Today’s post contains a special announcement regarding the contents of this daily technical analysis and market timing update.

After some in-depth discussions with many subscribers and a review of potential changes regarding the usefulness of this information, some changes are going to occur between now and the end of the year. 

Here is a summary of the changes that will start being implemented next week.

1. The daily technical analysis update will create specific buy and sell recommendations using the daily time-frame only.
2. The top stock picks subscription will contain specific buy and sell recommendations with updated stop-loss prices for the recommended ETF positions. 
3. There will be approximately 6 Bull ETF’s and 6 Bear ETF’s that will be in play at any one time – so the time you need to spend selecting stocks for purchase will be reduced to essentially zero.
4. Buys and Sells in the model portfolio will be sent as part of the top-stock picks subscription

So as a preview of this change, here is the verbiage that is effective as of the close of the market on Friday 11/13/09:

The broad market has been hitting some roadblocks in recent trading.  It is possible that the market may be creating a classic head and shoulders formation which has the potential to really create some damaging down-drafts in the days ahead.

Taking a look at the daily chart of the broad market you can see that prices have failed to make a higher high over the high made in mid-October.  This is further evidence of the strength of the overhead resistance at the 11,250 level. 

Price momentum seems to have stalled prior to the momentum indicator reaching the bullish 100 level.  This highlights the growing weakness or lack of bullish strength.  In addition, stock prices have fallen below the price indicator which is a dependable prediction of price weakness in the days ahead.

Trading Strategy:

It appears we are in a twilight zone between breaking through overhead resistance and a deeper consolidation or reaction to the overhead resistance.

Only one of our bullish ETF’s – VTI – has moved into a bearish position.  However, VTI is the ETF that represents the broadest index available – and if VTI is bearish can the others be far behind?

Unless the market moves up sharply on Monday through the overhead resistance at 11,250, new long positions are not advised.

Although the bearish ETF’s have yet to display the strength needed for a profitable move, if Mondays trading is sharply down then pay attention to the following Contra-ETF’s: DOG, DXD, PSQ, QID, SDS, SH.  Depending on the trading action on Monday, these ETF’s may be recommended for purchase.

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Further, starting Jan 1 2010, prices for subscription products are going to change.   The daily technical analysis update will be re-priced at $12.95 per month.  The top stock picks with stop prices and model portfolio transactions email will be re-priced at $12.95 per month.  There will be yearly discounts available and these prices will be announced by Jan 1 2010.

Accordingly, here are your options regarding your subscription:

1. Keep your current subscription as is and your old price will be honored for as long as you keep your subscription intact.
2. Cancel your subscription per our Terms of Use.
3. If you are on our mailing list free of charge under an old plan please be aware these subscriptions will end on December 31, 2009.  You will need to subscribe with the $1 trial prior to Jan 1 2010 in order to be grandfathered in under the old pricing.  Subscriptions started after Jan 1 will be at the new rate