Cramer and Dykstra Pennystock scandal!

Wanted to get you this article as quickly as I could as it’s HUGE NEWS that could lead to some MAJOR changes. This article is courtesy of Tim Sykes, and I highly recommend jumping on his educational videos asap!

As I wrote a few weeks ago, the failed Trader Monthly magazine editor-in-thief, as several ex-employees refer to him, Randall Lane, has been writing his memoirs these past few months, exploring all the angles of what it’s like to bankrupt not just one but two magazines and deserve the absolute hatred of just about every person I talk to in the financial publishing world.

The guy owes money to nearly half a dozen financial writers and is the subject of one of my most popular blog posts ever.

But as an editor-in-thief who won’t stay down, he’s turned to his latest writing gig at The Daily Beast (along with reviewing NYC’s top restaurants???), he’s resorted to implicating Jim Cramer and his prodigal son Lenny Dykstra in a nasty penny stock promotion scandal in the article below.

Shady Randall Lane claims shady Jim Cramer employee Lenny Dykstra took “$250,000 worth of secretly issued stock—in exchange for recommending that stock to TheStreet.com subscribers” which makes Jim Cramer shady for recommending shady Lenny Dykstra as anything other than a thug (I’ve written about Dykstra too) Students of my video lessons know this kind of corruption goes on all the time and the beautiful thing is that its predictable enough to be consistently profitable for those who learn to identify it.

As Jim Cramer’s ratings and TheStreet.com’s ratings prove, nobody expected much from them anyway, but this is a great example of why I’ll probably NEVER have anyone else writing on my site–it’s just too easy to take a big wad of cash from some junky penny stock and pass it off as a real pick…scandalous but true.

I WILL NEVER TAKE A DIME OR SHARE FROM ANY PENNY STOCK OR THEIR SHAREHOLDERS, MY STRATEGY AND MY PICKS ARE PURE AND REAL.

It’s early in this case as Randall Lane’s word is about as solid as his financial publishing reputation (absolute shit), so read the article below and let’s see how this thing plays out…Cramer has made a ton of enemies over the years so I wouldn’t be surprised to see them pounce on this and make it bigger than it probably is:

Oh and please do try to ignore the passages that require further editing such as:
“I was running a company I had co-founded: Doubledown Media…” should read “I was running a company into the ground…”

Stay on top of this stuff like I do!



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Stock Market Commentary For Monday Morning

The December NASDAQ 100 was lower overnight due to profit taking as it consolidates some of last Thursday's rally but remains above the 20-day moving average crossing at 1301.15. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the October 14th reaction high crossing at 1499.00 are needed to confirm that a bottom has been posted. If December renews this fall's decline, the 87% retracement level of the 2002-2007-rally crossing at 979.90 is the next downside target. The December NASDAQ 100 was down 3.50 pts. at 1333.50 as of 5:52 AM CST. First resistance is last Friday's high crossing at 1361.25. Second resistance is the reaction high crossing at 1364.25. First support is the 20-day moving average crossing at 1301.15. Second support is the 10-day moving average crossing at 1276.45. Overnight action sets the stage for a lower opening by December NASDAQ 100 when the day session begins later this morning.

The December S&P 500 index was slightly higher overnight as it consolidates above the 20-day moving average crossing at 941.00. Last week's breakout above this resistance level signals that a larger-degree short covering rally into early-November appears to be unfolding. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. However, it will take closes above the October 14th reaction high crossing at 1066.50 to confirm that a bottom has been posted. If December renews this fall's decline, the March 2003 low crossing at 787.50 is the next downside target. First resistance is last Friday's high crossing at 984.00. Second resistance is the reaction high crossing at 992.20. First support is the 20-day moving average crossing at 941.00. Second support is the 10-day moving average crossing at 924.25. The December S&P 500 Index was up 2.70 pts. at 970.00 as of 5:58 AM CST. Overnight action sets the stage for a higher opening by the December S&P 500 index when the day session begins later this morning.

December crude oil was lower overnight as it consolidates below the 62% retracement level of the 2007-2008-rally crossing at 68.84. Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near. Closes above the 20-day moving average crossing at 72.96 are needed to confirm that a short-term low has been posted. If December renews this fall's decline, the 75% retracement level of the aforementioned rally crossing at 51.81 is the next downside target. First resistance is last Thursday's high crossing at 70.60. Second resistance is the 20-day moving average crossing at 72.96. First support is last Monday's low crossing at 61.30. Second support is the 75% retracement level crossing at 51.81.

Keep Emotion Out Of It, Stick To Your Plan

All three indexes experienced much welcomed large gains today, bringing with it a lot of optimism. And that very well could be well deserved. But if you rely on the trends [which I personally have been lately] it looks like the Bulls have a lot of work to do to call this a bottom.

If you have kept up with my blog you know that I have been using the double short and double long indexes to trade on what I like to call my "sling shot trade". That trade may be a little tougher now as the VIX [CBOE Market Volatility Index] settles down. But even though we have had the biggest one week gains in 5 years, this was done on low volume [especially today] and that has me wondering if we are going to test the bottom again. A weekly high close, or close to it, on Friday would be a bullish technical clue that lows are in place in the stock indexes.

The oil service industry led the charge today but that could be quickly deflated if crude oil demand in the U.S. and especially China continue to spiral downward. A lot of smart people are calling for a trading range in the $50 to $70 dollar range for crude oil. I am bullish long term for everything crude oil, but will be looking to short oil again with the DUG especially since a correction may be due with DUG losing more than 35% in less than a week.

I may be looking for a chance to go short on crude but I will not be playing that game on the indexes anytime soon. I will go double long with the DDM,SSO and QLD on every pull back. That's my plan, what is yours?

My Simple View Of Todays Narket

After another day like today we should keep to the facts and keep it simple.

The U.S. stock indexes closed sharply lower again today and hit fresh contract lows amid ongoing financial market uncertainty. News that General Motors ratings were lowered by the ratings agencies further spooked the market. GM is on the verge of collapse and its stock price is lower than it was in 1929. Bears still have the solid near-term technical advantage in the stock indexes, amid no technical clues that market bottoms are in place. Look for any rallies in the stock indexes to be selling opportunities in the near term.

Once again, that's all I got. Let's get a good night sleep, don't take the street home and live to trade another day.