Executive Summary as of March 11, 2019

 

Stocks: Stay Long

 

The RITE Index is good at 82.9%.  Overall economy is in good shape with 15 out of 25 RITE Report’s important economic indicators being positive. 

 

THE FULL REPORT

 

March 11, 2019

 

The RITE REPORT

 

The following RITE Report generates indices from the monthly compilation of business, economic, & political news snippets from Investment Business Daily & the U.S. Government, et al.

 

RITE Report

Chris Angle, Editor

222 Boston Post Road, #244

Waterford, CT 06385

Tel. 203/253-2008

Email: chrisangle1@gmail.com

http://stock-market-direction.net/

 

CUSTOM RESEARCH:

Please note that custom economic and/or macro investment research and wealth advisory services are available on request.

 

CONTENTS

 

PART 1 – STOCKS

 

1) Macro-Economic Snippets w/Index

2) Indicators for Technical Analysis

3) Overall Investment Strategy Index

4) Summary

 

PART 2 – HEDGING

1) Hedging and Inflation Snippets

2) Hedging Summary

 

PART 1 – STOCKS

 

1) Macro-Economic Snippets

 

1. A) Negative Economic and General Business Data Snippets

 

02/14

U.S. CENSUS: U.S. retail and food services sales for December 2018 were $505.8 billion, a decrease of 1.2 percent (+/-0.5%) from the previous month.

02/14

U.S. CENSUS: U.S. total business end-of-month inventories for November 2018 were $1,980.5 billion, down 0.1 percent (+/- 0.1 percent)* from last month. U.S. total business sales were $1,462.5 billion, down 0.3 percent (+/-0.2 percent) from last month.

02/25

CPB: The CPB World Trade Monitor shows that the volume of world trade decreased 1.7% in December, having decreased 1,8% in November (initial estimate -1.6%), and growth in 2018Q4 was -0.9% (1.3% in 2018Q3).

02/25

U.S. CENSUS: December 2018 sales of merchant wholesalers were $497.2 billion, down 1.0 percent (+/- 0.5 percent) from last month. End-of-month inventories were $661.8 billion, up 1.1 percent (+/- 0.4 percent) from last month.

02/26

U.S. CENSUS: Privately-owned housing starts in December 2018 were at a seasonally adjusted annual rate of 1,078,000. This is 11.2 percent (+/- 14.0%)* below the revised November 2018 estimate of 1,214,000.

03/01

BEA: Personal income decreased 0.1 percent in January after increasing 1.0 percent in December, the largest increase since December 2012. Wages and salaries, the largest component of personal income, increased 0.3 percent in January after increasing 0.5 percent in December.

03/04

U.S. CENSUS: Total construction activity for December 2018 ($1,292.7 billion) was 0.6 percent (+/-1.0 percent) below the revised November 2018 ($1,300.6 billion).

 

Total of Negative General Business and Economic News Snippets: 7

 

1. B) Positive Economic and General Business News Snippets

 

02/13

BLS: In January, the Consumer Price Index for All Urban Consumers was unchanged on a seasonally adjusted basis; rising 1.6 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy rose 0.2 percent in January (SA); up 2.2 percent over the year (NSA).

02/13

BLS: Real average hourly earnings increased 0.2 percent over the month in January, seasonally adjusted. Average hourly earnings increased 0.1 percent and CPI-U was unchanged. Real average weekly earnings increased 0.1 percent over the month.

02/21

U.S. CENSUS: New orders for manufactured durable goods in December increased $3.0 billion or 1.2 percent to $254.4 billion.

02/27

U.S. CENSUS: New orders for manufactured goods in December increased $0.3 billion or 0.1 percent to $499.9 billion.

02/28

BEA: Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2018, according to the “initial” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.4 percent.

02/28

U.S. CENSUS: The homeownership rate in the fourth quarter 2018, 64.8 percent, was not statistically different from the rate in the fourth quarter 2017 (64.2 percent). The homeownership rate in the West was higher than in the fourth quarter 2017, while rates in the Northeast, Midwest, and South were not statistically different from the rates in the fourth quarter 2017.

03/01 BEA: Wages and salaries, the largest component of personal income, increased 0.3 percent in January after increasing 0.5 percent in December.

03/05

U.S. CENSUS: Sales of new single-family houses in December 2018 were at a seasonally adjusted annual rate of 621,000. This is 3.7 percent (+/- 16.4%) above the revised  November 2018 estimate of 599,000.

03/07

BLS: Productivity increased 1.9 percent in the nonfarm business sector in the fourth quarter of 2018; unit labor costs increased 2.0 percent (seasonally adjusted annual rates). In manufacturing, productivity increased 2.0 percent and unit labor costs increased 2.2 percent.

03/08

WSJ: THANK YOU TAX REFORM: The American economy is a tremendous engine of prosperity when politicians get out of the way, and for proof look no further than Thursday’s report on fourth-quarter growth. It’s clearer than ever that business investment has rescued the U.S. economy by shifting into a higher gear. Tax reform and deregulation, take a bow.

Growth in the fourth quarter came in higher than expected at 2.6% after a December financial-market scare, and the internals were better than the top line. Consumer spending declined a bit but was still strong. Growth from government spending was negligible—so much for claims of a deficit-led boom in “demand.”

The best news was business investment, which contributed 0.69-percentage points to GDP growth. This is even better than it looks because housing subtracted 0.14. Housing has now been flat or worse for most of the last two years, but that may be a silver lining.

03/08

BLS: Total nonfarm payroll employment changed little in February (+20,000), and the unemployment rate declined to 3.8 percent. Employment in professional and business services, health care, and wholesale trade continued to trend up, while construction employment decreased.

03/08

U.S. CENSUS: Privately-owned housing starts in January 2019 were at a seasonally adjusted annual rate of 1,230,000. This is 18.6 percent (+/- 26.6%) above the revised December 2018 estimate of 1,037,000.

 

Total of Positive General Business and Economic News Snippets: 12

 

Table of Positive v. Negative General Economic & Business News

Month         % Neg         % Pos

 

2017

Jan              34%            66%

Feb             04%            96%

Mar             19%            81%

April           30%            70%

May            22%            78%

June            44%            56%

July             40%            60%

August        17%            83%

Sept            29%            71%

Oct              16%            84%

Nov             32%            68%

Dec             23%            77%

 

2018

Jan              23%            77%

Feb             35%            65%

March         38%            62%

April           16%            84%

May            43%            57%

June            50%            50%

July              8%            92%

August        29%            71%

September  28%            72%

October        0%           100%

November   20%            80%

December    36%            64%

 

2019

January        23%            77%

February      47%             53%

March          37%             63%

 

3) Economic Analysis/Indicator Summary

 

Indicator                                  TREND/COMMENT

 

(DAILY) – HIGH YIELD BONDS (HYG)                   

Up (02/08/19; 03/08/19 – 85.10)                                                       Positive

 

(DAILY) – iSHARES SELECT DIVIDEND (DVY)              

Up (03/08/19 – 97.28)                                                                        Positive

 

03/01/19 – ISM – PURCHASING MANAGERS INDEX         

Mfg: 54.2 – Economy Expanding                                                       Positive

 

03/04/19 – CONSTRUCTION SPENDING (Census Bureau)

Construction spending during December 2018 was estimated at a seasonally adjusted annual rate of $1,292.7 billion, 0.6 percent (±1.0 percent) below the revised November estimate of $1,300.6 billion. The December figure is 1.6

percent (±1.2 percent) above the December 2017 estimate of $1,272.6 billion.

                                                                                                           Negative

 

03/10/19 – (BLS)  UNEMPLOYMENT                             Overall: Positive

– 03/10/19 Unemployment Rate (BLS):

  Decreased to 3.8%                                                (Positive)

– 03/08/19 Civilian Labor Force Participation Rate (BLS):

  Unchanged at 63.2%                                           (Neutral)

– 03/08/19 Employment-Population Ratio (BLS):

  Unchanged at 60.7%                                            (Neutral)

– 03/11/2018 Employment Trends Index (Conference Board TM)

                                                                Increase (Negative) 

 

03/07/19 – (BLS) PRODUCTIVITY                                 Overall: Positive

Nonfarm Business Sector

-Productivity +1.9%                                               (Positive)

-Output + 3.1%                                                       (Positive)

                                                                                                                               

Manufacturing

-Productivity increased + 2%                                  (Positive)

-Output: +2.7%                                                        (Positive)

 

12/04/18 – QUARTERLY FINANCIAL REPORT – MFG, MINING, WHOLESALE TRADE, & SELECTED SERVICE INDUSTRIES (Census Bureau) – U.S. manufacturing corporations’ seasonally adjusted after-tax profits in the third quarter of 2018 totaled $158.1 billion, down $24.5 (±0.5) billion from the after-tax profits of $182.5 billion recorded in the second quarter of 2018,  but up $10.8 (±1.5) billion from the after-tax profits of $147.3 billion recorded in the third quarter of 2017.                       Negative                                                                                          

 

02/14/19 – RETAIL SALES (U.S. Census)

Advance estimates of U.S. retail and food services sales for December 2018, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $505.8 billion, a decrease of 1.2percent (±0.5percent) from the previous month, but 2.3percent (±0.5percent) above December2017.Total sales for the 12 months of 2018 were up 5.0 percent (±1.4 percent) from 2017.Total sales for the October 2018 through December 2018 period were up 3.7percent (±0.5percent) from the same period a year ago. The October 2018 to November 2018 percent change was revised from up 0.2percent(±0.5percent)*to up 0.1percent (±0.4percent).

                                                                                                                Negative                                                                                            

 

02/14/19 – MANUFACTURING AND TRADE INVENTORIES AND SALES (U.S. Census Bureau):

The combined value of distributive trade sales and manufacturers’ shipments for November, adjusted for seasonal and trading day differences but not for price changes, was estimated at $1,462.5 billion, down 0.3 percent (±0.2 percent) from October 2018, but was up 4.2 percent (±1.2 percent) from November 2017.

                                                                                                                Negative     

                                                                                                          

02/15/19 – INDUSTRIAL PRODUCTION INDEX (INDPRO)             Negative

                                       Downtick:   109.4447

(Year over Year)  Positive

 

02/28/19 –  Velocity of M2 Money Stock: 1.460 – Q4 2018             Positive

 

03/08/19 – NEW RESIDENTIAL CONSTRUCTION (U.S. Census):

Privately‐owned housing starts in January were at a seasonally adjusted annual rate of 1,230,000. This is 18.6 percent(±26.6 percent) above the revised December estimate of 1,037,000, but is 7.8 percent (±12.7 percent) below the January 2018 rate of 1,334,000. Single‐family housing starts in January were at a rate of 926,000; this is 25.1 percent (±29.0 percent) above the revised December figure of 740,000. The January rate for units in buildings with five units or more was 289,000.

        Positive                                                                                      

                                                                                                      

04/04/19 – CONFERENCE BOARD        

LEADING ECONOMIC INDICATORS ™               Unchanged: Neutral

 

04/04/19 – CONFERENCE BOARD

COINCIDENT ECONOMIC INDICATORS ™           Increased: Positive

 

03/05/19 – NEW RESIDENTIAL SALES (U.S. Census Bureau)

Sales of new single‐family houses in December 2018 were at a seasonally adjusted annual rate of 621,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 3.7 percent (±16.4 percent) above the revised November rate of 599,000, but is 2.4 percent (±21.3 percent) below the December 2017 estimate of 636,000.

                                                                                       Increased: Positive

                                                                                                            

02/21/19 – ADVANCED REPORT ON DURABLE GOODS MANUFACTURERS’ SHIPMENTS, INVENTORIES, AND ORDERS (U.S. Census Bureau)

New orders for manufactured durable goods in December increased $3.0 billion or 1.2 percent to $254.4 billion, the U.S. Census Bureau announced today.  This increase, up two consecutive months, followed a 1.0 percent November increase.  Excluding transportation, new orders increased 0.1percent.  Excluding defense, new orders increased 1.8 percent.  Transportation equipment, up four of the last five months, led the increase, $2.8 billion or 3.3 percent to $90.2 billion.

           Increased: Positive                                                                                                    

 

02/21/19 – EXISTING HOME SALES (NAR)    -1.2%                  Negative

 

02/28/19 – REAL GDP (BEA)                   4Q      + 2.8%:                     Positive

 

03/01/19 – PERSONAL CONSUMPTION EXPENDITURES (Dept of Commerce – BEA 

                                                                                         –  0 .5%:   Negative

 

03/01/19 – PERSONAL INCOME (Dept of Commerce – BEA) 

                                                                                           + 1.0%: Positive

 

02/26/19 – CONSUMER CONFIDENCE INDEX 

(Conference Board TM)                                                   Increased: Positive

 

02/28/19 – RESTAURANT PERFORMANCE INDEX: 101.2 –

                                                                                      Expanding: Positive

 

12/21/18 – Corporate Profits BEA                                  Increased: Positive

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $78.2 billion in the third quarter, compared with an increase of $65.0 billion in the second quarter.

02/27/19 – MANUFACTURERS’ SHIPMENTS, INVENTORIES, & ORDERS             (CENSUS BUREAU): 

New orders for manufactured goods in December, up following two consecutive monthly decreases, increased $0.3 billion or 0.1 percent to$499.9 billion, the U.S. Census Bureau reported today.     

                                       Increased: Negative

 

02/25/19 – CPB WORLD TRADE MONITOR

CPB: The CPB World Trade Monitor shows that the volume of world trade decreased 1.7% in December, having decreased 1,8% in November (initial estimate -1.6%).                                                            Decreased: Negative

 

 

SUMMARY

 Positive     15

 Negative     9

 Neutral       1

 

4) RITE Investment Strategy Index

 

Scale:

0 = Neutral;

+10 = High Opportunity Environment;

-10 = Extreme Negative Risk Miasma

 

EFFORT, RISK, FREEDOM,

KNOWLEDGE/INFO                           COMMENTS

 

1) Domestic Political Risk               + 8     Political gridlock: Excellent

 

2) Tax Risk                                       + 8     Corporate Taxes cut

 

3) Individual Incentive (Freedom)   + 8   Regulations are decreasing

 

4) Production of Knowledge            + 8   Economy positive as corporate taxes were cut

 

5) Technical Analysis                       + 7   Market: Long Term Bull

 

6) General Business

& Economic Snippets                       + 2   Positive Snippets 63%

 

7) Economic Indicators                     + 5   OK, but down from 18/6/1

to 15 Pos; 9 Neg; 1 Neu

 

Sum of Total + 46

 

RITE Strategy Index:  Same at 82.9%.

 

History of Strategy Index (Started 2009) Statistics noted below are approximate.

 

Month/Yr   Index %       DJIA              Gold       Oil    WSJ Dollar Index

 

2017

Jan 2           77.1%         19,762.60    1,152.0       53.89           92.94

Feb 9          87.8%         20,172.40   1,232.9       53.03           90.94

Mar 1          90.0%         21,142.85   1,243.0       53.93           91.41

April 4        88.5%         20,689.24   1,257.2       51.32           90.29

May 3         85.7%         20,579.90   1,248.5       47.82           89.89

June 7         85.0%         21,173.69   1,293.2       45.92           88.10

June 30       82.1%         21,349.63   1,241.2       46.29           87.74

Aug 4          83.5%         22,092.81   1,264.3       49.52           86.32

Sept 1         83.5%         21,987.56   1,338.6       47.39           85.60

Oct 6           83.5%         22,773.67   1,278.9       49.25           86.95

Nov 6          86.4%         23,548.42   1,279.7       57.22           87.72

Dc11MdDy 85.0%        24,358.26   1,248.2       57.94           87.18

 

2018

Jan 4           89.2%         25,075.13   1,324.2       61.94           85.62

Feb 9          89.2%         24,190.90   1,322.5       59.72           84.09

March 7      87.9%         24,801.36   1,326.3       61.35           83.49

April  6       86.4%         23,932.76   1,337.3       61.95           83.99

May 4         89.2%         24,262.51   1,316.0       69.79           86.16

June 10       85.0%         25,316.53   1,303.5       65.56           86.86

July 8          88.6%.        24,456.48   1,255.9       73.92          87.62

August 10   89.3%         25,313.14   1,219.2       67.75           90.14

Sept 7         88.6%         25,916.54   1,199.9       68.03           89.92

Oct 9           89.3%         26,412.82   1,191.4       78.89          90.30

Dec 7          72.8%         24,388.95   1,255.6       52.51          90.27

 

2019

Jan 8           87.1%         23,787.45    1,283.3        50.56           89.32

Feb 11        82.9%         25,106.33    1,310.6        52.49          

March 10    82.9%         25,450.24   1,298.6        56.04           90.27

 

5) Summary

 

MONTHLY EQUITY MARKET CONCLUSION:

 

Stocks: Stay Long

 

The RITE Index is good at 82.9%.  Overall economy is in good shape with 15 out of 25 RITE Report’s important economic indicators being positive. 

 

PART 2: HEDGING

 

1) HEDGING/INFLATION SNIPPETS

 

DEFLATION SNIPPETS 0/0%

 

None this month.

 

INFLATION SNIPPETS 2/100%

 

02/14

BLS: The Producer Price Index for final demand edged down 0.1 percent in January, as prices  for final demand goods decreased 0.8 percent, and the index for final demand services increased 0.3 percent. Prices for final demand advanced 2.0 percent for the 12 months ended in January.

 

02/13

In January, the Consumer Price Index for All Urban Consumers was unchanged on a seasonally adjusted basis; rising 1.6 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy rose 0.2 percent in January (SA); up 2.2 percent over the year (NSA).

 

INFLATION TABLE

 

(RITE Report Issue Date is the first of the month; Statistical Data is the latest closing price which is noted in the WSJ on the close of the last day of the month, but the RITE Report does not represent that these data are accurate.)

 

Month                   Inflationdata.com           CRB

                             Annual Inflation Rate

 

2017

Feb 09                  2.07%                   192.756

Mar 01                 2.50%                   190.81

April 04                2.74%                   185.59

May                      2.38%                   176.96

June                      2.20%                   176.30

June 30                 1.87%                   174.776

July 31                 1.63%                   180.68

Sept 4                   1.73%                   180.95

Oct 6                     1.94%                   180.95

Nov 6                   2.23%                   192.57

 

2018

Jan 04                   2.20%                   195.37

Feb 09                  2.11%                   188.51

Mar 07                 2.07%                   194.44

April 06                2.21%                   192.25

May 05                 2.36%                   203.25

June 10                 2.46%                   200.04

July 06                2.80%                   198.052

Aug 10                 2.95%                   191.69

Sept 7                   2.95%                   190.36

Oct 5                    2.70%                   198.334

Dec 7                    2.52%                   183.08

 

2019

Jan 9                      2.18%                 175.96

Feb 11                    1.91%                177.86

March 12              1.52%                   181.23

 

2) HEDGING SUMMARY

 

Gold                      No call

US Dollar             Stay Long

Oil                        No call

 

For your reference we include a directory of:

 

The RITE Report Major Trade Advice Summary

 

Date                      Approx.

                       Mrkt Level         Market      Advice

2009

2009/05/01     8,212                 Stocks         Go long.

2009/05/01        895                 Gold           Go long.

2009/05/01                               USD           Go short

2009/06/01         51.12             Oil              Go long

2010

2010/02/01                               USD           Stop going short;

                                                                     Take profits. get out.      

2011

2011/04/01    2,376                 Stocks         Market to go sideways;

                                                                     end of bull.                      

2011/05/01  12,763                 Stocks        Take profits 55.4% Gain

2011/06/01      102.7               Oil               Go Neutral 100.9% Gain         

2011/06/01  12,441                 Stocks         Take profits (re-confirmation)

2011/07/01                               USD            Go short

2011/08/01                               USD            Cover the short; no direction

2011/08/01  12,240                 Stocks         Trading Range

 

2012

2012/03/01       107                 Oil               Go long

2012/05/01       104                 Oil               Go neutral 2.8% Loss

2012/06/01  12,772                Stocks          Take profits; a downtrend started

2012/06/01    1,564                Gold             Sell: Take profits   74.7% Gain

2012/07/01    1,604                Gold             Buy: Go long

2012/08/01  13,090                Stocks          Advised not to be in the

Stock Market at all

2012/09/01         80.025          USD           Go short

2012/11/01    3,096                 Stocks        Confirmation:

                                                                      Not to be in Stock Market

 

2013

2013/01/02   13,104.30           Stocks          Go Long

2013/03/01          82.47           USD Index  Take loss; go neutral

2013/05/31   15,115.57           Stocks          Take profits 15.3% Profit

2013/08/01   15,499.54           Stocks          Go Long

2013/12/01          92.78           Oil                Go Short

 

2014

2014/01/02          98.70           Oil                Take off short:  

  Go Neutral 6.38% Loss

2014/02/28    16,321.71          Stocks           Take profit;

  go to cash   5.0% Increase

2014/03/01    16,532.61          Stocks           Go long   

  (Unrealized gain potential)

2014/10/31      1,173.5            Gold              Sell (36.8% loss)

 

2015/01/30     1,283.0             Gold             Go long

2016/04/04          35.32           Oil                Go long

2016/07/01          49.05           Oil                 Take Profit – 38% Gain

2016/12/02         176.3           Gold              Sell – Loss  8.3%

2016/12/02.         91.50          WSJ Dollar Index  Go Long   

 

2018/08/11           67.75 Oil                        Go Short   

2018/10/15 (Intraday)  71.35. Oil               Go Neutral                   

 

PRESENTLY

2019/03/08

Stocks (DJIA) 25,450.24                            Stay Long 

(Unrealized gain potential)

Gold                 1,298.6                               No call

US Dollar              90.27                             Stay Long

 (Unrealized loss potential)

Oil                       56.04                               No call

                                      

CUSTOM RESEARCH:

Please note that custom economic and/or macro investment research and advisory services are available on request.

 

Caveats

1) Past performance is not indicative of future results.

2) Trading stocks, futures, and options involves substantial risk of loss and is not suitable for all investors.

 

RITE Report

222 Boston Post Rd., #244

Waterford, CT 06385

Tel. 203/253-2008

Email: chrisangle1@gmail.com

http://stock-market-direction.net/

 

(The RITE Report’s name was derived from the acronym of the four variables inherent in all economic transactions; Risk, Information/Knowledge, Time, and Effort. Of course, this would be for a service, and if the product were a material good, there would be an additional factor of Material – or Land as the economist would say. See The Philosophical Equations of Economics at www.philosophypublishing.com for further info on this subject.)

 

FOR YOUR REFERENCE

 

1) Chris Angle is the author of:

 

The Nature of Aesthetics – 978-0-9661126-4-1

Defining Ethics Good & Evil – 978-0-9661126-5-8

Truth and the Nature of Decisions – 978-0-9661126-6-5

The Philosophical Equations of Economics – 978-0-9661126-3-4

These books may be viewed at: www.philosophypublishing.com

 

2) Chris Angle is the host of The Philosophical Angle, a TV and Podcast Program, which discusses concepts in current media.

http://www.youtube.com/user/philosophypublishing

 

DISCLAIMERS/CAVEATS:

 

1) Past performance is not indicative of future results.

2) Trading stocks, futures, and options involves substantial risk of loss and is not suitable for all investors. Carefully consider the suitability based upon your experience, objectives, financial resources and other relevant circumstances. Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment performance can be volatile and are not suitable for all investors. An investor could lose all or a substantial amount of his or her investment.

3) This communication does not constitute an offer to sell, or a solicitation of an offer to buy or sell, any products named herein, commodities interests, futures contracts, or securities, and is intended for informational purposes only. Any offer for any investment product will be made solely by the appropriate disclosure document or private placement memorandum.

4) The RITE Report has been prepared either from publicly available information or reflects the opinions of the author. Information contained in this report is believed to be reliable but may not have been independently verified. The RITE Report does not guarantee, represent or warrant, or accept any responsibility or liability as to, the accuracy, completeness or appropriateness of the information contained herein. At no time will the RITE Report make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Information contained herein may not be current due to, among other things, changes in the financial markets or economic environment. Opinions reflected in the materials are subject to change without notice. Forecasts represent estimates. Information provided by the RITE Report is expressed in good faith, but it is not guaranteed. Long-term success, trading or investing in the markets, demands recognition of the fact that error and uncertainty are part of any forecasting effort. Investing carries risk of losses. Information provided by the RITE Report does not constitute, and should not be used as a substitute for tax, legal, or investment advice. Please ask your broker or your advisor to explain all risks before making any trading and investing decisions.

5) Commodity Futures Trading Commission: Futures, Options and foreign currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

 

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT 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 PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.