Signal Alert Update 02-09-2010  (posted at 9:45am EST)

We now have confirmation on the initial stages of a significant downturn.  We are therefore going to take advantage of what might be a couple of UP days to make our entry SHORT into the market.  Therefore, today we are executing our SELL signal for All Models. (Go to Model Index in the Member menu to view the inverse funds)  This signal has been developing for MONTHS.  The first two weeks of January of this year were “screaming” SELL, SELL, SELL, based on the “anticipatory” aspect of our technical model.  Now, the market action since then has confirmed that this is a legitimate signal for the longer term.  That is not to say that we won’t have a few days towards the upside yet this week; however it is not expected to substantially exceed the highs of last week.  Therefore, we are moving the active portion of our portfolios into the “inverse” position.  For those who choose not to use “inverse” funds or who do not have them available, they can remain in CASH.  Also, as I mentioned, Core-Plus™ Version III is set to go LONG the market occasionally as this downturn progresses.  However, when we go  long that doesn’t necessarily mean that we think that this longer term downturn is over, just that there will be enough of a retracement to satisfy our Risk/Reward calculations of being able to participate in a significant enough gain to make the move worth it.  We will update with more information Monday with the Weekly Monday morning updates.  Yours for Safe Sailing in Bull and Bear Markets.

Weekly Update 02-08-2010:

This week’s report will be very similar to last week’s except that now the first leg of this confirmed downturn has extended slightly to 7.3% instead of 6.7%.  Last week we did get the “bounce” that we talked about Monday and Tuesday which was slightly less than 3% to the upside, but then in Wednesday it rolled over and in just one day on Thursday that small gain was wiped out with nearly a 3% drop, ending the week with a small net loss.  As I wrote last week…..”realizing that with the current volatility of the market daily moves can easily span 1 to 2% in ONE DAY, it makes it very difficult to enter into those kinds of odds without experiencing a “Whip Saw” loss in the process”.  That is why we are willing to “forego” these small rallies while waiting for a setup that will give us a much larger longer term opportunity.  Until then we will wait in CASH and keep you posted.  Yours for Safe Sailing in Bull and Bear Markets.