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• What happened to savings in this country? View The Tuesday Letter
• Where Does The Market Go From Here?
• "Best Of The Web" Stock Picking Software & Trading Systems
• Check Out A Couple Of Our Newest Favorite Sites

Hello Market Toolbox Readers,

I have looked into one of my favorite crystal balls and I see a little strength coming back into the market.

The chart below shows the NASDAQ Bullish percent Index. An interesting indicator outlook from a weekly chart and we find it to be very accurate for detecting strength in the overall market.

According to StockCharts.com, a site we love, the Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group.

Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Great buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%.

It is important to note that the Bullish Percent Index is not something that can be applied to a single stock but rather an index that is calculated for a group of stocks.

The most popular version of this chart is the NYSE Bullish Percent ($BPNYA) which is mentioned prominently in Thomas Dorsey's book, Point & Figure Charting however it is important to remember that the Bullish Percent index can be calculated for any grouping of stocks.

Traditionally, the Bullish Percent indicator is charted on a Point and Figure chart using a 2 point box size. However, the indicator can also be charted and studied using standard charts as well.

As you can see on the chart there has been a little pullback over the last few weeks and now that short-term trend appears to be reversing. We'll keep an eye on it and see what develops.

Also this week we had our first show of the new fall season of The Market Toolbox, "On Demand" our guest was trading legend Larry Connors.

Many of you will know Larry as the Chairman and CEO Connors Group, Managing Partner of Connors Capital, and Best Selling Author of Street Smarts , Connors On Advanced Trading Strategies, Trading Connors VIX Reversals and The Trading Windows Strategy.

We talked with Larry about the overall market and why the "prevailing wisdom" is not supported by statistical data and some powerful trading techniques that people should use to keep from losing money with their trading activity.

We also discussed the importance of knowing the basics and some of the not-so-basic concepts of technical analysis.

We offer a CD ROM that is the World's Finest interactive education available anywhere for learning and mastering technical analysis.

It's the InteLyZe CD and it is sold around the world to traders hoping to become better and more profitable. Take a look.

Larry Connor's "Street Smarts" has recently been selected by Technical Analysis of Stocks and Commodities magazine as one of "The Classics" for trading books written in the past century.

His books have also been published in German, Italian and Japanese so when Larry says that people need to understand TA, he knows about which he speaks.

The main focus of our conversation was the new "colleges" that they offer for traders wanting to "take it up a notch". These are some very intensive courses covering everything from strategic and conservative capital appreciation programs to the full blown professional options trading college.

I think the swing trading college will probably appeal to most people. Take a look below and listen to the show. Also, keep an eye out each week for another great episode.

And Now...

"Best Of The Web" Stock Picking Software ~ Sept 16, 2005

Now You Can ...

• Find consistent earnings growth
• Scan for momentum in individual stocks
• Keep your emotions from getting in the way of your trading success
• Effectively place stop limit & stop loss orders
• Finally profit as a short-term trader
• Compound your portfolio value consistently

The formula for success in the stock market is simple, start with great stocks, trade with the wind at your back and always use a properly set stop loss order.

The Stock Picker RT is a fast and accurate way to find great stock picks every trading day. Please accept my personal invitation to try out this software.

"Best Of The Web" Trading System ~ Sept 16, 2005

Why Should You Settle for Mediocre Investment Returns When Others Make Money in the Stock Market So Easily?
The Controversial Story I've Been Asked Not to Write

by Manuel Backus, Founder, PortfolioCrafter.com

...Can personal wealth REALLY be achieved from the stock market?

Is it realistically obtainable, or just a deceitful game of "smoke and mirrors"? When it's all said and done, are you -- in actuality -- just wasting your time and hard-earned dollars? Well, you’re finally about to peel the wool back from your eyes, and clearly see the hard-hitting truth for the first time.

"Here's The Long-Awaited Answer -- Are You Ready?"

Next Up... Newest Favorite Sites...

I am not sure how many of you have see our newest software portal. But it is full of great features that you need to see. How about free stocks ratings on any stock you want. Full news and research tools, and yes, a collection of cool software systems too!

Coming Soon...

A Whole new portal of Market Experts. We are building a database of more than 140 experts and all the courses and books that they offer. You'll even be able to join a club where you can rent the courses as well. It's really going to be great so stay tuned.

Until Next Time...

Best wishes and Good Investing,
Bill McKinley & Doug Newberry
The Investing Systems Network