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Published by TFNN, Corp. ~ 601 Cleveland Street, Ste 618 Clearwater, FL 33755 ~ 1-877-518-9190 ~ http://www.tfnn.

com ~ Copyright 2013 ~ All Rights Reserved

11-18-13
Is it really different this time in the stock market?

This is our introductory issue of the new newsletter "Patterns - Profits & Peace of Mind". It is
based on patterns, cycles, and the numbers from the Fibonacci summation series. No
Each
day the stock market makes higher highs we are hearing stories about why
fundamental information of any kind will ever be used in making a decision to place a trade. Our
it
is
different
thisistime
in the stock
market.
This is
of the
few particular
times in time.
the The
belief is that price
the ultimate
indicator
of the value
of one
anything
at any
history
thewill
stock
we've
gonetrading.
so long
without
a 10%
peace of of
mind
comemarket
by usingwhere
stops and
not over
Each
week we
will trycorrection.
to list several
trading
opportunities
with
exact
buy
and
sell
points
using
both
futures
and
options.
In bullish
addition,
We are at record levels in margin debt and the number of people that are
there
may
be
several
daily
updates
each
week
depending
on
market
conditions
and
trading
versus those that are bearish is also at record levels. Since 1974 this has
opportunities. This letter will focus on the most active speculative vehicles in the market such as
occurred
four times, each of which was followed by a substantial correction. In
stock index futures, gold, crude oil, cross rates currency pairs, treasury bonds and ETF's.

2000, the NASDAQ gave up 85% of its gains, but that was due to a once in a
generation Internet bubble. The long-term patterns that I see are still very
bearish but the market has not gotten the memo as yet. Both keep saying that as
long as interest rates are held low by the Fed then this market will continue to go
higher, as people borrow money at zero rates and put them into asset classes
such as stocks. This strategy would not be working well if you had bought bonds
Stock
market
or
precious
metals. There must be a point somewhere in the future that this
strategy
will backfire.
The
quantitative
easing
program
is an
experiment
andsince
thus
The stock market
continued
its rally
from the low
of March
6 making
it the
strongest rallies
1938.
This
was working
not unexpected
the for
low stock
on March
6 was a very
low that
the
far
has
been
quite as
well
investors.
Onesignificant
of the charts
inreleased
this letter
bearishness
that
has held the
market
hostage
mid-August.
Now wethe
have
completely
comes
from
Bloomberg
that
shows
the since
relationship
between
1929
market and
reversedwe
theare
bearish
sentiment
anddrawn
the financial
is talking
about
thepresent
new bull during
market. 1929
It is
where
presently.
I've
in thepress
patterns
that
were
very difficult to be bullish after a six-week run! In fact it is looking as though we have reached an
and
they are
very
to several
what we
have
going on now
inparticular
2014. time. First, in the
intermediate
term
top.similar
There are
trading
opportunities
at this
S&P 500 there is strong resistance in the 870 area and the market should not exceed 882 if we

Rest
assured
that
there are
there
were
on the
are correct.
Close
examination
of no
the traders
daily andout
hourly
S&Pthat
charts
will show
thatfloor
thereon
is
considerable
evidence
to
be
short
at
this
time.
The
time
up
in
the
last
two
rallies
as
shown
by the
September 3, 1929 when the Dow reached 383. Seven weeks later it was trading
yellow
triangles
is
highly
suggestive
of
a
top
occurring
April
17
or
April
20.
Patterns
on
the
hourly
at 181 following the October crash. After a four-month rally the stock market
chart (i.e. three drives to a top) are also present. These patterns tend to fail but they also have a
then
dropped to 42 on July 5, 1932; down 92% from its high, putting us in the
high probability of working (better than 70%). Stop protection of $500-$1000 is always
worst
depression
US history.
suggested.
Stops arein
placed
for your protection so you must use them to protect capital. Second,
FAZ is a triple weighted ETF for the financial index. We would suggest either buying the ETF
outright with
a twoand
dollartreasury
stop or buying
May $15 call.
This call
has a by
great
risk reward
Treasury
bonds
notesa continue
to defy
thestrategy
Fed policy
going
ratio
as
the
call
is
trading
under
one
dollar,
which
would
be
your
total
amount
of
risk
and
you
lower. They are telling a story that interest rates are going higher in the real
have 20 days to see if it'll work. This is tremendous leverage because a slight move in a lowmarket
and not lower. However, the interest-rate policy by the Fed has brought in
priced stock can easily bring multiple returns because the stock once sold for $200 a share.

the new carry trade where hedge funds and investment banks can borrow money
at near 0% and invest it in assets such as stocks and they can use margin. What
see
a chart
of the
Bradley
stock market
model
a*You'll
world
we
live in!
I never
thought
it was
thisincluded
easy! in the newsletter. The Bradley

stock market model is based on the Astro harmonic movement of planets and is a numbers based
cycle program. The Bradley model will track the stock market better than 70% of the time and it
can do that years in advance.
most &
useful
timing
dates,
and also the secondary use
PatternsItisProfits
Peacefor
ofthe
Mind
- Page
1 - 11/18/13
to determine trends for up to several months. Bradley should not be used alone, pattern
recognition and money management will make it more efficient

The foreign exchange markets continue to trade in broad ranges but one
particular one that is followed most aggressively is the Euro versus the US Dollar.
The Euro has very strong resistance at the 138 level. Should this level be
exceeded it would mean that the US Dollar is floating freely like a feather to the
downside, and maybe more like a rock or least a small pebble. The British Pound
has strong resistance in the 165 level and the Japanese Yen has strong resistance
at the 100 level.
Gold held major support this past week at the $1,260 per ounce level. Silver and
copper, on the other hand, did not hold support and still look lower. In fact, all
commodity prices with few exceptions look extremely weak. A situation that was
similar to what happened in 2007 and 2008. A good example of that was the
price of crude oil at one time was $143 per barrel. It is now approaching $90 per
barrel. Gasoline is under $3 a gallon in many parts of the United States with the
exception of the high cost of living coastal areas (i.e. Pacific and Atlantic coasts).
Folks, each week when I write this newsletter I look at short-term and long-term
charts. The long-term charts on the stock market, not just in the US but in
Europe and Asia, still have strong bearish undertones much like I've never seen
before. I still believe that something bad is going to happen. Certainly I want to
be wrong, and I am often, but right now it doesn't look any different than it did a
month ago or two months ago. The markets have gone a bit higher and investors
have remained more bullish and have even borrowed more money to buy stocks.
I fear that maybe 1929 and its ghosts are floating around the exchange in Wall
Street near the corner of Broad and Wall. Lets hope I'm wrong and markets will
go up forever.

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_________________________________________________________________
Disclaimer: Trading in securities such as stocks, options, indices, currencies and futures involve risk and should not be undertaken without due diligence and serious
independent study. Subscribers may carry out their own trading based on what they learn from Patterns Profits & Peace of Mind, but all risks of potential financial losses are
the subscribers responsibility. TFNN will be in no way liable for financial losses resulting from trading decisions based on this newsletter. Past performance is no guarantee of
future results. Reproduction in whole or in part is not permitted without prior written consent. All rights reserved.

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