1. Good day traders and welcome to the premium newsletter for Monday June 17, 2013.

2. Lot’s to talk about today. Let’s first start with the fundamentals and go from there. This week on

Wednesday chairman Bernanke is going to provide further clues as to whether or not the feds

are going to continue or discontinue the bond buying program.

3. More importantly, traders believe the feds will provide more clear clues as to 1. What

indications of economic growth they are looking for and 2. When they are planning to make

their decision. This should provide investors with a better idea of what to expect.

4. One of the reasons why the stock market is rising so high this morning is because investors

believe that the feds will not discontinue the stimuli program in the near future. So once again

negative economic news is interpreted as bullish news. Keep in mind this works in the short

term but eventually the market will begin following rational logic and will manifest itself it the

stock prices in the next few months one way or another.

5. Before Wednesday the only fundamental news that’s going to be released is housing starts and

consumer price index. Both are scheduled for tomorrow before the opening bell. However,

Wednesday which is the big day we have 3 major events. All three announcements are FOMC

related and the final one will be the Chairman’s conference. All meetings occur between 2 and 3

pm eastern time on wed. I highly recommend you do not initiate any positions till after the

announcement. Till wed. wallstreet will be in speculation mode.

6. You can see by looking at the intraday SP chart that the stock market is at a very interesting

level. If it breaks the resistance level it will go down to the 1600 level and resistance becomes

support the market will try and test the previous high price near the 1700 level. I’m afraid till

wed. the U.S. market will be very random without much directional bias.

7. One market I’m very keen on today is the 10 year bond futures market. The contract has a 4X4

entry pattern and technically the trend looks like it’s going to continue down. Also the

fundamentals are in line with higher interest rates so make sure you consider this position on

the 10 year note. If you don’t have a futures account there are a few stocks that track this

contract. Just send me a quick email and I will provide you with a list of the stocks and etf’s that

correlate strongly to interest rates. If you do have a futures account and want to take advantage

of this position I recommend selling short on a stop at the 130 14/32. I would place a buy stop at

the 131 16/32 level. If the position fills I will update you on the profit target.

8. Another market you want to focus on is the gold market. The gold looks like it’s setting up for a

descending triangle. These are very accurate bearish patterns that take several weeks or a few

months to set up. I will attach a link to this email that discusses triangle patterns. The

fundamentals also point strongly down and the only reason the gold market is range bound and

choppy is because the market is very heavily influenced by interest rates. So I’m anticipating a

further breakdown in the gold market in the coming days. I will keep you updated here as well

as things develop.

9. Looking at our open position PFE is up only a few cents from the previous close. Considering that

the stock market is up over 150 points and the fact that this stock is very correlated to the

market demonstrates lot’s of weakness in Pfizer at this time. I still believe the stock will be

coming down in the next several trading sessions and is reaching overbought levels. A correction

is due and we are still in profit target area. Therefore I will hold the position and maintain the

original stop loss level as well.

10. There are a few new set ups for today. I will list them for you, however I’m not initiating any

positions in the stock market till after wed. report from the feds.

a. YUM this is Tricon Global…they are probably the largest fast food restaurant business in the U.S.

including kfc chicken, pizza hut and taco bell. There’s a 4 by 4 set up there

b. HDB is a Indian bank and the stock is very interest rate related. The stock is following the 10 year

bond futures contracts and is highly correlated to it. There’s a 4X4 entry here as well to the

downside.

11. Tomorrow I will finish up the relative strength ATR section that we started last and get ready for

wed. Announcements.. The second part of the week is going to be busy so I want to everyone to

be prepared for it.

12. Good night everyone and I will touch base later tonight or tomorrow morning.

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