By Robert McHugh, Ph.D. June 12th, 2014

Transcription

1 The Amazing Past Performance for our Three Key Buy/Sell Indicators, the Secondary Trend Indicator, Demand Power / Supply Pressure, and Purchasing Power Indicator By Robert McHugh, Ph.D. June 12th, 14 Our Market Forecasting Service provides three incredible Buy/Sell stock market Indicators. They are the Secondary Trend Indicator, the Demand Power / Supply Pressure Indicator, and the Purchasing Power Indicator. This article discusses each one, and provides charts that identify significant stock market trends each indicator called correctly. The first is our Secondary Trend Indicator (originally called our Technical Indicator Index), shown in the chart below. We created this indicator at over twelve years ago, and it has been simply incredible at identifying intermediate term trends ever since. Its value is that it ignores minor countertrend moves (noise), and keeps us invested in the larger degree trend that is truly underway Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend. The is Overbought around positive + 30 and oversold around -30. STI June 6th, 14's STI is + 41, on a from copyright 14 Robert McHugh, Ph.D. 10/6/13 12/6/13 2/6/14 4/6/14 6/6/14 80

2 It spotted the January 14 decline before it started, back in late November 13. In fact prices did decline from when the Sell signal was triggered on November th, 13. After that decline completed, on February 27th, 14, it then triggered a new Buy signal, and has remained on that Buy signal through the date this article was written, June 12th. Since that February Buy signal, the has risen almost 100 points. Pretty impressive. This indicator has consistently performed well for many years. This indicator is terrific for traders who like to take a position and hold it for several weeks or months. While on occasion there are periods of time where this indicator will get temporarily fooled by the market, especially during sideways oscillating periods, it is a very smart indicator and will quickly reorient itself, reverse course, and find the next significant trend. It will not be fooled very long at all. Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend The is Overbought around positive + 30 and oversold around -30. November 15th, 13's STI is + 7, on a from STI copyright 13 Robert McHugh, Ph.D. 3/15/13 5/15/13 7/15/13 9/15/13 11/15/13 Looking back over the past two years, on November th, 12, our Secondary Trend Indicator spotted the start of a new multi-month rally, triggering a new Buy signal. At the time, the was at 1, It remained on a Buy signal for almost a year, ignoring

3 minor declines because it knew those declines were not going to be significant, and it knew prices were going higher, telling intermediate term traders and investors to stay long the market. The Buy signal lasted until October 7th, 13. Over the course of the year that this indicator remained on a Buy signal, the rose to 1,725.52, a rise of points in the, or 24 percent! Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend. The is Overbought around positive + 30 and oversold around -30. STI copyright 14 Robert McHugh, Ph.D. 10/1/11 12/1/11 2/1/12 4/1/12 6/1/12 Below, we show several more charts of the Secondary Trend Indicator from 07 through 11. The yellow arrows show the correctly called stock market trend after the latest Secondary Trend Indicator signal. You can see that this indicator has been simply remarkable over the past seven years at calling intermediate term stock market trends. Further, it was not fooled by the occasional stock market countertrend correction, but stayed on its signal as long as the intermediate trend was still in force. This indicator is very useful for ETF index traders and market timing investors.

4 1400 Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend. The is Overbought around positive + 30 and oversold around STI 900 copyright 14 Robert McHugh, Ph.D. 12/1/10 2/1/11 4/1/11 6/1/11 8/1/11 10/1/11 Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend. 10 The is Overbought around positive + 30 and oversold around STI 0 copyright 14 Robert McHugh, Ph.D. 12/1/08 3/1/09 6/1/09 9/1/09 12/1/09 3/1/10 6/1/10

5 Secondary Trend Indicator TM Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend. STI The is Overbought around positive + 30 and oversold around copyright 14 Robert McHugh, Ph.D. 12/31/07 3/31/08 6/30/08 9/30/08 12/31/ vs: Demand Power & Supply Pressure March 14 to June 14 When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a. When Supply Pressure rises 10 Points above Demand Power, we get a. Exit signals occur when DP or SP lines return to intersection after an entry signal. We received an " Positions" Signal May 22nd, 14 Demand Power/ Supply Pressure ,14 Demand Power Supply Pressure 10 copyright 14 Robert McHugh, Ph.D. 3/6/14 4/6/14 5/6/14 6/6/ A second indicator we want to show you, in the above chart, is not too shabby either. This is our Demand Power / Supply Pressure Indicator. It measures the simplest basic law of economics, that price is

6 determined by the equilibrium of Demand and Supply. What this indicator is doing is determining which of the two forces is dominating the market at any given time. If Demand Power is dominating Supply Pressure, then in all likelihood prices are headed higher. If Supply Pressure reigns over Demand Power, prices are likely headed lower. We have a proprietary formula that measures Demand Power and Supply Pressure in the stock market every night after the close, and report that to our subscribers in our nightly market newsletters at Take a look at how well this Demand Power / Supply Pressure Indicator performed in early 13, and again in late 13. Pretty impressive, right? Again, this is an intermediate term indicator, one that cuts out the noise of minor countertrend moves. vs: Demand Power & Supply Pressure January 13 to April 13 When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a. When Supply Pressure rises 10 Points above Demand Power, we get a. Exit signals occur when DP or SP lines return to intersection after an entry signal. Demand Power/ Supply Pressure Demand Power Supply Pressure We received an " Positions" Signal April 17th, copyright 13 Robert McHugh, Ph.D /19/13 2/19/13 3/19/13 4/19/13 Below we show several more charts for the Demand Power / Supply Pressure Indicator from 09, 10 through 13. Here you can see the bright yellow arrows identifying the full extent of significant trends this indicator identified accurately. It ignored noise (minor countertrend small trends) and stayed the course with the larger degree trend. Don t you get the feeling that you struck gold if both this and the Secondary Trend Indicator triggered the same signal around

7 the same time? vs: Demand Power & Supply Pressure Sep 13 to December 13 When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a. When Supply Pressure rises 10 Points above Demand Power, we get a. Exit signals occur when DP or SP lines return to intersection after an entry signal. We received an " Positions" Signal December 11th, 11 Demand Power/ Supply Pressure /8/13 10/16/13 Demand Power 12/5/13 12/11/ Supply Pressure 1325 copyright 13 Robert McHugh, Ph.D /13/13 10/13/13 11/13/13 12/13/ vs: Demand Power & Supply Pressure March 10 to June 10 When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a. When Supply Pressure rises 10 Points above Demand Pow er, we get a. Exit signals occur when DP or SP lines return to intersection after an entry signal. We received an " Shor t Positions" Signal June 24th, 10 2/17/10 copyright 10 Robert McHugh, Ph.D. 5/5/10 Supply Pressure Demand Power /25/10 4/25/10 5/25/10 6/25/10 Demand Power/ Supply Pressure

8 vs: Demand Power & Supply Pressure April 09 to July 09 When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a. When Supply Pressure rises 10 Points above Demand Power, we get a. Exit signals occur when DP or SP lines return to intersection after an entry signal. Demand Power. copyright 09 Robert McHugh, Ph.D. We received an " Positions" Signal July 15th, 09 Supply Pressure Exit Shor 7/2/09 7/15/09 4/24/09 5/24/09 6/24/09 7/24/09 Demand Power/ Supply Pressure Next, below, we show our bread and butter short-term trading indicator, our Purchasing Power Indicator PPI S&P/DJIA Purchasing Power Indicator PPI is a -term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely. June 6th, 14's PPI is The PPI Issued a "Buy" Signal on May 27th, copyright 14 Robert McHugh, Ph.D. - 2/6/14 3/6/14 4/6/14 5/6/14 6/6/ This Purchasing Power Indicator is an indicator that identifies shortterm high momentum reversals. This indicator is amazing in its ability

9 to find short-term quick and fast trends, and is ideal for short-term options traders. If we do a short-term trade in our Platinum trading program, with a time horizon of a few weeks, this is one of the most important decision making component criteria we use. For example, just over a week ago, this indicator sniffed out a coming fast rising trend, and generated a Buy signal on May 27th, 14, which was followed by a 44 point rally in the. This indicator told us a rally was coming so be ready with Call options, as a profitable trade was likely coming. This is another proprietary indicator that you will not find anywhere, based upon a formula we came up with 12 years ago that has been remarkable at identifying fast moving short-term trends. We present this every night to our subscribers in our daily and weekend newsletters PPI S&P/DJIA Purchasing Power Indicator PPI is a -term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely. April 22nd, 13's PPI is -23. The PPI Issued a "Sell" Signal on April 17th, copyright 13 Robert McHugh, Ph.D. 12/22/12 1/22/13 2/22/13 3/22/13 4/22/ Below we show this chart for 09 to show you that it has been accurately forecasting significant short-term trends for many years. If you go to our newsletter archives at the upper left of the home page at you can pick out any report for the past decade and see charts of how this indicator has performed in the past. It has been nothing short of amazing. What an investing and

10 trading advantage our subscribers get with this key indicator. S&P/DJIA Purchasing Power Indicator PPI is a -term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely PPI December 6th, 13's PPI is The PPI Issued a "Buy" Signal on November 13th, copyright 13 Robert McHugh, Ph.D /6/13 9/6/13 10/6/13 11/6/13 12/6/ S&P/DJIA Purchasing Power Indicator TM PPI is a -term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely. December 18th, 09's PPI is PPI The PPI Issued a "Sell" Signal on December 17th, 09. copyright 09 Robert McHugh, Ph.D. 9/18/09 10/18/09 11/18/09 12/18/

11 S&P/DJIA Purchasing Power Indicator TM PPI is a -term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely. PPI July 24th, 09's PPI is The PPI Issued a "Buy" Signal on July 13th, 09. copyright 09 Robert McHugh, Ph.D. 4/24/09 5/24/09 6/24/09 7/24/ We use all three of the above indicators as part of our decision making criteria in our Platinum Trading program at We calculate the levels for each of these indicators every night and report them in our daily newsletters, so anyone who would like to plug into these indicators for their own trading and investing has the opportunity to do so. We offer a free 30 day trial subscription to anyone interested in following these for free, and offer an annual standard subscription at a very modest cost if someone would like access to them for an extended period of time. To get a free trial subscription, simply click on the free trial button at the upper right of the home page at These indicators take the emotion out of trading and investing, and provide unbiased analytic measures of high momentum trends at two different time frames, short-term (one to 4 weeks), and intermediate term (one to 12 months). Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to and click on the Free Trial button at the upper

12 right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers. We cover a host of indicators and patterns, and present charts for most major markets in our International and U.S. Market reports. Dr. McHugh s new book, The Coming Economic Ice Age, Five Steps to Survive and Prosper, is available at amazon.com at Jesus said to them, I am the bread of life; he who comes to Me shall not hunger, and he who believes in Me shall never thirst. For I have come down from heaven, For this is the will of My Father, that everyone who beholds the Son and believes in Him, may have eternal life; and I Myself will raise him up on the last day. John 6: 35, 38, 40 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 The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates, 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. Nothing contained 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 14, Main Line Investors, Inc. All Rights Reserved.

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