For Wednesday, March 15th

The Law of Changing Lanes: As soon as you change traffic lanes, the lane you just left will begin to move faster than the one you are now in.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close:

From inception on 9/30/16: +2.68%

For the year 2017: +4.22%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL AS OF 3/10/17

A close above 2394.209 would turn the BTIT to up...

A close below 2354.26 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now flat this market... for tomorrow, place a buy stop to go long the June at 2394.30... if filled place an exit stop to go flat at 2384.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short the June at 2354.20 and if filled place a buy stop to go flat at 2364.30... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Flat as of 3/10/17 - - there are now 21 completed trades for a total gain of 541.90 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Wednesday, a close below 2362.80 in the JUNE contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2357.80 and 2356.80... if filled, then place an exit stop to go flat at 2364.80... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2362.81...

The last trade at this writing is at 2363.70 in the June...

The main model is now long the June SP from 2362.80 as of Friday, March 10th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP JUNE VP PRICES

MAJOR - - 2418.77 and must close below that price on Wednesday, April 5th to confirm a new main model sell signal...
minor - - 2401.04

TODAY'S LAST TRADED PRICE - - 2363.70
minor - - 2362.81
minor - - 2350.17
minor - - 2344.15
MAJOR - - 2332.14 and must close above that price on Tuesday, April 4th to confirm a new main model buy signal...
MAJOR - - 2322.66 and must close above that price on Wednesday, April 5th to confirm a new main model buy signal...
minor - - 2245.28
MAJOR - - 2186.65 and must close above that price on Tuesday, May 23rd to confirm a new main model buy signal...
SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

Looks like an NT sell spike today... let's watch the VP signals carefully...

THE FLAT LINE INDICATOR

The flat line has turned lower again today... the momentum line is still moving downward... and the market price is moving lower while the anti price is still above the market price... overall, this picture looks negative...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

Downward without hesitation... this market does appear to be a bit tired and overworked...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: DOWN as of 3/10/17

A close above 1315.701 would turn the BTIT to up...

A close above 1264.901 would turn the BTIT to neutral...

The main model is now short the April gold from 1208.00 as of Thursday, March 9th...

Today's last trade is at 1198.50...

This market is now below 1200.00 and slipping... today was its best chance to rally, but it failed...

TOMORROW'S GOLD TRADE STRATEGY:

For Wednesday, a close above 1208.00 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A major VP at 1207.91...

APRIL GOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
minor - - 1214.49
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...
TODAY'S LAST TRADED PRICE - - 1198.50
MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

This market is actually mildly oversold, but this market also has not been able to get out of its own way to stage any serious rally...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

This LT momentum graph shows this market to have plenty more downside room to go...

The Main Model Formula Continue reading

For Tuesday, March 14th

The Law of Changing Lanes: As soon as you change traffic lanes, the lane you just left will begin to move faster than the one you are now in.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close:

From inception on 9/30/16: +2.68%

For the year 2017: +4.22%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL AS OF 3/10/17

A close above 2395.25 would turn the BTIT to up...

A close below 2353.43 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now flat this market... for tomorrow, place a buy stop to go long the June at 2395.30... if filled place an exit stop to go flat at 2385.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short the June at 2353.40 and if filled place a buy stop to go flat at 2363.50... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Flat as of 3/10/17 - - there are now 21 completed trades for a total gain of 541.90 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Tuesday, a close below 2362.80 in the JUNE contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2357.80 and 2356.80... if filled, then place an exit stop to go flat at 2364.80... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2362.81...

The last trade at this writing is at 2371.00 in the June...

The main model is now long the June SP from 2362.80 as of Friday, March 10th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP JUNE VP PRICES

MAJOR - - 2418.77 and must close below that price on Wednesday, April 5th to confirm a new main model sell signal...
minor - - 2401.04
MAJOR - - 2373.32 and must close below that price on Tuesday, March 14th to confirm a new main model sell signal...
TODAY'S LAST TRADED PRICE - - 2371.00
minor - - 2362.81
minor - - 2350.17
minor - - 2344.15
MAJOR - - 2332.14 and must close above that price on Tuesday, April 4th to confirm a new main model buy signal...
MAJOR - - 2322.66 and must close above that price on Wednesday, April 5th to confirm a new main model buy signal...
minor - - 2245.28
MAJOR - - 2186.65 and must close above that price on Tuesday, May 23rd to confirm a new main model buy signal...
SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

The NT indicator show this market is already overbought, but a bull rally can be overbought for months and still continue higher...

THE FLAT LINE INDICATOR

Steady as she goes...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line still moves lower, as does the flat line momentum line, but all other lines look positive...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: DOWN as of 3/10/17

A close above 1315.701 would turn the BTIT to up...

A close above 1264.901 would turn the BTIT to neutral...

The main model is now short the April gold from 1208.00 as of Thursday, March 9th...

Today's last trade is at 1203.80...

TOMORROW'S GOLD TRADE STRATEGY:

For Tuesday, a close above 1208.00 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A major VP at 1207.91...

APRIL GOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
minor - - 1214.49
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...
TODAY'S LAST TRADED PRICE - - 1203.80
MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

We can see the momentum line begin to move into the oversold zone... this means a bounce is possible at any time...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

Nothing terribly bullish about this graph... the momentum line hasn't yet reach the oversold level...

The Main Model Formula Continue reading

For Monday, March 13th

The Law of The Bath: When the body is fully immersed in water, the telephone will ring.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.95%

For the year 2017: +3.49%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL AS OF 3/10/17

A close above 2396.11 would turn the BTIT to up...

A close below 2352.78 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now flat this market from 2369.20 after being stopped out... for tomorrow, place a buy stop to go long the June at 2369.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short the June at 2352.70 and if filled place a buy stop to go flat at 2362.80... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Flat as of 3/10/17 - - there are now 21 completed trades for a total gain of 541.90 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Monday, a close below 2362.80 in the JUNE contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2357.80 and 2356.80... if filled, then place an exit stop to go flat at 2364.80... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2362.81...

The last trade at this writing is at 2368.00 in the June...

The main model is now long the June SP from 2362.80 as of Friday, March 10th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP JUNE VP PRICES

MAJOR - - 2418.77 and must close below that price on Wednesday, April 5th to confirm a new main model sell signal...
minor - - 2401.04
MAJOR - - 2373.32 and must close below that price on Tuesday, March 14th to confirm a new main model sell signal...
TODAY'S LAST TRADED PRICE - - 2368.00
minor - - 2362.81
minor - - 2350.17
minor - - 2344.15
MAJOR - - 2332.14 and must close above that price on Tuesday, April 4th to confirm a new main model buy signal...
MAJOR - - 2322.66 and must close above that price on Wednesday, April 5th to confirm a new main model buy signal...
minor - - 2245.28
MAJOR - - 2186.65 and must close above that price on Tuesday, May 23rd to confirm a new main model buy signal...
SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

A solid up tick today...

THE FLAT LINE INDICATOR

A very nice turn around for the flat line where previous bottoms have been made... this is encouraging...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line continues lower, but this is a slower indicator, it's longer term...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: DOWN as of 3/10/17

A close above 1315.701 would turn the BTIT to up...

A close above 1264.901 would turn the BTIT to neutral...

The main model is now short the April gold from 1208.00 as of Thursday, March 9th...

Today's last trade is at 1204.30...

This market just barely missed the lower VP before bouncing higher...

TOMORROW'S GOLD TRADE STRATEGY:

For Monday, a close above 1208.00 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A major VP at 1207.91...

APRIL GOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
minor - - 1214.49
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...
TODAY'S LAST TRADED PRICE - - 1204.30
MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

The flat line turned up today for the first time in more than a week... it's beginning to feel like a rally is pending, the momentum line show that this market is now slightly oversold...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

No help here, this momentum line continues lower...

The Main Model Formula Continue reading

For Friday, March 10th

The Law of The Bath: When the body is fully immersed in water, the telephone will ring.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.95%

For the year 2017: +3.49%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: DOWN as of 3/8/17 JUNE SP PRICES AS OF THIS EVENING BRIEFING

A close above 2396.79 would turn the BTIT to up...

A close above 2366.11 would turn the BTIT to neutral...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now short this market from 2366.70 basis the March contract... for tomorrow, place a buy stop to go flat the March at 2369.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a buy stop to go long the June at 2396.80 and if filled place a sell stop to go flat at 2386.70... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Short from 2366.70 as of 3/8/17 - - there are now 20 completed trades for a total gain of 542.40 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Friday, a close above 2362.80 in the JUNE contract would confirm a new main model buy signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new long position with a close between 2367.80 and 2368.80... if filled, then place an exit stop to go flat at 2360.80... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2362.81...

The last trade at this writing is at 2366.20 in the March and 2362.00 in the June...

The main model is now short the March SP from 2376.80 as of Monday, March 6th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP JUNE VP PRICES

MAJOR - - none and must close below that price on none to confirm a new main model sell signal...

minor - - 2362.81

TODAY'S LAST TRADED PRICE - - 2362.00

minor - - 2350.17 just barely missed this VP

minor - - 2344.15

MAJOR - - 2332.14 and must close above that price on Tuesday, April 4th to confirm a new main model buy signal...

MAJOR - - 2322.66 and must close above that price on Wednesday, April 5th to confirm a new main model buy signal...

minor - - 2245.28

MAJOR - - 2186.65 and must close above that price on Tuesday, May 23rd to confirm a new main model buy signal...

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

A good looking buy spike in the NT indicator today...

THE FLAT LINE INDICATOR

The flat line is now beginning to turn upward at a place where it has turned upward along with market bottoms... so, the coming buy signal may well be a good one...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line continues lower...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1205.09 would turn the BTIT to down...

The main model is now short the April gold from 1208.00 as of Thursday, March 9th...

Today's last trade is at 1200.30...

Keep in mind that the momentum lines are moving lower... so, the VP buy signals should be taken primarily if you're an aggressive trader...

TOMORROW'S GOLD TRADE STRATEGY:

For Friday, a close above 1208.00 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A major VP at 1207.91...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
minor - - 1214.49
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...
TODAY'S LAST TRADED PRICE - - 1200.30
MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

An obvious downward trend here...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

Lower... nothing bullish here for now...

The Main Model Formula Continue reading

For Thursday, March 9th

The Law of Gravity: Any tool, nut, bolt, screw, when dropped, will roll to the least accessible place in the universe.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.95%

For the year 2017: +3.49%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: DOWN as of 3/8/17

A close above 2404.401 would turn the BTIT to up...

A close above 2397.61 would turn the BTIT to neutral...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now stopped out of your long position at 2366.70 from your buy at 2293.80 for a profit of 72.90 SP points on this trade... you are now short this market from 2366.70... for tomorrow, place a buy stop to go flat at 2399.70... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a buy stop to go long at 2404.50 and if filled place a sell stop to go flat at 2394.40... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Short from 2366.70 as of 3/8/17 - - there are now 20 completed trades for a total gain of 542.40 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Thursday, a close above 2368.20 in the MARCH contract would confirm a new main model buy signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new long position with a close between 2373.20 and 2374.20... if filled, then place an exit stop to go flat at 2366.20... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2368.23...

The last trade at this writing is at 2363.70 in the March...

The main model is now short the March SP from 2376.80 as of Monday, March 6th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal... the main model is now already short

minor - - 2368.23

TODAY'S LAST TRADED PRICE - - 2363.70

minor - - 2346.61

MAJOR - - 2324.35 and must close above that price on Thursday, April 6th to confirm a new main model buy signal...

minor - - 2251.82

MAJOR - - 2193.44 and must close above that price on Friday, May 19th to confirm a new main model buy signal...

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

A slight up tick today... nothing meaningful yet...

THE FLAT LINE INDICATOR

All key lines including the momentum line are moving lower...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line continues its trek southward...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1205.09 would turn the BTIT to down...

The main model is now long the April gold from 1207.90 as of Wednesday, March 8th...

Today's last trade is at 1208.80...

Keep in mind that the momentum lines are moving lower... so, the VP buy signals should be taken primarily if you're an aggressive trader...

TOMORROW'S GOLD TRADE STRATEGY:

For Thursday, a close below 1208.00 in the April Gold contract would confirm a new main model sell signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A major VP at 1207.91...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
minor - - 1214.49
TODAY'S LAST TRADED PRICE - - 1208.80
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...

MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

All key lines a moving lower... the VP buy signal confirmation should be considered primarily for the more aggressive trader...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The LT momentum line is also moving lower for now...

The Main Model Formula Continue reading

Wednesday, March 8th

The Law of Gravity: Any tool, nut, bolt, screw, when dropped, will roll to the least accessible place in the universe.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.95%

For the year 2017: +3.49%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: UP as of 1/24/17

A close below 2366.71 would turn the BTIT to neutral...

A close below 2366.71 would turn the BTIT to down... yes, same price

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now long from 2293.80 on a buy stop... for tomorrow, place a sell stop to go flat at 2366.70... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short at 2366.70 (yes, same price), and if filled place a buy stop to go flat at 2376.80... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Long from 2269.40 as of 1/24/17 - - there are now 19 completed trades for a total gain of 445.10 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Wednesday, a close above 2368.20 in the MARCH contract would confirm a new main model buy signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new long position with a close between 2373.20 and 2374.20... if filled, then place an exit stop to go flat at 2366.20... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A VP at 2368.23...

The last trade at this writing is at 2366.70 in the March...

The main model is now short the March SP from 2376.80 as of Monday, March 6th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

MAJOR - - 2376.71 and must close below that price on Wednesday, March 8th to confirm a new main model sell signal... the main model is now already short

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal... the main model is now already short

minor - - 2371.58

minor - - 2368.23

TODAY'S LAST TRADED PRICE - - 2366.70

minor - - 2346.61

MAJOR - - 2324.35 and must close above that price on Thursday, April 6th to confirm a new main model buy signal...

minor - - 2251.82

MAJOR - - 2193.44 and must close above that price on Friday, May 19th to confirm a new main model buy signal...

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

A clear sell spike in the NT indicator...

THE FLAT LINE INDICATOR

All key lines are moving lower and have been moving lower for several already...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

Even the LT momentum line is now clearly moving lower...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1163.62 would turn the BTIT to down...

The main model is now short the April gold from 1224.20 as of Tuesday, March 7th...

Today's last trade is at 1215.50...

TOMORROW'S GOLD TRADE STRATEGY:

For Wednesday, a close above 1224.10 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A VP at 1224.12...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

SVP - - none

minor - - 1224.12
TODAY'S LAST TRADED PRICE - - 1215.50
minor - - 1214.49
minor - - 1208.98
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...

MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

All key lines are moving lower...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The trend for this market is clearly downward for now...

The Main Model Formula Continue reading

For Tuesday, March 7th

The Law of Gravity: Any tool, nut, bolt, screw, when dropped, will roll to the least accessible place in the universe.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.21%

For the year 2017: +2.74%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: UP as of 1/24/17

A close below 2366.22 would turn the BTIT to neutral...

A close below 2360.28 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now long from 2293.80 on a buy stop... for tomorrow, place a sell stop to go flat at 2364.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short at 2360.20, and if filled place a buy stop to go flat at 2370.30... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Long from 2269.40 as of 1/24/17 - - there are now 19 completed trades for a total gain of 445.10 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Tuesday, a close above 2376.70 in the MARCH contract would confirm a new main model buy signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new long position with a close between 2381.70 and 2382.70... if filled, then place an exit stop to go flat at 2374.70... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A major VP at 2376.71...

The last trade at this writing is at 2375.00 in the March...

The main model is now short the March SP from 2376.80 as of Monday, March 6th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

MAJOR - - 2376.71 and must close below that price on Wednesday, March 8th to confirm a new main model sell signal...

TODAY'S LAST TRADED PRICE - - 2375.00

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal...

minor - - 2371.58

minor - - 2368.23

minor - - 2346.61

MAJOR - - 2324.35 and must close above that price on Thursday, April 6th to confirm a new main model buy signal...

minor - - 2251.82

MAJOR - - 2193.44 and must close above that price on Friday, May 19th to confirm a new main model buy signal...

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

Just barely a detectable bend in the NT indicator today...

THE FLAT LINE INDICATOR

All key lines are moving lower, we have a downward bias for now...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT graph momentum line is moving lower as of today...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1163.62 would turn the BTIT to down...

The main model is now long the April gold from 1224.10 as of Friday, March 3rd...

Today's last trade is at 1226.70...

TOMORROW'S GOLD TRADE STRATEGY:

For Tuesday, a close below 1224.20 in the April Gold contract would confirm a new main model sell signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A VP at 1224.12...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

TODAY'S LAST TRADED PRICE - - 1226.70

SVP - - none

minor - - 1224.12
minor - - 1214.49
minor - - 1208.98
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...

MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

All key lines are still moving lower...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The LT momentum line is clearly moving lower...

The Main Model Formula

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change.

USE ONLY THE LARGE SP FUTURES CONTRACT FOR ALL SIGNALS, THE MINI CONTRACT WILL GIVE YOU FALSE SIGNALS... AND THEN, ONCE A SIGNAL IS TRIGGERED (AND CONFIRMED), THEN YOU CAN TRADE ANY OTHER MARKET FROM THAT SIGNAL...

Light Positions:

It's always wise to hold only a light position in order to tolerate the wild price action of this market... also, if you're not nimble with these markets, then you may want to wait until the market closes for the day to be sure that any new signal is confirmed, this will eliminate all possible mid day whips... to be safer overnight, consider using an exit stop for capital preservation...

Trailing Stops:

Also, trailing stops are completely individual, it is presume that subscribers would have their own personal strategy on how and when to enter and exit the trade, these market can often be vicious... the VP points tell you where and if the market is about to move in one or another direction... for myself, I like to take profits at any time I get the sense I'm satisfied, I don't need to ride out every signal all the way to the last stop, it's really not necessary...

Trading Strategy:

Also, if you're having difficulty with these markets, I strongly urge that you consider a combination of the Hoban Rule and the 1/3 Rule to enter the trade positions, or just wait until the next morning to find a comfortable place to enter the trade, there's never a hurry... this will eliminate all whips...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price... also, use only the large contract for all official main model signals, the mini contract will give you false signals...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... VP prices behave like magnets, they attract the market price, and when the price touches the VP point, then the polarity reverses and repels price... all this market ever does is ping pong between VP prices...

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change. Therefore, when the market trades through those VP points and then backs away and closes on the other side of it again, there is a very high likelihood of a trend reversal at that time... these VP point are like magnets, they pull and attract the price until the VP is reached, and then upon reaching the VP it then reverses polarity and repels price... at that point, the market can back away and confirm a new trend signal or return to the VP and resume the original trend... this is where the main model determines the buy and sell confirmation prices...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this typically indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

THE HOBAN RULE

The Hoban Rule is an exclusive proprietary trading strategy that uses the main model signals to trade the SP market only... using this strategy eliminates all whips and is recommended to be used by those who are not market savvy and/or nimble enough to trade free style...

To take the trade, these two prerequisite criteria must be met:

1) The closing price on confirmation day must be within 6 points of the confirmation price, and

2) The confirmation price for the next signal must be more than 5 points from the closing price of that day...

3) Also, you may enter the trade anytime after the signal is confirmed if the market comes back to within 5 points of the original signal confirmation price...

Since you don't yet know the confirmation price for the next signal at that moment, you can either take the trade if the closing price meets the first criteria, or wait for the evening briefing for that information... if you took the trade on the first criteria and the evening briefing reverse confirmation price does not satisfy the second criteria, then simply close out that trade... or, if you did not take the trade and the evening briefing satisfies the second criteria as well, then take the trade in the evening session or in the after hours market if you're trading a market ETF... or you can simply take the trade the following morning...

However, if the closing price is 6 points or more from the confirmation price, then do not take the trade at that time, just stay flat...

In order to take the trade when the closing price is 6 points or more from the confirmation price:

1) Place a limit order to enter the trade when/if the market moves within 5 points of the confirmation price...

To exit the trade:

1) Place an exit stop 2 points beyond the next buy/sell confirmation price... if filled, then stay flat and wait for the next new signal to be confirmed...

2) If the next new signal is confirmed, then begin again with step 1 using the two entry criteria to begin the next new trade position...

3) If the new signal is not confirmed, simply stay flat and wait for the next newly confirmed signal to begin the next trade at step 1, or simply re-enter the original position provided that the closing price that day is within 6 points of the original confirmation price and the reverse confirmation price is at least 5 points above that day's closing price...

4) Very often, you may find the second criteria is not met since the reverse confirmation price is less than 5 points above the closing price... but, on some occasions, a day or two later, the reverse confirmation price could actually move away from the market and would therefore meet the second criteria and subsequently satisfy both prerequisite criteria allowing for an entry provided that day's closing price is still no more than 6 points from the original main model confirmation price...

Applying The Hoban Rule for your trade positions based on the buy/sell confirmation prices as described above, you will find it easy to follow and with less stress than trying to catch the market while not knowing where it will actually close... and, also, all intraday entry whips are completely eliminated...

Rules for automatic and optimal BTIT trading:

USE ONLY THE LARGE CONTRACT FOR ALL SIGNALS

1) Enter a new position on a straight stop and use a simple 10 point exit stop from the BTIT signal entry price for the day the trade is entered...

For example: If 2254.19 turns the BTIT down, then place a sell stop to go short at 2254.10 and also place an exit buy stop at 2264.10 to go flat... or, if 2254.19 turns the BTIT up, then place a buy stop to go long at 2254.20 and also place an exit sell stop at 2242.20 to go flat...

2) If the signal is not confirmed on the close and you're not stopped out, then close it out at the market and wait for the next signal...

3) If the signal is confirmed on the close, then place an exit stop for each day 2 points beyond the next day's BTIT "turn to neutral" price listed in the evening briefing that evening...

For Example: if you're long and the 2258.43 turns the BTIT to neutral, then place a sell stop to go flat at 2256.40... if you're short and the 2258.43 turns the BTIT to neutral, then place a buy stop to go flat at 2260.50...it makes no difference what the market does after that, your BTIT position would be flat, and then wait for the next new signal... there is nothing to think about and nothing to decide...

17 completed trades following this format has generated 447.90 SP points profit over the past 16 months... any questions, just ask...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

THE FLAT LINE INDICATOR

The FLI is a handy and easy to read two graph tool to see market tops and bottoms as they occur, the nimble trader could use this FLI each day to enter a trade position based only on the precision data on this graph, this graph includes 2 1/2 years of daily price data...

The FLI will give you more confidence when taking the VP signals...

The FLI lines are color coded for easy reference, there are only three lines to follow...

The color coded lines are:

Price Line - this is the actual daily closing price for the SP front month futures contract, this price is read on the left side of the graph...

Anti Price Line - this is the "shadow" price, this is the price required for the market to close that day for a change in direction to occur, this price is also read on the left side of the graph...

SP Flat Line - this line shows the difference in SP points between the Price Line and the Anti Price Line (PL minus APL), this line is read on the right side of the graph...

Broader Trend Line - this line tells you the broader direction of the market...

When reading this graph you will notice:

1. The flat line tops and bottoms occur right at the actual market price tops and bottoms...

2. when the price line crosses through the anti price line, then the flat line crosses through the zero value turning the flat line to neutral, and therefore the name flat line...

3. The flat line in the second graph crosses above and below the momentum line as a leading indicator ahead of the actual change in market direction...

4. The momentum line in the second graph tells you the market's strength of speed and you will notice how the flat line in that graph turns and crosses through the momentum line ahead of the market itself...

5. The optimal time to take a flat line trade position is when the flat line spike occurs simultaneously with a confirmed VP signal although this tool provides numerous other trade opportunities beyond the VP signals for the more aggressive trader...

Study the relation ships between the three lines at your leisure and you will make these and additional observations which can be useful trading tools...

THE LT PRICE AND MOMENTUM GRAPH

The momentum line very closely correlates with the market price...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

For Monday, March 6th

The Coffee law: As soon as you sit down to a cup of hot coffee, your boss will ask you to do something which will last until the coffee is cold.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.21%

For the year 2017: +2.74%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: UP as of 1/24/17

A close below 2362.52 would turn the BTIT to neutral...

A close below 2356.52 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now long from 2293.80 on a buy stop... for tomorrow, place a sell stop to go flat at 2360.50... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short at 2356.50, and if filled place a buy stop to go flat at 2366.60... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Long from 2269.40 as of 1/24/17 - - there are now 19 completed trades for a total gain of 445.10 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Monday, a close below 2376.80 in the MARCH contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2371.80 and 2370.80... if filled, then place an exit stop to go flat at 2380.90... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A major VP at 2376.71...

The last trade at this writing is at 2381.20 in the March...

The main model is now long the March SP from 2274.00 as of Monday, January 30th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

NO VP PRICES ABOVE THE MARKET AT THIS TIME

TODAY'S LAST TRADED PRICE - - 2381.20

MAJOR - - 2376.71 and must close below that price on Wednesday, March 8th to confirm a new main model sell signal...

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal...

minor - - 2371.58

minor - - 2368.23

minor - - 2346.61

MAJOR - - 2324.35 and must close above that price on Thursday, April 6th to confirm a new main model buy signal...

minor - - 2251.82

MAJOR - - 2193.44 and must close above that price on Friday, May 19th to confirm a new main model buy signal...

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

The NT indicator is not yet overbought...

THE FLAT LINE INDICATOR

All key lines are moving lower...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line still moves higher...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1163.62 would turn the BTIT to down...

The main model is now long the April gold from 1224.10 as of Friday, March 3rd...

Today's last trade is at 1235.20...

TOMORROW'S GOLD TRADE STRATEGY:

For Monday, a close below 1224.20 in the April Gold contract would confirm a new main model sell signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A VP at 1224.12...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

TODAY'S LAST TRADED PRICE - - 1235.40

SVP - - none

minor - - 1224.12
minor - - 1214.49
minor - - 1208.98
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...

MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

All key lines continue lower...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The LT line continues lower...

The Main Model Formula

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change.

USE ONLY THE LARGE SP FUTURES CONTRACT FOR ALL SIGNALS, THE MINI CONTRACT WILL GIVE YOU FALSE SIGNALS... AND THEN, ONCE A SIGNAL IS TRIGGERED (AND CONFIRMED), THEN YOU CAN TRADE ANY OTHER MARKET FROM THAT SIGNAL...

Light Positions:

It's always wise to hold only a light position in order to tolerate the wild price action of this market... also, if you're not nimble with these markets, then you may want to wait until the market closes for the day to be sure that any new signal is confirmed, this will eliminate all possible mid day whips... to be safer overnight, consider using an exit stop for capital preservation...

Trailing Stops:

Also, trailing stops are completely individual, it is presume that subscribers would have their own personal strategy on how and when to enter and exit the trade, these market can often be vicious... the VP points tell you where and if the market is about to move in one or another direction... for myself, I like to take profits at any time I get the sense I'm satisfied, I don't need to ride out every signal all the way to the last stop, it's really not necessary...

Trading Strategy:

Also, if you're having difficulty with these markets, I strongly urge that you consider a combination of the Hoban Rule and the 1/3 Rule to enter the trade positions, or just wait until the next morning to find a comfortable place to enter the trade, there's never a hurry... this will eliminate all whips...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price... also, use only the large contract for all official main model signals, the mini contract will give you false signals...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... VP prices behave like magnets, they attract the market price, and when the price touches the VP point, then the polarity reverses and repels price... all this market ever does is ping pong between VP prices...

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change. Therefore, when the market trades through those VP points and then backs away and closes on the other side of it again, there is a very high likelihood of a trend reversal at that time... these VP point are like magnets, they pull and attract the price until the VP is reached, and then upon reaching the VP it then reverses polarity and repels price... at that point, the market can back away and confirm a new trend signal or return to the VP and resume the original trend... this is where the main model determines the buy and sell confirmation prices...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this typically indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

THE HOBAN RULE

The Hoban Rule is an exclusive proprietary trading strategy that uses the main model signals to trade the SP market only... using this strategy eliminates all whips and is recommended to be used by those who are not market savvy and/or nimble enough to trade free style...

To take the trade, these two prerequisite criteria must be met:

1) The closing price on confirmation day must be within 6 points of the confirmation price, and

2) The confirmation price for the next signal must be more than 5 points from the closing price of that day...

3) Also, you may enter the trade anytime after the signal is confirmed if the market comes back to within 5 points of the original signal confirmation price...

Since you don't yet know the confirmation price for the next signal at that moment, you can either take the trade if the closing price meets the first criteria, or wait for the evening briefing for that information... if you took the trade on the first criteria and the evening briefing reverse confirmation price does not satisfy the second criteria, then simply close out that trade... or, if you did not take the trade and the evening briefing satisfies the second criteria as well, then take the trade in the evening session or in the after hours market if you're trading a market ETF... or you can simply take the trade the following morning...

However, if the closing price is 6 points or more from the confirmation price, then do not take the trade at that time, just stay flat...

In order to take the trade when the closing price is 6 points or more from the confirmation price:

1) Place a limit order to enter the trade when/if the market moves within 5 points of the confirmation price...

To exit the trade:

1) Place an exit stop 2 points beyond the next buy/sell confirmation price... if filled, then stay flat and wait for the next new signal to be confirmed...

2) If the next new signal is confirmed, then begin again with step 1 using the two entry criteria to begin the next new trade position...

3) If the new signal is not confirmed, simply stay flat and wait for the next newly confirmed signal to begin the next trade at step 1, or simply re-enter the original position provided that the closing price that day is within 6 points of the original confirmation price and the reverse confirmation price is at least 5 points above that day's closing price...

4) Very often, you may find the second criteria is not met since the reverse confirmation price is less than 5 points above the closing price... but, on some occasions, a day or two later, the reverse confirmation price could actually move away from the market and would therefore meet the second criteria and subsequently satisfy both prerequisite criteria allowing for an entry provided that day's closing price is still no more than 6 points from the original main model confirmation price...

Applying The Hoban Rule for your trade positions based on the buy/sell confirmation prices as described above, you will find it easy to follow and with less stress than trying to catch the market while not knowing where it will actually close... and, also, all intraday entry whips are completely eliminated...

Rules for automatic and optimal BTIT trading:

USE ONLY THE LARGE CONTRACT FOR ALL SIGNALS

1) Enter a new position on a straight stop and use a simple 10 point exit stop from the BTIT signal entry price for the day the trade is entered...

For example: If 2254.19 turns the BTIT down, then place a sell stop to go short at 2254.10 and also place an exit buy stop at 2264.10 to go flat... or, if 2254.19 turns the BTIT up, then place a buy stop to go long at 2254.20 and also place an exit sell stop at 2242.20 to go flat...

2) If the signal is not confirmed on the close and you're not stopped out, then close it out at the market and wait for the next signal...

3) If the signal is confirmed on the close, then place an exit stop for each day 2 points beyond the next day's BTIT "turn to neutral" price listed in the evening briefing that evening...

For Example: if you're long and the 2258.43 turns the BTIT to neutral, then place a sell stop to go flat at 2256.40... if you're short and the 2258.43 turns the BTIT to neutral, then place a buy stop to go flat at 2260.50...it makes no difference what the market does after that, your BTIT position would be flat, and then wait for the next new signal... there is nothing to think about and nothing to decide...

17 completed trades following this format has generated 447.90 SP points profit over the past 16 months... any questions, just ask...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

THE FLAT LINE INDICATOR

The FLI is a handy and easy to read two graph tool to see market tops and bottoms as they occur, the nimble trader could use this FLI each day to enter a trade position based only on the precision data on this graph, this graph includes 2 1/2 years of daily price data...

The FLI will give you more confidence when taking the VP signals...

The FLI lines are color coded for easy reference, there are only three lines to follow...

The color coded lines are:

Price Line - this is the actual daily closing price for the SP front month futures contract, this price is read on the left side of the graph...

Anti Price Line - this is the "shadow" price, this is the price required for the market to close that day for a change in direction to occur, this price is also read on the left side of the graph...

SP Flat Line - this line shows the difference in SP points between the Price Line and the Anti Price Line (PL minus APL), this line is read on the right side of the graph...

Broader Trend Line - this line tells you the broader direction of the market...

When reading this graph you will notice:

1. The flat line tops and bottoms occur right at the actual market price tops and bottoms...

2. when the price line crosses through the anti price line, then the flat line crosses through the zero value turning the flat line to neutral, and therefore the name flat line...

3. The flat line in the second graph crosses above and below the momentum line as a leading indicator ahead of the actual change in market direction...

4. The momentum line in the second graph tells you the market's strength of speed and you will notice how the flat line in that graph turns and crosses through the momentum line ahead of the market itself...

5. The optimal time to take a flat line trade position is when the flat line spike occurs simultaneously with a confirmed VP signal although this tool provides numerous other trade opportunities beyond the VP signals for the more aggressive trader...

Study the relation ships between the three lines at your leisure and you will make these and additional observations which can be useful trading tools...

THE LT PRICE AND MOMENTUM GRAPH

The momentum line very closely correlates with the market price...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

For Friday, March 3rd

The Coffee law: As soon as you sit down to a cup of hot coffee, your boss will ask you to do something which will last until the coffee is cold.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.21%

For the year 2017: +2.74%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: UP as of 1/24/17

A close below 2360.24 would turn the BTIT to neutral...

A close below 2353.91 would turn the BTIT to down...

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now long from 2293.80 on a buy stop... for tomorrow, place a sell stop to go flat at 2358.20... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short at 2353.90, and if filled place a buy stop to go flat at 2364.00... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Long from 2269.40 as of 1/24/17 - - there are now 19 completed trades for a total gain of 445.10 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Friday, a close below 2376.80 in the MARCH contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2371.80 and 2370.80... if filled, then place an exit stop to go flat at 2380.90... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A major VP at 2376.71...

The last trade at this writing is at 2381.70 in the March...

The main model is now long the March SP from 2274.00 as of Monday, January 30th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

NO VP PRICES ABOVE THE MARKET AT THIS TIME

TODAY'S LAST TRADED PRICE - - 2381.70

MAJOR - - 2376.71 and must close below that price on Wednesday, March 8th to confirm a new main model sell signal...

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal...

minor - - 2371.58

minor - - 2368.23

minor - - none

MAJOR - - none and must close above that price on none to confirm a new main model buy signal...

MAJOR - - 2320.88 and must close below that price on Wednesday, March 2nd to confirm a new main model sell signal...

minor - - 2301.11

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

The NT indicator is moderately overbought right now...

THE FLAT LINE INDICATOR

Of noteworthy importance here today are several things... first of all, while both the market price and the anti price are move sharply higher, we can see that the market price is now below the anti price as of today's close... also, the flat line has begun moving lower and made a lower low today than the low made two days ago... and as well, the momentum line has now turned downward while clearly in the overbought zone... simply said, while this market may well move higher in time, it is now showing some signs of fatigue and may need to pause in order to refuel...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

Here, the momentum line still continues higher...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1163.62 would turn the BTIT to down...

The main model is now short the April gold from 1247.20 as of Thursday, March 2nd...

Today's last trade is at 1235.40...

TOMORROW'S GOLD TRADE STRATEGY:

For Friday, a close above 1247.10 in the April Gold contract would confirm a new main model buy signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A VP at 1247.06...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

MAJOR - - 1254.17 and must close below that price on Monday, March 6th to confirm a new main model sell signal...

minor - - 1247.06

TODAY'S LAST TRADED PRICE - - 1235.40

SVP - - none

minor - - 1224.12
minor - - 1214.49
minor - - 1208.98
MAJOR - - 1207.91 and must close above that price on Thursday, March 23rd to confirm a new main model buy signal...

MAJOR - - 1193.66 and must close above that price on Friday, March 24th to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

ALL key lines are moving lower... after two consecutive failed buy signals, it's clear this market is destined for bargain basement prices, and probably soon...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

Notice, even the slow moving LT momentum line is now moving lower from the overbought level...

The Main Model Formula

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change.

USE ONLY THE LARGE SP FUTURES CONTRACT FOR ALL SIGNALS, THE MINI CONTRACT WILL GIVE YOU FALSE SIGNALS... AND THEN, ONCE A SIGNAL IS TRIGGERED (AND CONFIRMED), THEN YOU CAN TRADE ANY OTHER MARKET FROM THAT SIGNAL...

Light Positions:

It's always wise to hold only a light position in order to tolerate the wild price action of this market... also, if you're not nimble with these markets, then you may want to wait until the market closes for the day to be sure that any new signal is confirmed, this will eliminate all possible mid day whips... to be safer overnight, consider using an exit stop for capital preservation...

Trailing Stops:

Also, trailing stops are completely individual, it is presume that subscribers would have their own personal strategy on how and when to enter and exit the trade, these market can often be vicious... the VP points tell you where and if the market is about to move in one or another direction... for myself, I like to take profits at any time I get the sense I'm satisfied, I don't need to ride out every signal all the way to the last stop, it's really not necessary...

Trading Strategy:

Also, if you're having difficulty with these markets, I strongly urge that you consider a combination of the Hoban Rule and the 1/3 Rule to enter the trade positions, or just wait until the next morning to find a comfortable place to enter the trade, there's never a hurry... this will eliminate all whips...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price... also, use only the large contract for all official main model signals, the mini contract will give you false signals...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... VP prices behave like magnets, they attract the market price, and when the price touches the VP point, then the polarity reverses and repels price... all this market ever does is ping pong between VP prices...

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change. Therefore, when the market trades through those VP points and then backs away and closes on the other side of it again, there is a very high likelihood of a trend reversal at that time... these VP point are like magnets, they pull and attract the price until the VP is reached, and then upon reaching the VP it then reverses polarity and repels price... at that point, the market can back away and confirm a new trend signal or return to the VP and resume the original trend... this is where the main model determines the buy and sell confirmation prices...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this typically indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

THE HOBAN RULE

The Hoban Rule is an exclusive proprietary trading strategy that uses the main model signals to trade the SP market only... using this strategy eliminates all whips and is recommended to be used by those who are not market savvy and/or nimble enough to trade free style...

To take the trade, these two prerequisite criteria must be met:

1) The closing price on confirmation day must be within 6 points of the confirmation price, and

2) The confirmation price for the next signal must be more than 5 points from the closing price of that day...

3) Also, you may enter the trade anytime after the signal is confirmed if the market comes back to within 5 points of the original signal confirmation price...

Since you don't yet know the confirmation price for the next signal at that moment, you can either take the trade if the closing price meets the first criteria, or wait for the evening briefing for that information... if you took the trade on the first criteria and the evening briefing reverse confirmation price does not satisfy the second criteria, then simply close out that trade... or, if you did not take the trade and the evening briefing satisfies the second criteria as well, then take the trade in the evening session or in the after hours market if you're trading a market ETF... or you can simply take the trade the following morning...

However, if the closing price is 6 points or more from the confirmation price, then do not take the trade at that time, just stay flat...

In order to take the trade when the closing price is 6 points or more from the confirmation price:

1) Place a limit order to enter the trade when/if the market moves within 5 points of the confirmation price...

To exit the trade:

1) Place an exit stop 2 points beyond the next buy/sell confirmation price... if filled, then stay flat and wait for the next new signal to be confirmed...

2) If the next new signal is confirmed, then begin again with step 1 using the two entry criteria to begin the next new trade position...

3) If the new signal is not confirmed, simply stay flat and wait for the next newly confirmed signal to begin the next trade at step 1, or simply re-enter the original position provided that the closing price that day is within 6 points of the original confirmation price and the reverse confirmation price is at least 5 points above that day's closing price...

4) Very often, you may find the second criteria is not met since the reverse confirmation price is less than 5 points above the closing price... but, on some occasions, a day or two later, the reverse confirmation price could actually move away from the market and would therefore meet the second criteria and subsequently satisfy both prerequisite criteria allowing for an entry provided that day's closing price is still no more than 6 points from the original main model confirmation price...

Applying The Hoban Rule for your trade positions based on the buy/sell confirmation prices as described above, you will find it easy to follow and with less stress than trying to catch the market while not knowing where it will actually close... and, also, all intraday entry whips are completely eliminated...

Rules for automatic and optimal BTIT trading:

USE ONLY THE LARGE CONTRACT FOR ALL SIGNALS

1) Enter a new position on a straight stop and use a simple 10 point exit stop from the BTIT signal entry price for the day the trade is entered...

For example: If 2254.19 turns the BTIT down, then place a sell stop to go short at 2254.10 and also place an exit buy stop at 2264.10 to go flat... or, if 2254.19 turns the BTIT up, then place a buy stop to go long at 2254.20 and also place an exit sell stop at 2242.20 to go flat...

2) If the signal is not confirmed on the close and you're not stopped out, then close it out at the market and wait for the next signal...

3) If the signal is confirmed on the close, then place an exit stop for each day 2 points beyond the next day's BTIT "turn to neutral" price listed in the evening briefing that evening...

For Example: if you're long and the 2258.43 turns the BTIT to neutral, then place a sell stop to go flat at 2256.40... if you're short and the 2258.43 turns the BTIT to neutral, then place a buy stop to go flat at 2260.50...it makes no difference what the market does after that, your BTIT position would be flat, and then wait for the next new signal... there is nothing to think about and nothing to decide...

17 completed trades following this format has generated 447.90 SP points profit over the past 16 months... any questions, just ask...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

THE FLAT LINE INDICATOR

The FLI is a handy and easy to read two graph tool to see market tops and bottoms as they occur, the nimble trader could use this FLI each day to enter a trade position based only on the precision data on this graph, this graph includes 2 1/2 years of daily price data...

The FLI will give you more confidence when taking the VP signals...

The FLI lines are color coded for easy reference, there are only three lines to follow...

The color coded lines are:

Price Line - this is the actual daily closing price for the SP front month futures contract, this price is read on the left side of the graph...

Anti Price Line - this is the "shadow" price, this is the price required for the market to close that day for a change in direction to occur, this price is also read on the left side of the graph...

SP Flat Line - this line shows the difference in SP points between the Price Line and the Anti Price Line (PL minus APL), this line is read on the right side of the graph...

Broader Trend Line - this line tells you the broader direction of the market...

When reading this graph you will notice:

1. The flat line tops and bottoms occur right at the actual market price tops and bottoms...

2. when the price line crosses through the anti price line, then the flat line crosses through the zero value turning the flat line to neutral, and therefore the name flat line...

3. The flat line in the second graph crosses above and below the momentum line as a leading indicator ahead of the actual change in market direction...

4. The momentum line in the second graph tells you the market's strength of speed and you will notice how the flat line in that graph turns and crosses through the momentum line ahead of the market itself...

5. The optimal time to take a flat line trade position is when the flat line spike occurs simultaneously with a confirmed VP signal although this tool provides numerous other trade opportunities beyond the VP signals for the more aggressive trader...

Study the relation ships between the three lines at your leisure and you will make these and additional observations which can be useful trading tools...

THE LT PRICE AND MOMENTUM GRAPH

The momentum line very closely correlates with the market price...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

For Thursday, March 2nd

Law of Close Encounters: The probability of meeting someone you know increases dramatically when you are with someone you don't want to be seen with.

* * * Albert Einstein

You can now follow The Vertical Fund's trading action on Twitter @theverticalfund - - not all trades are posted since the primary focus of the trading team is on the markets

THE VERTICAL FUND: The Vertical Fund is now live and ongoing... this fund trades the same main model VP signals presented in each evening briefing... the difference is that The Vertical Fund is professionally managed by our own professional expert Trading Team, members with a Seat on the Chicago Mercantile Exchange and with more than 30 years experience located right on the floor of the Chicago Mercantile Exchange...

THE VERTICAL FUND is in real time since its inception on 9/30/16, however due to the ongoing confusion between the weekly and monthly performance updates, if you're interested in knowing the current performance history, then go to our Website at at https://www.theverticalfund .com/ and also ask me for a password for you to enter through the member's page on that Website... the BTIT optimized trading method is now included in the fund's trading strategy as of 1/4/17...

The performance status of The Vertical Fund as of last Friday's close, we are now ahead:

From inception on 9/30/16: +1.21%

For the year 2017: +2.74%

A BRIEF TUTORIAL OF ALL MAIN MODEL APPLICATIONS is at the bottom of every evening briefing, please take the time to review it every now and then, a good working knowledge of these tools will make you a better and more informed investor/trader...

BROADER TERM INTERMEDIATE TREND BIAS: UP as of 1/24/17

A close below 2358.16 would turn the BTIT to neutral... Yes, again the same price to go neutral...

A close below 2322.88 would turn the BTIT to down... 2322.88

BTIT Optimized Trade Instructions For Tomorrow:

For the BTIT optimized trader... you are now long from 2293.80 on a buy stop... for tomorrow, place a sell stop to go flat at 2356.10... the optimized strategy provides a predetermined limited risk with the optimal time for market participation...

For the BTIT optimized trader... place a sell stop to go short at 2322.80, and if filled place a buy stop to go flat at 2332.90... if filled and not stopped out, and the market finishes the day back inside the buy/sell price, then close it out on the close... there may be another opportunity next week for another optimized position entry...

THE BTIT LONGER TERM TRADING STRATEGY

The broader term intermediate trend (BTIT) bias is determined by the collective penetration of the most near term ceiling and floor prices... when ALL the near term ceiling prices have been penetrated on the close and none of the floor prices are penetrated, then the BTIT bias would be UP... when the reverse occurs, then the BTIT bias would be DOWN... the bias would turn to NEUTRAL when one or more of the ceiling/floor prices are penetrated on the close in the counter direction... when in NEUTRAL, the BTIT would again reinstate the most recent UP or DOWN trend bias upon the penetration and close of the nearest recent ceiling/floor...

A long position will be taken when the BTIT turns up and a short position when the BTIT turns down... when the BTIT turns neutral, the position is then closed and will remain flat...

The BTIT optimized trading strategy is a reliable, valid, and profitable strategy designed for those who prefer a broader longer term trade position without close daily monitoring... the price swings are also significantly wider so caution is always highly advised and only a modest position should be taken for this strategy...

The BTIT current non optimized trade position: Long from 2269.40 as of 1/24/17 - - there are now 19 completed trades for a total gain of 445.10 SP points...

VERY IMPORTANT: Please note, all price signals must be taken from the large contract and then the mini can be traded, the mini gives too many false signals... therefore, the following instructions apply only for the large contract... so, get the signal from the large contract and then trade the mini on that large contract signal... you can take the large contract signal and then trade any SP based ETF on that signal...

TOMORROW'S VP SP TRADE STRATEGY:

For Thursday, a close below 2376.80 in the MARCH contract would confirm a new main model sell signal... be sure to review the VP price map directly below for additional VP points that may trigger a buy/sell signal...

For Hoban Rule traders, you are currently flat this market... enter a new short position with a close between 2371.80 and 2370.80... if filled, then place an exit stop to go flat at 2380.90... please familiarize yourself with the Hoban Rule entry strategy in case a signal is confirmed on a different VP mid day and how to enter a new position mid day using Rule 3, this easy entry strategy is explained in the tutorial at the bottom of each and every evening briefing... of course, any questions, please just ask...

The Hoban Rule Performance History:

The Hoban Rule was introduced to the evening briefing on 9/4/14... since that time, this strategy has now completed 38 trades for a net gain of 259.80 SP points... this is a simple but elegant strategy for anyone who prefers a less challenging trade plan based on the main model signals... if you would like to see the trade by trade score sheet for the Hoban Rule, just ask me for it and I will email it to you...

Rationale: A major VP at 2376.71...

The last trade at this writing is at 2394.00 in the March...

The main model is now long the March SP from 2274.00 as of Monday, January 30th...

The Two Main Model Trade Rules:
1) Any time the market trades above any overhead VP price and then closes below it, this would confirm a new main model sell signal...
2) Any time the market trades below any lower VP price and then closes above it, this would confirm a new main model buy signal...

THE VP PRICE MAP FOR TOMORROW

The VP map tells you everything you need to know, consult the map daily... knowing the map and the two key trading rules will make you a much more savvy trader, so it is extremely important to be familiar with the VP map...

Secondary Vertical Prices (SVP) are for the aggressive trader who is looking for an additional edge on additional exhaustion points... you will notice that the market responds as well to the SVP as to the standard VP points and are traded the same, but for now the main model will use only the standard VP points for official main model signals...

SP MARCH VP PRICES

NO VP PRICES ABOVE THE MARKET AT THIS TIME

TODAY'S LAST TRADED PRICE - - 2394.50

MAJOR - - 2376.71 and must close below that price on Wednesday, March 8th to confirm a new main model sell signal...

MAJOR - - 2374.99 and must close below that price on Thursday, March 9th to confirm a new main model sell signal...

minor - - 2371.58

minor - - 2368.23

minor - - none

MAJOR - - none and must close above that price on none to confirm a new main model buy signal...

MAJOR - - 2320.88 and must close below that price on Wednesday, March 2nd to confirm a new main model sell signal...

minor - - 2301.11

SVP - - none

The above price map is listed in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

PLEASE NOTE: It is vitally important to know where the market is on this map at all times, the main model buy and sell signals are generated only from this VP map... the trade rules, which you probably already know by now, are very simple and are explained below...

THE MEGA TREND INDICATOR (MTI) - - UP as of 7/29/16

This is a front loaded comparative month by month trading range and weighted average rate of change of the most recent 11 and 14 months and is calculated on the last market day of each month...

A monthly close for March below 2228.80 would turn the MTI to neutral...

A monthly close for March below 2162.40 would turn the MTI to down...

The MTI current trade position: Long from 2168.20, the closing price on 7/29/16...

This model's buy signal is based on the Coppock Curve and has been back tested to 1914 with the DJIA... there have been a total of 22 previous buy signals over the past 102 years since 1914... of the 22 previous buy signals, only two false signals were given, they were given in October, 1938 and in January, 1948... this is a 90.9% accuracy rate since 1914... realize, this is a monthly indicator and these markets can move widely in both directions during mid month...

The NT (Near Term) indicator

A solid up spike today, bullish...

THE FLAT LINE INDICATOR

Big turn higher in all the key lines today...


THE LT PRICE AND MOMENTUM GRAPH FOR THE SP:

The LT momentum line which was ready to roll over yesterday has clearly resumed its move higher today...

The APRIL Gold futures

BROADER TERM INTERMEDIATE TREND BIAS: NEUTRAL since 1/17/17

A close above 1331.11 would turn the BTIT to up...

A close below 1163.62 would turn the BTIT to down...

The main model is now long the April gold from 1247.00 as of Wednesday, March 1st...

Today's last trade is at 1250.30...

TOMORROW'S GOLD TRADE STRATEGY:

For Thursday, a close below 1247.10 in the April Gold contract would confirm a new main model sell signal... also, please review and consult daily with the VP Price Map for any and all main model mid day buy/sell revisions and updates... tomorrow's trade strategy is always subject to revision based on the VP Price Map, so it is extremely important to be familiar with this map listed below... (the Hoban Rule and the optimized BTIT trading strategy were expressly designed for the SP market and for no other market at this time)

Rationale: A VP at 1247.06...

APRILGOLD VP PRICES

MAJOR - - 1448.501 and must close below that price on Thursday, April 27th to confirm a new main model sell signal...

minor - - 1360.43

MAJOR - - 1254.17 and must close below that price on Monday, March 6th to confirm a new main model sell signal...

TODAY'S LAST TRADED PRICE - - 1250.30

minor - - 1247.06

minor - - 1226.33

minor - - 1208.98

SVP - - none

minor - - none
MAJOR - - NONE and must close above that price on NONE to confirm a new main model buy signal...

The above is a price map in descending order of all currently active vertical prices above and below the market... those in red were generated on previously confirmed buy signals, those in green were generated on previously confirmed sell signals... today's closing price is also included to provide you with a GPS type reading of where the market currently is in relation to all VP points on both sides of the market...

Flat Line Indicator (FLI) for GLD...

THE FLAT LINE INDICATOR HAS BEEN SET FOR TRACKING GLD AND NOT THE FUTURES GOLD MARKET SINCE THE GLD ETF MARKET SHOWS A MORE LIQUID PATTERN...
ALL THE MAIN MODEL SIGNALS FOR THE GOLD FUTURES MARKET WILL STILL REMAIN THE SAME...

This flat line graph still looks toppy, but we have a confirmed main model buy signal today, so I'm not going to argue with the signal...


THE LT PRICE AND MOMENTUM GRAPH FOR GOLD:

The LT momentum line is perfectly flat as of today...

The Main Model Formula

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change.

USE ONLY THE LARGE SP FUTURES CONTRACT FOR ALL SIGNALS, THE MINI CONTRACT WILL GIVE YOU FALSE SIGNALS... AND THEN, ONCE A SIGNAL IS TRIGGERED (AND CONFIRMED), THEN YOU CAN TRADE ANY OTHER MARKET FROM THAT SIGNAL...

Light Positions:

It's always wise to hold only a light position in order to tolerate the wild price action of this market... also, if you're not nimble with these markets, then you may want to wait until the market closes for the day to be sure that any new signal is confirmed, this will eliminate all possible mid day whips... to be safer overnight, consider using an exit stop for capital preservation...

Trailing Stops:

Also, trailing stops are completely individual, it is presume that subscribers would have their own personal strategy on how and when to enter and exit the trade, these market can often be vicious... the VP points tell you where and if the market is about to move in one or another direction... for myself, I like to take profits at any time I get the sense I'm satisfied, I don't need to ride out every signal all the way to the last stop, it's really not necessary...

Trading Strategy:

Also, if you're having difficulty with these markets, I strongly urge that you consider a combination of the Hoban Rule and the 1/3 Rule to enter the trade positions, or just wait until the next morning to find a comfortable place to enter the trade, there's never a hurry... this will eliminate all whips...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price... also, use only the large contract for all official main model signals, the mini contract will give you false signals...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... VP prices behave like magnets, they attract the market price, and when the price touches the VP point, then the polarity reverses and repels price... all this market ever does is ping pong between VP prices...

The main model formula is specifically designed to determine precisely and to the exact market price where the market is most likely to reach complete buying and/or selling exhaustion, there is no guessing about it. This is why the market almost always backs away from those VP points after reaching them, at least for 10 to 12 points before resuming the trend... also, at those VP points, the market is the most vulnerable to a legitimate trend change. Therefore, when the market trades through those VP points and then backs away and closes on the other side of it again, there is a very high likelihood of a trend reversal at that time... these VP point are like magnets, they pull and attract the price until the VP is reached, and then upon reaching the VP it then reverses polarity and repels price... at that point, the market can back away and confirm a new trend signal or return to the VP and resume the original trend... this is where the main model determines the buy and sell confirmation prices...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this typically indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

THE HOBAN RULE

The Hoban Rule is an exclusive proprietary trading strategy that uses the main model signals to trade the SP market only... using this strategy eliminates all whips and is recommended to be used by those who are not market savvy and/or nimble enough to trade free style...

To take the trade, these two prerequisite criteria must be met:

1) The closing price on confirmation day must be within 6 points of the confirmation price, and

2) The confirmation price for the next signal must be more than 5 points from the closing price of that day...

3) Also, you may enter the trade anytime after the signal is confirmed if the market comes back to within 5 points of the original signal confirmation price...

Since you don't yet know the confirmation price for the next signal at that moment, you can either take the trade if the closing price meets the first criteria, or wait for the evening briefing for that information... if you took the trade on the first criteria and the evening briefing reverse confirmation price does not satisfy the second criteria, then simply close out that trade... or, if you did not take the trade and the evening briefing satisfies the second criteria as well, then take the trade in the evening session or in the after hours market if you're trading a market ETF... or you can simply take the trade the following morning...

However, if the closing price is 6 points or more from the confirmation price, then do not take the trade at that time, just stay flat...

In order to take the trade when the closing price is 6 points or more from the confirmation price:

1) Place a limit order to enter the trade when/if the market moves within 5 points of the confirmation price...

To exit the trade:

1) Place an exit stop 2 points beyond the next buy/sell confirmation price... if filled, then stay flat and wait for the next new signal to be confirmed...

2) If the next new signal is confirmed, then begin again with step 1 using the two entry criteria to begin the next new trade position...

3) If the new signal is not confirmed, simply stay flat and wait for the next newly confirmed signal to begin the next trade at step 1, or simply re-enter the original position provided that the closing price that day is within 6 points of the original confirmation price and the reverse confirmation price is at least 5 points above that day's closing price...

4) Very often, you may find the second criteria is not met since the reverse confirmation price is less than 5 points above the closing price... but, on some occasions, a day or two later, the reverse confirmation price could actually move away from the market and would therefore meet the second criteria and subsequently satisfy both prerequisite criteria allowing for an entry provided that day's closing price is still no more than 6 points from the original main model confirmation price...

Applying The Hoban Rule for your trade positions based on the buy/sell confirmation prices as described above, you will find it easy to follow and with less stress than trying to catch the market while not knowing where it will actually close... and, also, all intraday entry whips are completely eliminated...

Rules for automatic and optimal BTIT trading:

USE ONLY THE LARGE CONTRACT FOR ALL SIGNALS

1) Enter a new position on a straight stop and use a simple 10 point exit stop from the BTIT signal entry price for the day the trade is entered...

For example: If 2254.19 turns the BTIT down, then place a sell stop to go short at 2254.10 and also place an exit buy stop at 2264.10 to go flat... or, if 2254.19 turns the BTIT up, then place a buy stop to go long at 2254.20 and also place an exit sell stop at 2242.20 to go flat...

2) If the signal is not confirmed on the close and you're not stopped out, then close it out at the market and wait for the next signal...

3) If the signal is confirmed on the close, then place an exit stop for each day 2 points beyond the next day's BTIT "turn to neutral" price listed in the evening briefing that evening...

For Example: if you're long and the 2258.43 turns the BTIT to neutral, then place a sell stop to go flat at 2256.40... if you're short and the 2258.43 turns the BTIT to neutral, then place a buy stop to go flat at 2260.50...it makes no difference what the market does after that, your BTIT position would be flat, and then wait for the next new signal... there is nothing to think about and nothing to decide...

17 completed trades following this format has generated 447.90 SP points profit over the past 16 months... any questions, just ask...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

THE FLAT LINE INDICATOR

The FLI is a handy and easy to read two graph tool to see market tops and bottoms as they occur, the nimble trader could use this FLI each day to enter a trade position based only on the precision data on this graph, this graph includes 2 1/2 years of daily price data...

The FLI will give you more confidence when taking the VP signals...

The FLI lines are color coded for easy reference, there are only three lines to follow...

The color coded lines are:

Price Line - this is the actual daily closing price for the SP front month futures contract, this price is read on the left side of the graph...

Anti Price Line - this is the "shadow" price, this is the price required for the market to close that day for a change in direction to occur, this price is also read on the left side of the graph...

SP Flat Line - this line shows the difference in SP points between the Price Line and the Anti Price Line (PL minus APL), this line is read on the right side of the graph...

Broader Trend Line - this line tells you the broader direction of the market...

When reading this graph you will notice:

1. The flat line tops and bottoms occur right at the actual market price tops and bottoms...

2. when the price line crosses through the anti price line, then the flat line crosses through the zero value turning the flat line to neutral, and therefore the name flat line...

3. The flat line in the second graph crosses above and below the momentum line as a leading indicator ahead of the actual change in market direction...

4. The momentum line in the second graph tells you the market's strength of speed and you will notice how the flat line in that graph turns and crosses through the momentum line ahead of the market itself...

5. The optimal time to take a flat line trade position is when the flat line spike occurs simultaneously with a confirmed VP signal although this tool provides numerous other trade opportunities beyond the VP signals for the more aggressive trader...

Study the relation ships between the three lines at your leisure and you will make these and additional observations which can be useful trading tools...

THE LT PRICE AND MOMENTUM GRAPH

The momentum line very closely correlates with the market price...

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