Monday, October 3, 2011

Market Overview - October 3, 2011

One of the most prominent Sunday headline was that Greece could not meet its budget deficit reduction targets for 2011 - as if anyone thought that they will? Global stocks sold-off throughout Sunday night into Monday. Right now US stocks are stuck in a neutral battle between Bears and the Bulls. However, it seems like that the resolution will be to the downside. Next few weeks will be very interesting and hopefully rewarding for UST readers.

There is not a lot to add in terms of market analysis. Markets are in a well-defined down trend and are tracing out a series of 1 and 2s. One of these days, this sequence of 1s and 2s will give way to a sharp decline in the stock prices. This sharp decline will mark the 3rd wave. Keeping in mind the length of 1s and 2s, there is an increased possibility of a mini-crash in the stock market.

On the sentiment front, we are seeing positive developments with pessimism reaching long-term extremes. However, short-term panic is not evident through the market action. This suggests that there is potential of a severe decline in the near term. In the longer term, market might be close to a low. We will discuss the Inflection Point Model timing in one of the upcoming subscriber only reports.

At this point we can reduce the stop down to 1140 (SP500). Congrats to the readers, who have now bagged more than 3.5% profit, with (God willing) much more to come. This eliminates all of risk from current trade, alongside ensure a handsome profit. Further stop updates will be provided in the upcoming Subscriber Trading Algorithm update.

There are certain very important dates on the horizon with in next few weeks. These dates can act as potential turning point. Thus, in order to manage risk and maximize profitability, it is crucial to follow the trading algorithm. There will be significant trading opportunities over the next few weeks, along with the possibility of picking the bottom for a 20+% rally. We will send a special report to the subscribers near the potential turn date.  

Subscription services will start this week. We would like to welcome all subscribers. We might open Subscription for only one week for only 10-15 subscribers in mid October - not sure yet. All those who registered will received Market Matrix, Trading Algorithm, Inflection Point Model, Newsletters and Special Reports, as mentioned in the subscription brochure.

If you want to get information if Subscription opens up in October, please fill out the following form:


  1. Congratulations on another amazing market call.

  2. Naqvi,
    Would you like to make a comment why the system did not detect the bottom for SPX on August 3rd??

    we all try to make they system better??

  3. I think you are talking about October 3, 2011. I wrote the following in October 17 Market Overview: "Due to modelling software's update, the license had to be re-installed. This prevented us from re-running the model for the past 2-3 weeks. When the IPM was re-run yesterday, I was shocked to see that October 4th bottom occurred within the turn window specified at UST: September 28 (+/- 4 days)."

    Above mentioned overview might answer your question. It would have been great to be long on October 3, 2011. But at that time, we were in a bear market, and a well defined down trend. So caution was warranted.


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