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 19th 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. Testing First Support SP500 had a very bad week and is now testing 1410 first level support. Same with DOW at 12800. ND100 is now at low end of it's trading range and now oversold. Testing First Support Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1411.63 -72.83 0 ND100 1963.52 -148.25 0 Dow 12800 -651 0 SP500 Last Comment SP500 continued it's down pattern and is now testing 1410 first level support. This support is being for the third time since last august. RSI reading is under 30 which means we are oversold. It is possible the SP500 could get a bit lower before a short term rebound. If 1410 level is broken we will be looking for 1380 as the next support. A short term rally is now very near and we may take that opportunity to exit current positions and wait for the next down wave to reenter. We also have to watch for a possible extreme oversold condition that could occur at around 1350 this week. If that occurs we would have a golden opportunity to buy. All sectors and subsectors show an RSI reading under 30 and are all oversold. So stay tuned and watch for any change in this market. 1410 is now our first support. 1380 is now our next support. ND100 Last Signal Comment ND100 is now at low end of it's trading range and threatening to go under. It is now oversold with RSI at 32. We can expect a possible rebound but it could be short lived. 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 testing it' sfirst level support at 12800. This support level is tested for the third time. So DOW is in a similar position as SP500 technically. If this support holds we could have a short term rally but it could be very brief. Like SP500 we have to look for a possible extreme oversold condition that could occur at 12300 this 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 20% in 10 months. So Order now Our february trades are a bit behind but very far from selected strike price. Taking early profit in mid january is a bit compromise now and we may have to wait a bit longer. What we might do also is to exit current position if markets holds on current support and move higher on short term rally. We would then wait for the market to resume down to reenter. Time will tell. 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$ 870$ -300$ 2007/12/21 RUT PUT Uncovered Sell PUT RUT February RUT February 7000 300$ 670$ -370$ 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 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 PPI +3.2% +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% Core PPI +0.4% +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +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% CPI +0.8% +0.3% +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% Core CPI +0.3% +0.2% +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% Housing Starts 1.187M 1.232M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M 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 Employment +18,000 +115,000 +170,000 +96,000 89,000 +68,000 132,000 +190,000 +88,000 +177,000 +113,000 +146,000 Durable Goods Orders +0.1% -0.4% -1.7% -5.3% +6.1% +1.9% -2.8% +1.1% +3.4% +2.4% -7.8% New Homes Sales -9.00% +1.68% -4.8% -8.0% +3.7% -6.5% -1.61% +16.2% +2.6% -4.0% Existing Homes Sales 5.00 MIllions 4.98 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 ISM Index(Manufacturing) 47.7 50.8 50.9 52.0 52.9 53.8 56.0 55.0 54.7 50.9 52.3 49.3 ISM Services 53.9 54.1 55.8 54.8 55.8 55.8 60.7 59.7 56.0 52.4 54.3 59.0 Factory Orders +1.5% +0.7% +0.30% -3.5% +3.4% +1.0% -0.5% +0.5% +3.1% +1.0% -5.6% 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. Durabel good orders for november were up 0.1% lower than expected. New home sales for november were down 9% much lower than expected. Existing home sales were about same as previous months for november. ISM manufacturing for december came in at 47.7 much lower than expected. ISM services came in at 53.9 meeting expectations for december. Factury orders for november were up 1.5% meeting expectations. Employement was up only 18,000 way under expectations for december. Several economic numbers suddenly sinks and are way under expectations. Real estate market continue to slow down. Oil price is near 100$ anb threatening economy. Now with higher inflation numbers it may force the FED to stop lowering rates on next meeting despite the fact that economy is definitely slowing down. 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 17.93 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).