1. The Bull Case
By Ken Hodor
11/19/11

2. Purpose of Presentation
Present my analysis
What am I missing?

3. What causes markets to turn?
Major world events
Major US events
Market bubbles
Fibonacci retracements

4. Potential World Events to drive markets higher
War with Iran last war market went up
Low interest rates
Inflation
Increased corporate revenue—CSCO, IBM, AAPL…
Money on sidelines
Hedge funds need to be in when Market rises
“There are no triple tops”
Booming China and India make the rest of world look tiny (they lead markets higher)

5. Non-Issues Small economies US Banking System—out of the woods?
Italy default
Spain default
Portugal default
US Banking System—out of the woods?
US Housing market—continues to fall
Midwest homes going or $1,500 taxes
Manufactured homes 1/10 price of stick homes

8. Recent SPY movement closeup

10. From Nov 11 Traders Expo James Altucher market internals all positive
Stockpickr.com
CycleProphet.com
Michael Turner forecast software looks positive

11. Impending Inflation Government keeping interest rates low
They are watching home prices as gauge
Missing the underlying commodity price increase
Resulting in increased prices
Companies raise prices  Increased revenues
Increased revenues Stock prices increase
Increased prices  income $ increase
Increase in Tax revenue

12. Real Value Falls Based on commodity prices rising
Gold
Silver
Energy
However, realize this and make a plan
Exponential gain

13. How to trade it?

14. What will take market down
???

15. Conclusion Buy December SPY options with 30 delta
If wrong then exit with small loss
If right start rolling them up and ride that bull cowboy.