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 June 23rd. This is based on regular monthly revenu. 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 heading. More soon. Set back in motion All markets had a set back in the last week almost touching the lower band for SP500 and DOW. The first negative divergences observed earlier triggered this small set back. Set back in motion Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1507.67 -8.06 0 ND100 1906.26 17.01 0 Dow 13424 -83 0 SP500 Last Comment SP500 after reaching 1540 (all time high) finally had a setback to push it under 1500 for one day to settle at 1507. Negative divergences observed earlier triggered thi temporary set back. SP500 almost touched the lower band before rebounding. This rebound could be very short lived however. We should see another attempt to touch the lower band near 1490 real soon. SP500 could from now on get into a trading range for several weeks. Financial sector and utility sector had been hit the hardest this week with the possibility of new rate hikes. 1460 is our first support. 1380 is now our second support. 1325 is our next support. ND100 Last Signal Comment ND100 had also a set back but in smaller magnitude. It is near the moving average but negative divergences are very present and could push it to the lower band(1859) in the coming week. It continues to stagnate around 1900 and seems to build a resistance at this level. So we must be a bit cautious with this market. ND100 seems now to get into a trading range (1870 - 1910). Negative divergences are more important than SP500. It is possible that we might see a lower band touch soon in the coming 2 weeks. We can consider that our first support is now at 1720, our next support at 1450 and the next one at 1400. DOW Last Signal Comment DOW follows the same pattern as for SP500. DOW had a setback nearly touching the lower band thursday before rebouding friday. Negative divergences observed earlier triggered the current set back. So like SP500 this market will enter a trading range. DOW is more affected by financial sector and utility sector the most hardest hit this week. So we can also expect a retouch to the lower band soon and possibly lower. Our first support is now at 12800 and our next support is at 12100. Special Option Strategy Update Please note that the email service to signal new trades update is now available. So all current subscribers will receive an email when a new trade is entered till end of september. We rolled over Our SPX PUT June 1325 to July 1350 for a net profit of 195$ and our June RUT PUT 710 to July 710 for a net profit of 200$. New trades are OK for now with 6 weeks before expiration. All our portfolio shows a 6% plus value since beginning of march so far. Last signals review Go to the Trading Signals page to see how each current position is used in each portfolio. Go to the Options Trading History page to see trading history for each portfolio. Date Market Trade Type Description Symbol Strike Price Month Margin Amount Current Profit 2007/05/21 SPX PUT Uncovered Sell PUT uncovered July SPX 1350 SXY 1350 July 13770 270$ 310$ 0$ 2007/05/21 RUT PUT Uncovered Sell PUT RUT July 710 RUT 710 July 7355 255$ 180$ 120$ Always remember that you need between 12,000 and 15,000 USD margin for each contract. Click here to find the options trading signals page. Economic Current Conditions Table of Economic Numbers Economic Info May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 Juin 2006 PPI +0.7% +1.0% +1.3% -0.6% +0.9% +2.0% -1.6% -1.3% +0.1% +0.1% +0.5% Core PPI 0.0% 0.0% +0.4% +0.2% +0.2% +1.3% -0.9% +0.6% -04.% -0.3% +0.2% Retail Sales -0.2% +1.0% +0.5% 0.0% +0.9% +0.6% +0.1% -0.8% +0.2% +1.4 -0.4% CPI +0.4% +0.6% +0.4% +0.2% +0.5% 0.0% -0.5% -0.5% +0.2% +0.4% +0.2% Core CPI +0.2% +0.4% +0.2% +0.3% +0.2% 0.0% +0.1% +0.2% +0.2% +0.2% +0.3% Housing Starts 1.528M 1.491M 1.51M 1.40M 1.64M 1.57M 1.486M 1.74M 1.67M 1.795M 1.85M Building Permits 1.429M 1.56(M 1.53M 1.568M 1.60M 1.51M 1.535M 1.638M 1.72M 1.747M 1.869M Employment +157,000 +88,000 +177,000 +113,000 +146,000 +206,000 +132,000 +79,000 148,000 188,000 121,000 124,000 Durable Goods Orders +0.6% +3.4% +2.4% -7.8% +1.9% -8.3% +7.8% -0.50% -2.4% +3.1% Durable Goods Excluding Transportation +1.5% -0.4% -3.1% -1.1% -1.7% +0.1% +0.5% New Homes Sales +16.2% +2.6% -4.0% -6.6% +12% +3.9% -4.0% +5.3% -3.0% -4.5% Existing Homes Sales 5.99 Millions 6.15 Millions 6.68 Millions 6.46 Millions 6.22 Millions 6.28 Millions 6.24 Millions 6.21 Millions 6.30 Millions 6.33 Millions 6.62 Millions ISM Index(Manufacturing) 55.0 54.7 50.9 52.3 49.3 51.4 49.5 51.2 52.9 54.5 54.7 53.8 ISM Services 59.7 56.0 52.4 54.3 59.0 56.7 58.9 57.1 52.9 57 54.8 57.7 60.1 Factory Orders +0.3% +3.1% +1.0% -5.6% +2.4% +0.9 -4.5% -1.7% -0.6% +1.2% GDP(Gross Domestic Product) Numbers 1st Quarter 2007 4th Quarter 2006 3rd Quarter 2006 2nd Quarter 2006 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 +0.6% 2.5% 2.0% 2.6% 5.6% 1.7% 4.3% 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. Employment for may came in at 157,000 stronger than expected. ISM manufacturing index came in at 55 just about at expectations level and quite good. ISM services cam in for May at 59.7 very strong and higher than expected. Factory orders for April were up 0.3% much lower than expected. GDP for 1st quarter was revised to +0.6% lower than 1.3% first estimate. Numbers are mixed. GDP is real low but the ISM services is very high which account for 80% of the economy. FED expressed the possibility this week to restart rate hikes. So lowering rates by the end of the year is now compromised and can generate fluctuations higher than usual in the market. The prime remained at 5.25 Statement remains basicly the same except for possible rate hikes later this year. The SP500 PE ratio is at 18.33 according to december results. Remember that when the last major economic cycle that started in march 2003 the PE ratio was at around 16. So we stay in the middle. Despite the fact the PE is not too high we will have to watch for a possible bear market in september-october 2007. Our last major bear market was on july 2002.