To OTC Journal Members:
 

An Obese Market

Oil cranked up through $130 today- the dollar is giving back some of its recent gains. The market is starting to give some ground. I moved back into the money on my short position in the market- as covered in the weekend edition.

In case you missed it- here's today's idea for a trade. I believe the market is overdue for a correction. We have been chugging straight up for about 2 months, and this rally is running out of steam. There are still a lot of headwinds for the economy, and anyone who appreciates the cycles should recognize there is an opportunity to notch some profits betting the market is overdue for a breather.

The security I have chosen to own as a bet the market will going into a corrective phase is UltraShort QQQ (AMEX: QID)- this is an ETF that tracks the ETF for the NASDAQ 100- QQQQ on a 2 for 1 basis. Anotherwords, if the QQQQs go down 1%, this stock should trade up about 2%. My current position: 2,000 QID at $38.67.

I believe the QQQQs have a pending date with about $44.50- that's about an 11% drop from last week's high- a 61.8% retracement of the March to May gains.

If my thesis proves out, QID should have a date with about $44.75 (currently $38.80)- which coincidentally just about perfectly fills a gap created in mid April.

For those who are looking to use leverage and bet with a smaller amount of money, the call options on QID aren't too terribly pricey. I would suggest the June 38s- symbol QID.SL trading at about $2.50. A purchase of 10 calls- representing 1,000 shares, would run you about $2,500.

If my target is right, those options could trade as high as $6.75 to $7- A darn strong return in anyone's book.
 

If it's not there yet, this sign is coming to your neighborhood- someday.

After a breather in Q1 on new store openings, Spicy Pickle is back on track with its expansion program. Store #39 opened last week, and it's a company owned store.

Therefore, it should add another $500k to $700k to top line revenues for the company, and deliver gross profits in the 15% range. 

The new corporate store is the second in the Ft. Collins area, and is located at 2120 E. Harmony Rd., Unit 101, Ft. Collins, CO 80525. I believe this represents the #6 corporate owned store, with one more company owned store currently under construction.

As a corporate store, this location now ceases to be a cash drain, and begins to deliver cash flow to SPKL. One more to go, and a bunch of franchises under construction. 

Shares of SPKL have been treading water just below $.90 for about a month. Since this stock has already suffered a major correction, I believe a breakout to the upside is inevitable. The market is slowly grinding through some excess supplies, and at some point will change character.

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Go Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclosure/compensation/section/profile/ for our full profiles and http://www.otcjournal.com/disclosure/compensation/section/alert/ for Trading Alerts. Larry Isen, the editor and publisher of the OTC Journal, through various entities he controls, has purchased 1,200,441 shares of Spicy Pickle at an average cost of $.2125 per share. These purchases were made in Spicy Pickle private offerings. The aforementioned purchases were made between August of 2005 and August of 2006. On 12/15/07, on entity controlled by Larry Isen participated in an additional financing wherein 12 shares of convertible preferred, converting at $.85 into 120,000 shares and 90,000 warrants with an exercise price of $1.60 were purchased. In addition, Larry Isen has received 785,000 shares of Spicy Pickle common stock for consulting services and has purchased 213,343 shares in the open market at an average cost of $.89 cents per share. In addition, MarketByte LLC, an entity controlled by Larry Isen, has received a fee of $30,000 cash, and 300,000 newly issued restricted shares for coverage of Spicy Pickle. TGR Group LLC, the publisher of the Small Cap Network, has received $30,000 and 300,000 newly issued restricted shares for coverage of Spicy Pickle. Mr. Isen is an affiliate of TGR Group. In addition, two other individuals affiliated with TGR Group have purchased a total of 300,000 shares at $.25 per share, 21,961 in the open market at $.76 per share and received an additional 70,000 for consulting services. Current positions of the aforementioned can be found at www.otcjournal.com and www.smallcapnetwork.com in the Spicy Pickle information section. 

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