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Thisconclusionisdrawnfromthestockmarketitself.Thestockmarketispredictive,abouteconomiesandaboutitsownfuturepath.Further,thestockmarkethasalanguage,alan-guagewhichiscommunicatedthroughpatterns,waves,indicators,andcycles.TechnicalAnaly-sisisthestudyofthispredictivelanguage. Inthechartatthetopofpagetwo,weshowamassiveMegaphonepattern,whichwehavedubbedtheJawsofDeathpattern.Wecallitthatbecauseitisseenatmajortops,andisalmostalwaysfollowedbyplungesandcrashes,economicrecessionsanddepressions.Ithasshowedupatmostofthemajorstockmarkettopsofthepastcentury.Butthisonefinishingnowisthelargest.ThisJawsofDeathpatternisovertwodecadesold.Itonlyhasonemoreupsidelegleftinittocomplete.Thenstocksplunge.

Asfarasthetimingofthiscomingcrash,iftheconclusionofthispatternwillbenearthetopofitsupperboundaryline,wecanprojectthatthisupsidetargetwillbereachedatthelatestinearly2013.Ifthislastleghigherdecidesnottorisetotheupperboundaryofthepattern,thenthepatterncouldcompleteearlier,sometimein2012. Thisisadangerouspattern.Onpages3through6weshowchartsofthe8timesitshowedupinthepastcentury,eachofwhichwasfollowedbyanimmediateplungeorstockmarketcrash,kickingoffrecessionsanddepressions.Insevenoutoftheeightpreviouspat-terns,stocksrosetotheupperascendingboundarybeforethepatternended.Intheeighthpat-tern,stockscameclosetothatupperboundary.IfthecurrentJawsofDeathpatternwillalsosee

stocksrisetotheupperboundary,itsuggeststheIndustrialsarelikelytoriseto15,000ishin2012.Thereisnohardandfastrequirementthatthefifthandfinalwavemustreachthatupsideboundarytarget,butcertainlytheoddsfavorsucharesolutionbeforetopping.ThisfifthwaveintheMegaphonepatternestablishesabubbleinstockprices,abubblethatfinallybursts.Allthegainsofthepriorperiod,allofthegainsoftherun-uptothefinaltopareretracedandoftentimesmorethanretraced,withthesubsequentdeclinedevastating,typicallywipingout30to50per-centofthestockmarketstotalvalue.

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Inalleightpatternsweobservedinthelast100years,therewasamassivedownsidebreakoutaftertheewavereacheditsupsidepricetarget.

Whatissoalarmingaboutthispatternisitsscale.The waveshownabovestartedtwodecadesago.Thispatternhasformedover22years!Thelongestanyotherpatterninthepastcenturytookwasthe2004to2008pattern.Mostoftheotherpatternstookseveralmonths,orayeartops.Thispatternaboveisa22yearpattern.Thatsupersizedpatternwouldmakesenseifitisthecompletionofamulti-centuryGrandSupercycledegreewave ElliottWave. Thesepatternsareveryreliable.Theimplicationsarethatmajorworldwidedisruptioniscomingnextyear,thatcouldaffectnotonlythemarketandeconomiclandscape,butmostlikelythepoliticallandscapeaswell.

Ifindthetimingofthispatternfascinating.ThereissomuchbeingdiscussedbytheHistorychannelandothermediaoutletsaboutDecember21st,2012.Webbot,Mayancalen-dar,andsoon.Well,nowwecanaddtothatpileofcuriouscoincidencestheappearanceofthisJawsofDeathpatternthatlookslikeitcouldconcludearoundthatsameDecember21st,2012date.Notsurewhatpreciselyitmeansforthatspecificdate,butIcantellyouthatthisisareliableandcompletingstockmarketpatternwithadefinedandpredictableoutcome.Aplungeatbest,orevenacrash,islikelystartingin2013,orafewmonthssooner.Thedeclinecouldbeswift,asmostcrashesandplungesfromthecompletionoftheJawsofDeathpatternaresuddenandswift. ThemarketistellingustheworldisfastapproachingaperiodofGreatTribulation.

(A) Our Top Big PictureScenario

Giant Megaphone forSupercycle Degree

wave (V) up of GrandSupercycle Degree

Wave {III} Up

(E) ofV of(V) of{III}

(B)

(C)

(D)

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The Big Picture Elliott Wave Long-term Count

Here is a Big Picture Historical Elliott Wave Labeling for the Dow Industrials. It now appears

that Grand Supercycle wave {III} up will complete with a Megaphone Top Jaws of Death pattern. Thisis a major Bearish topping pattern. Cycle Degree wave V up will finish with the Megaphone patternonce wave (E) up finishes, rising to the upper boundary. If(E) fails to reach the upper boundary, thiswould be a truncation and mean a massive decline will begin sooner than 2013. This means the odds

favor wave (E) up having one more strong rally left in it to reach the upper boundary. There are no hardand fast rules. Wave (E) does not have to reach the upper boundary, but most times whent this pattern

shows up, the last wave does. Once wave (E) completes, Grand Supercycle degree wave {IV} down willstart, a coming Tribulation period of war, pestilence, and natural disasters. Then a golden era, Grand

Supercycle degree wave {V} up will follow. The Great Depression was of Supercycle degree, wave(IV)down, and was not of Grand Supercycle degree, like the coming Bear Market will be, whichmeans this coming Bear Market will be worse, which could also change the political landscape.

(IV) 1932

(III) 1929

I

II

III

C, IV

5, (A)

(B)(D)

1

2

3

4

{III} Grand Supercycle Degree (from 1718)(V) Supercycle Degree (from 1932)V Cycle Degree (from 1974)(5) Primary Degree (from 1974)5 Intermediate Degree

(1)

(2)

(5)

(4)

(3)A

B

Logarithmic Scale

The Great Depression was ofSupercycle degree, one lesser

than the developing Bear Mar-ket, which is of Grand Super-cycle degree, wave {IV}.

(E) ofV of(V) of{III}

(C)

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WeofferthreeInvesting/TradingServices.Standardsubscribershaveaccesstotwoofthethree.Platinumsubscribershaveaccesstoallthree. .Thisisavailabletoallsubscribers.Wehavesixcate-goriesofinvestmentsinthismodel;Cash,U.S.GovernmentSecurities,Gold,BuyandHold,MarketTiming,andSpeculative.ThedetailsandphilosophycanbereadattheConservativePortfoliomodelbuttonattheleftofthehomepage.OurgoalwiththisportfolioistobeattheS&P500whilegeneratingpositivereturnsoverthelongrunwithlowriskinvestmentsandtradingstrategies.Inotherwords,wedonotwanttolosemoneyinanyoneyear,yetoverafiveyearperiod,wanttohavereturnsfarinexcessoftheS&P500.Sinceitsinceptionin2008,wehaveachievedthesegoals. AvailabletoallStandardandPlatinumsubscrib-ers,weconductapproximately5to10ETForLeveragedETFtradesperyear,usingourSecondaryTrendIndica-

tor,andotherkeyIndicatorstogeneratereturnsof5to10percentpertrade,have70percentormoreofourtradesbesuccessful,withlessthan10percentofourportfolioatriskatanyonetime,andwitheachtransactionlimitedtoamaximumriskof2percentorourportfolio.

ThepurposeofthissegmentistobeabitmoreaggressivetoenhanceoverallperformanceoftheConservativePortfoliowithoverallminimalrisk. AvailableonlytoPlatinumsubscribers,weconductapproximately15to30LongOptionstrades(Longmeansweplaymarketstoriseorfall,butthemaximumwecanloseistheamountinvested)orLeveragedETFtradesperyear,usingalltradingindicatorsatourdisposal.ThisisthespeculativesegmentofourConservativePortfolio,withtotalriskatanyonetimelimitedto5percentofourportfolio.Weusuallyonlyhave1to3tradesoutstandingatanytime.

Detailsandphilosophy,andpastperformance,canbeaccessedattheFAQandArchivesbuttonsunderthePlatinumHeaderattheupperleftofthehomepage.

Onagoodfaithbasis,Tradesareemailedtosubscriberswithin15minutesofthetimeweconductedthetransactions.WealsopostdetailsofthetradesattheConservativeTransactionsbuttonorthePlatinumCurrentTradebuttonwithin15minutesofwhenweconductthem.

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Weprovideahighlycorrelativetrading/investingentrysignalforeachoffourtimeframesoftrading,Short(1to2weeks),Medium(2to4weeks),Intermediate(1to6Months),andLong,6Monthsto2years.Speculative

tradingwithoptionsorfuturesworksbestusingtheShortandMediumtermtradingindicators.MarketTimingwithLeveragedETFsworkwellwithMediumandIntermediatetermtradingindicators,whileinvestingworksbestwiththeLongTermTrendIndicatorsignals.Onpages2and3wesummarizeourbestindicatorsshowingthetrendforeachofthesefourtimeframesatanygivenday.Withinthelongertimeframescanbelessertimeframesignalsgo-inginthesameoradifferentdirectionasthedirectionofthelargertimeframestrend.Inotherwords,overthecourseofatwoyearprimarytrendthatforexampleisonabuy,suggestingstocksshouldriseforseveralmonthsoryears,thereareperiodsoftimewherethetrendmaybeeitherdownorupwithinthatrisinglargertrend.Inotherwords,largestockmarkettrendsdonotmoveinastraightline.Theystairstephigherifarisingprimarytrendorstairsteplowerifadecliningprimarytrend.Thisisthecaseforalltimeframes.Therecanalwaysbeasmallertime-framewithinanytimeframethatseesstocksmoveinthesameoroppositedirectionofthelargertimeframeitisin.Forexample,stocksmayriseduringtheday,howevertheycoulddeclinein3ofthe8hoursoftradingyetstillclosehigherfortheday.Therearealwayssubwavesofpricetrendswithinwavesofpricetrendsatanydegreeoftrend.Pages2and3ofthisreportshowsyoufourtimeframesandthekeytradingsignalsrelevantforeachtime-framescurrenttrend.

But,itisimportanttounderstandtheageofatrendafterasignalhasbeengiven.Thatisbecauseageoffersexitingguidance.OurTrendIndicatorsareentrysignals.Ourageworkidentifiespotentialexitpoints.Exitingismoreofajudgmentcalltheenteringatrade.Exitingisdependentupontheindividualtradersriskappetite,ex-perience,financialposition,ortargetprofitgoals.Atraderchooseswhentoexitbasedupontheiruniquesituation.OurbackgroundindicatorsandElliottWavechartworkhelpidentifytheageofatrend.Weshowbackgroundindi-catorsandsignalsonpage7thatareusefulfordetermininghowoldatrendssignalis.Forexample,ifarisingtrendsbuysignalwasseveralweeksago,wewouldnotwanttobuythemarketnowifthattrendisapproachingitsconclusion,ifitsageisextremelymature.Ontheotherhand,ifthetrendisyoung,ifthebuysignalstillisyoungbaseduponourbackgroundage-identifyingindicatorsandsignals,thenwemaywanttojumpinandbuythistrendevenifithasbeengoingonforawhile.Ageisnottimedependent,althoughtimecanbeausefulsubcomponentfordeterminingage,butageisalsobaseduponotherfactorsinadditiontotime,suchasoverboughtoroversoldlevels,approachingcycleturndates,weakeningmomentumandweakeninginternals,orcompletingwavemap-

pingpatterns.Weprovideahostofinformationinthebackgroundandothersectionsofthereportthathelpdeter-minetheageofatrendandtheprobabilitythetrendisyoung,maturing,oroldourthreeagedescriptivecatego-riesfortrends. Wepredictthelikelypointwhereanewtradabletrendturnisoccurring,becauseitallowsustobereadytotradeabrandnewtrendearlyinitslifeandgetthemaximumprofitfromthatnewtrend,eitherupordown.TraderscanbenefitfromdecliningtrendsbyeitherplayingashortpositionwithlongputsorETFfunds,orbyactualshort-ing(verydangerousfortheinexperienced),orbysimplymovingtocashuntilthedeclineisoverandpricesarecheapertobuybackin.Agedefiningindicatorsandsignals,andElliottWavemapping,andcycledateidentifica-tionhelpsuspredictorforecasttheapproximatetimeforatrendturnatvaryingdegreesoftimeframes,short,me-dium,intermediateorlong.Mostofourreportfocusesonagedefininginformation.However,confirmationthetrendhasinfactturnedcomesonlywhenwegetnewtrendtradingsignalsshownonpages2and3.ThosekeytradingindicatorsignalsarethePurchasingPowerIndicator(Short-term),theDemandPower/SupplyPressureIndicator(Medium-term),theSecondaryTrendIndicator(Intermediate-term),andthePrimaryTrendIndicator

(Long-term).Thesearenotperfect,butarehighlycorrelativetoidentifyingtrendsthathavemuchfurthertogoaf-terthenewsignalhasbeengenerated. Oncewehavethesesignals,subscriberscanusethisinformationanywaytheywantto,butitisrecom-mendedthatsubscribersnotrelysolelyuponthesesignals,sinceeveryonehasdifferentriskappetite,experience,financialpositions,andgoalsandobjectives.Thevaluableinformationweprovideshouldbeusedinconjunctionwithguidancefromyourinvestmentadvisor.Ourworkiseducational.Itisnotmeanttobeinvestingortradingad-vice.Itisusefulasatoolforyourinvestingdecisions,butisnottobeconsideredouradvicetoyou.Whatwedoofferforhelpinapplyingthisinformationisaneducationalserviceonhowwearetradingforourselvesbaseduponthisinformation.

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ForStandardsubscribers,weprovideaConservativePortfoliomodelwhereweshowhowweareinvest-ingandtrading.Wedividetheportfolioupintoseveralsegments,shownattheModelbuttonundertheConserva-tivePortfolioheaderattheleftofourhomepage.Standardsubscriberscanseehowweconduct5to10leveragedETFtradesperyearattheTransactionsbuttonundertheConservativePortfoliobuttonatourwebsite.ThesetradestakeplacewithintheMarketTimingsegmentofourConservativePortfolioandaimtoachieve5to10per-centprofitsforeachtrade.Sometradesmaylosemoneyonoccasion,asnosystemisperfect.Wedealinprob-

abilities,notcertainties,butwehopetobesuccessfulover70percentofthetime.Thesetradesareeducational,notadvice.Wesimplysharewhatwearedoing.Weemailnoticesofthesetransactionswithin15minutesofwhenweconductthem. ForPlatinumsubscribers,weprovideeverythingStandardSubscribersreceive,plusweshare15to30tradesperyearthatweconductprimarilyintheoptionsmarkets.Webuyputsorcallslong,meaningthemaximumwecanloseislimitedtoourinvestment.Wetarget30to50percentprofitsoneachtrade,andaimforasuccessrateof70percentorbetter.Thesetradingservicesprovideliverealtimedemonstrationofhowweusethetrendtradingsignalsandagingindicators,cyclesandwavemappingtomakemoney,toenhancereturnsonportfolios.Wedonotriskmorethan5percentofourportfolioinoptionstrades.Webelievethereturnswecangeneratebyriskingonlyupto5percentinspeculativetradingissignificantenoughtoenhanceoverallportfolioperformanceabovewhatcanbemadebyinvestingintheS&P500.Inotherwords,wekeep95percentofourConservativeportfolioinconservativeinvestments,andaggressivelytradewithoptionsinonlyasmallpercentoftheportfolio.

MosttradesinthePlatinumprogramarelessthan2percentofcapital,andthereareusuallyonlyoneortwotradesgoingonatatime. Thisserviceusestimetestedtechnicalanalysistheory,whichsimplysaysthatmarketsmovebaseduponthecollectivepsycheofthemassesofallpeopleonearth.Further,webelievethatmarketmovesarepredictableasthemasspsychologyofinvestorswithallknowledgeintotalcanbemeasured.Marketsmeasurethismasspsy-chologythroughpricebehavior,whichformspatternsofpricemovementthatisinessencealanguage.Themar-ketknowswhereitisheadednext,hasalanguage,tellsuswhereitisheadedwiththislanguage,andwecanun-derstandthislanguagethroughthestudyoftechnicalanalysis,whichiswhatwedohere.Further,moneycanbemadebymakinginvestingdecisionsbaseduponwhatthemarketissayingatanygiventimeframe.Thisiswhatwedo.Wewishyousuccess.Theremainderofthisglossarywilldefineindicators,cycles,patterns,andwavemappingtechniquesthateitherprovideourkeytradingindicatorsshownonpages2and3orprovideaginginfor-mationforthesefourkeytradingindicators.

Thisisthebestindicatorwehavefordefiningthestartofnewtrendsthatcouldlast1to2weeks,andonoccasion,upto4weeks.Thereasonthisissogoodatdefininglegitimateshort-termtrendsanddoesnotgetfakedoutbyweakcountertrendmovesisbecausethisisamomentummeasurethatidentifieswhenthereisenoughpowerbehindatrendturntosuggestanewtrendhasstartedthatshouldproduceacontinuationofthenewtrendforseveralpercentagepointsinanindex. Thisisaproprietarymeasureofsupplyanddemandmomentum.Wecalculateitattheendofeveryday,baseduponclosingdata.Newbuysignalsaregeneratedwhenthisindicatormoves6pointsaboveitsrecentlow,andnewsellsignalsaregeneratedwhenthisindicatormoves6pointsbelowitsrecenthigh.Itiscalculatedsepa-ratelyforeachofthemajorstockmarketindiceswecover:TheDowIndustrialsandtheS&P500sharethesamePPIindicator.WealsocalculatethisfortheNASDAQ100,theRussell2000smallcapindex,theHUIGoldBugs

index,andtheAustraliaSPASX200index. Momentumisthekeytofindingtradabletrends.Justlikeinlife,ifanobjectisinmotionwithstrongmo-mentum,theobjectwillcontinueinthatsamedirectionforawhile.Thegreaterthemomentum,thefurtheritmoves.OurPPIidentifieswhenthereissufficientmomentuminanewdirectionforstocks,thattheprobabilityofthestockmovecontinuinginthatsamedirectionishigh. PurchasingPowerIndicatorneedsthenewtrendtobeginbeforeitgeneratesanewsignal.Butthatisokaybecausewedonotwanttoenteratradeunlessthetrendhasmuchfurthertogo.OncewegetanewsignalinthePPI,theoddsarehighpriceswillcontinuefurtherinthesamedirection,oftenidentifyingthelikelihoodofatleasta3to5percentfurthermove.

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Onpagetwoweshowthesestradingbuy/sellindicatorsalongwiththePurchasingPowerIndicator.Onveryrareoccasions,thePurchasingPowerIndicatorwillgetwhipsawed,meaningatradabletrenddoesnotfollow.Thoseinstancesarealmostalwayswhenasidewaystriangleorsmalldegreewedgepatternisforming.Inthoserareinstances,marketswilloscillatebackandforthforseveraldaysorweeks,andourPPIwillwhipbackandforth

frombuystosells.Thiscanbefrustratingtoatraderifthesidewaysmovewasnotexpected.Thefirsttwoorthreebackandforthmoves(waves)withinatriangleareoftenviolentmovesinoppositedirections,indicativeofeithercompleteconfusiononthepartofinvestors,ormarketinterventionbythePlungeProtectionTeamtostopade-cline. WhatwehavetoprotectourselvesfromfalsepositivesignalsbythePPIisour30dayand14daysto-chasticssignals.Theymonitorafastspeedandaslowerspeedofmomentumbythemarkets.WhentheFastmeasurecrossesmorethan10pointsabovetheSlowmeasure,wegetabuysignal.WhentheFastmeasuremovesmorethan10pointsbelowtheSlowmeasure,wegetanewsellsignal.WewantthissignaltolineupinthesamedirectionasthePurchasingPowerIndicatorbeforeenteringatrade.Wesometimesmightenteratradewith-outthesetwostochasticindicatorsagreeingwiththePPI,butunderstand,thatisahigherrisktradethanifallthreeindicatorsareinagreement.Butonitsown,thePPIhasanoutstandingtrackrecord,soaggressivetraderscanusethePPIaloneattimes;moreconservativetraderscanstayoutuntilallthreeareinagreement.

Ourexperienceshowsthatwhenthesethreearenotinagreementaboutthedirectionofatrend,itmeansthateitheratrendturniscoming,orasidewaysmoveisoccurring,suchasatriangle,orsmallcountertrendmoveinsidealargerdegreetrendoftheoppositedirection.

isourmediumtermtimehorizon(2to4weeks)proprietarymeasureofbuyinginterestandsellinginterest.Likeallofourkeytrend-finderindicators, .Webelievethebesttooltofindamediumtermtrendof2percentormoreisbyfollowingmomentummeasures.

.Simply,whenevertheBluelinecrossesabovetheredline,theoddsareveryhighthatarisingtrendisstarting.AnaggressivetradercouldconsiderenteringalongpositiononthedatetheBluelinecrossesovertheRedline.Aconservativetradermightwanttowaitforadecisivecrossingbeforetakingaposition.MaybethatwouldbewhereDemandPowerrisesmorethan10pointsabovetheSupplyPressureread-ing,whichisthestandardwerequiretotriggeranewmediumtermtrendsignal. OncetheBluelinerisesabovetheRedline,weholdourlongposition.

.Howeverifwewanttotryandgetthemaximumoutofamove,Thatwouldbethelatest

timewewouldclosethelongposition.Often,thelongertrendhasnotreversedmuchwhenthesetwolinesinter-sect.Sometimestheintersectiondoesnotmeananewreversaloftrend,butmerelymeansasidewaysmoveiscoming,thusifweareholdingoptions(wheresidewaysmovesaredeathduetotimedecayandexpirationdates),wecangetoutbeforetoomuchtimedecaystealsfromapaperprofit.

Forexample,iftheBlueline(DemandPower)risesmorethan10points

abovetheRedline(SupplyPressure),wemighthaveenteredaBullishlongposition,playingthemarkettorally.AslongastheBluelinecontinuestoascend,weholdthatposition.However,oncetheBlueline(DemandPower)reachesanapex,andbeginsanoticeabledescent,wecanthentakeprofits.Wemightmissmorerally,butwemightnot,aswemightbecatchingclosetomaximumprofits.Forsurewiththisstrategy,wehavereducedriskoflosingaprofitablepositionalreadyinhand.

.Wecouldbuyputoptionsatthatpoint,oraleveragedshortETFposi-tion.Wewouldthenholdthatposition,playingthemarkettodecline,untiltheRedline(SupplyPressure)returnstointersectagainwiththeBlueline(DemandPower),atwhichtimewewanttogetoutofourshortpositionifwehaventtakenaprofitandgottenoutbythen.Orasmentionedabove,conservativetraderscouldexitoncetheRedline(SupplyPressure)reachesanapex,andbeginstodescend,longbeforethepointofintersection.

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AnotherinterestingdynamicofthisDemandPower/SupplyPressuremediumtermmarket-timingtradingsystemisthatiftheDemandPowerline(Blue)isabovetheSupplyPressureline(Red),itsmeasurecanactuallybedropping,yettherisingtrenditforecastwillcontinue.Thetrendusuallystopswhenthetwolinesintersect,andisnotcorrelativetowhetherDemandPowerorSupplypressureisrisingorfalling,perse.Inotherwords,once

DemandPowerrisesaboveSupplyPressure,evenifthemarginisshrinking,thetrendcouldstillrise.Conversely,onceSupplyPressureisaboveDemandPower,evenifitstartsdeclining,thetrendcouldremaindownuntilthetwolinesintersect.Notalways,butsomeofthetime,aconsiderationforaggressivetraders.

Why?BecauseifSupplyPressureandDemandPowerarebothdeclining,howeverSupplyPressureisdroppingmorethanDemandPowerisfalling,thenpriceswillfloathigher.Sameonthereverse.IfSupplyPressureisfalling,butDemandPowerisfallingmoresteeply,priceswilldecline.

.Wehaveaformulathatconsiderseachdaysdata,andconvertthattoDPandSPmeasures.Weconsiderpriceinthesecalculations,butasormoreimportantly,wealsoconsiderotherdata,andthemomentumchangeofthatdata.Incombination,thesedetermineDemandandSupplyonanygivenday.

Again,asstatedmanytimesinthepast,anybodyoftechnicalworkwepresent,whichisnotoneofourkeytrend-finderindicators,issimplybackground.Wedonottradeoffcycles,analogs,ElliottWaveanalysis,pat-terns,movingaverages,orDowTheory.

.

ThisindicatorwasoriginallynamedourTechnicalIndicatorIndex.WerenameditourSecondaryTrendIndicatorbecausewewantedthetimefocusforthisindicatortobefrontandcenter.Thisindicatorfocusesontrendsthatcouldlast3to6months+/-.Itisanintermediatetermstockmarkettrendidentifier.Thisisaproprietaryindicatorwehavedesignedafterintenseresearchandstudyofover200stockmarketindicatorsmeasures,pat-terns,andalgorithms.Wedidatonofcorrelationworkandcameupwithabasketof8ofthebestindicators,thatinacertaincombination,tellusthedirectionthemarketistaking.Thegreatthingaboutthisindicatoristhatbe-causeithasmoreofanintermediatetermfocus,itignoresacertainamountofshort-termnoise,andkeepsusfo-cusedonahigherdegreetrendformarketsthanourPPIorDemandPower/SupplyPressureIndicatorsfocuson.Thisindicatorisveryusefulfortradingsecuritiesthatdonothavesignificanttimeriskbuiltintotheirpricing,likeoptionsdo.LeverageIndexETFsornon-leveragedETFsareagoodfitforthissignal.

WehavebeenshowingtheSecondaryTrendIndicatorforyears,andreportitsleveleverydayinthese

reports.Simply,whentheSTIturnsabovepositive+5,itsuggeststhereisahighprobabilityforamulti-week,evenmulti-monthrallytobestarting.Conversely,whentheSTIturnsbelownegative5,itsuggeststhereisahighprobabilityforamulti-weekormulti-monthdeclinetobestarting.

ThisisourIntermediateTermTrendIndicator,whichwepresentinthescheduleonpage2ineveryreport.TradeEntryisbestsoonaftertheindicatorchangestoanewsignal.Ifitgetsnearzero,itcandriftaboveorbelowthezeroline.Onceitmovesseveralpointspositiveornegative,thereisgreaterprobabilitythesignalisgenuineandanewtrendisstarting.Ifsomeonewantedtoplayanentry,wewouldsuggestwaitinguntiltheSTImovesabovepositive+5foranewbuysignal,andbelownegative5foranewsellsignal.Tradingthisindicatorprobablymeansholdingontotheinvestmentforseveralweeks,unlesstheagebackgroundindicators,oryourownpersonalpreferences,convinceyoutoexitsooner.TheSTIisnotanexitsignal. TheS&P500isoverboughtwhentheSTIapproachespositive+30,andisoversoldwhentheSTIap-proachesnegative30.Thatusuallymeansatleastashort-termcountertrendmoveislikelytostartattheseover-bought/oversoldlevels,butthatcountertrendmovemaynotmeantheintermediatetrendthattheSTIiswatchingisover.ItcouldresumeoncetheSTImovesawayfromitsoverbought/oversoldlevels.

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MCHUGHS FINANCIAL MARKETS FORECAST & ANALYSIS Issue No. 7

Bonds and Interest Rates:

Page 17

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a

registered investment advisor in the Commonwealth of Pennsylvania, and can

be reached at www.technicalindicatorindex.com. The statements, opinions,

buy and sell signals, and analyses presented in this newsletter are pro-

vided as a general information and education service only. Opinions, esti-

mates, buy and sell signals, and probabilities expressed herein constitute

the judgment of the author as of the date indicated and are subject to

change without notice. The information contained in the newsletter is ex-

pressed in good faith, but its accuracy is not guaranteed. Nothing con-

tained in this newsletter is intended to be, nor shall it be construed as,

investment advice, nor is it to be relied upon in making any investment or

other decision. Prior to making any investment decision, you are advised

to consult with your broker, investment advisor or other appropriate tax or

financial professional to determine the suitability of any investment.

Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor

shall be responsible or have any liability for investment decisions based

upon, or the results obtained from, the information provided. Copyright

2012, Main Line Investors, Inc. All Rights Reserved.

J e s u s s a i d t o t h e m , I a m t h e b r e a d o f li fe ; h e w h o c o m e s t o M e

s h a l l n o t h u n g e r , a n d h e w h o b e l ie v e s in M e s h a ll n e v e r t h i r s t.

Fo r I h a v e co m e d o w n f r o m h e a v e n ,

Fo r t h i s is t h e w i ll o f M y Fa t h e r , t h a t e v e r y o n e w h o b e h o l d s

t h e S o n a n d b e lie v e s in H i m , m a y h a v e e t er n a l lif e;

a n d I M y s e lf w ill r a i s e h i m u p o n t h e l a s t d a y .

J o h n 6 : 3 5, 38 , 4 0

I f y o u a r e en jo y in g y ou r s u b s cr ip t io n , p lea s e t e ll a f r ien d .

Le t t h em k n o w a b o u t ou r f r ee o n e t im e 30 d a y t r ia l s u b s cr ip t io n .

Here are the symbols for Exchange Traded Funds for the Major Indices:This is not trading advice. We recommend you conduct your own research and consultwith your investment advisor before entering into any trades with these instruments.

DIA Dow Industrials IYT Trannies

SPY S&P 500 GDX HUI Amex Gold Bugs*QQQ NASDAQ 100 GLD Gold

IWM Russell 2000 SLV Silver

EWA Australia UUP U.S. DollarUSO U.S. Oil TLT U.S. Bonds

UDOW Ultra Pro Dow 30 3X (Leveraged ETF Targeting 300% of Daily Move)

UPRO Ultra Pro S&P 500 3X (Leveraged ETF Targeting 300% of Daily Move)TQQQ Ultra Pro QQQ NDX 100 3X (Leveraged ETF Targeting 300% of Daily Move)

NUGT Direxion Gold Miners 3X (Leveraged ETF Targeting 300% of Daily Move)

* N o t e : T h e G D X a c t u a l l y t r a c k s t h e G D M , a g r o u p i n g o f 4 5 m i n i n g s t o c k s , b u t t h e G DX h a s

v e r y h i g h c o r r e l a t i on t o t h e H U I s o w e m e n t i o n t h a t a s a s u i t a b l e E T F f o r t h e H U I .

MCHUGHS MARKET FORECASTING & TRADING REPORT February 17th, , 2012

7/29/2019 McHugh's Article Jaws of Death

18/18

Page 6 of 6

MCHUGHS FINANCIAL MARKETS FORECAST & ANALYSIS Issue No. 7

Bonds and Interest Rates:

Page 18

Heres the color coded, legend we use for our Elliott Wave count symbols, starting from thelargest degree waves to the smallest:

Impulse Waves Corrections

Grand Supercycle {1} to {V} {A} to {C}Supercycle (I) to (V) (A) to (C)Cycle I to V A to CPrimary (1) to (5) (A) to (CIntermediate 1 to 5 A to CMinor 1 to 5 a to c

Minuette i to v a to c

Micro 1 to 5 a to cSubnmicro {1} to {5} {a} to {c}Nano {1} to {5} {a} to {c}

Fo r I k n o w t h e p l a n s I h a v e f o r y o u , " d e c la r e s t h e L O R D ,

"p la n s t o p r o sp e r y o u a n d n o t t o h a r m y o u ,

p la n s t o g iv e y o u h o p e a n d a fu t u r e .

J er em ia h 2 9 :11

I f y o u a r e en jo y in g y ou r s u b s cr ip t io n , p lea s e t e ll a f r ien d .

Le t t h em k n o w a b o u t ou r f r ee o n e t im e 30 d a y t r ia l s u b s cr ip t io n .

Here are some symbols for Exchange Traded Funds for Going Short the Major Indices:

(These instruments should rise in value as prices decline)

This is not trading advice. We recommend you conduct your own research and consultwith your investment advisor before entering into any trades with these instruments.

DXD Dow Industrials (2X) SH S&P 500

PSQ NASDAQ 100 RWM Russell 2000

TBT Long-term U.S. Treasuries UDN U.S. Dollar

DGZ Gold ZSL SilverSDOW Ultra Pro Short Dow 30 (Leveraged Targets 300 % Daily Move)

SPXU Ultra Pro Short S&P 500 (Leveraged Targets 300 % Daily Move)

SQQQ Ultra Pro Short QQQ NASDAQ 100 (Leveraged Targets 300 % Daily Move)

MCHUGHS MARKET FORECASTING & TRADING REPORT February 17th, 2012