Today's focus is on immediate trading, for profit in 1 to 5 days with this one-of-a-kind tool, continuing and expanding the presentation from #797. The major market turn logic will be reviewed another time, here's an important preview: the highest major reversal target cluster is 9900-9914. As we've been saying on the Market Update Hotline, we're still aiming for this high mark, to be reached near our key-date of February 5, suggested by the behavior of big block traders. So that we may be on the doorstep to this significant date when we publish the next update of the Ultimate Top table, we are making Release #799 the first part of a double release, and #800 will come to you one week from now, ahead of schedule. A lower target cluster 9672-9745 is a serious block in the way of 9900, call the market updates regularly for fresh assessments.

Magnetic Bands: Support & Resistance The building blocks of the table are 1918 short term DJI drops of 60 or more points, and corresponding rebounds of at least 60. Here's how we get magnetic bands and focal numbers for forecasting: When the starting level of a 60 point or larger DJI decline is revisited or passed on a rally, the formula gives us 4 target numbers. We sort them into 50-point DJI bands, and keep a target count for each band. The higher the count, the more magnetic the band. A sudden value jump in a target count sequence, or the proximity to a border between two zones, also makes a band extra strong. We number 100 point bands low to high to give them an ID. The 50 point bands inside are marked HI 50, the upper 50 point half, and LOW 50, the lower 50 point half. An especially strong magnetic band first pulls the market into it, then repels it back into the nearest strong band above or below. Strongest bands of each zone are flagged by a double*. Other strong ones are flagged by *. In bold you see the corresponding most influential focal numbers. Each such number is the nucleus for target concentration in a given band. All targets are intraday extremes, reported in financial statistics as theoretical highs & lows. Separations (hyphenated lines) are borders between investment zones:

Upside "Blow-Off" Zone: Highest of the four zones, lower limit 11100, upper 11499. On the probable re-visit of this zone next year, be very protective of your trading budget, with this allocation: 30 to 40% Long, 7-8% Puts, rest in reserve. Major Resistance Zone: Upper limit 11099, lower 10100. Note magnetic strength above 100 in 5 bands. While our 7 step sequence in the table stops short of this zone, early December we plan an update which will target 10651 yearend, and higher bands in 2002. Budget balance: 45 to 55% Long, 4-5% Puts, rest in reserve. Transition Zone: In the aftermath of the recent big decline, we expect the bulk of trading to occur in this zone, high 10099, low 8800, through November. Budget: 60-70% Long, 2-3% puts, rest in reserve. Major Support Zone: Under 8800, down to 7800, at least two tests of the recent low in band #66 are likely, both successful. Buy aggressively in this zone: 80-90% Long, rest in reserve.

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Market history is against the hope of newly inspired bulls that the September 21 low will not have to be closely tested. Granted, the resurgence has been impressive: up 1596 points or 20%, from 7927 to 9523, in a mere 15 sessions. But ask yourself with a cool head: was the big fall to 7927 totally irrational? If your answer is no, then the bottom will have to be closely tested. All we need for a trigger is a new stumble in investor confidence. And there will be more than enough negative press about our economic and political woes, in the next 3 or 4 weeks, to cause the stumble. More important question than whether or not we'll test the bottom: is there going to be a break under the September 21 low?

No. We will test the bottom successfully, Review Magnetic Bands in Release #857. These bands reflect 20 years of market history. In #857 our focus was on the upside potential, which is intact, but we must not ignore the intervening downside risk. In the columns that plan a sequence for target achievement, note the progression of short term tops from band #79 to #80 to #81. Now that #81 has been achieved, the up gap to the next strong band #87, above 10000, is too large for the current momentum to fill. We need to back down to the nearest strong band #75, with focal number 8853.

But that would not be a very close test of 7927, would it? No, it would not. OK to start a rebound, but this would be the first and smaller part of a whipsaw which fails below 9523, and gives way to the larger part: a sharp decline to near 8300. Examine bands #70 and #69. Had we probed these bands promptly, a big drop would have been avoided, but we're now looking for a delayed execution of step #3, with a penalty for the delay. Will there finally be a reward for bulls? Yes.

On the recovery we'll see steps #3 through #7 executed in order, with only a pause after #6, then 10049 by year end.

How will we know that the bottom test is underway? There will be a major alert from MRM the Major Risk Measurement gauge. This tool, a by-product of the "Op40" system featured on the ivory pages, has been 86% accurate catching down turns that give OEX put options a 200% profit potential. All MRM alerts are announced promptly, with specific option trading plans, then followed to completion, on the Market Hotline and the Index Hotline, total four updates a week.

The "9 to 1 Edge Finder": Re-Introduced With Updated Record The foundation of "9 to 1" is the price action of specific OEX options over a period of 3 days, the "incubation" period for a trading signal. For those already using an option system, such as our own "Options 40 In 4" ("Op40"), no new data is needed. Your current daily data has it all. The prime added value of "9 to 1" is that its signals occur only when there is a 90% probability for a quick profit, usually in 1 to 3 days. With odds so favorable, you can commit up to twice your normal dollar amount and frequently reuse the same capital for the next signal. Leverage example: if your typical investment unit is $1000, you need a 50% price rise, unlikely to happen within 2 days, for a gross profit of $500. By investing $2000 you lower the required price rise to 25%, and as you'll see in the Gain Days column of the table on the next page, most "9 to 1" signals do achieve that much and more that quickly.

"Starter" vs. "Expanded" Version What about trading only when there's a "9 to 1" signal? If you're accustomed to trading almost daily, with a system such "Op40", or any system whether from us or not, you're normally willing to risk a trade with the odds less than 9 to 1 in your favor, so trading only 8 to 10 times a month may not suit your trading habits or style. If you do think of using "9 to 1" as your prime trading vehicle, you'll need the $225 expanded version instead of the $125 starter version. During the zero fee period, back in effect briefly, request "9 to 1 Expanded" as a bonus, see below.

Highlights of "9 to 1" and How To Order The expanded version has been able to achieve a typical gain of +45%, instead of +25% for the starter version, through a budget discipline that combines quick exit with half your investment, and exit at a higher price (for 50 to 60% profit) with the other half. Temporary fee for regular readers is zero. You'll be considered a regular reader if you extend your KVS/Stock Performer subscription, or start a new one, for 6 months at the special rate of $279. Choose a full year for $449 and get the signal logic of "MRM" as bonus #2. 800-334-0411 x 12U.

The Weak and the Strong Glance down the W/S column on the next page. Note the nearly equal distribution of weak (W) and strong (S) options as the trading choices. "9 to 1" uses a certain OEX call option, and a certain OEX put option, to determine from 3 daily performance values which option stands out as weak, and which as strong. If no options meet the criteria, there's no signal. Momentum players would nearly always choose the strong option, and lose half the time!. The exclusive "9 to 1" logic tells you each day whether there is a trading signal, and if yes, whether to favor the strong or weak.

"9 to 1" Record Brought Current The comprehensive table continues the signal by signal detail. The Win Ratio numbering started with Dec 15 in #848. Content of columns is described under the table, giving you insight into the signal and profit mechanics. The exact instructions for getting and trading the signals are furnished only to those who take advantage of a special offer on the previous page. Results are measured from opening prices the day after signals, except where the Lower Buy logic suggested a limit price. A plus sign in the Profit Pointer column flags each such signal.

Profit Range: Pointer to your "Spots" To every trade a profit pointer applies such as DG, UG, DN, UE, determined by simple option price examination. The expanded version also teaches specific rules for starting second trades at lower prices. After a second trade has started, it takes over the profit size control from the initial buy. The expanded version seldom settles for the low end of the profit range which is 25%, with variance from 24% to 28% because of rounding to executable prices. Higher profit borders: +33% and +57%. You also learn time limits and circumstances for target adjustment.

Higher Risk Signals Users have been warned by hotline and by newsletter not to trade W4 signals till further notice. If the hotline overrides the skip with a special buy price 35 to 40% under the opening, then OK to trade. The Excl "W4" column keeps a separate win ratio, omitting W4 or buying only as the hotline suggested. The underlined entries in this column highlight W4 signals. Trading rather than omitting a W4 signal normally works out better if the W4 is part of a same direction signal sequence with at least one earlier signal still open, or if W4 occurs in the opposite direction from an earlier trade that's down 40% or more. Users may choose to act on all W4 signals because some do quite well (example: 8/27), but the comparative record shows a higher win ratio (91% vs. 85%) for users who trade only those W4 signals that meet one of the two conditions just reviewed, or are specifically recommended by hotline. There are four hotline messages per week.

Other Notes to Table Option: S+ means the strong option was traded with a special rule for buying under the opening. Profit Range: Higher prices than targeted, because of favorable openings, are flagged by *. NT means "Not Targeted" because of profit pointer rules, or the need to accept a loss or reduced gain. Dots mean: higher range targeted but not achieved. "N" followed by percent indicates that while the gain was not targeted, it was available. Gain Days: Left number shows in how many days the minimum goal was achieved. Right number shows days the higher profit took. A number in [ ] indicates when a sub normal gain or loss had to be accepted. Win Ratio and Excl "W4": These are the cumulative Gain : Loss counts. Max % Avail: Shown for comparison only; note that mechanical formulas do not aim higher than +60%.

Copyright: 1996 through 2001 All rights reserved including reproduction

What you have just browsed are the two most popular investment products of Key-Volume Strategies (KVS). We are in our 32nd year of publication together with our colleague The Stock Performer. We do not update our website frequently because we are in daily contact with subscribers and system purchasers through telephone and email hotlines, and in the KVS/Stock Performer newsletter, published twice a month, we update our subscribers and system users continuously. Our website serves the purpose of initial contact, so you know what we offer and how long we've been serving Wall Street.

Through these many challenging and eventful years of market rises and declines, our main thrust has been technical innovation. What we offer is exclusive to our subscribers and system users. Options "40 In 4" is a standalone product to trade SP100 (OEX) calls and puts regularly, with a remarkably small amount of daily attention. The trading edge formula of "Op40" does not even require a computer, and no option watching during the day is called for! Our other timing and trading products are taught in our newsletters, with hotline reviews to keep you current. Here's a preview:

Two-Way Signals, featured in a newsletter excerpt you've just browsed, either produce gains in both directions, or help you avoid or minimize a loss and add to the winning direction. Typical two-way duration is 2 to 5 days. The same tool also has a major market turn forecasting capability. "9 to 1 Edge Finder" is an option signal reinforcement tool to enhance returns from any option system. You have just browsed a feature on this tool as well. "MRM", the Major Risk Measurement gauge, is a by-product of "Op40". It works with a second look at each "Op40" signal for certain characteristics, plus a pre-determined minimum DJI rise from the last short term low. MRM readings of 10 or above signal option moves of 200% and more. Choose any of these tools as a 6 month subscription bonus, or any two as a 1 year double bonus.

Other forecast aids, which you learn automatically through a newsletter subscription without specifying them, include the Key-Dates for market turns; Magnetic Bands for support and resistance; and trading signals from a special way of handling Big One Day Changes of 90 or more DJI points.

How to Order The one-time fee for Options "40 In 4" is $665, but you can save through the Anniversary Special fee of only $495. You may even be eligible for the super saver charter rate from 5 years ago, mentioned in the 15 day time limit offer you've browsed up front. The higher rates, $495 to $665, include one month hotline by voice or email, your choice. The regular hotline fee is $150 for 3 months or $255 for 6. Use the hotline as your data source, learning aid, or shortcut.

KVS/Stock Performer subscriptions include 24 newsletters, numbered as "releases" (plus educational back issues) and four recorded updates per week, two on market timing and stocks and two on the large potential (minimum +100%) option trading outlook. Special rates for website browsers are $279 for 6 months and $449 for a full year. Bonuses were mentioned above. If you already have all 3 bonus tools from an earlier subscription, consider these two alternates: 2002 Stock Trader's Almanac, hardcover 180+ pages, focusing on seasonal opportunities and dangers, with daily calendar timing help and a variety of record keeping forms; and/or Extra Hotline Time, 1 month = 1 bonus.

Call 800-334-0411 ext. 12-E to order by Visa, MasterCard or American Express. This is a 24 hour number. If you prefer to mail a check, ask to speak to someone on the KVS staff for the fastest service mailing address, and for a code to be written on your mailing envelope to assure your special rate. From outside the USA call 828-692-3401. If you prefer to use our Email address: info@key-volume.com. Be sure to include your telephone number with your order. If you have a Fax number, please provide it as well. Thank you, we appreciate your joining us, we fill all orders within 24 hours.