Here is a sample of the last newsletter:
SP500 Last Signal Comment
We just had a new sell signal last friday on june 10th 2005. As expected we faced strong resistance at 1200 and it ended up with a double top as stated in previous issues. We made 36 points profit (3%)on that trade which was inline with forecast. A double top must always be taken very seriously since we had 90% success rate in the past. We still have a solid support between 1140 and 1160. We now expect the market to fall over the coming weeks to the lower band (see graphic below). We just completed our second cycle this year and we are now waiting for the next buy signal to start a new one.
ND100 Last Signal Comment
We had our last buy signal on April 21 2005. Since then this market tried to consolidate just above the 1400 mark which is now considered a good support point. We are ahead of 73 points so far. We just had a second down week now closed to the moving average and very close to get a sell signal. The 1460 resistance was more serious than antcipated. This market did not have any completed cycle so far and we are having our first cycle as we speak. So this last buy signal is ahead for some good profit.
DOW Last Signal Comment
We had our last buy signal on April 21 2005. Since then we had a good swing above 10400 but the DOW had a set back unable to break the downtrending line in effect since the beginning of march. We had a small up this week on this market. It was the only one posting a postive move. We are now ahead 294 points. We are not very far to get a sell signal. I don't expect a big profit out of this trade but we now know it will be a profitable one. The 10600 resistance continue to threat this market. We had so far 1 completed cycle this year and we are now in a second one. It seems that we have a good support at 10100 (see graphic below).
Special Option Strategy Update
We are now 3 weeks into our SP500 1100 PUT at around 1.45$. So far the value of this PUT is now at 0.35$. With just 1 more week to go we will certainly cash in again with this trade. Always remember that you need between 11,000 and 15,000 USD margin for each contract.
Economic Current Conditions
Inflation seems to be less concerning with the last economic numbers out in the past weeks. The manufacturing activity slowed down and the employment number was sharply down as well (see below). We can then expect at least 2 other rate hikes in the coming months. The experts are not so sure we will reach 4% before we can see a pause on rate hikes. The pause may now come earlier.
Mr Greenspan tried to reassure investors this week about the continuation of the current economic growth. Time will tell if he is right.
The employment situation in the US was weak in May with just 78,000 new jons created compared to 275,000 in april. The employment numbers keep coming in in some inconsistent way. In march we had only 140,000 jobs created which was considered weak.
The SP500 PE ratio is at 19.40 which is considered low. Remember that when the last major economic cycle that started in march 2003 the PE ratio was at around 16. So we are at the low end. The markets are way from being overbought and we should not expect any major bear market for the time being.
The last revised GDP for the first quarter of 2005 was at 3.5 just .1 away from expectations compared to the previous reading of 3.8. It starts to show a slight deceleration in the economic growth but nothing to worry at this point.
This is it for this week and continue to monitor any signal change on the Index Trading Signals page
Please follow this link to see the latest issue. Since there are graphics incorporated I am not able to paste the content into this box.
So please follow this link:
http://www.besttradingsystems.com/Index_Trading_Weekly_Update-index-trading-20050611.html
Than ks
Richard Bastien
My name is Richard Bastien. I have been a computer specialist for over 30 years. I researched and created an Index Trading System with 100% automated trading signals in the past 10 years.
College Savings Plans ? are they the best choice for... Read More
In this "special report", I want to pose a few... Read More
In the simplest of terms, Arbitrage means to exploit price... Read More
The Nature of Penny StocksFor anyone new to investing in... Read More
"Hey Joe! I need help finding a broker. I notice... Read More
Investing in New Zealand might be much easier than investing... Read More
A way that investors get ripped off and in a... Read More
People tend to feel sorrow and grief after having made... Read More
CATCHING A FALLING KNIFEOne of the most common mistakes made... Read More
1. How to Treat Gap Openings A gap up or... Read More
Putting Rare Coin Market Cycles to Work for You...Until recently... Read More
The American Jobs Creation Act of 2004 imposed strict new... Read More
Some time ago I attended a seminar where participants were... Read More
First and foremost, an opportunistic strategy for creating wealth in... Read More
Some lines from a movie never leave your mind; I... Read More
You all know what CYA stands for. Of course, Cover... Read More
Do you ever wonder exactly what's going on in the... Read More
It caught my attention when I heard an analyst on... Read More
The stock market fell sharply Thu and Fri before and... Read More
You know all the articles you read about annuities that... Read More
Seniors on fixed incomes face a unique problem. Where do... Read More
Asset allocation is a critical component of investing success. Both... Read More
If you own a company that sells complicated products and... Read More
Let's first understand what maniac means. According to Webster a... Read More
How many of you out there think that the market... Read More
If you know next to nothing, how do you go... Read More
Leaders are stocks that breakout immediately when the market confirms... Read More
The word 'investments' is one that most of us are... Read More
Okay, so I can tell you I have sat in... Read More
I said last week that money doesn't generally buy happiness,... Read More
This column has previously discussed "picturing the future that we... Read More
In the past most people never retired. They died. The... Read More
We've helped a number of clients develop business plans and... Read More
Investments can be a source of great potential earnings. The... Read More
Gearing is where you borrow money to invest. As already... Read More
You've probably heard about people who keep their money offshore.... Read More
There are three important differences between investing and trading. Overlooking... Read More
If you do not have an investment plan in the... Read More
When you start your program to purchase your "ideal" company,... Read More
The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More
Relaxing in Style: Florida Investment PropertiesIn Florida, relaxing in the... Read More
Investors are still too slowly realizing what the academics have... Read More
Okay, so I can tell you I have sat in... Read More
There maybe several reasons why you to want to invest... Read More
Convertibles are stealing the show with their safe investment image... Read More
JewelryThe advantages are:? Gold Jewelry is the easiest of the... Read More
What is the value of a good habit? Think of... Read More
Investors are always looking for the best investments that will... Read More
About 6 years ago I started to notice that certain... Read More
In the last two decades, even though gold prices have... Read More
The U.S. economic data reported this week showed strong output... Read More
For a successful retirement investment plan to work in the... Read More
One of the fundamental principles of finance is the concept... Read More
For instance, if the market moves up in the first... Read More
You have probably been hearing, seeing and reading that real... Read More
To understand stock options, we need to look at Webster’s... Read More
If you want to retire rich, start saving investing early.... Read More
For investors only... and for speculators who need to invest... Read More
How many books have you read about successful traders? How... Read More
Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More
Ready to start playing with your money? Not interested in... Read More
No matter how much money you make, it pays to... Read More
For those who have never given their financial future a... Read More
Q: My youngest son wants to borrow $5,000 to start... Read More
Disgruntled investors are going after Wall Street once again, this... Read More
One important aspect of trading the markets is to understand... Read More
Investing |