1 P a g e. Executive Summary

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1 Executive Summary In last week s update I set a first target of SPX2428 for the S&P500, which was reached on Thursday. I expected from there a 10-15p correction, but instead the market decided to target the next level: SPX2445. I expect from that level a drop to SPX before the next rally to SPX (most likely SPX2475); one more correction and rally to SPX should then conclude all of major-3 and the largest correction of this year should then set in (nothing goes up or down for ever); possible starting late June as my Fib-based trading interval and Bradley turn dates coincide then. Summer doldrums? That s my ideal road-map. Otherwise, all indicators (TIs, breadth, SMAs, etc) I follow continue to signal to buy/stay long on the daily to weekly time frames. Hence, I continue to look up until again- the market proofs otherwise. I have no bearish count anymore as the market broke firmly above SPX2428 this week; the final straw for the Bears. Note: green NFP days are often followed by red Monday s. 1 P a g e

2 Trading Performance Update with North Post Partners, LLC NPP provides neither a boom, nor a bust. Just consistency. Another excellent week for us: we added over 2% to our entire portfolio this week, while all major indices were down (except the DOW). We continue with our process over profit method and continue to cash in winners at set targets, while cutting losers without mercy. We stick to our system since it clearly works: we easily outperform all major indices including the NASDAQ. The current path we are on strongly suggests we ll be up well over 40% EOY. Will you? Please contact me or Rus Chao directly (rustinchao@gmail.com) for more information. Joining NPP is absolutely free, and we charge no service or maintenance fees. Please follow NPP on (all intra-day trades are provided there in real time) Please bookmark NPP s website: (weekly digest/trading plans are posted there) *It should not be assumed that future performance will always be guaranteed and/or profitable. Nor will future performance necessarily equal past performance or past performance trends. All trading and investment decisions are the sole responsibility of NPP. Joining NPP is free, but does not exclude commission costs, and other possible charges. 2 P a g e

3 Elliot wave updates The S&P500 dipped to SPX2404 early in the week and then rallied almost 40p unabated: hallmark of a 3 rd wave. The S&P500 reached the first possible target of SPX2428 for micro-3 of minute-iii of minor-3 of intermediate-v of major- 3 of Primary V (The entire wave labeling gives a better sense of where the market is) on Thursday by closing within +/- 2p. At the open on Friday it surpassed the target by 5p, signaling price will extend. The S&P500 then reached SPX2440, and I expect it to now ideally target the 1.236x extension at SPX2445 +/- 2p for micro-3. Then Micro-4 ideally down to SPX , which is good support, and micro-5 to SPX to complete all of minor 3. Figure 1A and B show the ideal path forward for micro-3, 4 and minor-3, 4, 5; respectively. These levels are all based on our ideal wave tracker table: Table-1 next page. Note that I cannot foresee or predict any extensions of the market: do NOT short a 3 rd wave! Also, there s no bearish count any more. I fully expect SPX to be reached within the next few weeks. Figure 1. SPX 1min and 60 min chart, with preferred Bullish count Elliot Wave count shown. A B 3 P a g e

4 Technical Market update The S&P500 daily chart shows price ended the week back above all SMAs (5d to 200d) and back above all uptrend line. The RSI5, MACD and MFI14 all broke above their red (negative divergence) down trend lines, and the further gains I then expected on such a break in last week s update came to fruition. Hence everything in the chart is pointing up, in line with my preferred count and price targets (see Table 1). I see no reason to change anything until proven otherwise. Table 1: Ideal wave tracker counter for minute and minor waves of intermediate-v to SPX Figure 2. SPX daily chart. Price back above 20d to 200d SMAs and red trend line. A.I. and MACD buy signals. 4 P a g e

5 Last week all prior weeks bearish setups were negated and this week price continued to climb further adding to those positive changes. The symmetry breakout target to SPX2485 remains and fits very well with the ideal SPX target zone. The weekly MACD is about to give a buy cross-over, while the weekly SMAs continue to bullishly align: all are pointing up and all are bullishly stacked (20>50>100>150>200): longer term uptrend. Price is hugging the upper Bollinger Band: it has strength. Note, money flow (MFI14) is on this scale not supporting the move higher. Although this can change, as it does on the daily chart, it s indicative IMHO of the 5 th wave. Hence, also this chart tells me to expect continued higher prices over the coming weeks, which is in line with my preferred count. Figure 3. SPX weekly TI chart. TIs starting to point back up, initial A.I. sell signal remains as well MACD remains on sell, but adjusted!- symmetry breakout targets SPX2485, right in our ideal SPX target zone. 5 P a g e

6 Market breadth & Simple Moving Averages Charts The SPXSI (Summation Index for the S&P500, derived from the McClellan Oscillator for S&P500 (SPXMO)) is the breadth-based indicator I use to also get buy/sell signals from, and it s buy/long signal continues as breadth (SPXMO) remains high and positive, but dropped a bit on Friday compared to Thursday (as did the number of stocks on the S&P500 above their respective 50d SMA not shown-, but the indicator remains above its long term average: Bullish) The NYAD (advancing/declining issues) continues to make new highs (more advancing then declining tickers): no significant correction until we see negative divergence on this indicator; also suggesting more upside ahead. Hence, all market breadth indicators support the thesis of higher prices over the coming days and weeks. Figure 5. A) SPXSI remains on buy: Bullish. B) NYAD keeps making new highs: bullish. A B 6 P a g e

7 Our long-term Simple Moving Averages only chart (LT-SMA, for trend followers and long term traders) continues to be 100% bullish. It s telling long term traders to stay long and strong: major 3 still underway. As such this chart also continues to support our overall view of the market and where it will head over the next several months: higher. Our short term chart (ST-SMA, for short term to swing traders) improved last week and is now only 95% bullish; also in line with our view that the market is in wave iii of 3. Figure 6. A: LT-SMA chart 100% bullish B: ST-SMA chart 95% Bullish. A Copyright Intelligent Investing. May not be distributed without permission. B Copyright Intelligent Investing. May not be distributed without permission. 7 P a g e

8 Rules for reducing losses. Losses are part of the game we play. Everyone has losses. Only online heroes post only their winning trades. DO NEVER EVER follow anybody who says they win all trades or only tout winning trades. As you know NorthPost Partners and I are entirely transparent about our trades and post all in real-time on TWTR! So please follow us there! Why are losing trades important? 1) We can only learn from our mistakes, 2) they keep us humble, focused and reduce complacency. Buy, hold and hope is NOT the strategy. But, losses are manageable, and have to be kept as small as possible. Managing risk is in fact more important than managing reward. In fact, good systems can have more losing trades than winning trades, as the losses are small and gains are large: 100 x $10 = $1,000 in loss 10 X $1000 = $10,000 in gains Total: $9,000 profits. Win/loss ratio: 1 to 10!... Yes, in this case 10 times more trades were lost than won, but all losses are small amounts. How then can we manage losses? There are a few ways: 1) never put all your eggs in one basket. Try to have a portfolio of up to 10 positions, while always keeping 10% in cash (ready to deploy whenever the opportunity arises). This way, no position is larger than 9% of your entire portfolio. 2) Set prudent stop loss levels. Yes, the first thing you have to do before entering a trade is to determine at which level you ll sell it BELOW purchase price. Say you set it at 5%: then the most you can lose is 5% of 9%: 0.45% of your portfolio. Peanuts. Meanwhile, let winners run. A good way to do this is to set a trailing stop when entering a trade. It got you covered no matter what. Note, this is only one way to do it. There are many other ways, one can use SMAs for stops, or pre-determined price levels, or $-amount, etc. As long as there s a stop loss in place. Similarly for profit taking: sell entire or partial position at set price targets (e.g. those I provide), have the 5% trailing stop kick in, etc. 8 P a g e

9 Fib-based Trading Interval Turn dates & Remaining Bradley Turn Dates for 2017 The next turn date is June 20 th (+/- 3 days) The May 30 th turn date market the SPX2404 low. There s a Bradley turn date June 9 as well. There are two very strong turn dates slated for the end of June: 21 st, 30 th, with the first in-line with my Fib-based turn date. Sees reasonable to expect a top around that time given where the market is now. June 9 (61/100 Long Terms Power) June 21 (100/100 Bradley Siderograph Power) June 30 (100/100 Declinations Power) July 4 (100/100 Middle Terms Power) August 19 (17/100 Bradley Siderograph Power) September 5 (17/100 Declinations Power) September 7 (29/100 Bradley Siderograph Power) October 7 (48/100 Middle Terms Power) December 3 (23/100 Bradley Siderograph Power) December 6 (100/100 Long Terms Power) ALOHA Soul, Ph.D. 2017, Intelligent Investing. This copyrighted weekly periodical is published on non-stock market trading weekend days by Intelligent Investing, and is intended solely for use by designated recipients. No reproduction, retransmission, or other use of the information or images is authorized. Legitimate news media may quote representative passages, in context and with full attribution, for the purpose of reporting on our opinions. Analysis is derived from data believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the re ader. Inclusion of information about managed accounts, program positions and other information is not intended as any type of recommendation, nor solicitation. For more information, contact intelligent investing at intelligent_investing@yahoo.com. We reserve the right to refuse service to anyone for any reason. 9 P a g e