It's the best of times & the worst of times. Great video Enjoy

Fellow Friends and Traders,

It's the best of times and the worst of times, all at the same time.  No, not Charles Dickens, Stan Moore! We are up 25% in 4 weeks for the best bull move in history.  That's just after hitting a new 12 year low. At the same time 5 million people are unemployed and millions more will lose their homes in the next few years.
 
Right now all we truly know that commodity supplies are being cut back.  Demand is not there yet.  Bad news is having less of an impact on stocks.  Recent economic numbers are less negative but not better.  Whether the market is right or we are all hopeful things will get better is unknowable.  Patience time will tell.
 
Review of the New Era strategy:
 
When I turned bearish in Aug/Sep of '07 and if someone told us we'd be down almost 900 S&P points I would have said none of us would have come through standing.  We now know not only did we prosper but we breezed through with flying colors. I've been through 17 "major corrections" and I must say I never handled one better. Playing this trading game for 48 years certainly helped but understanding the nature of declines with the "Oscillator" was invaluable.  Never have I had the full understanding of the fundamentals coupled with an indicator that showed us the "Way" to trade and continue with the decline.
 
We will always have our E-mini intraday trading with Thursday/Friday cheap weekly options. These trades are driven by the 5' and 30' charts.  The larger swing trades off the daily charts can use either multi-day option trades or the double and triple Beta ETF's. Once sufficient account capital is built-up then we move to other alternative investments - bonds, real estate, equities or even currencies.
 
After we loaded up with financials (mortgage REITs) and Energy MLPs during Sep/Oct '08 the market dropped another 30%+. Our stocks never really went down.  We now have portfolios yielding 20% or more.  We further increase the returns by selling puts on these stocks into weakness and calls into strength. This has worked exceedingly well and should continue to work. I further recommended selling naked puts out to Jan '10 on selected stocks in beaten down material, industrial and energy companies with the volatility (VIX) over 80. I've since expanded that into other names especially Chicago Merc (CME) while the market was making new lows. At some point we will use these $$$s to buy calls.  This creates stock and no money is needed just the existing equity in the account to margin the put side.  We have moved into higher Beta, high-dividend paying stocks such as Huntsman (HUN) and Freeport (FCX) [eliminated their dividend later], Microsoft (MSFT) and even Caterpillar (CAT).  All are up substantially.  I believe almost all of our recommendations have seen their lows.
 
Looking ahead:
 
That's yesterday. What are you doing for me now? Given what I wrote on the 30' Chart this week. I see we have reached an important low, maybe even "The Low".  In past rallies off important lows the bulk of the move up occurs fast and early. The market then rests before going higher. That's good a trading range with up bias is fine. Everyone wants in as the train leaves the station.  Corrections should be shallow then when everyone is aboard the bridge ahead is out and reality sets in.  We then face a whole new set of circumstances. When and how long we can enjoy the ride right now is anyone's guess. Just sit back and relax. The key will be picking the right sectors.
 
Treasury bonds are out. We have the biggest bubble I've ever seen here. Hopefully, we will be long the Treasury Bonds Index, (TBT) a double Beta short, when the time is right. Real estate is dead for the foreseeable future.  That leaves currencies.   I like long USD/YEN short positions or we can protect our USD currency with a long Canadian position.
 
The only other alternative should be equities focused on the reflation trade.  We should be long commodity-type businesses.  I favor Ag, Copper and Oil.  That's why I have chosen Energy MLPs - and get paid while I wait.  Gold will rally higher as our currency is debased but more money will be made in other commodities.
 
Recently, China has committed $43B to Russia, Brazil and Venezuela for oil deliveries over the next 20 years.  The US on the other hand is stifling production or going to tax energy more.

In Summary:

All our stocks did rather well last week. HUN continues to amaze as it moves to its trial date now only 60 days out.
 
I have including a great training video of the mid-week trades featuring a combination of technicals, fundamentals and market intelligence designed to help pinpoint the winning setups for large profits.  See the attached NET Weekly Money Chart 2009-04-03 for the trade day Wednesday, 2009-03-31.  Note, there were also four great 3:00PM TOD trades taken right from the new "Bible" this last trading week.
 
  2009-04-03 Video -> http://www.screencast.com/t/nZsdaab6

I’m looking for even more profits ahead.  Stay well and keep those cards and letters coming.