Our Market Timing System gave a C/Up signal yesterday and we said that, "Prudent Investors should consider buying top ranked stocks from the Easy Does It - C/Up strategy located in the Yellow Brick Road folder in the UniSearch Tool." What is that all about?

As noted in my essay of October 3, 2008, "The Yellow Brick Road" is a trading system which allows investors to make money in both up and down markets. It is easy to use, does not demand a lot of time and can be done at night when the market is closed. The Yellow Brick Road uses two strategies: "Easy Does It - C/Up" for going long on Confirmed Up signals and "Easy Does It - C/Dn" for going short, if one wishes, on Confirmed Dn signals. These strategies were illustrated on September 26, 2008 and October 3, 2008. An excellent "Strategy of the Week" presentation, showing the complete "Yellow Brick Road" process, was made by Ms. Angel Clark at the VectorVest University on October 3, 2008.

With all the economic and political turmoil going on around the world, it will be a fitting test to see if we have the brains, heart and courage to achieve financial freedom via The Yellow Brick Road.

HOPE VS REALITY.
I had a long conversation this morning with a Wall Street Journal Reporter regarding our Confirmed Up signal. He, of course, is acutely aware of all the problems currently facing investors and wanted to know what would support a "sustained rally" as indicated by the Confirmed Up signal.

I told him essentially what I said in last week's essay: Investors want hope and President-Elect Obama will give it to them. Mr. Obama has been carefully laying the ground work for his presidency with his comments on the severity of the recession, the huge amounts of money he needs to spend and the long time it will take to get the economy going again. While he admits he doesn't know for sure that his remedies will work, he exudes confidence in what he is doing. Great leaders know what to do and how to do it. So far, we are only learning about what Mr. Obama plans to do.

Nevertheless, investors are going to focus on the potentially profitable opportunities arising from Mr. Obama's programs then they will look beyond the dreadful economic news we're getting every day. This should give the market a lift at least to inauguration day. It's like the old game of buying the rumor and selling the news. Except this time it's Hope vs. Reality.

WHY YOU SHOULD LEARN TO TRADE OPTIONS.
A long-term subscriber at our Tampa Seminar told me that Rambus, RMBS, was in another patent suit and the results of the trial were imminent. The decision could move the stock price up or down, big time. I asked if he was buying a Straddle. A Straddle is an Option trade that allows you to make money whether the price of the stock goes up or down...the more it rises or falls, the better.

This isn't the first time we have encountered an opportunity such as this with Rambus. On February 20, 2004, I wrote an essay regarding an earlier Rambus court decision called the "The Perfect Straddle." This essay described how Straddles work and an associated "Strategy of the Week" presentation showed how one could have made $6,290 in two days on very little investment.

Today is déjà vu all over again. Rambus closed down $7.26 per share on a ruling against them. Making money like this is Why You Should Learn To Trade Options.