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 September 1st. 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. 2% band offset reverse downtrend SP500 rebound after hitting 2% band offset(1375 intraday). All markets having strong rebound from thursday intraday low. 2% band offset reverse downtrend Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1445.94 12.88 2 ND100 1888.78 -29.78 1 Dow 13079 -103 2 SP500 Last Comment SP500 was very active in both directions hitting the 2% band offset trigger point at 1375 intraday last thursday. It then triggered a strong rally that continued on friday to post strong gains. SP500 is now just above the lower band. Financial sector which was highly oversold had a more solid rebound especially with the discount rate reduction announced friday. 1460 support was broken but 1380 held on well and was the base for reversal. We can now expect more calm and less volatility in the market from now on. Over the next 2 weeks we should see SP500 to get a bit higher with short term correction here and there. 1380 is now our first support. 1325 is our next support. ND100 Last Signal Comment ND100 also went as low as it's 2% band offset at 1815 intraday thursday. It trigggered a strong rally like in other markets. ND100 should continue to recover in the coming weeks since it was hit as hard as SP500. 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 took a dive like other markets but not as hard as SP500 or ND100. It did not hit the 2% band offset (1.80) but had a strong rally just like SP500 and ND100. We can expect DOW to continue to recover but with less volatility than in the past 4 weeks. We will have also brief set back here and there. 12800 first level support held on quite well and was the base for the last rally. 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. Our September 1350 and our September RUT PUT 710 are in much better shape now even if we are still behind a little with 5 weeks before expiration. The extreme oversold condition reached last week triggered a rebound. Since the selection of our strike price was excellent we are now able to hold position and we should cash in profit at expiration. All our portfolio shows a near 10% 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 2007/07/25 SPX PUT Uncovered Sell PUT uncovered September SPX 1350 SXY 1350 September 14160 700$ 1925$ -1225$ 2007/07/25 RUT PUT Uncovered Sell PUT RUT September 710 RUT 710 September 7515 700$ 1000$ -300$ 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 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 PPI +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% +0.9% +2.0% -1.6% -1.3% +0.1% Core PPI +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% +0.2% +1.3% -0.9% +0.6% -04.% Retail Sales +0.3% -0.9% +1.5% -0.2% +1.0% +0.5% 0.0% +0.9% +0.6% +0.1% -0.8% +0.2% CPI +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% +0.5% 0.0% -0.5% -0.5% +0.2% Core CPI +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% +0.2% 0.0% +0.1% +0.2% +0.2% Housing Starts 1.38M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 1.64M 1.57M 1.486M 1.74M 1.67M Building Permits 1.37M 1.41M 1.501M 1.429M 1.56(M 1.53M 1.568M 1.60M 1.51M 1.535M 1.638M 1.72M Employment +92,000 132,000 +190,000 +88,000 +177,000 +113,000 +146,000 +206,000 +132,000 +79,000 148,000 188,000 Durable Goods Orders +1.4% -2.8% +1.1% +3.4% +2.4% -7.8% +1.9% -8.3% +7.8% -0.50% Durable Goods Excluding Transportation -1.0% +1.5% -0.4% -3.1% -1.1% -1.7% +0.1% New Homes Sales -6.5% -1.61% +16.2% +2.6% -4.0% -6.6% +12% +3.9% -4.0% +5.3% Existing Homes Sales 5.75 Millions 5.99 Millions 6.01 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 ISM Index(Manufacturing) 53.8 56.0 55.0 54.7 50.9 52.3 49.3 51.4 49.5 51.2 52.9 54.5 ISM Services 55.8 60.7 59.7 56.0 52.4 54.3 59.0 56.7 58.9 57.1 52.9 57 Factory Orders +0.6% -0.5% +0.5% +3.1% +1.0% -5.6% +2.4% +0.9 -4.5% -1.7% GDP(Gross Domestic Product) Numbers 2nd Quarter 2007 1st Quarter 2007 4th Quarter 2006 3rd Quarter 2006 2nd Quarter 2006 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 +3.4% +0.7% 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 2.2% and CPI at 2.7%. In the last 2 weeks we had several major economic news. See the table above for all numbers. PPI for july was up 0.6% and core PPI was up 0.1% inline with expectations. CPI was up 0.1% in july and core CPI was up 0.2% inline with expectations. ISM services for july came in at 55.8 below expectations but still very strong. Retail sales were up 0.3% better then expectations. Housing starts and building permits for july were down more than 6% under expectations. Real estate market continue to go under. Inflation numbers are great. Retail sales was better than expected and ISM services despite a slowdown remains solid. With weakness renewed in real estate, credit worries and good control of inflation we might see rate decrease before the end of the year and possibly as soon as next meeting in September. Rate increases are now out of the picture. The prime is still at 5.25 and could be lowered as soon as next September. The SP500 PE ratio is at 17.34 according to March results which means that according to june results we would be near 17. Last thursday we were near 16 when SP500 hit 1370 intraday and hit the 2% band offset which triggered a strong rally as expected. Remember that when the last major economic cycle that started in march 2003 the PE ratio was at around 16. So we came near that level. This was the first bear market period since July 2002.