Aug 7, 2007

No MagicT has nothing to do with mushrooms, it's short for "Magic Trough".

It is a trading signal I developed as part of my TrendSensor trading system. It can identify very early when panic selling is exhausted and a new rally is kicking off. It catches the end of the nastiest, most precipitous declines and delivers a buy signal early in the new, strong rally that usually follows.

Interested in technical analysis of markets? (skip this paragraph if you're not!) OK, here's the nerdy stuff: MagicT uses time series analysis of price volatility, a statistical analysis of trend duration to identify excessively long trends, and a simple chart pattern to nail the start of a strong rally following panic selling.

The chart at the link below of the DAX Index (Germany) covers 14 years and shows the MagicT in action (all those buy signals in all those troughs):

www.trendsensor.com/Charts/DAX-LT-MagicT.png

The first buy signal in 2002 ain't great, but the other 15 really nail the lows in the DAX, including most of the precipitous slides south.

Unlike the Germany market, many market indexes throw a MagicT buy signal only once every two or three years. Yet right now I can identify 14 market indexes (all within USA and Europe) that are primed to trigger a MagicT buy signal. That's phenomenal! And very bullish. A few of these may not fulfill all the signal requirements within the time frame allowed, but there are ten markets that appear very likely to throw MagicT buy signals within the next week or three. These ten markets are evenly split between Europe and USA:

* Europe: ATX (Austria), BFX (Belgium), CAC40 (France), DAX (Germany) and FTSE100 (UK).

* USA: BIX (S&P Banking Sector Index), HGX (Philadelphia Housing Sector Index), NYA (NY Composite), SPX (S&P 500) and SXX (Philadelphia Semiconductor Sector).

When MagicT rides into town within the next few days, it probably signals the start of the last excellent buying opportunity within the US and European markets for a long time to come.

All my trading signal clients will be onto this rare opportunity - and you're invited check out my free 5 week trial offer: get on board before MagicT rides into town!