What ever happened to Yo-Yo's? Remember "Walking the Dog" and "Around the World?" Ok, whatever. Good Monday All... I'm sure most investors and traders in the market can't say they're off to an excellent start to the week but we can. Our fade trade against the major indexes is working like a charm once again and it reminds me of the Yo-Yo. When the market acts like a Yo-Yo and you can predict its moves as easily as a Yo-Yo, profits can be fairly easy. We suggested toward the end of last week to get back to buying the index put options when the market makes attempts to rally, then close them out when the market blows off to the downside. For those of you who maybe don't quite understand what I'm referring to, I've included an hourly chart here of the QQQ's, which is the Index ETF for the NASADQ 100. Now don't get the wrong impression here, I'm not referring to intraday trading. If you have a quick look at the hourly bar chart, you'll notice I've circled the recent points in the market where it has made attempts to rally. The rally points have provided an excellent opportunity to pick up some put options when the market retraces some of its losses before making a new short-term low. Sometimes it can happen overnight and other times it takes a few days to pan out, so you don't necessarily need to be in and out in the same day. This strategy is proving profitable for anyone who has some time to keep one eye open and pick their spots. With the first quarter earnings season on top of us, there's likely going to be a fair amount of volatility to capitalize on while the market tries to figure out if it can take investors higher for the back half of the year. So rather than sit and watch the world go round, we prefer to be in the game always looking for ways to let the market pay us for our knowledge. Even if you're a long-term investor, this strategy is an excellent way to hedge against your long positions and effectively lower your cost basis of your portfolios as long as you're willing to spend a little time and follow along with our strategy. It's not for everyone, but for those who are active in the markets and interested in making money in a bearish environment, this in my opinion is one of the safest ways to do it. Of course the word "safe" is very relative anytime we're talking about the market. No risk no reward. The markets over the years has frustrated even the most successful investors but in an effort to generate maximum returns, risk is a necessity. Otherwise, you can always buy real estate. Oops, even real estate hasn't been all that safe in the last ten years so now you see why we prefer the public equity markets over every other form of investment outside of investing in your own business. LuxeYard Blazing the Chart We brought you LUXR last Thursday on the open at around $.80 cents with the idea of providing Members with an excellent entry into this potentially promising young development stage idea. So far, the stock is not disappointing. The Company came out on the open this morning and announced a strategic alliance with buyinvite, one of Australia's premier members-only private sale sites. The companies will be launching joint sales events featuring each other's respective brands to a collective audience of over two million members. Braden Richter, CEO of LuxeYard said, "Not only does this alliance give buyinvite's Australian and New Zealand audience access to U.S. luxury brands, it also lowers production costs for both companies. Additionally, this alliance will give LuxeYard increased buying power with our brands." The flash sales space is all about how fast and to how many consumers you can get your product offerings out to, hence the word flash. Since it depends so heavily on massive buying strength for maximum buying power, I'd say this is an excellent arrangement for the two outfits. The last hour of trading on Friday proved explosive and the follow through today has been equally as impressive. As I type, the stock is doing its best to break the $1 level thus providing SCN Members with a 22% gain already! Since the major indexes and the rest of the markets have been taken out to the woodshed in recent days, I'd say 22% in three days is pretty darn good. We even had a few professional players in the equity space reach out to us Friday who were quite intrigued with what LuxeYard is doing as a Company. The flash sales space is garnering a lot of interest on the Street right now, but even more so with the early stage VC players. Like we mentioned in Thursday's edition, LUXR could be a huge benefactor of this rapidly growing retail phenomenon. Some SCN Contributors and Members have posted up some interesting commentary and we've got a PDF available for your review here if you're interested in learning more about LuxeYard: http://www.smallcapnetwork.com/LuxeYard-Inc/s/quote/p/s/LUXR/. Doing your diligence is as equally important as pegging a good entry. Again, now that you have a favorable entry into LUXR, use trailing stops to make sure you never let a gain turn into a loss. However, I would suggest you give it a little breathing room in the event the stock goes parabolic. Has PSID Finally Hit Bottom? We provided everyone with our thoughts on PositiveID on Friday. We mentioned we're on the hunt for the stock to find a base. We may well have shares of PSID forming a bottom right now. The Company last week announced the pre-order availability of their iglucose system for monitoring glucose levels in diabetics, as well as announcing the Company will be presenting its system to certain health care providers from around the Country. This morning, William J. Caragol, PositiveID's Chairman and CEO, updated the investor community as well as diabetes about the Company's next steps. The Company announced significant progress with the initial deployment of its FDA-cleared iglucose(TM) mobile health system for diabetes management. The iglucose System is currently being trialed by a leading health insurer, a large consumer healthcare products company and an international telecommunications provider. The Company also recently announced the use of iglucose in a trial with a leading global pharmaceutical company. PositiveID's FDA-cleared iglucose System is a convenient and easy-to-use wireless solution designed to empower individuals with diabetes to become more engaged in the self-management of their condition. iglucose seamlessly communicates blood glucose data from glucometers to the iglucose diabetes management portal, where reports are generated and can be shared with family members and healthcare professionals, making it possible to improve care in a cost-effective manner. The iglucose system communicates according to the user's preferences via online access, email, fax or SMS text. iglucose eliminates the burden of keeping logbooks and enables individuals with diabetes to proactively take control of their glucose levels and treatment regimens. iglucose does not require the use of a cell phone or a wireless plan. Caragol went on to say, "Many large organizations are currently trialing iglucose, from one of the largest health insurers in the U.S., to one of the largest consumer healthcare products companies in the world." It appears the Company is moving ever closer to realizing revenue from both of its divisions, diabetes management and airborne bio-threat detection systems. This could be the reason shares of PSID are finally starting to experience increased volume interest of late around the $.09 cent level. I've included a daily chart here for your review. If PSID can find strength around the $.09 cent level, it could prove a significant catalyst for the stock. If it can't hold this level on good volume, there's a chance it won't be pretty. I actually like the risk/reward here around this $.09 cent level. Again though, use protective stops and let's hope PSID starts getting some traction. See you tomorrow, have a great afternoon.