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 December 8th. 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. Double Bottom SP500 continued to get lower and hit the august low at 1415 last wednesday. ND100 entered a short trading range. DOW also continued to get lower and is now in double bottom position right at august low level. Double Bottom Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1440.70 -13.00 3 ND100 2028.90 -5.40 3 Dow 12981 -62 3 SP500 Last Comment SP500 continued to get lower day after day except for a day or two. We now have a downtrend for the 6th week. SP500 hit the august low last wednesday and created a double bottom situation. Usually this is good news and could spark a short term rally despite high negative sentiment in the market. After all we are near december and december is never a falling month. So we can expect a short term rally now that could last a week or two. It looks weird to talk like talk I know but many rally occured in the same kind of market condition. 1410 is now our first support. 1380 is now our next support. ND100 Last Signal Comment ND100 after it went down sharply stayed put in a quite narrow trading range. It is now oversold with an RSI at 35 and looks ready to start a short rally. It is not in the same pattern as DOW and SP500. infact it looks better. 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 continued to get lower and hit august low to create a double bottom. So DOW is in a similar position as SP500 technically. We can expect a short term rally that could last 1-2 weeks. Remember that double bottoms situations in our index trading system always generated good profits thereafter 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 reamins in the red but are still safe with 4 weeks before expiration. With the current double bottom situation it could improve quickly. Our strike prices are very low and should protect us. If markets would get lower too much we might rollover to january at much lower strike prices without losing any money. You now need to subscribe to our trading service to see the specifications. 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$ 1280$ -720$ 2007/10/11 RUT PUT Uncovered Sell PUT RUT November RUT December 7000 360$ 850$ -490$ 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 +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% +0.9% +2.0% Core PPI +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% +0.2% +1.3% Retail Sales +0.2% +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% +0.3% -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% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% +0.2% 0.0% Housing Starts 1.226M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 1.64M 1.57M Building Permits 1.178M 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. PPI came in at +0.1% for october and core PPI was unchanged better than expected. CPI for october came in at +0.3% and core CPI at +0.2% inline with expectations. Retail sales came in at +0.2% lower then expected. Housing starts were up 2.75% which was a surprise and building permits were down 6.5% more than expected. Inflation numbers are in check and even better than expected. Retail sales was lower than expected and housing numbers were mixed. Real estate in general remains weak and should not find a bottom before late next year. So that leaves FED lowered a lot of room for another .25 rate cut in december if not .50. FED said last week that it lowered it's forecast on GDP for next year to around 2% which tends to say that december rate cut is necessary. The SP500 PE ratio is at 16.93 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.