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 january 27th. Please note also that the trading signals service will be completely revamped towards the end of february. It will be oriented towards portfolio management examples. In fact you will see my own real trades plus other possibilities to generate 15-20% growth every year no matter where the market is haeding. More soon. Markets in trading range SP500 and DOW are now in a trading range. We will have to wait and see last quarter financial results to see if we have a chance to break above the upper range. ND100 rallied nicely to establish new high. Markets in trading range 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 1430.73 -112.70 12.43 2 ND100 Sell September 21, 2006 1634.87 1844.81 -209.94 87.91 3 Dow Sell September 21 2006 11533 12556 -1023 93 2 SP500 Last Signal Comment Our current sell signal is way behind. SP500 after pausing the moving average rebounded to retest last high of 1430. We are now in a trding range (1405-1430) for the last month. Very little negative divergences are present as we speak. If financial results are as expected we might have a chance to break above 1430 and reach near 1480 otherwise we will stay in that trading range. We remains 60 points away to have a 20% advance in one single cycle. Rarely SP500 made more than 22% in one single cycle before retreating at least to the lower band. So we probably have between 40 and 68 points left to this upmove started last july. RSI reading is at 55 which is neutral and could spur a new swing to have a new high. 1325 is now our first support. 1220 is our next support. 1170-1180 support level is our third support level. ND100 Last Signal Comment Our current sell signal is also way behind for now. ND100 stopped it's slow downtrend and resumed strongly upward to set a new high. It is now a bit overbought with RSI at 71. News were very good for this market which explains this solid upmove. It could continue in the weeks to come. 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 way behind on the current sell signal. DOW remains the strongest market of all. The uptrend remains strong above the moving average. RSI is now at 57 neutral. DOW is near all time high again. Negative divergences are disappearing which leaves room for new highs in the coming weeks. Our first support is now at 10650 and our next support is at 10200. Special Option Strategy Update Our SPX january PUT 1310 sold at 2.30$ now worth 0.10$ and will be a sure profit. We will collect again here. We might have an opportunity to rollover in the coming 2 weeks. Always remember that you need between 12,000 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 have ana ctive trade with XAU near to be exited. All other markets are now far from being entered. So stay tuned for any signal. Index markets may give us a chance in the coming 2 weeks. 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 December 2007 November 2006 October 2006 September 2006 August 2006 July 2006 Juin 2006 May 2006 April 2006 Mars 2006 February 2006 January 2006 December 2005 PPI +2.0% -1.6% -1.3% +0.1% +0.1% +0.5% +0.2% +0.9% +0.5% -1.4% +0.3% +0.6% Core PPI +1.3% -0.9% +0.6% -04.% -0.3% +0.2% +0.3 +0.1% +0.1 +0.3% +0.4% Retail Sales +0.9% +0.6% +0.1% -0.8% +0.2% +1.4 -0.4% +0.1 +0.8% +0.6% -1.4% +0.7% +0.7% CPI 0.0% -0.5% -0.5% +0.2% +0.4% +0.2% +0.4% +0.6% +0.4 +0.1% +0.7% -0.1% Core CPI 0.0% +0.1% +0.2% +0.2% +0.2% +0.3% +0.3% +0.3% +0.2 +0.1% +0.2% +0.1% Housing Starts 1.59M 1.486M 1.74M 1.67M 1.795M 1.85M 1.953M 1.863M 1.96M 2.12M 2.28M 1.933M Building Permits 1.51M 1.535M 1.638M 1.72M 1.747M 1.869M 1.946M 1.98M 2.06M 2.15M 2.22M 2.08M Employment +167,000 +132,000 +79,000 148,000 188,000 121,000 124,000 92,000 126,000 200,000 225,000 170,000 140,000 Durable Goods Orders +1.9% -8.3% +7.8% -0.50% -2.4% +3.1% -0.3% -4.7% +6.1% +3.4% -10.2% Durable Goods Excluding Transportation -1.1% -1.7% +0.1% +0.5% +1.0% +0.7% -1.1% New Homes Sales +3.9% -4.0% +5.3% -3.0% -4.5% -3.0% +4.6% -4.9% +18.0% Existing Homes Sales 6.28 Millions 6.24 Millions 6.21 Millions 6.30 Millions 6.33 Millions 6.62 Millions 6.67 Millions 6.75 Millions 6.92 Millions 6.91 Millions 6.56 Millions ISM Index(Manufacturing) 51.4 49.5 51.2 52.9 54.5 54.7 53.8 54.4 58.9 55.2% 57.2% 54.8% ISM Services 58.9 57.1 52.9 57 54.8 57.7 60.1 63.0 56.8% 61.0% Factory Orders +0.9 -4.5% -1.7% -0.6% +1.2% +0.7% -4.5% GDP(Gross Domestic Product) Numbers 3rd Quarter 2006 2nd Quarter 2006 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 2.0% 2.6% 5.6% 1.7% 4.3% 3.3% 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. ISM manufacturing for december came back above 50 at 51.4. Employment was at 167,000 for december much stronger than expected. Retail sales were up 0.9% for december better than expected and factory orders for november were up near 1% after declining 4.5% previous month. It seems like economic slowdown has reached a bottom and we can feel a revive in the economy. FED will be forced to keep rates the way they are. If it continues to improve we might even see new rate hikes. For sure rates decrease is quite far away. The crude took a slide down to 53$ very good for the market. The prime is still at 5.25. With latest readings on employment and retail sales we can start to say that rated decreases are quite far for 2007. The SP500 PE ratio is at 19.16 according to september results. We can almost say that for december estimates we are at about 18.75 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.