10/26/2007 8:18:36 PM

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Our services' net portfolio gain is 78.26% over 10 months. An 87.89% Annualized Return! For a full break up of this performance, CLICK HERE.

Our system has moved into Buy mode, I will issue an email on Sunday night for our next position.

Position Recap:

On October 23rd we sold an SPX Nov 1610(SPBKB)/1620(SPBKD) Call Option Spread for a net credit of $0.40. (i.e. $40 per $1,000 of margin)

SPX Chart

NDX Chart

This week I have shown the Nasdaq 100 chart by way of illustration. Normally the SPX and NDX follow each other to a degree although since the August lows, the NDX has powered ahead much more strongly than the SPX, I call it the GOOPLE effect (the Google and Apple led recovery). The underlying sentiment of the NDX is very strong as has been shown recently where the SPX fell quite heavily although the NDX was much more contained. It's said that if the NDX is strong the whole market is well supported; the reason for this is that the NDX represents the higher risk money and generally people will take on higher risk when they feel safer on the foundational level (the SPX and Dow represent the foundation).

If the 2150 level on the NDX is broken decisively then sentiment may change, but for the near term a break above 2200 would be the next show of strength.

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