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September 28, 2007

New Signal
by Angelo Campione

9/28/2007 11:07:59 PM

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

New Position.

Our system has now moved into Sell mode. The new suggested trade for the open of trade Monday, October 1 is:

BUY to Open SPX Oct 1600 Call Option (Symbol: SPBJT) and SELL to Open SPX Oct 1590 Call Option (Symbol: SXMJR) for a minimum net credit of $0.60.

This equates to a premium you receive of $60 per $1,000 of margin (before commissions).

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.

SPX Chart

Last week I painted two likely scenarios, neither one of which came through! The market essentially went sideways, consolidating its large rise from the previous week. This consolidation now paves the way for a larger move and we believe that move to be to the downside (October always has the ability to surprise and a large drop is not out of the question, 1480 is the area to watch). Of course we may still be surprised by a move higher and if so, the October 1590 Calls will give us a good degree of safety.

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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