Summation Index Turns Bullish
Producing an 86% Return

The Summation Index turned bullish and is flashing a buy signal for stocks. Learn how to pick winning trades during the current rally. I will show you how I generated an 86% return trading call options over the past two weeks with the help of the Summation Index and trend indicators.

The Summation Index is a very useful timing tool. When the market gets overbought and the Summation Index starts trending down, I start selling my stock and call option positions and start initiating bearish positions on stocks in a price downtrend.

October of 2007 would be a good example of this. On October 11th 2007 the S&P 500 Index traded at an all time high of 1576 and the market became very overbought. Just a few days later on October 16th the Summation Index issued a “sell” signal when the S&P 500 Index was trading at 1547 so the summation index called the top within 30 points of the all time high. This provided a great signal to exit long positions just when everyone was getting very bullish.

86% Average Return for Call Option Purchases

FUTURES AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.