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 January 5th 2008. 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. End Of Downtrend SP500 has a set back near lower band but rebounded after touching 1450 and seems to end 10th week downtrend pattern. Same with DOW. ND100 continue in it's trading range and is now on the upper edge of that range. End Of Dowtrend Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1484.46 -20.20 3 ND100 2111.77 -18.23 3 Dow 13451 -196 3 SP500 Last Comment SP500 corrected hard after touching 1515 and went down to retest previous 1450 temporary support which held solid to mark the end of latest 10 weeks downtrend. It seems now we will have a short term rally that could last 3-4 weeks and could carry SP500 above 1500. SP500 is now at RSI 52 neutral. When 4th quarter results will start to flow in around mid january anything can happen. If results are under expectations we can then see a major bear market. On the other hand we might be in a trading range for a while since we all expect a slowdown in the economy. 1410 is now our first support. 1380 is now our next support. ND100 Last Signal Comment ND100 continued in a trading range and is now at the upper edge of it threating to pass above it. It is approaching upper band level but with RSI at 55 which is neutral. We can expect a fair attempt to break above 2150 in the coming 2 weeks. 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 is now ending a 10 weeks downtrend and is now in a process to rechallenge recent high of 13800 and try to pass above it. So DOW is in a similar position as SP500 technically. We can now expect present short term rally to extend for a few weeks. However like SP500 once we get to mid january and 4th quarter results start to flow in we will have to be very carefull. 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 january trades had been rolledover to february at very solid profit once again. Selected strike prices for february are very secure and we are looking to take early profit in mid january if markets stand around current level or higher. 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 2007/12/21 SPX PUT Uncovered Sell PUT uncovered February SPX SXY February 14000 470$ 4300$ 40$ 2007/12/21 RUT PUT Uncovered Sell PUT RUT February RUT February 7000 3060$ 300$ 0$ 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 +3.2% +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% +0.9% Core PPI +0.4% +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% +0.2% Retail Sales +1.2% +0.2% +0.6% +0.3% +0.5% -0.9% +1.5% -0.2% +1.0% +0.5% 0.0% +0.9% CPI +0.8% +0.3% +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% +0.5% Core CPI +0.3% +0.2% +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% +0.2% Housing Starts 1.187M 1.232M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 1.64M Building Permits 1.152M 1.170M 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. PPI for november was up 3.2% and core PPI was up 0.4% much higher than expected and triggered a selloff on the market. CPI for november was up 0.8% and core CPI was up 0.3% also way higher than expected. Retail sales for november was up 1.2% inline with expectations and housing starts for november were down 3.7% with building permits down 1.5% quite inline with expectations. Inflation numbers were suddenly up strong and was totally unexpected. Real estate market continue to slow down but a t a lower pace. FED lowered interest rate by .25 and it was received as a deception and triggered a market selloff that day. Now with higher inflation numbers it may force the FED to stop lowering rates on next meeting unless next inflation numbers come back at previous level. We now face trouble ahead and 4th quarter financial results will tell us more on where we are going. The SP500 PE ratio is at 17.44 according to September 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).