The Index Trading Weekly Newsletter Is now accessible directly from an RSS Feed. If you have a My Yahoo account or an My Msn account go to the Weekly newsletter page to register and you will be advised immediately when changes occur on the site either with trading signals, weekly newsletter or any other changes on the site. You can also create a new entry in an RSS reader. Click Here to register for RSS Feed Markets going nowhere All markets continue under negative divergences. SP500 corrected down to the moving average and bounced back a little. ND100 giving a sell signal. DOW sets new year high and retreats. Markets going nowhere Last trades update Index Market Last signal Entry date Entry Price Current Price Win / Loss Weekly Change # cycles completed SP500 Sell December 29th 2005 1254.42 1310.61 -56.19 -0.67 0 ND100 Sell April 28 2006 1700.71 1700.71 0 0 1 Dow Sell April 7 2006 11120 11367 -247 20 1 SP500 Last Signal Comment Our last sell signal is now behind 56 points. SP500 as expected retreated to the moving average and bounced back a little to stay in negative divergences. We are still at year high again but this time we have a triple negative divergences. Profit taking continue as we try to pass over 1310 intraday. We can now expect SP500 to start a down move towards the lower band soon. Financial results are so far above expectations and is sustaining the market. 1250 is now our first support. 1170-1180 support level is our second support level. Our next support is at 1140. ND100 Last Signal Comment We just had a new Sell signal friday on ND100 giving us a profit of 2.17%. We can now expect this market to reach the lower band somewhere in the next 2 weeks. Watch also the opportunity for a short term option trade. We can consider that our first support is now at 1640 followed by another one at 1530, our next support at 1500 and the next one is at 1410. DOW Last Signal Comment We had a new sell signal on April 7th. We are now behind 247 points with this new sell signal. Dow made only 20 points this week and the negative divergence is near to have some impact on this market. We can expect DOW to retreat back to the moving average next week. Our first support is now at 10650 and our next support is at 10200. Special Option Strategy Update Our MAY PUT 1225 sold at about 1.35$ now worth 1.00$. So everything is going just fine once again with 3 weeks to go before expiration. Always remember that you need between 11,000 and 15,000 USD margin for each contract. Short term Options and Eminis trading Welcome to this new trading service. With this service we should have every month good opportunities. Click here to find the options trading signals page. This week we had we had 2 trades with BBH. A first entry at 183.02 and another one to 171.22. Note that BBH price was adjusted down 7.68 points for special dividend purpose. Options premium remained the same. So we had a loss of 70$ and a win of 185$ for a net profit of 115$. SPX DOW XLE and XAU are far from giving us opportunities. QQQQ is getting close to give us another opportunity if it sets back to 41.15 or lower. Take a look at this page and please let me know if you have any questions about something you don't understand. Please use the link mentionned above to see the target numbers. Check every day on the page to see if the numbers are changed. Of course we are far from a possible entry for now but we never know. Pharma Index will soon be covered and will be traded with PPH etf. Economic Current Conditions Table of Economic Numbers Economic Info Mars 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 Apr 2005 PPI +0.5 -1.4% +0.3% +0.6% -0.7% +0.7% +1.9% +0.6% +1.0% Unchanged -0.06% Core PPI +0.1 +0.3% +0.4% +0.1%- +0.1% -0.3% +0.3% +0.2% +0.4% +0.1% + 0.01% Retail Sales +0.6% -1.4% +0.7% +0.7% +0.8% +0.3% +0.2% -2.1% +0.3% +1.0% 0.3% + 1.5% CPI +0.4 +0.1% +0.7% -0.1% -0.6% +0.2% +1.2% +0.5% +0.5% +0.1% - 0.01% + 0.5% Core CPI +0.3 +0.1% +0.2% +0.1% +0.2% +0.2% +0.3% +0.1% +0.1% +0.1% + 0.01% Unchanged Housing Starts 1.96M 2.12M 2.28M 1.933M 2.12M 2.02M 2.13M 2.04M 2.042M 2.045M + 0.02% Building Permits 2.06M 2.15M 2.22M 2.08M 2.16M 2.10M 2.22M 2.14 Millions 2.167 Millions 2.132 Millions 2.11 Millions 2.15 Millions Employment 211,000 225,000 170,000 140,000 305,000 44,000 -35,000 211,000 242,000 166,000 104,000(revised) 275,000 Durable Goods Orders +6.1% +3.4% -10.2% +2.5% +3.3% +3.0% -2.1% +3.8 -5.3% +1.5% + 6.4%(revised) Durable Goods Excluding Transportation +0.6% +4.2 -3.7% +2.6% +0.9%(revised) New Homes Sales +18.0% -5.5% +2.9% -10.71% +12.9 +2.1% -1% +6% + 2.1% Existing Homes Sales 6.92 Millions 6.91 Millions 6.56 Millions 6.75 Millions 6.97 Millions 7.09 Millions 7.29 Millions 7.29 Millions 7.15 Millions 7.35 Millions ISM Index(Manufacturing) 55.2% 57.2% 54.8% 55.6% 56.6% 59.1% 59.4% 53.6% 56.6% 53.8% 51.4% ISM Services 56.8% 61.0% 58.9% 60.0% 53.3% 65.0% 60.5% 62.2% Factory Orders -4.5% +1.1% +2.2% -1.7% +2.5% -1.9% +0.9% +0.7% GDP(Gross Domestic Product) Numbers 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 2nd Quarter 2005 1st Quarter 2005 4.8% 1.7% 4.3% 3.3% 3.8%(revised) Inflation Numbers 4th Quarter 2005 3rd Quarter 2005 2nd Quarter 2005 1st Quarter 2005 4.07% 4.3% 2.4% 3.1% This week we had several major economic news. See the table above for all numbers. Existing home sales were a bit higher but new home sales were up 18% much more than anticipated. Durable good orders were up 6.1%. GDP for first quarter 2006 was up 4.8% which shows solid economic growth despite high oil prices. Concerns about more rate hikes after May meeting are revived because of a quite strong economy. The crude retreated to near 72$. It continues to stay high and pauses threat to continued econimic growth. The prime is still at 4.75. Mr. Bernanke said that more hikes might be needed to control inflation. The SP500 PE ratio is at 18.33 according to december results. We can almost say that for march estimates we are at near 17 which is still considered low. Remember that when the last major economic cycle that started in march 2003 the PE ratio was at around 16. So we are at the low end. Despite the fact the PE is not too high we will have to watch for a possible bear market later in the fall for the coming year. Our last major bear market was on july 2002.