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 24th. This is based on regular monthly revenu. In fact you will see my own real trades plus other possibilities to generate 20 - 25% growth every year no matter where the market is heading. More soon. Temporary Support Penetrated SP500 penetrated recent temporary support at 1500 and is now in a pending stop position. ND100 finally had a strong set back under the lower band and oversold. DOW also penetrated recent temporary support at 13500 and is also in a pending stop position. Temporary Support Penetrated Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1453.70 -81.58 3 ND100 2034.30 -160.29 3 Dow 13043 -764 3 SP500 Last Comment SP500 penetrated 1500 temporary support and entered another bear market. At this time SP500 hit a pending stop point at 1455 which means that we now expect a short term recovery of about 3% that should kick in in the next 1-3 days. Once that occurs we will then have another set back that could get lower than 1450 and retest next support level at 1410. If somewhere in the week we go under 1400 we may hit the extreme oversold which always triggers a violent reversal. SP500 is near oversold level with an RSI at 35. We are now in a 4th week of downtrending market. 1410 is now our first support and should not be penetrated for a long while. 1410 is now our first support. 1380 is now our next support. ND100 Last Signal Comment ND100 went down sharply last week way under the lower band. It is now oversold with an RSI at 35 and a band offset of 1.14. We now expect like other markets a short term recovery probably followed by another set back that could bring it lower than current position. We can consider that our first support is now at 1850, our next support at 1710 and the next one at 1450. DOW Last Signal Comment DOW like SP500 penetrated recent temporary support at 13500 and is now oversold with an RSI at 35 as well. DOW is in a similar position as SP500 technically. DOW also is on a pending stop trigger point which means that we can now expect a short term recovery of about 3% in the next 1-3 days. Like SP500 DOW is not very far either to reach an extreme oversold level which would be somewhere under 12500 in the next week. Our first support is now at 12845 and our next support is at 12050. Special Option Strategy Update Please note that the email service to signal new trades update will be now available to subscribers only. The service is no longer free. It yielded so far 17% in 8 months. So Order now Our december trades are back in the red. Our strike prices are very low and should protect us. We may decide however to bjy back on the next expected short term rebound and wait for the next set back to reenter at a lower strike price. You now need to subscribe to our trading service to see the specifications. It is still time to enter last trade. All our portfolio shows a 17% plus value since beginning of march so far. Last signals review Order now our trading service and go to the Trading Service page to see how each current position is used in each portfolio. Date Market Trade Type Description Symbol Strike Price Month Margin Amount Current Profit 2007/10/11 SPX PUT Uncovered Sell PUT uncovered September SPX SXY December 14000 560$ 2100$ -1440$ 2007/10/11 RUT PUT Uncovered Sell PUT RUT November RUT December 7000 360$ 1000$ -740$ 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 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 PPI +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% +0.9% +2.0% Core PPI +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% +0.2% +1.3% Retail Sales +0.6% +0.3% +0.5% -0.9% +1.5% -0.2% +1.0% +0.5% 0.0% +0.9% +0.6% CPI +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% +0.5% 0.0% Core CPI +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% +0.2% 0.0% Housing Starts 1.19M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 1.64M 1.57M Building Permits 1.126M 1.326M 1.389M 1.41M 1.501M 1.429M 1.56(M 1.53M 1.568M 1.60M 1.51M Employment +166,000 +96,000 89,000 +68,000 132,000 +190,000 +88,000 +177,000 +113,000 +146,000 +206,000 +132,000 Durable Goods Orders -1.7% -5.3% +6.1% +1.9% -2.8% +1.1% +3.4% +2.4% -7.8% +1.9% Durable Goods Excluding Transportation +3.7% -1.0% +1.5% -0.4% -3.1% New Homes Sales -4.8% -8.0% +3.7% -6.5% -1.61% +16.2% +2.6% -4.0% -6.6% +12% Existing Homes Sales 5.04 Millions 5.48 Millions 5.75 Millions 5.76 Millions 5.99 Millions 6.01 Millions 6.15 Millions 6.68 Millions 6.46 Millions 6.22 Millions 6.28 Millions ISM Index(Manufacturing) 50.9 52.0 52.9 53.8 56.0 55.0 54.7 50.9 52.3 49.3 51.4 49.5 ISM Services 55.8 54.8 55.8 55.8 60.7 59.7 56.0 52.4 54.3 59.0 56.7 58.9 Factory Orders +0.27% -3.5% +3.4% +1.0% -0.5% +0.5% +3.1% +1.0% -5.6% +2.4% +0.9 GDP(Gross Domestic Product) Numbers 3rd Quarter 2007 2nd Quarter 2007 1st Quarter 2007 4th Quarter 2006 3rd Quarter 2006 2nd Quarter 2006 1st Quarter 2006 4th Quarter 2005 3rd Quarter 2005 +3.9% +3.8% +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. Employment came in for October at 166,000 way over expectations. ISM manufacturing for Octobe rat 50.9 under expectations. ISM services for october came in at 55.8 above expectations and Factory orders for September came at at +0.27% lower than expected. Finally GDP for 3rd quarter came in at +3.9% higher than expected as well. Generally speaking last economic numbers are still excellent expecially with the employment results and ISM services results not to mention excellent GDP growth. So as expected FED lowered lower rates .25 at 4.50. We do beleive with recent market turmoils that we will have another .25 rate cut in december. The SP500 PE ratio is at 17.08 according to June results. We are near undervalued level which would be at around 1370. Remember that when the last major economic cycle that started in march 2003 the PE ratio was at around 16. So we are in the middle of the range (16-20) with the best period of the year kicking in.