100% Accurate Indicator Signals Again
By Jeff Clark
December 11, 2007

Okay, everybody, say it with me...

"THANKS, MOM!"

Back on November 20, I told you that my mother, who happens to be one of my favorite proprietary technical trading indicators, was showing signs of excessive pessimism. That's always been a pretty good "buy" signal in the past, and it worked out quite well this time also.

Just look at what's happened since then...

On November 20, the S&P 500 was trading at 1,433. Yesterday it closed at 1,516. That's a gain of 83 points, or 5.8% in just three weeks.

My S&A Short Report subscribers did even better.

Three weeks ago, we started buying into homebuilder and financial stocks. The sectors were so violently oversold, and investor pessimism was so high, that it looked like we had a pretty good opportunity for a couple of contrarian trades. And by using call options, we were able to keep our risk to a minimum.

One of those trades is up 50% in the past three weeks. The other is up just about 200%.

We haven't sold yet, but we're keeping a very close eye on them and we're protecting our profits. Because yesterday, I spoke to Mom again...

Mom is much more comfortable with her stocks right now than she was three weeks ago. And she's looking to buy more.

"Your father and I have been watching the stock market go up lately, and we're thinking about putting some more money to work," Mom said. "What do you think?"

I suggested that since stocks have run up so much in such a short time that maybe right now was not the best time to put new money into them. But to protect the sanctity of my No. 1 technical indicator, I avoided telling her what I was really thinking.

And I probably don't have to tell you what I'm thinking right now either. Do I?

Best regards and good trading,

Jeff Clark