NEWSLETTERS & RECOMMENDATIONS - September 26,  2010

Dear Friends and Fellow Traders,

Obama said bring it on betting the GOP would fold given the choice of no lower taxes for anyone. The GOP called his bluff. The votes weren't there to tax the rich only and there will be no vote on taxes before the election. The Dems enter the election with the threat that all the Bush tax cuts expire. I'm sure that most on the left are secretly hoping this happens. Taxing the middle class is where the money really is. If this takes place I wouldn't want to be a Dem come 2012. I'm betting on no real tax increases for anyone for at least the next 2 years. The market rallies into and after the election on the Democratic disarray and failure to pass anything harmful ahead.

The table is set for a GOP victory and a serious dent in the Obama plan. If the GOP wins the House there is no way Obama can fund most of his passed programs. Yes, the markets will look forward and love it.

Right now the market is looking ahead to the election and even though it's overbought there should only be a limited correction into October given the expected mutual fund tax loss selling into their fiscal year ending October 31.

When the peasants decide to revolt, it usually doesn't end well for the ruling elite of either party. Look at all those RINOs (Republicans In Name Only) Mike Castle, Charlie Crist, Rick Lazio, Bob Bennet and Lisa Murkowski. Good riddance. Next, let's get those two RINOs from Maine as well.

In the end I'm rooting for VETO, AKA Vote Everyone of Them Out. Remember November 2nd is take out the trash day: Republicans, Democrats, lawyers, lobbyist, union bosses, D.C. political insiders and incumbents. The Tea Party candidates have been successful because they have been singularly focused on the most important and pressing issues today. Those ideas should have been Obama's. The peasants have awoken from a long slumber.

As Thomas Jefferson once wrote "a little rebellion now and then is a good thing. It is the medicine for the sound health of government."

Earnings season starts in a few weeks. Most earnings should exceed the rather low bar set for the third quarter. The only exception may be the Tech Sector. Apple's iPad and other devices like it will put a serious dent into the demand for notebooks going forward. So techs a strong group leader now, may be softer in earnings season. Remember everything is perception going forward.

There will be no trade of the week chart this week. Friday, for NET traders will go down as one of the worst in the last two years. Yes, if you were perfect you made a few dollars with options, more if you hedged. Overall, the trade just wasn't there. We traded sideways in a 4-point range nearly the entire day. It was a great day to practice trading for 2 or less points which generally isn’t our style.

Keep those cards and letters coming.

Good Trading,

Stan Moore
702.267.0396