Don't be fooled.

A week ago I said "the reversal is happening now." And what does the market do? It decides to buck against my prediction and push on just a little bit more. But I am not worried. That is just the last few reps of an exhausted man. The work out is over and it is time for rest.

Like last week, the indices are over-bought and the direction of the market is turning. I still have my positions in NG and my PUT position on it is unchanged. Since last week, I have also purchased a CALL on Office Depot (ODP) as my bet against the coming market turn. I did it because I see an ascending-triangle forming and it's secondary indicators are promising.

I just used an expression I don't remember using here before. If you don't understand what I mean by an ascending-triangle, let me explain. Picture in your mind a right triangle where the long flat side is horizontal and at the top; the hypotenuse is on the bottom creating a upward slop from left to right. The flat side is a level of resistance that the stock will have to break through. If a stock creates this kind of pattern while having fairly good secondary-indicators, it is more likely that it will break through resistance and make a run for the sun. Now it will eventually get burned, and come back down, but if we get in on the ground floor. A fairly good amount of profit can be had.

I just took another look at one of my favorite stocks, FPL, and it looks like it might be ready for another rally. Keep your eyes open for a move above 57.91.

That is my opinion, you can take it or leave it.

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