I noted the A/Ds were 5-1 positive near the opening but were only 3/2, that’s not good.) At that time, 3 PM, these puts could have been sold or hedged with E-mini longs.

The put trade doubled but a long hedge against $0.30 puts could have earned over $350 profit on the 7.5 point E-mini rally back to resistance or earned over a 10X return in about 30 minutes. See Friday "C" 2011-06-17 (modified).

Again nobody ever did or does all these trades every week to the best of my knowledge but this is looking more and more like the best reward/risk trading style ever developed and taught by anyone on the planet. Just getting pieces of these trades turns my juices on. Even as much as I try I still only get pieces too. But it does add up every week to one hell of a return nevertheless year in and year out.

As always keep those cards and letters coming I read every one of them.

Good trading,

Stan Moore
702.558.1814