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 February 9th 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. Near Extreme Oversold SP500 continued it's strong downtrend breaking 1410 and 1380 support to get near extreme oversold level. DOW went throug 12800 support and is now approaching 12800 support and is also near extreme oversold support. ND100 is now testing it's first support of 1860 and is not as oversold as other markets. Near Extreme Oversold Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1325.19 -86.44 0 ND100 1844.09 -119.43 0 Dow 12099 -701 0 SP500 Last Comment SP500 continued it's strong downtrend and is now very near extreme oversold condition. In fact it was 5 points shy to touch it at 1307 last friday. RSI reading is under 20 which means we are highly oversold. We are now near a significant short term rebound even if it could get lower a bit before it happens since we did not touch for real the extreme oversold level. Let's hope it will happen next week. If so it would mark the lowest possible point is this bear market. Both 1410 and 1380 support were broken. RSI reading is now under 20 which is very oversold and a short term rally is now very near. Extreme oversold level for monday is any reading under 1300 intraday. This number is declining by about 7 points per day. If reached this is considered as a golden opportuinity to buy. So stay tuned and watch for any change in this market. 1220 is no our next support. ND100 Last Signal Comment ND100 broked down it's recent trading range and followed other markets on the down side. It is now testing it's first level support of 1850. It is not near an extreme oversold level like SP500. It is now however quite oversold with RSI below 20. We can expect a possible rebound soon that could be significant but for a very short term. 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 went through 12800 supportand is now approaching 12050 next support level. DOW is quite near too it's extreme oversold level which will be at 18000 to begin next week and declining every day. So DOW is in a similar position as SP500 technically. RSI reading is under 20 like the other 2 markets which is highly oversold and calls for a short term rebound 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 20% in 10 months. So Order now Our february trades were rolledover to march at lower strike prices for protection. No cash was lost in the rollover and we will have to wait longer to touch the profits. 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 -01.% +3.2% +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% -0.6% Core PPI +0.2% +0.4% +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% +0.2% Retail Sales -0.4% +1.2% +0.2% +0.6% +0.3% +0.5% -0.9% +1.5% -0.2% +1.0% +0.5% 0.0% CPI +0.3% +0.8% +0.3% +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% +0.2% Core CPI +0.2% +0.3% +0.2% +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% +0.3% Housing Starts 1.006M 1.173M 1.232M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 1.40M Building Permits 1.068M 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 6.3%. In the last 2 weeks we had several major economic news. See the table above for all numbers. Retail sales for dedember were down 0.4% lower than expected. PPI for december was down 0.1% and core PPI was up 0.2% inline with expectations. CPI for december was up 0.3% and core CPI was up 0.2% inline with expectations. Housing starts for december were down 15% and building permits was down 7% for december as well. Retails sales was under expectations as well as real estate numbers way under expectations. The only good news is inflation numbers coming back to normal. Now inflation numbers back to normal and several numbers starting to show a decrease in economic activity it may force the FED to continue lowering rates on next meeting as high of .5%. It may however trigger on the mid term some inflation. 4th quarter financial results for financial sectors were worst than expected and it triggered the current down market. For other sectors so far the results are quite good. The SP500 PE ratio is at 16.83 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).