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October 12, 2007

Final Week
by Angelo Campione

10/12/2007 8:09:24 PM

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Our services' net portfolio gain is 64.63% over 9 months. A 79.42% Annualized Return! For a full break up of this performance, CLICK HERE.

Our system remains in Sell mode.

Position Recap:

On September 25th we sold an SPX Oct 1355(SXYUB)/1345(SXYUT) Put Option Spread for a net credit of $0.35. (i.e. $35 per $1,000 of margin)

Note: The number of put spreads we sold was only half the amount we would normally do. On the performance page this will be shown as 8 contracts.

On October 1st we sold an SPX Oct 1590(SXMJR)/1600(SPBJT) Call Option Spread for a net credit of $0.70. (i.e. $70 per $1,000 of margin)

SPX Chart

It was an interesting week, the SPX made a new all time high on Thursday at 1576.09 before reversing sharply, it managed to reach both the upper and lower trend lines of the mini uptrend, in one day! We've been anticipating that the market would be taking a breather and up until Thursday, it seemed like nothing would stop it.

While Thursday gave us a little breathing space and may have given us a glimpse of what lies ahead, the mini uptrend shown in the shorter time framed chart above still holds true. It really doesn't matter whether I think a drop is still imminent and that the technical indicators suggest lower prices, the bottom line is that we have one week to expiry and we have a position that doesn't have as much of a buffer as I would normally like (i.e. the 1590/1600 call spread).

Next week brings a whole swag of earnings reports from leading companies, so depending on how the market reacts to this will determine whether we need to defend our position. We'll know by Wednesday if action is required and if so, I'll send out an email on what action to take.

Have a great weekend and Feel free to email me directly at angelo@stockbarometer.com if you have any feedback or questions.

Cheers,

Angelo Campione

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Important Disclosure:

Futures, Options, Mutual Fund, and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

There is a very high degree of risk involved in trading. Past results are not indictive of future returns. Stock Barometer and all individuals affiliated with Stock Barometer assume no responsibility for your trading or investment results.

Copyright © 2007 Angelo Campione

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