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 Please note that the next number will be November 4th. All markets overbought All markets continue to post new highs every week or so. However all markets post an RSI reading above 80. I do believe we will have a short term correction soon that could last a week or 2. But it should be short lived and we would take the opprotunity to reverse current postions. All markets overbought Last trades update Index Market Last signal Entry date Entry Price Current Price Win / Loss 2 weeks Change # cycles completed SP500 Sell September 21 2006 1318.03 1368.60 -50.57 19.01 2 ND100 Sell September 21, 2006 1634.87 1709.58 -74.71 18.50 3 Dow Sell September 21 2006 11533 12002/td> -469 152 2 SP500 Last Signal Comment Our current sell signal is 50 points behind. SP500 continue to go higher above 1325 breakout. Despite good progress over last weeks we can see a very high overbought degree (RSI at 83). We need to see a short correction to allow this market to get higher. So we can expect just that in the coming 2 weeks. But we can also expect SP500 to reach 1400 before year end. We will take the opportunity to reverse the current position on any short term correction. The earning season just got started and profits expectations are in order. 1220 is now our first support. 1170-1180 support level is our second support level. Our next support is at 1140. ND100 Last Signal Comment Our current sell signal is 75 points behind for now. ND100 crossed over 1700 now trying to reach year high at 1760. A small correction is in motion right now and may last another week. We also have an RSI reading of 75 which is still overbought. But around year end we should see a challenge to 1760. We will take any short term correction to reverse the current position. We can consider that our first support is now at 1450, our next support at 1400 and the next one at 1320. DOW Last Signal Comment We are now 469 points behind on the current sell signal. DOW continue to post new high every week. However just like SP500 DOW is highly overbought(RSI at 84) and we can expect a short term correction in the coming 2 weeks. Then we should see DOW to establish new highs again. We will take any short term correction to reverse the current position. Our first support is now at 10650 and our next support is at 10200. Special Option Strategy Update Our current postion for November PUT SPX 1220 sold at 1.40$ now woth 0.40$. We are just doing fine and will post another nice little profit. Always remember that you need between 11,000 and 15,000 USD margin for each contract. Short term Options 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. We had no trades in the past 2 weeks. XAU remains close to be reentered again. RKH(financial index) is also close. All other markets are quite far to trigger a new entry. We now have new target numbers for all our covered markets. See full instructions on options signals page for more details. 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. Economic Current Conditions Table of Economic Numbers Economic Info September 2006 August 2006 July 2006 Juin 2006 May 2006 April 2006 Mars 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 PPI -1.3% +0.1% +0.1% +0.5% +0.2% +0.9% +0.5% -1.4% +0.3% +0.6% -0.7% +0.7% +1.9% Core PPI +0.6% -04.% -0.3% +0.2% +0.3 +0.1% +0.1 +0.3% +0.4% +0.1%- +0.1% -0.3% Retail Sales -0.4% +0.2% +1.4 -0.4% +0.1 +0.8% +0.6% -1.4% +0.7% +0.7% +0.8% +0.3% +0.2% CPI -0.5% +0.2% +0.4% +0.2% +0.4% +0.6% +0.4 +0.1% +0.7% -0.1% -0.6% +0.2% +1.2% Core CPI +0.2% +0.2% +0.2% +0.3% +0.3% +0.3% +0.2 +0.1% +0.2% +0.1% +0.2% +0.2% +0.3% Housing Starts 1.77M 1.67M 1.795M 1.85M 1.953M 1.863M 1.96M 2.12M 2.28M 1.933M 2.12M 2.02M 2.13M Building Permits 1.62M 1.72M 1.747M 1.869M 1.946M 1.98M 2.06M 2.15M 2.22M 2.08M 2.16M 2.10M 2.22M Employment 51,000 188,000 121,000 124,000 92,000 126,000 200,000 225,000 170,000 140,000 305,000 44,000 -35,000 Durable Goods Orders -0.50% -2.4% +3.1% -0.3% -4.7% +6.1% +3.4% -10.2% +2.5% +3.3% +3.0% Durable Goods Excluding Transportation +0.5% +1.0% +0.7% -1.1% +0.6% New Homes Sales -3.0% -4.5% -3.0% +4.6% -4.9% +18.0% -5.5% +2.9% -10.71% Existing Homes Sales 6.30 Millions 6.33 Millions 6.62 Millions 6.67 Millions 6.75 Millions 6.92 Millions 6.91 Millions 6.56 Millions 6.75 Millions 6.97 Millions 7.09 Millions ISM Index(Manufacturing) 52.9 54.5 54.7 53.8 54.4 58.9 55.2% 57.2% 54.8% 55.6% 56.6% 59.1% ISM Services 57 54.8 57.7 60.1 63.0 56.8% 61.0% 58.9% 60.0% Factory Orders -0.6% +1.2% +0.7% -4.5% +1.1% +2.2% GDP(Gross Domestic Product) Numbers 2nd Quarter 2006 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 2nd Quarter 2005 1st Quarter 2005 2.6% 5.6% 1.7% 4.3% 3.3% 3.8%(revised) Inflation Numbers Year to year inflation according to core CPI is now at 2.7% In the last 2 weeks we had several major economic news. See the table above for all numbers. Retail sales for September were down 0.4%. PPI for september was down 1.2% but the core PPI was up 0.6% above expectations. CPI for september was down 0.5% and the core CPI was up 0.2% inline with expectations. Housing starts was up 5.9% much more than anticipated. Building permits were down almost 5%. If we expect housing starts and PPI we are still in an economic slowdown. This high core PPI reading may delay interest rates decrease but for the rest it is all OK for now. The crude is still around 60$ giving a small boost to the market. It is a lot lower now in the past 3 weeks and helping stock market. It might be short lived however just like last year. The prime is still at 5.25. With latest readings on inflation numbers and real estate market rate hikes are over. With latest economic data we can start to say that rated decreases might be closer than we think. The SP500 PE ratio is at 18.32 according to june results. We can almost say that for september estimates we are at about 17.85 which is still considered low but less comfortable then earlier in the year. 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.