Published by TFNN, Corp. ~ 601 Cleveland Street, Ste 618 Clearwater, FL 33755 ~ 1-877-518-9190 ~ http://www.tfnn.

com ~ Copyright 2013 ~ All Rights Reserved

01-13-14
TECHNICAL ANALYSIS vs FUNDAMENTAL ANALYSIS

This is our introductory issue of the new newsletter "Patterns - Profits & Peace of Mind". It is
based on patterns, cycles, and the numbers from the Fibonacci summation series. No
Technical
Analysis depends on 3 basic market tenets:
fundamental information of any kind will ever be used in making a decision to place a trade. Our
belief is that price is the ultimate indicator of the value of anything at any particular time. The
1. of
The
markets
discount
governing
factors
peace
mind
will come
by usingall
stops
and not over
trading. Each week we will try to list several
trading
opportunities
with
exact
buy
and
sell
points
using
both than
futuresreverse
and options. In addition,
2. Trends do exist and are likely to continue rather
there
may
be
several
daily
updates
each
week
depending
on
market
conditions and trading
3. History repeats itself
opportunities. This letter will focus on the most active speculative vehicles in the market such as
stock index futures, gold, crude oil, cross rates currency pairs, treasury bonds and ETF's.

The Technician must follow these beliefs at all cost.

So where are we now in the US stock markets? Are we breaking out to the upside
like the news tells us? Are we going to crash like the 1929 markets did? Or is this
a top forming before the next rise into new high ground?
Here
what we know: margin debt is equal or greater than Sept 1929, bullish
Stockismarket
consensus
is equal
to 1929,
price
completing
every
major
sector,
The stock market
continued
its rally
frompatterns
the low ofare
March
6 making itin
the
strongest
rallies
since
and
it
is
different
this
time.
1938. This was not unexpected as the low on March 6 was a very significant low that released the
bearishness that has held the market hostage since mid-August. Now we have completely
reversed
the bearish
the financial
press ishas
talking
about theanew
bull showing
market. It the
is
Tom
Demark,
thesentiment
famous and
market
technician,
produced
chart
very difficult to be bullish after a six-week run! In fact it is looking as though we have reached an
comparisons of 1929 to the present. It looks as though there is a strong
intermediate term top. There are several trading opportunities at this particular time. First, in the
correlation
present
in my
opinion
(butand
I am
very bearish).
S&P 500 there
is stronghere,
resistance
in the
870 area
the market
should not exceed 882 if we
are correct. Close examination of the daily and hourly S&P charts will show that there is

Take
a lookevidence
at the JNK
bond
enclosed
in last
thistwo
letter
- as
you can
see
considerable
to be(i.e.
shortjunk
at this
time.ETF)
The time
up in the
rallies
as shown
by the
yellow
triangles
is
highly
suggestive
of
a
top
occurring
April
17
or
April
20.
Patterns
on
the
hourly
it is making new high ground as investors are grasping for the highest yield
chart (i.e. three
to aUS
top)T-bond
are alsohas
present.
These
patterns
tend to
failsee,
but they
also
havethe
a
possible.
The drives
30 year
lagged
badly
as you
can
even
with
high probability of working (better than 70%). Stop protection of $500-$1000 is always
Federal
Reserve QE programs. This is further indication that investors have no
suggested. Stops are placed for your protection so you must use them to protect capital. Second,
fear
why
shouldETF
they
after
5 years
of partying).
FAZ is(and
a triple
weighted
for the
financial
index.
We would suggest either buying the ETF
outright with a two dollar stop or buying a May $15 call. This call strategy has a great risk reward
ratio as
the callhas
is trading
under
one dollar, to
which
be your
total
riskwhen
and you
This
market
all the
ingredients
be would
setting
up for
a amount
crash; ofbut
and if
have
20
days
to
see
if
it'll
work.
This
is
tremendous
leverage
because
a
slight
move
in
comes, it wont be from the top. It will happen after a break and then aalowshallow
priced stock can easily bring multiple returns because the stock once sold for $200 a share.

rally that fails very quickly, accompanied by a very high volume sell off closing at
the low end of the days range. The crash would come the following day, usually
with
tothe
give
merit
to the
decline.
*You'llsome
see a news
chart of
Bradley
stock
market
model included in the newsletter. The Bradley
stock market model is based on the Astro harmonic movement of planets and is a numbers based
cycle program. The Bradley model will track the stock market better than 70% of the time and it
can do that years in advance.
most &
useful
timing
dates,
and also the secondary use
PatternsItisProfits
Peacefor
ofthe
Mind
- Page
1 - 01/13/14
to determine trends for up to several months. Bradley should not be used alone, pattern
recognition and money management will make it more efficient

From an astro-cycles perspective, the logical time for this would be near the
Spring Equinox - March 21st.
Foreign exchange markets were active as usual after the Non Farm Payroll Report
but stocks still came back to close up on the week. The NYSE Index has
completed a bearish Gartley pattern on the 30 min chart as has the cash S&P
500. The NASDAQ also rallied to close at the 786 level (see attached charts). The
JPY/USD is the one to watch as it correlates well to the Japanese stock market.
The Euro looks long term bearish as long as it does not get above 1.3860.
Gold and silver -- these two markets are starting to turn upward. Gold needs to
get above 1,300/oz and silver above 22/oz to change the trend to up. The bottom
we have been looking for in these metals has been formed - making new weekly
lows now would negate this bullish scenario.
The oil complex tested support at 91/bbl last week and has held thus far. The
longer term targets show the next support at the 85/bbl level.

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_________________________________________________________________
Disclaimer: Trading in securities such as stocks, options, indices, currencies and futures involve risk and should not be undertaken without due diligence and serious
independent study. Subscribers may carry out their own trading based on what they learn from Patterns Profits & Peace of Mind, but all risks of potential financial losses are
the subscribers responsibility. TFNN will be in no way liable for financial losses resulting from trading decisions based on this newsletter. Past performance is no guarantee of
future results. Reproduction in whole or in part is not permitted without prior written consent. All rights reserved.

Patterns Profits & Peace of Mind - Page 12 - 01/13/14