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 22nd. 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. Santa Claus Rally SP500 rebounded on a double bottom (first low established in august). ND100 continue in a short trading range. DOW also rebounded from double bottom position right at august low level. Santa Claus Rally Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1504.66 63.96 3 ND100 2130.00 101.1 3 Dow 13626 645 3 SP500 Last Comment SP500 reacted almost immediately on our forecasted double bottom situation(1410). So despite high negative sentiment in the market our double bottom position triggered a rally. This is in our trading system a very reliable signal. After all we are near december and december is never a falling month. SP500 is now at RSI 60 near overbought level. It got above 1500 which was a previous temporary support and now could act as a resistance. So we can expect a short term set back in the coming week which could then resume upward. 1410 is now our first support. 1380 is now our next support. ND100 Last Signal Comment ND100 continued in a trading range and broked above it in the past week. It is now near upper band level and is near overbought level with an RSI above 60. Our expected short rally occured. We can expect a very short term set back which could resumed upward later. 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 reacted sharply positive to the double bottom position signaled in the last number. So DOW is in a similar position as SP500 technically. We can now expect a short term set back and then resume upward. 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 We rolledover our december trades into january at a lower strike prices without losing any cash as a protection against possible lower market. Now we are back in the profit zone with latest market conditions and looking for good profit taking opportunity sonn. 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 6000$ 200$ 400$ 2007/10/11 RUT PUT Uncovered Sell PUT RUT November RUT December 7000 360$ 150$ 210$ 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 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 PPI +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% +0.9% Core PPI +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% +0.2% Retail Sales +0.2% +0.6% +0.3% +0.5% -0.9% +1.5% -0.2% +1.0% +0.5% 0.0% +0.9% CPI +0.3% +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% +0.5% Core CPI +0.2% +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% +0.2% Housing Starts 1.226M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 1.64M 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 Employment +94,000 +170,000 +96,000 89,000 +68,000 132,000 +190,000 +88,000 +177,000 +113,000 +146,000 +206,000 Durable Goods Orders -0.4% -1.7% -5.3% +6.1% +1.9% -2.8% +1.1% +3.4% +2.4% -7.8% New Homes Sales +1.68% -4.8% -8.0% +3.7% -6.5% -1.61% +16.2% +2.6% -4.0% -6.6% Existing Homes Sales 4.97 Millions 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 ISM Index(Manufacturing) 50.8 50.9 52.0 52.9 53.8 56.0 55.0 54.7 50.9 52.3 49.3 51.4 ISM Services 54.1 55.8 54.8 55.8 55.8 60.7 59.7 56.0 52.4 54.3 59.0 56.7 Factory Orders +0.5% +0.30% -3.5% +3.4% +1.0% -0.5% +0.5% +3.1% +1.0% -5.6% +2.4% 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 +4.9% +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. Durable good orders for october were down 0.4% lower than expected. Factory orders for october were up 0.5% inline with expectations. Existing home sales were down 1.7% and new home sales were up to 728,000 about inline with expectations. ISM manufacturing for november came in at 50.8 a bit lower than expected. ISM services for november came in at 54.1 inline with expectations and employment for november were up to 94,000 a bit better than expected. Revised GDP for 3rd quarter came in at 4.9% very strong and better than expected. Retail sales continue to get lower but a a slower pace. Manufacturing and services remain solid and not too strong and employment remains quite solid but not too strong either and GDP for 3rd quarter shows strong econimic activities even if we forecast a slowdown next year. So that leaves FED 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 17.68 according to June results. 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.