us stock market, trade stock

The last two weeks I wrote articles on money and it has amazed me the nerves they touched. In response to last weekend's article, I received the following email:

" I urge Bill Craft [sic] to read Francisco D'Anconia's "Money Speech" in Atlas Shrugged before he says anything further about money. That speech is the definitive answer to anyone who says anything about money and evil. Anyone unfamiliar with that speech simply doesn't know the subject at all."
Name Withheld

I'm sure it will surprise the author of that letter to know that I, indeed, have read Atlas Shrugged and the "money speech" to which he refers. The "money speech" is the classic description of money as a tool of exchange. It is classic capitalism and I am a capitalist. The speech begins with the line: "So you think the money is the root of all evil?" Ayn Rand, in authoring the speech then explains that money is an important tool that is not essentially evil. Later in the same lengthy speech, Rand continues writing: "Or did you say it's the love of money that's the root of all evil? To love a thing is to know and love its nature. To love money is to know and love the fact that money is the creation of the best power within you..." That latter pronouncement seems in direct conflict with the Bible which states: "For the love of money is the root of all evil...." (1Timothy 6:10).

The fact is I agree with much of what Rand wrote, but when it is a choice between the author of a novel and the Bible ....you decide.

The point I really want to make is the passion that even the subject of money evokes. The author of last weeks letter pronounces that the speech in Atlas Shrugged is "...the DEFINITIVE answer to anyone who says anything about money and evil." [emphasis supplied] I am not sure who appointed him to decide what is or is not definitive, but it is clear that he is passionate in his *feelings* about money. He even wants to take away my right to free speech unless I read (and evidently agree) with the money speech, urging me to read the speech before I say anything else about money. Wow, what strength of feeling. The author of that letter has unequivocally proven the emotion that can attach to the subject of money. I do not doubt his sincerity for an instant.

If the subject of money ignites such passion, imagine what trading with real money can do. Just the discussion brings emotions to a boiling point in some. If we are trading money, can you see how greed and fear can influence the process. After all, they are emotions that are attached to the issues of acquiring and losing money. All I want you to do is be aware that emotions about money can influence your trading to your distinct detriment. I know it; I have seen it happen. All of us want to strive to see that it does not happen to us in our own trading. I could not agree more that money is really nothing more than a valuable medium of exchange, but convincing oneself of that during the heat of trading is a hurdle many unsuccessful traders must overcome.

Good Trading!
Bill Kraft

Mr. Kraft's past articles are posted on the MarketFN.com website for your review.

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SUCCESS TRADING GROUP -- by the MarketFN.com Success Trading Group Team

Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email and/or pager alerts intended to provide you with the opportunity to make many, many profitable trades.

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KLAC (KLA-Tencor Corp.)
Company Profile
Our Success Trading Group closed 4 more winning trades this week! We were in and out of KLA-Tencor (Ticker: KLAC) for a quick profit in less than 4 trading days. Did you know that we have put together 87 winning trades without posting a loss since August 30, 2005? Wow! You need to try this service.

Our Success Trading Group has closed over 300 winning trades and only 8 losing trades on our Main Trade Table.
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STOCK SPLIT REPORT -- by StockSplits.net Editor Jon Johnson

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).

We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don't let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will mover versus the stock's movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down.

Remember, wait to see the stock start to move up. Don't just blindly make a play and don't try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us.

Listen to Stock Split Report Editor Jon Johnson's
stock split interview on CNBC-TV [  Broadband  |  Dial-up ]

Here's a pre-split play and our current analysis.

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GILD (Gilead Sciences--$83.00; +0.23; optionable): Biotechnology. Splits 2:1 on 6-25-07
Company Profile
STATUS: Flying plateau. GILD continues to set up nicely in its 6 week lateral trading range that is working along the 18 day EMA (82.42), holding that near support on mostly low volume. Setting up nicely and showing some rising volume last week as GILD moved up off a test toward the 50 day EMA on an intraday low. Money flow remains strong, and with that volume starting up we are on watch this week for the breakout from this range.
Volume: 2.362M Avg Volume: 4.149M
BUY POINT: $84.38 Volume=6.5M Target=$94.95 Stop=$81.89
POSITION: GDQ HQ - Aug. $85c (53 delta) &/or Stock

Learn more about the Stock Split Report and how we have made gains of 321% with our powerful stock split plays!
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$10 TRADER -- by MarketFN.com Editor Bill Kraft

We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.

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NMGC (NeoMagic Corp.)
Company Profile
NMGC bumped above a resistance on Friday and broke above the 40 day exponential moving average on somewhat better than average recent volume. I think this one is worth watching if it can get some volume behind the move.

Try our $10 Trader Real-Time Alert Service!
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IH ALERTS -- by InvestmentHouse.com Editor Jon Johnson

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WNR (Western Refining, Inc.)
Company Profile
WNR was a big winner for us from February to March when it broke out from a 12 week base and rallied 12 points. That gain netted us 39% on our stock positions and 200% on our options. It then went into a base and we put it on our watch list; we always watch those stocks that are nice winners for us as they base just so we can be ready when it sets up for its next move.

Well, as it turns out WNR started to form the identical base it scratched out from December to early February, just a bit shorter. I mean it was almost an overlay of that pattern. Needless to say we put it on the report on 5-15-07 and just waited for WNR to show us the move.

It did not take long. On the fourth session WNR broke sharply higher on a big volume surge. That was what we wanted as that showed the buyers were piling in to buy the shares as it cleared resistance. We bought some stock positions at $42.45 and some September $40 strike call options at $6. The power of the breakout was pretty exciting, and with WNR in the oil and gas refining business, we anticipated another strong run. It put in almost 2 points that first breakout day and added a bit more over the next two sessions, but stalled the following. It fell to test the 10 day EMA, but it held and volume was low, so we let the play run. It was still above our buy point so we gave it some room to work.

Glad we did. On 5-29-07 WNR exploded higher for $3.63 on some humongous trade. It added $2.97 the following session on some more outstanding volume. Took a breather Thursday, understandable given the explosive move. The stock was near $50 on the high and our options were bidding $10.80, a crisp 16% gain on the stock and 80% on the options in 8 sessions. WNR was not done, however, rallying another $2.60 Friday. Volume was lower, however, the lowest of the run. With a good week behind it, taking some gain was prudent though with such a strong run underway we always want to keep some to work higher for us. That worked out to 21% on the stock and 106% on the options ($12.40, or $640 per contract). In addition we still have a strong stock running for us. That is why we always watch leaders that have made us money and then slip into a base for some R&R. When they set back up they can provide us with a repeat performance just as WNR is doing.

Learn more about the IH Alert Service!
Details Here.

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OPTION TRADER -- by MarketFN.com Editor Bill Kraft

Our Option Trading Service is for conservative traders that understand leverage principles. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride ourselves on minimizing our losses. We always know our downside potential in a trade.

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ANF (Abercrombie & Fitch Co.)
Company Profile
I'm looking at the $80 '09 LEAPS calls on ANF. It had a big move on Friday on about average volume. Since the markets were strong on Friday (also option expiration), I want to see where this one goes early next week.

Try our Option Trader Real-Time Alert Service!
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Details Here.

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DIVIDEND INVESTOR -- by the MarketFN.com Dividend Investor Team

Perfect for your IRA! Our Dividend Investor service focuses solely on the "best of the best" dividend paying stocks. Many of the stocks that we will be buying in our Dividend Investor service raise their dividends almost every year. Year after year! This is powerful. We buy these stocks for their powerful dividend producing income; and we will also buy these with a purpose to make capital gains as the stock increases in value.

Feel free to sign-up for a free 30-day trial. During such time you can review our Trade Table and see the type of stocks we are buying. You will also receive all the new investing alerts we send during your trial period. Again, many of the stocks that we will be buying in our Dividend Investor service raise their dividends almost every year. Year after year! This is powerful. Don't miss out on this service!

While we titled this service an "investor" service, we also believe these stocks are solid for the "trader" in you. With these stocks, we believe an exit point of 3% above the buy price is generally appropriate for traders. And, in fact, our first 22 positions have hit our 3% target subsequent to the buy alert!
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COVERED CALLS -- by the CoveredCall.com Team

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STLD - Steel Dynamics, Inc. is currently trading at $45.10. The May $45 Calls (RQLEI) are trading at $1.90. That provides a return of about 4% if STLD is above $45 on expiration Friday in May.
Company Profile

Learn more about our
8 Covered Call Tables!
Updated after every close.
Details Here.

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