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. Bounce back from oversold SP500 rebounded strong from it's extreme oversold position(1271) and is now finishing it's first recovery leg. DOW also rebounded strong from it's extreme oversold position. ND100 made the same but in a smaller extent. Bounce back from oversold Last trades update Index Market Current Price 2 weeks Change # cycles completed SP500 1395.42 70.23 0 ND100 1855.27 11.22 0 Dow 12743 644 0 SP500 Last Comment SP500 hit an extreme oversold condition monday 21st and rebounded immediately. This was the eleventh time since 1990 we have SP500 in that position and the same result occur each time. This is one opportunity you don't want to miss. It was signaled to all paying subscribers before market open on janauray 21st. We are now completing the first recovery leg(see graphic below). We have an RSI reading near 50. We can now expect a set back that could take SP500 back near 1300. It does not look like that for now but at the very least we will see SP500 retreat a little in the next 2 weeks. So here we have 1270 as the lowest possible point is this bear market which means 1270 becomes a very important support. 1270 is our first support 1220 is our next support. ND100 Last Signal Comment ND100 also found itself in an extreme oversold condition and had a strong rebound from it's lowest point reached january 21st. It is like SP500 completing it's first leg recovery and could very well set back from it's current standing in the next 2 weeks as low as 1775. ND100 did not have an as strong recovery as SP500 or DOW. It's RSI reading is only at 42. We can consider that our first support is now at 1710, our next support at 1450. DOW Last Signal Comment DOW like SP500 and ND100 reached an extreme oversold condition on january 21st and had a strong rebound from that point. It is now completing it's first recovery leg and is about to set back to as low as 12000 in the next 2 weeks. It's RSI reading is at 48. Our first support is now at 12000 and our next support is at 10800. 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 march trades are now in excellent shape with the recent recovery. We are now looking for profit taking or rollover with profit in 3-4 weeks from now. You now need to subscribe to our trading service to see the specifications. All our portfolio shows a 20% 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$ 575$ -105$ 2007/12/21 RUT PUT Uncovered Sell PUT RUT February RUT February 7000 300$ 370$ -70$ 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 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 PPI -01.% +3.2% +0.1% +1.1% -1.4% +0.6% -0.2% +0.9% +0.7% +1.0% +1.3% Core PPI +0.2% +0.4% +0.0% +0.1% +0.2% +0.1% +0.3% +0.2% 0.0% 0.0% +0.4% Retail Sales -0.4% +1.2% +0.2% +0.6% +0.3% +0.5% -0.9% +1.5% -0.2% +1.0% +0.5% CPI +0.3% +0.8% +0.3% +0.3% -0.1% +0.1% +0.2% +0.7% +0.4% +0.6% +0.4% Core CPI +0.2% +0.3% +0.2% +0.2% +0.2% +0.2% +0.2% +0.1% +0.2% +0.4% +0.2% Housing Starts 1.006M 1.173M 1.232M 1.193M 1.33M 1.367M 1.47M 1.474M 1.506M 1.491M 1.51M 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 Employment -17,000 +82,000 +135,000 +170,000 +96,000 89,000 +68,000 132,000 +190,000 +88,000 +177,000 +113,000 Durable Goods Orders +5.2% +0.5% -0.4% -1.7% -5.3% +6.1% +1.9% -2.8% +1.1% +3.4% +2.4% New Homes Sales -4.7% -9.00% +1.68% -4.8% -8.0% +3.7% -6.5% -1.61% +16.2% +2.6% Existing Homes Sales 4.89 Millions 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 ISM Index(Manufacturing) 50.7 48.4 50.8 50.9 52.0 52.9 53.8 56.0 55.0 54.7 50.9 52.3 ISM Services 53.9 54.1 55.8 54.8 55.8 55.8 60.7 59.7 56.0 52.4 54.3 Factory Orders +1.5% +0.7% +0.30% -3.5% +3.4% +1.0% -0.5% +0.5% +3.1% +1.0% GDP(Gross Domestic Product) Numbers 4th Quarter 2007 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 +0.6% +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 2.7% and CPI at 6.3%. In the last 2 weeks we had several major economic news. See the table above for all numbers. Existing home sales for december were down to 4.89 millions and new home sales were down 4.7% much lower than expected. Durable good orders for december were up 5.2% better than expected. Employment for january was down 17,000 but was revised for december to 82,000. The 17000 january result is much lower than expected but will probably be revised upward later. ISM manufacturing for january came in at 50.7 better than expected. Finally GDP for 4th quarter came in at 0.6% lower than expected but inventory were down 1.2% which means it could rebound next month. Real estate continue to tumble but manufacturing seems to hold on thanks to weak dollar. FED lowered twice interest rates now at 3.00% much more than anticipated but considering a slowing economy sliding into recession it was a smart move. FED may not be able to continue much lower however because it would trigger higher import cost and drive inflation higher. The SP500 PE ratio is at 17.72 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).