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Four Pillars Finance Newsletter

Issue #104 (13 December 2010)

Hello everybody.
This month we are picking up our old newsletter format for FPF again.

A lot of our readers have been sending in emails asking what happened to our newsletter, so even though we were continuing
our irregular comments on the blog site (http://fourpillarsfinance.wordpress.com), not everbody found the way to it.

We will continue to post our updates on the blog as well, but I think for an irregular newsletter like this one, a newsletter
format that comes straight into your mail box is more convenient for many.
So now you will have the best of both worlds: you can receive and read our newsletter like you always used to do, but you
can also come to the blog site whenever you want to post a comment or a question.

We will pick up where we left with our most recent comments on the blog.

Here is the FPF prediction chart for the Nasdaq in 2010.


More predictions charts for other markets, stocks, indices and commodities are available to the registered users of our FPF
software program:

(Predictive chart made with FPF 1.1 software, available at http://www.fourpillars.net/finance/fpf.php)


Nasdaq

Current level: 2637

As we mentioned in our September blog post, the Nasdaq has climbed back to the recent April highs, and is currently trading
close to 3 year highs.

The Chinese Cycles are positive for December and also next January, but then we will have Metal Months coming up, so we
are probably putting in a top here.

I would use this as an opportunity to sell and move to the sidelines until we see a better buying opportunity (probably by mid
2011)

And here is our updated prediction chart for Nasdaq:


Gold

Current level for XAU index: 223

Gold stocks have finally taken out their 2008 highs, but it wasn't easy.
It think the move in gold stocks is pretty disappointing, given that gold has gone up to $1400, yet the gold stocks are barely
keeping up with the rest of the stock market.
Since 1st September the XAU is up 23%, while the Nasdaq Composite is up 25% .

We are now entering the Earth months, typically a bottom period for gold stocks, so I am looking for a decline in this
market.
Intitial target is around 190, where some strong support should appear.

Here is the updated chart:


US 20 Year Treasury Bond Fund (TLT)

Current level for TLT etf: 93

As we have been repeating on our blog, stay out of bonds.


We got a rather artificial rise in August, but now the bond prices are dropping fast.
This decline could easily stretch into the next bottom period for bonds, in the summer of 2011

Here is the chart:


Euro – US dollar

Current level for Euro-US$: 1.32

The Euro is coming down as quickly as it went up since August.


We are back down to 1.32, but the recent uptrend is now broken (see chart), so it is likely that it will continue to fall into the
next bottom period for the Euro, in April-May 2011.

A double bottom is certainly possible there, but if we drop below the 1.18 level, then we will have the picture of an
accelerating decline. In that case look for 1 - parity somewhere down the road.

Here is the updated chart:

Happy trading, Danny


Blog site
Feel welcome to visit the Four Pillars Finance blog, where you can give comments or ask questions:

http://fourpillarsfinance.wordpress.com

LunaticTrader
For more short term stock market direction based on moon cycles, visit our Lunatic Trader site and blog.
There we offer our weekly comments.

http://lunatictrader.wordpress.com

http://lunatictrader.com

Four Pillars Finance software - Free trial download


For more detailed daily prediction charts you are welcome to download the Four Pillars Finance 1.1
software on our site : http://www.fourpillars.net/finance/fpf.php
The program calculates the Chinese cycles and shows you in advance the best days , months or
years to buy or sell stocks, gold, bonds, currencies, commodities...
No experience in Chinese astrology is needed in order to use this program.

****

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Disclaimer: Investing in stocks, commodities or currencies is risky. No guarantee can be given that the above prediction will be correct.
Fourpillars.net cannot in any way be responsible for eventual losses you may incur if you trade based on the information
given in this article.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record,
simulated results do not represent actual trading. Also, 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. This
information should not be considered as a recommendation to engage in the purchase and/or sale of any futures contract
and/or options. Trade at your own risk.