MARKET MAGIC REPORT issue XII 'A Quick Update'

Hello fellow traders, probably wondering why the MMR has not written an article in so long with all that has been going on. The MMR wanted you to fully understand that sometimes when the stock market is behaving this way the best thing to do is look the other way for a while.

Now some of you probably did not take my advice and sell your call options because we never came on here and told you to do so, correct? Well that is fine, even though we told you to sell at a certain point which the market did cross over. Great if you sold, that is what you should of done.

However, those of you that are still holding those call options. Great if you held them, that was certainly something you could of done. He's crazy your saying right now. Nope we are not crazy. We just know that the market sometimes acts very strange.

We here at the Market Magic Report (MMR) plan on having two Working Man's Portfolios now. Portfolio A - sold there call options and portfolio B - kept there call options. Hopefully this will not get confusing for you.

Portfolio A had a profit of about three hundred off those trades and that is where I will start it. Some of you probably did better than that and that is great but I think because we didn't have a exact sell point we need to take an average point of were you folks sold the options.

Portfolio B just continue to hold those options and I think we can still make some nice money. Just so everyone understands the reason some of us kept the options past the sell point was because it was holding the next support line so strong.

Which at the time was 1085 on the S&P. We are looking for the S&P to bounce off of the 1040 level at this point but if the market closes below that point you may want to sell what is left of your call options as our gamble did not pay off.

However, what we are truly looking for on the S&P is 1040 then to 1180 or 1200 then a bear market down to 800 area. However after that the sky is the limit and the MMR believes you will see 1500 on the S&P in 2013 and 2000 by 2016.