Index Trading Weekly Update

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.

---

Building The Foundation For Wealth

You wouldn't build your home on anything less than a... Read More

Advice for International Investors on How to Safeguard Their Profits

What are the risks?Today, investors are increasingly turning to global... Read More

Can Using Sales Leaseback Method of Investment Property Acquisition Reduce Risk?

Sales Leaseback compared to traditional property investmentCan a Sales Leaseback... Read More

Planning for Retirement

Almost without exception, people don't start planning for their retirement... Read More

July 2005: Hurricane Forecasts for Weather Traders

Tropical Storm Arlene formed as a tropical depression on June... Read More

Buying a Home - Your BIGGEST Investment

This column has often focused on intangible investments like stocks... Read More

For Entrepreneurs A SIMPLE Plan May Be Best

Q: I own a small decorating business and I'll be... Read More

Investing Psychology Today Requires All Traders to Awaken Their Speculator Minds

Stock trading strategies are as rampant today, as they were... Read More

Begging Your Trust in Africa

The syntax is tortured, the grammar mutilated, but the message... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More

Planning Starts with the Basics

When developing a plan for your finances, the toughest question... Read More

An Old Dividend Stock Investment Idea, for a New Generation

Death and taxes! The certainties of life! And then, of... Read More

Retirement or Financial Freedom?

In the past most people never retired. They died. The... Read More

Retirement Plan Considerations Cheat Sheet for Small Business

RETIREMENT PLAN CONSIDERATIONS are something every small business person needs... Read More

Do You Need A Financial Planner?

No matter how much money you make, it pays to... Read More

Value Investing

By definition, value investing is the process of selecting stocks... Read More

An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan

If you want to make the most of your personal... Read More

Who Wants To Be A Millionaire?

I am sure you have probably read about the power... Read More

Easily Finding A Good Stock

There is a tremendous amount of software, complicated high priced... Read More

Are You An Investment Dummy Like Me?

I am good at a few things. I can certainly... Read More

Oil and Gasoline Price Uncertainties

The Light Crude Continuous Contract hit an all-time high at... Read More

Dont Catch a Falling Knife

One of the most common mistakes made by inexperienced investors... Read More

Chile Leads the Latin Pack

Everyone's talking about China. Don't miss the opportunities in the... Read More

High Volatility Investments

Penny stocks and options are high volatility investments that attract... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

Investigate Before You Invest

"Through wisdom is a house built. And by understanding it... Read More

Is Your Mutual Fund the Right One for You?

Mutual Funds are considered to be one of the best... Read More

Why You Need To Buy and Sell Gold Coins (Part 1)

The Value of Gold in a Era of Paper Assets,... Read More

Annuity Owner Mistakes

Okay, so I can tell you I have sat in... Read More

Will a Falling Dollar Derail Your Plans for Retirement?

How much are you willing to pay for a tank... Read More

Diversify!

The best way to avoid being hit hard by a... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More

Moving Average Convergence Divergence ( MACD ) Charts

The Moving Average Convergence Divergence charts, or MACD charts for... Read More