The Stress Tests Are Out... What Now?

I've got great news...

On Wednesday morning, Bank of America announced they'll only need another $34 billion more from Uncle Sam.

Somehow that's bullish news, according to CEO Ken Lewis.

The truth is, while we're not out of the woods just yet, we are finally starting to see some signs of a slow recovery.

Amex, JP Morgan, and the Bank of New Mellon Corp all got a passing grade on their "stress tests." And to top it off, it seems the Dow's low of 6,600 looks well behind us, and oil prices are starting to charge full steam ahead.

But like I said, we're not in the clear yet.

Want proof?

Just take a look at the sheer number of blockbuster trades that Ian Cooper's made from issuing puts in the Options Trading Pit portfolio recently.

Ian and his team are still cleaning house by safely betting that companies major companies will plummet.

And as far as high-profit trades go, they've been spot on for readers who can stomach the fast-paced world of options.

Of course, not many can.

In fact, over the past several months, we've been getting swamped with emails from investors who crave those rapid, reliable profits, but don't want anything to do with the all-or-nothing world of options.

If that sounds like you, trust meYou can't afford to miss this:

track record

You see, after months of scouring the markets and applying many of his own, unique indicators to qualify worthy options plays for his Options Trading Pit readers, Ian Cooper stumbled across another moneymaking trend so astounding, some of his close friends are already talking about early retirement...

... Those very indicators he uses to uncover the +100% options plays have also been - over and over - pinpointing explosive whole top stocks for 2010 as well.

... Top stocks 2010 that don't quite fit the profile for one of his legendary options trades but still experience share price surges that rapidly and reliably skyrocket upwards of 20% - 50%.

For example, just take a look at the 265% jump that one online gaming software developer made in anticipation of the recent movement to legalize online gaming:

20090507 chart

Then there's the 301% explosion his indicators pointed out from National Coal, after the Dow bottomed in early March:

National Coal chart

And then there's the 182% jackpot he uncovered from, once again, anticipation of online gambling legalization with YouBet:


And those are just a few. Since Ian started following some of his "discarded" top stocks of 2010, he's been finding these opportunities left and right.

For example, earlier today, he raced upstairs to my desk to share with me two natural top gas stocks and one major oil play that those same indicators tell him are about to go absolutely ballistic!

Unfortunately, these - increasingly more common - jackpots don't fit into the scope of his Options Trading Pit... or any other advisory we offer, for that matter.

And that means that, as investors, we're leaving a lot of easy money (3 near-guaranteed winners even as I write this) on the table...

That is, until now.

In fact, I have a very special invitation I'd like to extend your way.

It's a deeply discounted, sneak-peak into a groundbreaking new advisory Ian recently launched called the Pure Asset Trader.

In it, he shares with you the details behind every single one of these explosive trades he's been uncovering... starting with the oil play that he just recommended, which could hand you rapid double (even triple) digit gains in less than a week or two.

And the two natural top gas stocks Ian has been tracking will be recommended in the next two weeks.

One thing you'll notice with Ian's new cutting-edge service is that these powerful trades come from anywhere and everywhere. That's because Ian doesn't like to pigeonhole himself - or you - into any specific sector.

The truth is, at any given moment, somewhere in the market, Ian's indicators are firing on all cylinders about one company or another, whether it be on news, general market trends, overselling, earnings reports, or any of Ian's indicators.

In other words, he's everywhere... but nowhere for too long.

And that's exactly how this unique advisory is geared - for investors like you to take advantage of the scores of rapid-fire gains coming from 2010 top stocks across the market as our economy slowly starts to recover.

Inside of just a few weeks - even in this market - not only could you recoup some of your losses... You could make fortunes without needing to rely on all-or-nothing options trades!

Plus, if you accept this offer right now, I'll show you how you could secure a test run of this $1,495 service for only $199!

Best Stocks For 2010 Could Make You 500% In Two Years

Every November, the International Energy Agency (IEA) releases its World Energy Outlook report.

The 578-page document blueprints exactly where our future energy sources will come from and when - for leaders and elite investors around the world.

And they read it for good reason...

Since its inception, the findings within the pages have been so accurate that the annual report reigns as "the authority of energy analysis and projections."

In fact, many people today trust their report without question.

I just finished pouring through my copy.

It was handed to me after a fellow geologist, with first-hand experience in the Canadian oil sands, pointed out a shocking error - one that guarantees an imminent spike in the price of oil.

In short, the report claims that:

"Thanks to ever-dwindling supplies in the Middle East, the world will rely on Canada as the largest oil producing country by 2010."

It's been their same projection since 2006.

But there's just one problem.

The World Energy Outlook forgot the other half of the story...

You see, what you won't read in the report is that many of those companies we will rely on have already halted production in scores of their fields.

They were forced to postpone production as the price of oil crashed into the unfeasible $30 range.

Many projects, projects that were expected to seamlessly come online within weeks, are now months - even years - behind.

It's a supply and demand bottleneck we can't stop. And it's guaranteed to once again launch the price of oil violently back to the $140 plus range... very soon.

That's a 250% increase from what we're paying today. And that's a conservative estimate.

The good news is that we also, very recently, uncovered a secret investment - which most Americans know nothing about - that could hand you 500% gains as this spike hits.

And the best part is that it's not related to risky exploration or production companies, either. Instead, it's directly - dollar for dollar - related to the price of oil. Only this gem pays you DOUBLE the gains!

In fact, investors using this blockbuster already pocketed 34% gains - in the last seven days as oil popped 17%!

I've written this letter to give you every last detail on exactly how it works. But first, let me quickly remind you...

How The Smallest Supply Crunch Could Make You Filthy Rich

As you know, four years ago, a pair of hurricanes blitzed our Gulf Coast's oil and gas refineries, forcing our production to a crawl.

That instant, Americans witnessed the unthinkable... oil prices launch from $50 to over $70 per barrel.

It was the first lesson in a cold, hard truth... and what should have been the investment eye-opener of a lifetime.

We learned first-hand exactly how sensitive we were to the tiniest interruption - or even threat of interruption - in our supply.

And it broadsided almost everyone.

In fact, month after month, most so-called experts all over TV, from the CNBC analysts to Dick Cheney... even most Americans foolishly believed everything was fine. And that the price would soon tumble back down.

They were so confident that everything would immediately pan out that they did nothing. And it cost them - quite possibly the opportunity of a lifetime.

Do you remember where you were when gas suddenly hit $4.13?

Most of us sat back in shock and awe as daily gas prices became so painfully expensive that we were forced to cancel holiday and summer vacations... Going out on weekends turned into USA Channel reruns of Monk on the couch... And we only filled-up our tanks just enough to make it to and from work.

But not everyone...

You see, one small group of investors saw it coming from the start. They knew exactly how to play this "bottleneck."

And they played it for everything it was worth... churning winning trade after winning trade.

I'm talking about everyday investors - people like you and me, working long hours just to pay the bills - who saw it coming, suddenly found themselves collecting dozens of massive payouts, the likes of 33% in three months... 156% in 9 months... 611% in 6 months... 1,014% in 17 months... etc.

People like Norman Wilson, an insurance salesman and father of four, who turned a small $10,000 into $61,900 on just three plays during the bottleneck.

And then there's Bill Walker, a machine worker. He used this amazing opportunity to rapidly spin $15,000 into $65,400.

Even school teachers like Lee Davis took advantage of this opportunity and raked in a cool $12,500 profit - in a single week.

They didn't just take the safe - and highly profitable - road by investing in oil futures either... they took advantage of the scores of oil companies, spreading like wildfire, to our northern borders.

And their timing was perfect. Shortly after their positions were already secured: declared - "Energy Stocks Drive TSX Higher"

Fortune Magazine printed - "Canada's oil sands remain alluring as a future source of crude. Suncor (Research), the pioneer of Alberta's booming industry, has returned 142 percent since we recommended it."

Forbes noticed - "Gurus Fill Up With Oil And Gas Stocks"

Bloomberg reported - "Canadian Stocks Headed For Best Weekly Advance In Three Months... Led by materials and energy producers"

And with an estimated 1.5 trillion barrels locked under their soil, and oil prices skyrocketing faster by the day, Canada's low-priced outfits suddenly became the hottest investments since Exxon.

Investors in companies like Suncor, Grey Wolf, UTS, Conacher and many more - companies sitting on oil resources that we desperately need to come online as early as 2010 - easily raked in 200%, 300%, even 1,000% gains in a matter of months, as oil prices skyrocketed beyond $147 per barrel!

But By The Time The Easiest Money Was Made, Most Americans Catching On Found Themselves S.O.L.

Sadly, it took oil prices to break over $100 a barrel before most investors started realizing that they could have made an absolute fortune.

They missed the boat.

And those earlier investors - the ones who caught the first stages of a run - the ones who knew where the profits would be juiciest, started cashing out at the peak, just as our banking and economic crisis cranked into high-gear.

Then, of course, the weakened world-wide economy acted as the final bulldozer that toppled July's high of $147 all the way down to $33 a barrel by December 17th.

And while the average American rejoiced that - at the very least - gasoline was "affordable" again... something much more tragic - and much more profitable quietly unfolded.

You see, thanks to prices becoming too low, many of Canada's oil companies - resources that would supply crucially needed oil for the U.S. and rest of the world in a few months - couldn't stay in business.

And we need that oil, like a junkie needs his fix.

In fact, the U.S. depends on AND imports more oil from Canada than from Saudi Arabia, Kuwait, Libya, and Iraq - combined.

But one by one, we started finding major oil projects temporarily closing up shop. Drilling and refining stopped. Exploration and testing lost all capital. And their share prices ultimately plummeted.

Just to name a few examples:

StatoilHydro recently yanked the rug from under a $12 billion project in Canada's Peace River.

Both Nexen Inc and Opti Canada Inc were forced to halt advancement on major projects in Alberta.

Suncor, Canada's oldest oil sands operator, was forced to cut its spending by 33%, thanks to lack of profitablility with the current extremely low prices.

Oil giant Dutch Royal Shell's stopped work on several of their Canadian projects until prices regain strength.

The major partners in the proposed $24 billion Fort Hills oil-sands project in northern Alberta - Petro-Canada, Teck Cominco and UTS Energy - announced they may defer a decision to build an upgrading refinery northeast of Edmonton.

The list goes on.

As I mentioned earlier, within months, precious deposits of oil - even locations that were set to come online within weeks - are now months behind.

Some are trading now for a 90% discount.

But ironically, these outfits just created a powerful, self-fulfilling prophecy... an unstoppable bottleneck guaranteed to launch oil prices - very soon - through the roof.

And it's already started.

Your Second Chance To Ride One Of The Most Profitable Bull Markets In History

Don't let oil's current low price fool you this time.

Thanks to an already guaranteed shortage -- just around the corner -- these low prices won't be around for long.

Here are just a few more of the critical points from their latest report:

Global oil demand is projected to expand 2.2% a year, on average, reaching 95.8 million barrels a day by 2012, up from 86.13 million barrels a day this year. The forecast is based on global economic growth of about 4.5% annually. Oil demand is expected to increase most rapidly in Asia and the Middle East.

OPEC, which supplies more than 40% of the world's daily oil needs, will have little spare capacity left by 2012.

Increases from non-OPEC oil producers and biofuel producers should start flagging after 2009.

Natural gas markets will also be tight because of inadequate supply increases, limiting the ability of consumers to switch between oil and natural gas.

And very soon, when word of the shortage hits, the exact same scenario that the hurricanes caused will already have started unfolding... only this time, the gains will hit much, much faster.

The smart money's already placing their bets.

They're already preparing to collect a fortune!

And if you're prepared, as I'll show you, step by step, in just one moment, you'll soon find that many of the very same companies that surged before will rapidly once again start compounding your wealth.

And here's the kicker:

This time, they won't need nearly as much capital to get started! Most of their infrastructure is already ready to go - and they're trading for just pennies on the dollar.

And if you think that's a juicy opportunity, let me show you how you could...

Collect Twice The Gains Of NYMEX Oil Traders... with One Simple, Yet Little-known Play


We know oil prices are about to skyrocket. We know they're just around the corner. And we know that those slick traders playing NYMEX futures - guys who need hundreds of thousands of dollars just to get started - somehow always come out ahead.

But here's what you might not know...

Very recently, we've uncovered a rare investment that could pay you gains just as astonishing as any jackpot oil resource company out there - but without the risk!

Here's how it works.

You see, this special investment, which most investors know absolutely nothing about, doesn't even follow oil producers or risky exploration companies... it strictly follows the physical oil market.

And get this:

Thanks to the unique nature of this investment, you can actually get paid double the gains that oil makes!

In other words, a 10% gain pays you 20%... 20% gain pays you 40%... 100% rise in oil prices pays you 200%

That means, if oil shoots 50% this year, which is our gross-underestimate, you double your money!

If oil shoots up to the $70 range... every $5,000 invested suddenly turns into a $10,000 payday!

With oil trading in the upper $30-range, this unique opportunity doesn't get any easier.

Just imagine how much money you'll be sitting on when oil prices plow through the $140 a barrel mark!

I'm not talking about several years down the line either. We could realistically find ourselves staring right down the throat of $100 before January... $140 by next April... even $200 a barrel by the end of 2010!

Every last detail is spelled out for you in our latest report. It's called, Hotter Gains Than NYMEX Traders Could Ever Make. And I want you to have it for FREE.

All you have to do is test out our top-performing trading advisory, The Pure Energy Trader.

But before I divulge all the details about how to get started collecting a fortune in this Bottleneck Bull-Market, let me introduce myself and my team...

Introducing... The Pure Energy Trader

My name is Brian Hicks.

I'm the president of the investment research company Angel Publishing Investment Research. I've spent my entire investment career, going on two decades now, uncovering the market's best moneymaking trends and showing investors like you how to profit from the most undervalued opportunities in the world.

I've taken investment junkets all over the world... to historic oil boomtowns like Desdemona, Texas, to the Powder River Basin in Wyoming to Kiev, Ukraine. We've been to the heart of the oil sands industry, Fort McMurray in Alberta, Canada. I've been blown away by a wind park in Palm Springs, California. And I've seen first-hand the natural gas boom in the Barnett Shale.


My investment insights and ideas have landed me frequent spots on financial shows like CNBC, Bloomberg, Fox, CNN, Fox Business, and, most recently, C-SPAN... where I spoke on the energy markets and the U.S. dollar.

I'm not telling you this to be a showboat. But I want you to understand that it's this dedication and never-ending persistence that has allowed me to develop friendships and contacts with some of the best financial minds and industry insiders around the world.

And recently, it's allowed me to acquire a man who could easily be considered, with well over 1,153 successful trades under his belt, one of the best traders on the planet today.

His name is Ian Cooper.

And to get a better handle on why I cherry-picked Ian over any other research analyst out there, look no further than his track record...

120% on Royal Caribbean 

194.12% on QQQ

269.52% on On2 Technologies

270% on ONT

268% on CYD

206.33% on VTSS

246% on IPIX

233% on TLTCJ

515.38% on MQJSB

225% on ETGP

302.15% on ASTM

And that's just to name a few. Had I shown you all of his winning trades just for the past 2 years, it would be five pages long.

His off-the-charts accuracy for reliably reading the markets, matched with his winner-after-winner track record, have plastered his sought-after advice on the pages of numerous publications. He's filled columns from Investor's Business Daily all the way to Forbes.

He's also frequently appeared on investment shows such as Money Matters with Barry Armstrong and On the Money with Mike Stein.

In other words, Ian is the real deal.

In the past few months, I'm willing to bet that you've gained valuable wisdom just from Ian's dead-on articles in Wealth Daily or Energy and Capital.

He's spotted scores of blockbuster buy and hold opportunities. But it's his knack for finding rapid, explosive trades - just like the one that could pay you double the gains oil makes - that brought him to the Pure Energy Trader team. After all, he's constantly...

Picking The Best Trades... Trade After Trade

Since starting our hottest trading advisory, The Pure Energy Trader we've already initiated and closed 91 trades.

85% of them closed for massive gains! In fact, each trade - winners and losers - is averaging +24%.

In other words, you're more than doubling your money every four trades!

Even more amazing is that his tight-knit group of investors (of which I'll show you how to become a part of) only holds each one of these trades for about 24 days.

Sometimes it's a matter of hours.

That means, on average, you're doubling your money every four months!

I can't think of a single other investment opportunity on the planet that could deliver those gains... especially in today's unpredictable market.

And according to Ian, with energy prices about to launch sky-high, he's lining up more and more knock-em down winners that he's already set to alert you to the moment the time's right.

Now, I could go on all day detailing the fast-moving trades Ian has been making and the ones he can't wait to share with you soon. But here's what I want you to walk away with...

All of our winners have a couple of very important things in common...

They're all energy stocks with enormous potential...

And they're all companies that our team of researchers closely follows on a daily basis.

And with a track record like that, even in today's market, investors are begging for more recommendations. Problem is for some investors, these recommendations, unlike the ones in many of our other services, aren't buy and holds, which may take up to three years to reach full value.

We're after the fast money. And with Ian following and executing the trades, the fast money is turning into the easy money.

And just to be clear...

No one is complaining at all about the track record for any of our buy and hold services. Nothing will ever change the fact that investors can make good, solid returns by maintaining a portfolio filled with top stocks we like for the long term.

But... the reality is you could make a lot more.

In some cases, over 300% more!

By not having a pure trading service - where we can get in and out quickly with 25 to 50 percent profits in just a few days - we're missing out on some easy money.

Just take a look at this scenario:

How Loosely Following Ian's Trading Research Turned $5,000 Into $58,913.14... In 6 Months

This is why you also need to be trading top stocks instead of strictly investing in "buy and holds." You see, with the right trades...

You don't need to start with a lot of money to make a fortune in the market... You don't need to have all your savings tied up in multiple investments for several years, either... You don't even need to find dozens of trades every year.

In fact, all you needed to make more than 10-times your initial investment was to loosely follow seven of them.

Take the following scenario, for example:

On November 30th, 2007, Ian alerted his investors to an amazing situation in the solar market. A leading company, LDK Solar, announced the ground-breaking of their latest polysilicon plant - news of which, he knew would soon cause the share price to surge.

Because of his timely alert, his traders secured an entry price of $29.55.

And just five days later, on December 5th, he recommended they sell half of their position for a 49% gain. Two days later, the other half sold for a 41% gain - turning an initial stake of $5,000 into $7,250.

Then, just 12 days later, on December 19th, he showed them another explosive opportunity: An options call on China Sunergy, after news of an amazing deal struck with a German manufacturing company. 

Much like with LDK, readers took gains of 204% on the first half of their shares within six trading days. The second half claimed 141% after six more.

Suddenly, their $7,250 compounded into $19,756. It didn't end there, either.

On February 19th, 2008, he struck gold again. He alerted readers to what Ian called a "no brainer" with U.S. Natural Gas.

Like clockwork, two weeks later, his readers were sitting on an easy 80% gain as the first half sold... 140% gains on the second half, just a week later.

Within three weeks, your $19,759 turned into $41,488.13.

And then, on April 22nd, they were alerted to one of the many tiny oil and gas companies flocking to the riches within the Bakken oil formation.

Three weeks later, on May 15th, these hit-and-run traders sold their shares for an incredible 42% gain.

Today, that initial $5,000 investment - using just those seven alerts and reinvesting profits - is now worth $58,913.14! $10,000 would be $117,826.30 - all within six months!

That's the rapid-fire power trading offers you.

And I haven't even accounted for taking gains from the multiple other trades that Ian issued to his readers during that time... gains like 33% from Hoku Scientific in five days... 119% from Cree Inc. in six days... 118% from PetroQuest in 15 days... to name a few

Just imagine how quickly you can compound your wealth with gains that large - gains that fast - again and again.

That's the sort of hit-and-run excitement you should expect by joining Pure Energy Trader. You can make a fortune from several rapid trades.

You see, when you sign onto Pure Energy Trader, you're enrolling into...

An Exclusive Trader's Club Unlike Any Other

Unfortunately, the number of investors who can sign up for our Pure Energy Trader is strictly limited.

In order to make sure every one of our subscribers has the ability to get maximum value out of each recommendation, membership will be strictly limited to 2,000 seats.

... most of which are already spoken for.

The first time we opened this window, nearly half of those seats were gobbled up by our premium, profit-hungry readers in the span of a weekend.

So it's important that you act quickly if you'd like to get in.

You see, we don't want 5,000... 10,000 people buying the best stock. If we allowed an unlimited number to join, we could easily push the best stock investment up several hundred percent. That would be a disaster.

But if getting rich doesn't bother you, and you're ready to follow Ian as he shows you the secrets to landing dead-on hit and run trades in this market, I urge you to join right now.

Get Ready

Another point I want to discuss is how the trades will be delivered to you. The trades will be sent via e-mail. No Faxes. That's because we want everybody to receive the trade at approximately the same time.

And just so that you don't have to recheck your email 10 times a day, we're also offering Pure Energy Trader updated VIA live RSS feeds - so you can get the alerts the split second they're available!

If you're comfortable with what I've said so far, I urge you to consider joining.

Again, I know this style of trading isn't for everybody. But by signing up for the Pure Energy Trader, you're elevating yourself into the top tier of the trading community. If you have second thoughts on the price or the frequency of recommendations, stop reading now... the service isn't for you.

If you're interested, welcome aboard. Let's get to work.

Now Listen Carefully

When you fill out the membership form (assuming there are remaining slots), you'll immediately receive a confirmation and a welcome letter, as well as a link to the Pure Energy Trader site where you'll be able to access every single one of the trades Ian issues 24 hours a day. We'll give you full instructions.

And that's not all!

You'll also learn about a secret investment that actually pays double the gains of any oil futures trader. All those details are in your free report, Hotter Gains Than NYMEX Traders Could Ever Make - just for trying us out. 


Plus, by signing on today, I'll also rush you a free copy of my latest book, titled Profit From the Peak.

In short, Profit from the Peak is a roadmap that shows you how to profit from the rise of oil prices.

In the book, my colleague, Chris Nelder, and I go into full detail on tackling the world's energy problems... and how investors can maintain financial security in the process. I can say with confidence that Chris and I know a little more about today's energy markets than your average "oil expert."

You see, Chris is a well-regarded energy expert who has designed and built dozens of solar energy projects. This is a guy who understands the energy market inside and out... from energy's worst problems to its brightest solutions. And for the last decade, Chris and I have preached that investing is key to solving the world's energy challenges... Investments in a multitude of energy practices and technologies that will wean us away from our dependence on oil.

But we're also quick to point out that this blueprint for success also includes the economic harvesting of remaining and unconventional oil sources.

And again, in addition to full access to our web site, along with your free copy of Profit From the Peak, the moment a new trade is bought or sold you'll immediately be sent an email and, if you elect it, the RSS feed (We'll show you how to quickly and painlessly set up your RSS feed). The reason we're doing this is - we want everybody to be on equal footing. Our trades could arrive any time of the day, from 9am to 8pm.

So it's imperative you follow the instructions. This way you'll get the trade... and you'll have ample time to execute it.

By now, I'm sure you're wondering...

How Much Does Pure Energy Trader Cost?

Truth is, this level of service is highly specialized. And the countless hours it takes Ian to find, study, and recommend just one of the trades he uncovers - as you can imagine - takes a lot of time, expertise, and resources.

He doesn't draw stocks from a hat. He's not paid by other companies to recommend one over the other. His secret is that he's an insomniac, sleeping just three hours a night.

The rest of the time, when other traders and researchers rest, spend time with their family, and take vacations, he's intently focusing on the latest news, studying the markets, and developing high-ranking contacts.

That is, however, precisely what it takes in order to hold a track record as clean as Ian's... a portfolio that scores investors like you the greatest energy trades the market has to offer.

Now, I've seen other "experts" billing themselves out for several thousand dollars a day - and their trading advice can't tread water next to the winners Ian shows you on a weekly basis.

That being said, I wouldn't feel the least big guilty for charging as high as $5,000 a year for a membership to his advisory.

But I'm not going to go anywhere near that.

In fact, the normal membership price is $1,500 a year.

Pure Energy Trader's Bottleneck Bull-Market Special Pricing

If you sign on to the Pure Energy Trader today, you can save a full 33%, and join for just $999 this year.

I know for many of you $999 is a big lump of money to take down, even considering that many of you have made hundreds of thousands of dollars following our advice.

So here's the deal. We're also offering a quarterly bill program. If you choose that method, you'll be charged $275 every three months.

It's as easy as we can make it to get you on board.

Please keep in mind - we're capping Pure Energy Trader at 2,000 investors.

In addition, we want to make sure you're 100% satisfied. So, if for any reason you're unhappy with Pure Energy Trader, you can get a full refund at any time before the end of the first month of your membership.

After that, the refund is prorated.

But you have to act now. We fully expect every last seat to be taken in the next few days!

So if you're committed to capturing the rebounding energy sector's biggest profits, please do so quickly.


The Quantum Leap of Quantum Computing

The rate of technological change is accelerating.

Yes, I know. It's been said before, but it bears repeating. The reason is that we tend to assume that progress will continue as an upward sloping straight line. It won't, in fact, it will be much more rapid ― even exponential at times.

Think about the changes in computer technology we've seen in the last few years. Computers have been getting cheaper and faster in relatively predictable ways for a while now.

Don't be lulled.

The electronics and computing industries are getting primed for a massive transformation in the years ahead. Quantum technologies that were only theories in scientific journals just a few years ago are being prototyped in labs now. These new components will change the way we live forever. They will also create transformational profit opportunities. If you missed the chance to buy into the computer industry when it was young, this is a second shot.

Currently, the mainstream electronics industry processes data by moving bunches of electrons about in huge batches. Think of the components in your PC as electrical plumbing. Data are usually stored as batches of electrons. Imagine your computer's hard drive as a bunch of very small buckets, some full of water, some not. This will change.

Improved materials technologies from emerging nanosciences are allowing us to replace batches of electrons with the smallest individual unit: the electron. As a result, computers will work at far higher speeds. Additionally, far less electricity will be required to do the same amount of work.

Much of this exciting news is being ignored by the market. It's an unfortunate truth that investors often lose sight of long-term opportunities to create wealth because they get distracted by the short-term noise and news in the markets. When it comes to big transformational technologies, don't worry about timing. The returns that disruptive technologies yield justify getting in early.

Quantum Superposition

One important quantum effect that will be used in future generations of computer technology is "quantum superposition." In a nutshell, this means that a quantum particle can exist in multiple states and everything in between at the same time. This is because a quantum particle, such as an electron, behaves as both a particle and a wave.

Have you heard of the particle wave theory? In practical terms, it means that bizarre and counterintuitive effects occur on very small scales, and they can be harnessed.
This "quantum superposition" effect will, for example, utterly transform how we do "computer math." Currently, nearly everything done by computers is done in binary. The smallest piece of information a computer handles, the bit, is either one or zero, something or nothing. A quantum computer, though, would be able to store and work with number systems other than binary.

This means computers would become exponentially more powerful because each "quantum bit" (qubit) could store a much greater range of numbers than the two that binary math restricts us to. Imagine a laptop with the computing power of the world's 10 most powerful supercomputers. Then you begin to grasp the potential of quantum computing.

Decoding Quantum Encryption

Quantum computing also offers the means of making our communications and business transactions far more secure than they are today. Quantum cryptography exploits several remarkable effects of "quantum entanglement." One is the ability to generate pairs of utterly unique and unbreakable keys. Basically, two random but identical particle keys can be created using entanglement. Since reading a quantum particle alters it, any effort to eavesdrop on communication is detected and that communication is either disrupted or ended.

Using this technology, we can create completely secure communications networks. Recently, Toshiba's R&D labs announced the successful testing of quantum cryptography over fiber-optic networks. Austrians were able to send entangled photons between two Spanish islands nearly 90 miles apart.


One of the likeliest quantum technologies to go mainstream is the field of spintronics. This is the exploitation of different electron states. The only property of the electron that we use in electronics now is charge. Electrons, however, have another property called "spin." Because we can change and read this spin, it can be used to compute. Already, the tech giants are investing in this technology. And there's a reason.

I've written a lot about HP's work on memristor technology. Memristors are going to provide the next great leap in computer technology. HP has been making rapid and well publicized advances. It could, in fact, have product on the market next year. This initially concerned me because HP is too big to get us anything close to a memristor pure play.

Fortunately, memristors can be built using techniques other than HP's. My associate Ray Blanco has been poring through patents and tech journals. What he's found is enormously exciting.

Basically, a number of other groups have made similar memristor advances using different technologies. One is based on spintronics. The big question now, however, is not which of these technologies will emerge as the best solution. The question we're looking at today is who will build these new components. Who, in effect, will be the Intel of the future?


Patrick Cox will be making his first appearance on the Whiskey Bar panel this year at our annual Agora Financial Investment Symposium. He'll be there along with our other regular Whiskey contributors like Byron King and James Howard Kunstler.

This year is extra special, Shooters, because we're celebrating Ten Years of Reckoning. It's the tenth anniversary of our flagship newsletter The Daily Reckoning (and of the symposium itself) and we mean to make the occasion special.

A Shooter sends this:


Keep up the excellent work.  A quick question about the 10-year anniversary gala… Unfortunately, I won't be able to make it (bummer!). Are you planning on making any of the sessions accessible via the internet (can we watch/listen in over Webex)? Send in questions via email? In short, for those of us unable to travel to Vancouver, is there any way to participate?

Thanks for the kind word. Short answer: NO!

Sadly, in order to get all the good stuff ― stock picks, recommendations, analysis and ideas, networking opportunities, and the ineffable joy that is Agora in Vancouver ― you have to be with us in Vancouver.

BUT we will be doing daily email updates and we're considering some real time updates from your roving Whiskey Bar manager via Twitter. We may also post some video clips on YouTube, but if you want to participate, you simply have to be there.

I don't care how you get there. Just get there if you can.

In other news…

Baltimore got edged out of the number one spot.

That's right. Among cities with over 500,000 residents Detroit just barely eked out a victory over Charm City with 37.4 homicides per hundred thousand residents. Baltimore managed only 36.9. We'll get 'em next year!

Traditionally, young black males have been the group most represented in that impressively high murder rate, but that may be changing in Baltimore…

Gangs of black teenagers have taken to attacking white residents and tourists at random in Baltimore's moneyed neighborhoods. A couple of particularly vicious attacks took place just a couple of blocks from your editor's heavily fortified domicile.

I may or may not be inoculated from harm by my race. Hard to call it. This is why I normally only leave the Whiskey bunker to forage for food.

I'll do my best to stay alive and intact over the weekend so we can meet again on Monday.

Monetizing Debt: the Grandest of Larcenies

"Either cuts in spending or increases in taxes will be necessary to stabilize the fiscal situation," said Ben Bernanke in response to a question posed by a member of Congress. Then, he added...

"The Federal Reserve will not monetize the debt."

That last sentence has a ring to it. It reminds us of Richard Nixon's "I am not a crook." Surely, it is destined to make its way into the history books, alongside Bill Clinton's "I did not have sex with that woman" and the builder of the Titanic's "even God himself couldn't sink this ship."

Monetizing the debt is precisely what the Fed will do. But it will not do so precisely. Instead, it will act clumsily...reluctantly...incompetently...accidentally...and finally, catastrophically.

That's our prediction, here at The Daily Reckoning. Prove us wrong!

In today's reckoning we describe why you don't have to be an astrologer or an economist (the two are similar...except the astrologers have more professional credibility) to see what is coming.

First, a look at the market. Yesterday, investors seemed to think it over and change their minds. Their first reaction - on Wednesday - to Geithner's reassurances to the Chinese and Bernanke's reassurances to Americans was positive.

"Maybe these guys are on the level, after all," they said to themselves. "Maybe the dollar won't fall apart."

But after 24 hours of deep reflection and heavy drinking they came to their senses: "What was I thinking? Of course they're going to undermine the dollar...what else can they do?"

So yesterday they were back at it - buying assets that are priced in dollars but that move in the opposite direction. The euro went right back to where it was at the beginning of the week, at $1.41. Gold, which had lost $18 on Wednesday, recovered $16 on Thursday. Oil had slipped $2 after Bernanke's comments; yesterday, it gained $2.

Stocks rose too - with the Dow up 79 points.

A friend sent a recent report from analysts with Barclays Bank. Barclays is advising private clients that the "bear market is probably over."

Anything is possible, of course. But for the many reasons we've described in these reckonings we doubt that we've seen the last of this bear. Or the last of this recession. What we've seen so far is merely a classic post-crash bounce. Nothing more.

Which is WHY the Fed will eventually monetize the debt. "Monetizing" debt, by the way, is larceny on the grandest scale. Rather than honestly repaying what it has borrowed, a government merely prints up extra currency and uses it to pay its loans. The debt is "monetized"...transformed into an increase in the money supply, thereby lowering the purchasing power of everybody's savings.

Of course, the Fed will not want to do such a dastardly deed; but it will do it anyway. Even good people do bad things when they get in a jamb. The feds are already in pretty deep...and they're going a lot deeper.

Now over to Ian at The 5 for some news on today's jobs report:

"The U.S. economy shed 'only' 345,000 jobs in May, the Labor Department said this morning. We forecast Wednesday that today's employment gauge would beat expectations, but wow...this number smashed the Street's guess of 520,000. Last month's loss is the smallest since it all hit the fan last September.

"May's number establishes a trend for 2009, too. The jobs scene is far from rosy, but at least it doesn't seem to be getting worse...not yet anyway.

"So 'Buy, buy, buy!' as they say in Cramerica, right? U.S. index futures jumped on the news and the Dow and S&P 500 opened up 1%. And if you aren't the type to be bothered by the fine print, we suggest you slam the buy button too.

"But the details of today's jobs report aren't quite as rosy as the headline number. The unemployment rate rose to 9.4%, notably higher than the expected 9.2%. In other words, the unemployed are not being rehired. While the rate of firings cooled off, the bread line is just getting longer and longer. 9.4% is the highest rate since 1983.

"And it's funny how the dark science of charting works. The chart above would lead you to believe the jobs scene has bottomed...but does this one inspire the same confidence?"

Wanna make sure you get The 5 - in its entirety - sent to your inbox, every Monday through Friday? You becoming a subscriber to one of Agora Financial's paid publications, such as Capital & Crisis. And in the latest report of C&C, you'll discover a little-known way to receive up to three extra paychecks a month...without lifting a finger. It's the perfect way to ensure a constant influx of money, whenever you may need it. Click here for all the info.

And back to why the Fed will monetize the debt:

The European Central Bank came out yesterday and said that its forecasts for the recession were on the low side. Instead of putting total output back 3.5% this year - as it had estimated in March - it now thinks the setback will be between 4% and 5% of GDP.

Unlike Japan's slump of the '90s and '00s, this depression is worldwide. Americans aren't buying like they used to. So, foreigners aren't selling. Everyone gets poorer as expected income and profits disappear...and turn into losses.

Meanwhile, in America, today's jobs report shows that unemployment is still on the rise. People without jobs can't buy stuff - neither the kind of stuff you get at the grocery store...nor the kind of stuff you get from real estate agents. Since they don't buy stuff, manufacturers don't make stuff. And since they don't make stuff, they don't need the stuff that stuff is made of, nor the employees who turn the raw stuff into the finished stuff.

Result: the stuffing gets knocked out of the economy.

Also, while Tim and Ben reassure investors, long bond yields go up. The Chinese have shifted from buying long bonds to buying short bills. This causes the return on bills to go down, but it pushes up yields on the 30-year which long-term fixed-rate mortgages are calibrated.

Last week, according to Freddie Mac, the average 30-year mortgage had a fixed rate of 4.9%. This week it's 5.27%. At the margin - which is where most people live - this extra cost of financing pinches would-be homeowners. Either they buy a smaller house...or they pay less for it.

It also pinches anyone who needs to refinance - which includes not only sub-prime borrowers, but many others too. MSN Money reports:

"The next group of Americans to lose their homes seemed to have good credit and affordable loans. But those families have been walloped by the recession.

"In the housing market, a lot of prime mortgages are becoming subprime as a new wave of foreclosures begins to hit. Mainstream homeowners - those previously 'safe' borrowers with sound credit who have conservative, fixed-rate mortgages - are getting into trouble at an alarming rate.

"In the first quarter, the percentage of these borrowers who were behind on their mortgages or in foreclosure had doubled from a year earlier, to nearly 6%. For the first time in the housing crisis, these homeowners accounted for the largest share of new foreclosures.

"Job losses are a major reason once-safe borrowers are falling into trouble. With unemployment likely to rise, the problem will only get worse. So the core challenge at the heart of our economic crunch - a poor housing market that infects banks and the whole credit system - is not going away soon. That's bad news for the stock market and the economy in general.

"'A couple of months ago, a lot of people had hoped that the housing collapse was about over,' says money manager and forecaster Gary Shilling, a well-known bear who called the housing problems early in the cycle. 'But it was more hope than reality.'

"Economists call rising delinquencies and foreclosures among prime borrowers the third wave of trouble. The first two waves were housing speculators going bust and subprime borrowers - those with poor credit histories and some version of no-down or low-down adjustable-rate mortgages - getting into trouble.

"Mark Zandi, the chief economist for Moody's, calls the third wave a 'significant threat' to the economy. '"It is gathering momentum,' he says. 'The problem is now well beyond subprime and deep into prime.'"

Following this article was a series of comments. One, filed on Wednesday, was particularly interesting:

"This is my world crashing down on me. I own apartments and I rent to poor people. I more than most know what people are experiencing. While my properties are struggling, the income they generate has not dropped significantly to threaten the payment of any loan. Unfortunately, my loans are due this year and I am simply unable to borrow money to replace the loans I am currently servicing successfully. What can I do? All my capital reserves are gone, but effectively, I am losing my job because the banking system and market will not allow me to borrow money. If you bought my property today at the current market rate, your cash on cash return would be over 15%. This type of return in the Atlanta Real Estate market has not been seen in decades. When employment growth rises in Atlanta in 12 to 24 months, the cash on cash return will be over 20%. I probably will not survive. I will lose everything, my house, my business and my savings. I will have to start all over..."

Now, dear reader, we ask you a question: Is a politician from either party willing to stand in front of this man and tell him that interest rates are going up? Or how about telling him that Congress is raising his taxes? Even if the goal were only to balance the budget ten years from now, it would take a permanent, across-the-board tax increase of 60% to do so. (See below...) Would any politician in his right mind vote for such an increase? Ben Bernanke talks about cuts in spending and tax increases. But Bernanke is not up for election. Besides, practically every economist in the country in telling Congress it needs to spend MORE money, not less. Cut spending and increase taxes in a recession? Are you kidding?

We are in a serious, multi-year depression. No increase in taxes and no decrease in spending will be seriously considered until we are out of it. But if it follows the patterns of the past, then genuine, durable healthy growth will probably not return for many years...maybe 5...maybe 10...maybe 20. Long before then the US will have too much debt to carry...let alone pay back. It will have no choice but to "monetize" this debt by means of inflation.

We'll tell you more of the HOW...on Monday.
This week brought an entertaining episode. Wall Street's man in Washington, incidentally Secretary of the US Treasury, was sent to Beijing. His mission: to convince the canny Chinese of something that everyone knows is untrue - that US bonds are safe. But if the Americans keep faith with China, it won't be for lack of trying.

Of US government paper China has plenty. Bond holdings alone tote to $768 billion. Other dollar-denominated assets in Chinese hands add another $700 billion or so. Despite this Newcastle in its vault, the US would like China to buy more coal.

But lately, those dollar holdings have done poorly. Thanks, supposedly, to the economic rebound, the dollar has fallen against just about everything. Against gold, it is down 15% in 2009. Against oil, it is off 50%. As for copper, the dollar has lost 65% of its purchasing power. Thirty-year US Treasuries have fallen too - down about 27% since January. A rough guess is that China has lost more than $200 billion so far this year, thanks to the fall of the dollar and US Treasury bonds.

Martin Wolf, in the Financial Times, says these trends are signs of progress. "Rising government bond rates prove policy is working," begins his line of thought. Spreads between corporate bonds and Treasuries are narrowing. Real yields on corporate bonds are falling while yields on Treasuries go up. "Normalization," he calls it; investors now expect inflation instead of extinction.

The rise in inflation expectations is clearly visible in the US bond market, where inflation-indexed bonds are once again selling for substantially higher prices than their non-indexed cousins. Towards the end of '08, the bond market anticipated zero inflation. Now, the latest figures imply a 1.6% positive inflation rate over the next 10 years.

If inflation doesn't show up as forecast it won't be for lack of effort on the part of Mr. Geithner and his friends. The US deficit for the current year is $1.84 trillion. Every two months, the feds need to borrow nearly the equivalent of the previous entire year's record- breaking deficit. And if private lenders balk, the Fed stands ready to raise its own hand at the next auction of US government debt.

The Chinese are worried. They've put a lot of eggs in the basket now being carried by Geithner, Bernanke et al. What if Team America isn't as surefooted as it claims?

"It will be helpful if Mr. Geithner can show us some arithmetic," said Mr. Yu Yongding, described as a former advisor to the central bank of China.

Mr. Geithner showed up with numbers, of course. From a deficit of 12% of GDP, the US plans to take its deficit down to 3%, he said. But when he delivered this solemn fib at the University of Beijing the students laughed at him.

American Secretaries of the Treasury are not used to being laughed at. Almost 40 years ago, a US Treasury Secretary - John Connally - expressed the imperial view: "it may be our currency, but it's your problem." Even after the crack up in the fall of '08, the US continued in the fantasy that it could lay off as much paper on the foreigners as it wanted.

The aforementioned Mr. Yu Yongding addressed this point directly:

"I wish to tell the U.S. government: 'Don't be complacent and think there isn't any alternative for China to buy your bills and bonds... The euro is an alternative. And there are lots of raw materials we can still buy.'"

China is hedging its bets, buying assets that don't have dollar signs on them. Along with shrewd speculators, they're worrying about a government-fueled melt-up in prices. These anxieties - not a return to 'normalcy' - are sending the price of gold back towards $1,000 and the dollar towards $1.50 per euro.

Inflation, like cholesterol, comes in two forms - good and bad. The good inflation raises asset prices. The bad inflation raises consumer prices. No one complains when prices of houses and stock are rising. But when toothpaste and bread begin to follow, an alarum goes up. Soon, central banks are taking action to stop it - raising interest rates and credit standards. But this time it is different. Both types of inflation are welcome. Harvard economist Ken Rogoff says he advocates 6 percent inflation "for at least a couple of years." It would make it easier for debtors to repay loans, he says. Economist John Taylor, of the eponymous 'Taylor rule' gives another reason inflation would be well met. He points out that running a balanced US federal budget - even 10 years in the future - would require a permanent 60% tax increase. "A 60% tax hike won't happen," he writes. "The government will attempt to inflate the problem away instead." Even Warren Buffett told CNBC that the likely solution to America's problem was inflation.

Yu countered: "You should not try to inflate away your debt burden..." But that is exactly what the US is trying to do. So far, it's not good faith that protects China's dollar assets. It's a depression...and incapacity. The Geithner team tries to create inflation, but hasn't yet got the hang of it. Give them time.

Stocks Cannot Hold Modest Gains

After a string of upside weeks, we finally had a down week. There's nothing wrong with that. After 30% gains and more, getting a little downside is no problem at all. In fact, it's healthy. We're going to make some money from the downside, and thus the downside becomes a positive. We always take whatever the market gives, whether it's upside or downside, we're going to take it. And with the market primed to give us downside, that is exactly what we want to look for. We like to look for those easy setups where we can just walk up and pick the money up off the ground. If we can do that, that's great. We did that with the Potash, the POT play this week; the money was there on the ground, we stepped up and picked it up. Got to love that.

As for Friday, it was really what we expected and what we wanted. We had that big down day on Wednesday -- it's expiration week -- and sometimes you get the big moves mid-week, and that's what we had. Friday was rather calm. It was up, at first, as we thought it would be, and then it came back. We didn't really know if it was going to come back Friday or not. As top stocks market went ahead and declined that gave us a chance to move in and get into some downside positions, to position ourselves for next week. We got a little Amazon, we got a little Apple, we got some of the Q's (QQQQ) to the downside to get ready for more of the downside move. We were getting in position for what we think will be a down Monday as the downside resumes. We also have some continuing upside plays with some pulling back, some continuing higher. CME was down Friday, but it was a great mover for us this week. As a matter of fact, this week we had a bunch of good moves that went to the upside, even when the market was going down. We had Potash. We had CME. We had Amazon to the downside; nothing wrong with going with the market direction. That was nice. We doubled up on some more of Amazon puts Friday. We took some Priceline gain off the table as retail was having some issues. Digital River gave us some more gains. That's the way we do it. We let them go up, we take some gains as they go up, taking money off the table as key moves are made. But we still get bigger gains, because we're leaving some on the table as we go. As long as the stock remains in its trend, whether it's up or down or sideways, we can make money by just letting some of the position run for free after we bank some nice gain on strong surges. That's what we've been doing, and it pays off; we had a good week that way.

As for Friday in specific, we had a lot of economic data. We had the CPI. It was basically in line, but the core was hotter (no food and energy), and it was hotter at 0.3% versus the 0.2% expected. We had the New York PMI. It was much better at -4.55. Still contracting, as is all the economic data, but it was a lot better than the -14 prior, and the -12 expected and showing that little bit of improvement. Again, slowing on the way down, slowing the fall into the abyss. Indeed, it no longer looks like we're going to fall in the abyss. Just the ditch. That can hurt too, but not as bad as never finding the bottom.

CME (CME Group, Inc.)
Company Profile
Once more the market was seeing if anyone was watching. The action was toppy with many top stocks for 2010 rolling over for a needed correction, but the market was again laying some money on the ground to the upside and seeing if anyone was going to take it. We have made some great money on CME and it is one of those top stocks of 2010 that is a 'watch,' i.e. it is on our short list of top stocks for 2010 that we always look at no matter what. Why? Because it can run like a deer to the upside or fall like a rock, ripping off big chunks of real estate when it does. When it sets up, get ready.

We just played CME off of the 50 day EMA, and thus were watching as it tested that surge. Ironically, on Monday it showed a perfect doji at the 10 day EMA, the set up we love. We SHOULD have been anticipating this after the action to end the prior week and been ready to enter when we saw the doji Monday, but sometimes, just sometimes, the market is very generous: it laid the money on the ground and it gave us a second chance to pick it up.

We put CME on the report Monday night. Tuesday CME gapped higher and did not come back to test much at all on the session. That didn't give us much to work with, but we did like that the stock was holding over the 200 day SMA in the last hour. We moved in with options given the stock price (near $250). We bought June $250 strike call options for $16.20 when we saw that CME was going to hold the 200 day SMA and on strong volume into the close. Given the gap and the less than optimal entry point, that was important for continued upside as it showed enough strength on the break to continue the move.

It was. CME blasted higher another $15.60 on Wednesday, building some excellent gain into our options. Thursday CME surged higher again, gapping out of the gates and running toward $300. It started to stall after another big surge, putting the 3-day move at over $50. For any stock showing three strong, outsized gains back to back, it is time to take some money off the table. We sold some of our options for $37.20, netting $21/option or 126% gain in less than three days. Did I mention CME runs like a deer? Very nice way to end a week in a down market, and all we did was take what the market was giving.

We also had some other great plays for the week. Once more we ran to the POT, or Potash, picking it up as it completed a test of its late April break higher. It moved laterally for a week, tested the 10 day EMA on an intraday move and started to bounce. That was our signal to get in and we jumped in with some stock and September $95 Strike call options at $11.50. We also sold some May puts for $2.80. POT blasted higher again, surging 13% through Thursday. We sold some of our options for $18, banking a 56% gain. We sold some top stocks for an 11.5% gain, and on Friday those puts we sold expired worthless and we kept the entire $2.80 per share. We tripled up on POT and our cup overflowed. Better than the pot, eh?


Playing stock splits can be very profitable, but it takes know-how. Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).

For post-splits, we can play them as we would pre-splits (very short term), but we prefer to stretch our horizons, playing the trend. When playing options, we look further out, 2 or more months at least. We let the trend carry us along if there is one, but we will also take profits if the technical pattern degenerates, e.g., breaks a trendline. The main difference between post-splits and pre-splits plays is that we really have to like the pattern. Pre-splits can run right before their splits even with poor technical indicators. For post-splits, we are looking at the best stocks 2010 from more of a longer term "would I buy this stock at this juncture?" position. Now there are times when a hot stocks splits and investors pile in to get in while the stock is 'cheaper.' We play those, but with more of a short-term, pre-splits mentality in that we will be ready to get out fast if the momentum fades.

Remember, everything we do has to pass muster with the market that day ... don't fight the market on these plays.

IDXX (Idexx Labs--$40.80; -0.21; optionable): Diagnostic substances
Company Profile
After Hours: $40.80
EARNINGS: 07/24/2009
STATUS: Test 200 day SMA. Broke out of a rolling trading range in late March and rallied nicely on into early May. It paused some at the 200 day SMA (39.61) on the way up, then bolted to 44 before fading back last week. It held over the 200 day and indeed closed just over the 18 day EMA Wednesday to Friday. Sitting right on top of the late April lateral move below the 200 day, a level that also matches the mid-October lows. Looking for that support to hold this week on some more testing and then for IDXX to rebound and continue the breakout move. Very nice.
Volume: 463.325K Avg Volume: 575.965K
BUY POINT: $41.65 Volume=700K Target=$47.55 Stop=$39.39
POSITION: UID GH - July $40c (54 delta) &/or Stock

MON (Monsanto--$89.95; -0.08; optionable): Ag chemicals
Company Profile
After Hours: $89.95
EARNINGS: 06/24/2009
STATUS: Test breakout. MON was on the report recently, but it gapped away and required us to be patient and wait to see how it reacted to the gap. MON has held the gap, now moving laterally, testing the late March peak on the lows and rebounding. Very solid action as ag top stocks 2010 were stronger all week (see POT). Likely to continue testing laterally for a few sessions, and when it finishes and makes the break higher we move in. Nice higher high after the November low shows plenty of support for MON. Just spent $97 for a gallon of the super concentrated Round Up. Don't they know there is a recession going on? Doesn't seem to matter, huh?
Volume: 6.211M Avg Volume: 6.853M
BUY POINT: $91.04 Volume=8M Target=$103.45 Stop=$87.21
POSITION: MON GU - July $90c (52 delta) &/or Stock

Have You Heard of “Blue-Sheeting”?

Two of our good friends and colleagues (Tom Dyson and Brian Hunt) just told us about a Chinese small stock that's getting ready to take off...

What's so fascinating isn't so much that this stock has a track record of periodically shooting up by as much as 320-times in value...

What's really interesting (to us at least) how Tom and Brian have been finding small top stocks 2010 like this one.

Typically, I stay behind-the-scenes...

But this idea is too good - and too important on a personal level - not to share it with you myself.

My name is Brian Hunt.

I'm the Editor in Chief of Stansberry & Associates Investment Research.

Late last year, my colleague, Tom Dyson, and I discovered a new and unconventional way to generate unusually high returns in this extremely volatile market.

(So far, we've had an 83% success rate.)

We expect that this radical technique will continue to perform at this level for approximately the next 12-18 months.

Then, like all great investment strategies, the time will pass.

That is why, on June 16th, we will begin publishing our insights for the general public.

I'm writing you today because from now until then, we're offering loyal readers first crack at membership � at a substantially reduced price, which we will never offer again.

Because our new research involves many of the smallest and most illiquid securities on the stock exchange...

We're limiting charter membership to what will most likely be a small group of folks.

But I'm getting ahead of myself...

Let me show you what's going on, why we're so excited at S&A Research... and what's in it for you...

Introducing "BLUE SHEETING"

As I mentioned, about 9 months ago, my colleague, Tom Dyson, and I discovered a radically new way to make money in the stock market...

We call it "BLUE SHEETING."

In more than 12 years of active trading, I've never seen anything quite like it.

When this strategy works, it's not uncommon for you to see returns of 1,000-3,000% (or more):

Phoenix Companies (PNX) shot up 1,000% in 2 months.

Diedrich Coffee (DDRX) jumped 6,533% in less than 2 months.

Sealy Corp (ZZ) rose 927% in 65 days.

So far, our "BLUE SHEETING" strategy has worked 83% of the time.

I'll show you the full details of our preliminary testing a bit later...

But first...

What's so radically different about what we do?

While most analysts look at things like earnings statements, balance sheets, insider buying and cash flow statements...

Tom and I examine a completely different set of data:

It's called a BLUE SHEET.

Several decades ago � before the Internet came along � secretaries at financial clearing firms would type these data-sets onto pale blue forms.

Hence the name, "Blue Sheets."

This is not a Form 4, Form 13, or any other financial document you might be familiar with. And it has nothing at all to do with "insider buying" or the government either.

So what's so important about BLUE SHEETS?

The best way to show you is through an example...

You Could Have Seen this 936% Jump Coming from a Mile Away

Recently, shares of a tiny paper company called Boise Inc. (BZ) shot up 936% in just under 2 months.

Most investors didn't have the slightest clue this was coming...

After all, Boise Inc. manufactures newsprint � the large rolls of paper used by the Washington Post, the Seattle Examiner, and other newspaper publishers.

Now is not a good time to be doing anything related to the newspaper business.

Just last month, Boise Inc. announced it was shutting down half its news-printing capacity at one plant.

That's pretty much the only news of any kind to come from this tiny company in several months.

So you can probably see why many people who follow the markets were surprised to see shares of Boise Inc. take off like a surface-to-air missile.

While this stock blindsided most investors... you could have seen it getting ready to move.

You could have seen this rise far enough in advance to have made a tremendous amount of money...

Here, take a look:

On March 10th, we were able to access certain figures in the company's Blue Sheet "stock buyer" data, indicating a very big upward move was on the way.

Boise's stock began to rise on March 12th.

Had you invested $5,000 then... you'd be sitting on $48,000 today.

What in the world would cause a tiny paper stock in Boise, Idaho to rise 936% in two months?

I don't know. And to be quite candid, I don't care!

You see, in the short term, top stocks for 2010 rise and fall for a variety of reasons... many of which you and I can never know.

Perhaps corporate insiders are buying or selling... Maybe a pension fund just took a position. Maybe Jim Cramer moved a stock simply by saying the word "buy."

Who knows? And really, who cares?

The only thing Tom and I care about... the only thing worth knowing... is whether a certain stock is going to rise � and when.

That's where BLUE SHEETS come in...

These data have let us know � with an unusually high degree of probability (83%) � when a stock was going to rise... and when it was going to fall...

Stock stories can be inflated. Earnings figures can be fudged. And, unfortunately, balance sheets get warped all the time.

In our experience, BLUE SHEET data is the only information we can truly rely on to provide an objective reading...

Here, let me show you what I mean...

The Market ALWAYS Leads the News

Many investors � even fellow newsletter editors � think they can beat the market by following the right financial news stories...

Find a big stock story before everyone else does, and you get rich. Find out the negative news stories before the market prices that information in... and you get to keep your money.

That's how it works... Right?

That's what most investors and analysts believe.

They think that by looking at a company's debt, cash, EBITDA, and price-to-book ratio... that they'll find a stock worthy of buying...

How many times have you bought an "undervalued" stock, only to wait...

And wait...

While the stock keeps falling in value...

The truth is, I don't give a damn what a stock is "worth." Like most investors I really care only about whether the stock is going to go up or down after I buy it.

That's what makes our approach quite different.

Tom and I don't play the waiting game. If a stock doesn't have the potential to move fast and far, we just won't recommend it. And we never EVER pick a stock on the basis of news... or earnings... or "valuation," or anything like that.

Quite the opposite...

The Secret Behind those Seemingly Inexplicable Financial Events

I'm sure you've heard how the U.S. automotive industry has been getting hammered recently...

General Motors � America's biggest automaker � just laid-off 60,000 workers. They plan to close 1,100 dealerships... And the Federal Government just saved them from total bankruptcy.

Chrysler just filed its Chapter 11 bankruptcy papers. And Ford is fighting to turn things around.

Simply put, things look really bad for the U.S. Auto industry.

Yet � in the past two months � shares of tiny automotive suppliers have been soaring:

Tenneco Inc (TEN) has risen up 901%.

ArvinMeritor (ARM) has risen 811%.

TRW Automotive Holdings (TRW) has risen 597%.

Why has this been happening?

Why have these tiny auto suppliers been multiplying in value... while every piece of conventional evidence suggests they should be falling?

Well, it's probably a combination of factors... but no one can explain it with any certainty...

But there's the thing...


You see, these moves were laid out and described to the day... if you knew how to decipher the appropriate Blue Sheet data.

And all you had to do to see large returns from these tiny top stocks for 2010 was to have the capability to find and interpret the right Blue Sheet data.

And you could have known about it � far enough in advance to make a lot of money...


Had you taken an early $5,000 stake in Tenneco alone, you could have made as much as $45,000.

Sounds nice...

But is it really that easy?

For you, it could be...

But as you probably guessed, these BLUE SHEETS don't just spit out ticker symbols and buy dates for anyone who knows about them. Tom and I had to devise a strategy for accessing and interpreting these things...

Here's how the whole thing works...

What We Discovered...

Tom and I discovered that we could use BLUE SHEET data to determine � with high probability � which top stocks investors would be buying tomorrow... and which top stocks they would be selling... several weeks before the moves actually happened.

Why is this important?

Because, in the short term, that's the ONLY thing that determines whether a stock will rise or fall in value.

It doesn't matter if a stock is "cheap." It doesn't matter if the insiders are buying. It doesn't matter if earnings are up or if they're down.

If people want a stock, it goes up.

If investors don't want a stock, it goes down.

It's that simple.

Remember Boise Inc. � the paper company I told you about earlier?

It shot up in value because thousands of new investors wanted shares.

Like I said before, no one knew exactly WHY all of these people suddenly wanted shares of an obscure paper company with ailing operations.

But you could have spotted the sudden flare-up in demand and capitalized on it.

Same thing with the auto-suppliers I mentioned.

Tenneco, ArvinMeritor, TRW Auto Holdings... they all shot up because an influx of new investors wanted shares.

Again, no one knows why investors do the things they do... but Blue Sheet data have let us know with extremely high probability what U.S. investors were going to do... right before they did it.

The point is, using Blue Sheet data, it is legal and extremely profitable for us to spot these flare-ups in demand � and you can capitalize on them, in a very rational and dispassionate way...

So what are "BLUE SHEETS" exactly?

Let me explain...

How Tom and I Have Been Able to Find Out Which Stocks Investors Would Buy Tomorrow

If you've never heard of Blue Sheets before, I'm not at all surprised...

To most people, the amount of raw data they contain is simply overwhelming...

You see, every time you buy or sell a stock anywhere in the United States... your information goes to what's called a clearing firm.

Clearing firms act as middlemen between the stock market and your broker.

These firms receive every conceivable detail on every security you buy and sell, the number of shares you purchase, the ticker symbol... along with a bunch of additional information you probably wouldn't like to know.

Once the market closes, each clearing firm is required by Federal regulators to send the details on every market transaction to the EBS System. The EBS System is basically a vast Federal Government information warehouse for the U.S. stock market.

It's short for "Electronic Blue Sheets" System. Financial insiders just call them "BLUE SHEETS."

Every trade... no matter if it's Jane Smith, the small time market player in Santa Fe, New Mexico... or Steve Cohen, the big shot hedge fund manager in Manhattan...

They all get logged in the EBS System.

What does the Electronic Blue Sheet system tell us about what investors are likely to be buying tomorrow?

That brings me to Dr.S...

First, "Dr. S." Sends Us an Email

More than 3.9 billion stock market transactions take place on the U.S. stock market each day.

So, as you can probably imagine, at the end of every trading day, the EBS System contains a mind-boggling amount of information. Simply too much for one person � or any team of people � to sift through.

That's why last year Tom and I reached out to a gentleman whom we'll refer to as Dr. S.

"Dr. S" is a computer programmer with a PhD in applied mathematics..

When he's not helping us out, he does contracting work for 2 of the 20 largest Fortune 500 companies in America.

What does Dr. S. help us out with?

Processing the billions of data bytes embedded in the BLUE SHEETS.

Once a day, he searches through the BLUE SHEET info � over 3.9 billion stock transactions from all across the world � and filters it through a powerful computer program he personally created.


It compares and examines that data over the previous 60 trading sessions.

And while a lot of this information is useful and interesting for historical comparisons...

We really only care about one set of numbers, which he analyzes from the daily Blue Sheet reports...


Because remember...

The more investors who buy a stock, the higher its share price climbs...

That's the ONLY thing that ultimately moves a stock's share price.

And if you can find out which top stocks investors will be piling into the most... you can make a killing in the stock market.

I know, this might be hard to visualize. After all, it is counter-intuitive to how 99% of the population invests...

So here, take a look...

Find Out Where Investors Will Likely Put their Money � Even Before they Know Themselves

If you knew investors were about to pour millions of dollars into a certain stock...

Then you could invest before they did... and make a lot of money by riding that stock all the way up...

That's the idea behind our BLUE SHEETING strategy...

Incredibly, this allows you (in many cases) to find out where investors are likely to put their money, even before they know themselves...

Crazy, I know...

But just consider what happened recently to a tiny wireless telecomm company called FiberTower Corporation (FTWR)...

Get a 72-Hour Head-Start on Everyone Else...

On March 2nd, BLUE SHEET data indicated that investors would likely pile into a tiny stock called FiberTower Corporation (FTWR)...


Again, who knows... and who cares!

Let the TV show pundits, blogs, and newspapers try to explain why top stocks of 2010 go up. Frankly, I really don't care. It doesn't really matter.

All I want to do is know which stocks are going up... BEFORE they make their move.

What matters in the case of FiberTower Corporation is that on March 5th � roughly three days after we received the full details on the Blue Sheets � investors started loading up on shares...

In just a few short days, the usual number of FiberTower investors nearly tripled...

And by May 11, the stock � as a direct result of all the new demand � had jumped by 757%.

Had you known how to follow the right numbers on the BLUE SHEETS, you could have gotten a 72-hour head-start on the crowd... and turned a $5,000 stake into $37,850.

How is this possible?

How can you know which top stocks other investors are likely to pile into, even before they do?

Here's the short (and perhaps unpleasant) answer:

When it comes to investing, people are extremely predictable...

In psychology, this theory is known as "social proof." In short, it says that when lots of people start doing something ― wearing a particular type of shoe, going to a particular movie, or listening to a certain song ― it must be the right thing to do.

Well, in the investment world, it works much the same way...

When more people get interested in a particular stock, the higher the price will go.

What's incredible is that we've been able to consistently use Blue Sheet data to find out exactly which top stocks of 2010 have been generating the most investor interest... and which stocks would make the biggest moves.

It requires access to a little-known and seldom-used set of data, a high-powered computer, and a very talented computer analyst to figure out what it all means...

But the results are well worth the effort.

For example...

On March 9, shares of a tiny insurer called Phoenix Companies (PNX) began to take off...

In less than 2 months, they rocketed from 21 cents a share to as much as $2.31.

A 1,000% rise...

We were able to see this move 5 days before the stock began to rise...


The BLUE SHEETS indicated investors would likely be piling into the stock...

From April 21st to April 30th, Uranium Resources (URRE) jumped 219%.

We were able to see this move 96 hours in advance...


The BLUE SHEETS indicated waves of new investors would likely be pouring into the stock...

Dr. S's data analysis has found dozens of these opportunities so far...

How have we known which ones to get into and when?

Let me explain...

A Rapidly Closing Window of Opportunity

I know this whole scenario probably seems a bit unusual...

But very little this year has fit the norm. In fact, that's what put us on the path to make this breakthrough in the first place...

Late last year, as the markets continued to plummet, Tom Dyson and I began taking a very close look at the smallest and most illiquid securities on the stock market...

I'm talking about companies like Boise Inc. � top stocks worth less than $200 million in the stock market...

Why would we look at the most volatile area of the stock market... at the very worst time in stock market history?

Because we knew the bloodbath would eventually end...

And when it did...

We wanted to make sure we could provide our subscribers with an effective strategy for what would inevitably follow...

An 18-Month Explosion

You see, at the end of every major market downturn, small stocks move faster than any other investment in the world...

In 1975, as the markets turned around, small stocks averaged a 78.43% return.

In 2003, as the markets recovered from the tech-inspired bear market of 2001, small stocks outpaced all others by a nearly two-to-one margin.

Today, it's happening again...

Just in the last several months, small stocks have been making some incredible moves:

Ivanhoe Mines (IVN) has risen 361%.

Orion Marine Group (ORN) has risen 431%.

Cott Corp (COT), a soda pop maker, has risen 604%.>

Sealy Corp (ZZ), a bed maker, has jumped 927%.

Virgin Mobile USA (VM) has jumped 487%.

How long do these revitalization periods typically last?

The exact time depends of course on the severity of the preceding crash...

But typically anywhere from 3-7 years...

HOWEVER, the real thrust of the small stock explosion � the truly spectacular part � lasts only for a short while:

According to our calculations, small cap stocks will likely experience a rapid, hyperactive period of growth lasting anywhere from 18 to 24 months

This could last longer... or it could happen in less time.

Again, it's only an estimate.

Why does this happen?

Why do tiny top stocks 2010 rise faster and higher than everything else?

Two reasons...

After a big market downturn, businesses must adapt if they hope to survive and prosper...

Charles Darwin once said the fittest species are not the ones who are the smartest or strongest...

Rather, they're the ones MOST RESPONSIVE TO CHANGE.

It's the same in business...

The companies most capable of retrenching and adapting to the new credit situation and the new (and battered) economy are the smallest companies. They had the least to lose... and now they have the most to gain...

What's the second reason?

Basic mathematics...

Recently, shares of a business software company called Workstream (WSTM) rose 1,850% in just a few months.

For a much larger business software company such as Google to grow by the same amount...

It would have to become a $2.2 trillion dollar company (as valued on the stock market) � the largest publicly traded entity in the history of the world. It would have to consume the equivalent of ExxonMobil, Pfizer, Microsoft, Yahoo, and Chevron combined.. and even then it would still fall short.

But the point is this:

You have a limited period of time to grab as much cash as you possibly can from the stock market.

We're looking straight in the eye of a rare � and potentially very profitable � market anomaly... and now we have an effective strategy to capitalize on it.

That's exactly what we found with our Blue Sheeting breakthrough.

And with Dr. S's assistance, we've conceived, built, tested and fine-tuned a research advisory to help you capture these opportunities...

We're calling it Penny Trends.

On June 16, 2009, we're going public with our new strategy... and marketing this product to a broader audience.

So for the next few days, we're offering you first crack � the chance to get in before the official commercial launch of Penny Trends.

..For much less (55%) than what the general public will have to pay.

We will NEVER offer this price again...

Before I give you the details... and show you how to get started...

Perhaps you're wondering...

"If small stocks are going to outperform all other investments, then why shouldn't I just pick a few on my own?"

Of course you could do that...

But keep in mind, the averages I showed you are based on the overall performance of several hundred small stocks.

If you have enough capital to invest in that many top stocks of 2010, then go ahead...

You probably don't need our research anyway...

What Tom and I are proposing here is a radical new way to potentially get very rich by making a series of small and calculated moves in the market over the next year or so...

We're not fund managers. We're not trying to beat any standard benchmarks...

Nor are we advocating you hold any of these securities longer than several months.

If any of the tiny stocks we recommend aren't meeting our unusually high standards for performance, then we'll recommend you let them go.

For instance, just last month, we recommended selling a tiny lumber company called BlueLinx... even though it had risen 11% in about a month...

Most analysts would be thrilled to see a stock rise 11% in a year, let alone one month...

So why did we suggest cutting it loose?

Because that's not fast enough for us...

Not even close.

Penny Trends is a trading research service. We will not suffer any slow-moving laggards in our portfolio...

Since we began testing our new strategy, we've made 12 recommendations.

As of May 20, 2009, ten have either been closed out as winners or have gone up in value.

That's an 83% winning percentage.

Plus, we made two trial recommendations when the markets were still crashing this past September.

One stock � Questcor Pharmaceuticals (QCOR) � was trading at $5.53/share. By December 8, 2008, shares had raced to $9.54/share.

That's a 73% return during the worst market collapse since 1987.

That same day � Sept. 10 � we recommended buying Emergent BioSolutions, Inc. (EBS).

3 months later, the DOW, S&P 500 and the NASDAQ had all fallen by 30% or more.

Shares of EBS had risen 57.4%.

To Tom and myself, this was validation that our BLUE SHEETING strategy truly worked.

If we could pick two of the only 2010 top stocks to rise during a severe market crash... we had high hopes for what our strategy could do when the penny stock market began to take off...

So, what can you expect in the months ahead? And how can you get started right away?

I'll explain everything in a minute. But first, I wanted to tell you about one more aspect of this situation.

This BLUE SHEET Feeding Frenzy Could Turn Every $5k into $300,000 (or more)

I've already told you how BLUE SHEETS work... and about how we analyze them to find out what stocks investors will likely be buying...

I've also told you why we use them to track and capitalize on the smallest securities on the stock market...

But there's one more benefit to the BLUE SHEET situation, and it may be the best part of the whole thing...

When Tom and I receive a short list of BLUE SHEET prospects from Dr. S...

One of the things we look for are "clusters" of top stocks for 2010:

Groups of companies that operate in the same industry, sector, or niche...

The more unusual the better, too...

For instance, a couple of months ago, we received a short list from Dr. S.

On it were 4 coffee companies:

Starbucks (SBUX)

Green Mountain Coffee Roasters (GMCR)

Coffee Holding Company (JVA)

Diedrich Coffee (DDRX)

According to the BLUE SHEET data, U.S. investors had suddenly grown very interested in coffee (of all things)...

And they were about to start pouring money into the four coffee stocks listed above.


Again, who knows, who cares...

It didn't really matter.

What mattered is that investors from all over the world THOUGHT something VERY big was about to happen in the coffee market.

Remember, "social proof" is probably the strongest force in the entire financial market.

Something so big, that to them it didn't really matter which coffee stock they invested in...

They were going to act on it, one way or another...

And you could have known about their interest early enough to make a lot of money...

That's what the BLUE SHEETS data tells us: Not why people are prepared to invest. Rather, WHERE and WHEN.

In the days that followed, waves of new investors poured into coffee stocks...

As a direct result:

Starbucks jumped 34%.

Green Mountain Coffee Roasters climbed 95%.

Coffee Holding Company rose 517%.

And Diedrich Coffee � a tiny California Coffee manufacturer � rose a whopping 6,533%.

There was nothing especially appealing about the fundamentals of these top stocks for 2010.

But the more people who loaded up on shares of coffee companies... the higher their share prices jumped...

The higher their share prices jumped, the more attention coffee stocks got in the mainstream press...

The more attention coffee stocks received in the mainstream press... the more people wanted to buy shares...

And so on and so forth...

Eventually, so many people were loading into tiny stocks like Diedrich, that its share price had jumped 63-fold.

Crazy, I know...

But that's why we love finding "clusters" of top stocks for 2010...

Do you see how this works?

The more of the same kind of stock investors want, the better. Because when the herd piles into an entire sector, it pushes a stock's share price (and your investment) up higher than it would ordinarily move on its own.

We don't care about the big stocks like Starbucks and Green Mountain Coffee...

We care that investors want coffee stocks so bad... that they're willing to buy anything coffee-related...


Because that kind of insane demand will push tiny little stocks like Diedrich through the roof...

These "clusters" appear on our BLUE SHEET lists more often than you might think...

And in some pretty strange sectors too...

Recently, we've seen heavy "clustering" in everything from Internet top stocks 2010 and aerospace companies to home furnishing retailers...

For instance, a couple months ago, we saw a flurry of BLUE SHEET activity indicating strong interest in car rental companies...

Boom, boom, boom...

One blue sheet after another...

In companies like Hertz, Avis Budget, and Dollar Thrifty Automotive.


Again, who knows, who cares...

What mattered is that investors REALLY had a sudden and strong desire for car rental companies... and were about to pony up a lot of cash to satisfy it.

Hertz � the largest company of the cluster � jumped 385%.

The other two companies jumped even higher. Avis Budget jumped 1,097% in two months...

And Dollar Thrifty Automotive jumped 779%.

These companies are so tiny and excite-able...

You could breathe on your computer screen and they'd jump 200% or 300%...

If this kind of trading is too opportunistic for you, I understand.

And that's okay. As it turns out, we can only afford to take a small group of folks along for the ride...

Enrollment: Limited

Because our new Penny Trends research deals with highly illiquid, extremely sensitive equities, we're limiting enrollment to a very small group of readers...

Ultimately, many folks will be excluded.

So to keep things fair, here's what we're doing...

Right now, we are opening this service only to current readers. We will DEFINITELY open it up to the rest of the investment public as of June 16th... and may do so even sooner, depending on what happens in the markets, and the response from our subscriber base.

If there are any charter subscriptions to Penny Trends still available by June 16th...

Then we'll offer them to a broader audience, at the full price.

But we doubt we'll reach that point.

What's the price?

One full year of Penny Trends will cost $2,000.

If you respond to this offer right away, you can lock in a ridiculously low price of $900.

We will never offer this price again.

We'll ask everyone else to pay 122% more when we go public with our new strategy on June 16 (if there are still spots left).

Why are we making this offer?

Because we are confident this service can help improve your net worth. I truly believe you could make an absolute killing in the market from Tom and my trading recommendations for at least the next 12 months.

As an independent financial publisher, the success of our business depends on how satisfied you are with our research.

If you like our work and think our investing strategy is right for you, then you stick with us and S&A continues growing as a business.

Sign up today � claim your charter membership for the limited time we're offering it.

You'll have 90 DAYS to decide whether our research is right for you. If for whatever reason you want to cancel your subscription in the first ninety days, just let us know. We'll give you a full refund (minus a 10% refund fee).

You see, we want to avoid "tire-kickers" - the folks who sign up without any intention of paying. This costs us a small fortune in overhead expenses, especially when we offer special discounts ($1,100 off) like this one.

Here's what you'll receive as a Penny Trends charter subscriber:

Penny Trends Trading Primer: This special, members-only report represents your TRADING BIBLE. Read it right away, before you review anything else.

You'll learn the full details on this unique situation... including the secrets behind our BLUE SHEETING strategy.

You'll also learn a trading secret called "R-1." This is a very simple, but incredibly important rule we ask that you follow when EXITING our recommended positions.

You see, a big part of our investment strategy � and a great deal of your success � depends on your ability to remain disciplined and dispassionate. When we issue a buy recommendation, it's okay of course if you choose not to invest. But if you do, please do not drag your feet. These are fast moving issues. A day or two can make all the difference in the world. Likewise, when we email you to exit a play, it's important that you don't sit on it.

Penny Trends Trading Alerts: � Every Tuesday at 6 p.m, Tom and I will email you our play of the week, why we're recommending you make it, and every important detail you'll need to know. In these reports, you'll also receive a detailed summary of what you should do with any positions we're currently holding.