By Robert McHugh, Ph.D. June 12th, 2014

(1)

The Amazing Past Performance for our Three Key

Buy/Sell Indicators, the Secondary Trend Indicator,

Demand Power / Supply Pressure, and Purchasing

Power Indicator

By Robert McHugh, Ph.D. June 12th, 2014

Our Market Forecasting Service provides three incredible Buy/Sell stock market Indicators. They are the Secondary Trend Indicator, the Demand Power / Supply Pressure Indicator, and the Purchasing Power Indicator. This article discusses each one, and provides charts that identify significant stock market trends each indicator called

correctly. The first is our Secondary Trend Indicator (originally called our Technical Indicator Index), shown in the chart below. We created this indicator at www.technicalindicatorindex.com over twelve years ago, and it has been simply incredible at identifying intermediate term trends ever since. Its value is that it ignores minor countertrend

moves (noise), and keeps us invested in the larger degree trend that is truly underway.

Secondary Trend Indicator TM

1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 10/6/13 12/6/13 2/6/14 4/6/14 6/6/14 -40 -10 20 50 80 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

June 6th, 2014's STI is + 41, on a Buy Signal from 2.27.14.

S&P 500

STI

Buy Signal Sell Signal The S&P 500 is Overbought around positive

(2)

It spotted the January 2014 decline before it started, back in late November 2013. In fact prices did decline from when the Sell signal was triggered on November 20th, 2013. After that decline completed, on February 27th, 2014, it then triggered a new Buy signal, and has remained on that Buy signal through the date this article was written, June 12th. Since that February Buy signal, the S&P 500 has risen almost 100 points. Pretty impressive. This indicator has consistently performed well for many years.

This indicator is terrific for traders who like to take a position and hold it for several weeks or months. While on occasion there are periods of time where this indicator will get temporarily fooled by the market, especially during sideways oscillating periods, it is a very smart indicator and will quickly reorient itself, reverse course, and find the next significant trend. It will not be fooled very long at all.

1100 1200 1300 1400 1500 1600 1700 1800 3/15/13 5/15/13 7/15/13 9/15/13 11/15/13 -40 -10 20 50 80 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

November 15th, 2013's STI is + 7, on a Buy Signal from 11.15.13.

S&P 500

STI

Buy Signal

Sell Signal

The S&P 500 is Overbought around positive + 30 and oversold around -30.

Looking back over the past two years, on November 20th, 2012, our Secondary Trend Indicator spotted the start of a new multi-month rally, triggering a new Buy signal. At the time, the S&P 500 was at 1,387.81. It remained on a Buy signal for almost a year, ignoring

(3)

minor declines because it knew those declines were not going to be significant, and it knew prices were going higher, telling intermediate term traders and investors to stay long the market. The Buy signal lasted until October 7th, 2013. Over the course of the year that this indicator remained on a Buy signal, the S&P 500 rose to 1,725.52, a rise of 337.71 points in the S&P 500, or 24 percent!

900 1000 1100 1200 1300 1400 1500 10/1/11 12/1/11 2/1/12 4/1/12 6/1/12 -40 -10 20 50 80 110 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

S&P 500

STI

Buy Signal

Sell Signal

Below, we show several more charts of the Secondary Trend Indicator from 2007 through 2011. The yellow arrows show the correctly called stock market trend after the latest Secondary Trend Indicator signal. You can see that this indicator has been simply remarkable over the past seven years at calling intermediate term stock market trends. Further, it was not fooled by the occasional stock market countertrend correction, but stayed on its signal as long as the intermediate trend was still in force. This indicator is very useful for ETF index traders and market timing investors.

(4)

Secondary Trend Indicator TM 900 1000 1100 1200 1300 1400 12/1/10 2/1/11 4/1/11 6/1/11 8/1/11 10/1/11 -40 -10 20 50 80 110 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

S&P 500

STI

Buy Signal

Sell Signal

500 600 700 800 900 1000 1100 1200 1300 12/1/08 3/1/09 6/1/09 9/1/09 12/1/09 3/1/10 6/1/10 -40 -10 20 50 80 110 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

S&P 500

STI

Buy Signal

Sell Signal

(5)

Secondary Trend Indicator TM 500 600 700 800 900 1000 1100 1200 1300 1400 1500 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 -40 -10 20 50 80 110 Very simply, when the STI turns above positive +5, it means odds favor a multi-week rising trend. When the STI turns below negative -5, the odds favor a multi-week declining trend.

S&P 500

STI

Buy Signal

Sell Signal

S&P 500 vs: Demand Power & Supply

Pressure March 2014 to June 2014

1500 1600 1700 1800 1900 2000 3/6/14 4/6/14 5/6/14 6/6/14 325.0 425.0 S&P 500

When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a Buy Signal. When Supply Pressure rises 10 Points above Demand Power, we get a Sell Signal. Exit signals occur when DP or SP lines return to intersection after an entry signal.

S&P 500 Demand Power/ Supply Pressure Supply Pressure Demand Power

We received an "Enter Long Positions" Signal May 22nd, 2014

Enter Short 4.7.14 Enter Long 3.31.14 Enter Long 4.21,14 Enter Long 5.22.14

A second indicator we want to show you, in the above chart, is not too shabby either. This is our Demand Power / Supply Pressure Indicator. It measures the simplest basic law of economics, that price is

(6)

determined by the equilibrium of Demand and Supply. What this indicator is doing is determining which of the two forces is dominating the market at any given time. If Demand Power is dominating Supply Pressure, then in all likelihood prices are headed higher. If Supply Pressure reigns over Demand Power, prices are likely headed lower. We have a proprietary formula that measures Demand Power and Supply Pressure in the stock market every night after the close, and report that to our subscribers in our nightly market newsletters at www.technicalindicatorindex.com .

Take a look at how well this Demand Power / Supply Pressure Indicator performed in early 2013, and again in late 2013. Pretty impressive, right? Again, this is an intermediate term indicator, one that cuts out the noise of minor countertrend moves.

S&P 500 vs: Demand Power & Supply

Pressure January 2013 to April 2013

1325 1425 1525 1/19/13 2/19/13 3/19/13 4/19/13 150.0 250.0 350.0 450.0 S&P 500

When Demand Power Crosses 10 Pts above the Supply Pressure Line, we get a Buy Signal. When Supply Pressure rises 10 Points above Demand Power, we get a Sell Signal. Exit signals occur when DP or SP lines return to intersection after an entry signal. S&P 500 De mand Powe r/ Supply Pre ssure Supply Pressure Demand Power

We received an "Enter ShortPositions" Signal April 17th, 2011

Enter Long 12.31.12 Enter Long 2.27.13 Enter Short 4.17.13

Below we show several more charts for the Demand Power / Supply Pressure Indicator from 2009, 2010 through 2013. Here you can see the bright yellow arrows identifying the full extent of significant trends this indicator identified accurately. It ignored noise (minor

countertrend small trends) and stayed the course with the larger

degree trend. Don’t you get the feeling that you struck gold if both this and the Secondary Trend Indicator triggered the same signal around

(7)

the same time?

S&P 500 vs: Demand Pow er & Supply Pressure Sep 2013 to December 2013

1325 1425 1525 1625 1725 1825 9/13/13 10/13/13 11/13/13 12/13/13 300.0 400.0 500.0 S&P 500

W he n De m a nd Pow e r Crosse s 10 Pts a bove the Supply Pre ssure Line , w e ge t a Buy Signa l. W he n Supply Pre ssure rise s 10 Points a bove De m a nd Pow e r, w e ge t a Se ll Signa l. Ex it signa ls occur w he n DP or SP line s re turn to inte rse ction a fte r a n e ntry signa l. S&P 500

De mand Powe r/ Supply Pre ssure

Supply Pre ssure

De m a nd Pow e r

W e re ce ive d a n "Ente r Short Positions" Signa l De ce m be r 11th, 2011

Ente r Long 9.10.13 Ente r Short 10/8/13 Ente r Long 10/16/13 Ente r Short 12/5/13 Ente r Short 12/11/13

S&P 500 vs: Demand Power & Supply

Pressure March 2010 to June 2010

1000

1100

1200

1300

1400

1500

3/25/10

4/25/10

5/25/10

6/25/10

150.0

250.0

350.0

450.0

550.0

S&P 500

When Dem and Pow er Crosses 10 Pts above the Supply Pressure Line, w e get a Buy Signal. When Supply Pressure rises 10 Points above Dem and Pow er, w e get a Sell Signal. Exit signals occur w hen DP or SP lines return to intersection after an entry signal. S&P 500 Demand Power/ Supply Pressure Supply Pressure

Dem and Pow er

We received an "Enter Short Positions" Signal June 24th, 2010

Enter Short 5/5/10 Enter Long 2/17/10 Enter Long 6.15.10 Enter Short 6.24.10

(8)

S&P 500 vs: Demand Power & Supply

Pressure April 2009 to July 2009

750 850 950 1050 1150 1250 1350 4/24/09 5/24/09 6/24/09 7/24/09 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0 550.0 600.0 S&P 500

When Dem and Pow er Crosses 10 Pts above the Supply Pressure Line, w e get a Buy Signal. When Supply Pressure rises 10 Points above Dem and Pow er, w e get a Sell Signal. Exit signals occur w hen DP or SP lines return to intersection after an entry signal.

S&P 500 Demand Power/ Supply Pressure Supply Pressure

Dem and Pow er

We received an "Enter Long Positions" Signal July 15th, 2009 Enter Long _Enter Short. Exit Shor Enter Short 7/2/09 Enter Long 7/15/09

Next, below, we show our bread and butter short-term trading indicator, our Purchasing Power Indicator.

S&P/DJIA Purchasing Power Indicator ™

1250 1350 1450 1550 1650 1750 1850 1950 2/6/14 3/6/14 4/6/14 5/6/14 6/6/14 -20 -10 0 10 20 30 40 50 60

PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely.

June 6th, 2014's PPI is + 34.61

S&P 500

PPI

The PPI Issued a "Buy" Signal on May 27th, 2014.

Sell Signal

Buy Signal

This Purchasing Power Indicator is an indicator that identifies short-term high momentum reversals. This indicator is amazing in its ability

(9)

to find short-term quick and fast trends, and is ideal for short-term options traders. If we do a short-term trade in our Platinum trading program, with a time horizon of a few weeks, this is one of the most important decision making component criteria we use. For example, just over a week ago, this indicator sniffed out a coming fast rising trend, and generated a Buy signal on May 27th, 2014, which was followed by a 44 point rally in the S&P 500. This indicator told us a rally was coming so be ready with Call options, as a profitable trade was likely coming. This is another proprietary indicator that you will not find anywhere, based upon a formula we came up with 12 years ago that has been remarkable at identifying fast moving short-term trends. We present this every night to our subscribers in our daily and weekend newsletters.

S&P/DJIA Purchasing Power Indicator ™

1050 1150 1250 1350 1450 1550 12/22/12 1/22/13 2/22/13 3/22/13 4/22/13 -140 -120 -100 -80 -60 -40 -20 0 20 40 60

PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely.

April 22nd, 2013's PPI is -23.50

S&P 500

PPI

The PPI Issued a "Sell" Signal on April 17th, 2012.

Sell Signal Buy Signal

Below we show this chart for 2009 to show you that it has been

accurately forecasting significant short-term trends for many years. If you go to our newsletter archives at the upper left of the home page at www.technicalindicatorindex.com you can pick out any report for the past decade and see charts of how this indicator has performed in the past. It has been nothing short of amazing. What an investing and

(10)

trading advantage our subscribers get with this key indicator.

S&P/DJIA Purchasing Power Indicator ™

1150 1250 1350 1450 1550 1650 1750 1850 8/6/13 9/6/13 10/6/13 11/6/13 12/6/13 -80 -60 -40 -20 0 20 40 60 PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely.

December 6th, 2013's PPI is + 15.67

S&P 500

PPI

The PPI Issued a "Buy" Signal on November 13th, 2013.

Sell Signal

Buy Signal

S&P/DJIA Purchasing Power Indicator

TM

600 700 800 900 1000 1100 1200 9/18/09 10/18/09 11/18/09 12/18/09 -140 -120 -100 -80 -60 -40 -20 0 20

PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell Signals When Changes Suggest Sustainable Multi-Week Moves are Likely.

Decem ber 18th, 2009's PPI is -56.88

S&P 500

PPI

The PPI Issued a "Sell" Signal on Decem ber 17th, 2009.

(11)

S&P/DJIA Purchasing Power Indicator TM 500 600 700 800 900 1000 1100 4/24/09 5/24/09 6/24/09 7/24/09 -180 -160 -140 -120 -100 -80 -60 -40 -20 0 20 PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell

Signals When Changes Suggest Sustainable Multi-Week Moves are Likely. July 24th, 2009's PPI is -79.12

S&P 500

PPI

The PPI Issued a "Buy" Signal on July 13th, 2009.

We use all three of the above indicators as part of our decision

making criteria in our Platinum Trading program at

www.technicalindicatorindex.com . We calculate the levels for each of these indicators every night and report them in our daily newsletters, so anyone who would like to plug into these indicators for their own trading and investing has the opportunity to do so. We offer a free 30 day trial subscription to anyone interested in following these for free, and offer an annual standard subscription at a very modest cost if someone would like access to them for an extended period of time. To get a free trial subscription, simply click on the free trial button at the upper right of the home page at www.technicalindicatorindex.com . These indicators take the emotion out of trading and investing, and provide unbiased analytic measures of high momentum trends at two different time frames, short-term (one to 4 weeks), and intermediate term (one to 12 months).

Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at www.technicalindicatorindex.com as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to

(12)

right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers. We cover a host of indicators and patterns, and present charts for most major markets in our International and U.S. Market reports.

Dr. McHugh’s new book, “The Coming Economic Ice Age, Five Steps

to Survive and Prosper,” is available at amazon.com at http://tinyurl.com/lypv47v

“Jesus said to them, “I am the bread of life; he who comes to Me shall not hunger, and he who believes in Me shall never thirst.

For I have come down from heaven,

For this is the will of My Father, that everyone who beholds the Son and believes in Him, may have eternal life; and I Myself will raise him up on the last day.”

John 6: 35, 38, 40

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com. The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and

education service only. Opinions, estimates, buy and sell signals, and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. Copyright 2014, Main Line Investors, Inc. All Rights Reserved.

(13)