REVENGE OF THE REPUBLICANS CONTINUES

Today I closed my UBB put position. My small trading account begun in Feb is now plus $48,432. The bulk of the profits have come from the short side trading puts on UBB--3 trades all very profitable. I am working on a spreadsheet with a proprietary market direction indicator that will give next day market direction with probability forecasts. Today my prior projctions for 1500 point decline in $indu was completed. I look for a rally tomorrow and Friday and continuing into early next week. At this time I am "Flat and Nervous" except for an IMCL nov 70 call position.

"If you had an average investor standing in front of you, what would you say to him/her to ease concerns and raise confidence in the economy and markets?

I would say develop or stick to a valid trading plan and have the discipline to execute it correctly. In my opinion, "buy and hold" is a dangerous concept in today's world. That's because investors who have lost 30% in this bear market now need to make 50% to get back to breakeven and so have put themselves years in the hole. The S&P 500 has generated negative returns for eight years, but with an actively managed portfolio, investors still have the opportunity to make gains and move toward their financial goals". 11/06/08 by John Nyaradi.