OUTPACEsys Singular Views for Profitable Investing 30 May 2008

OUTPACEsys
Singular Views for Profitable Investing

2-6 June 2008

by Paul DeCaro

Contents

Trends in Equities
Alternate Markets - Bonds - Commodities
Country-specific ETFs
Industry Sectors
Portfolio & Trades
Bottom Line

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Dear Fellow Investor,

This is the latest of our reports providing status and trends of the major components of the financial markets, both in the US and internationally. We will review the major indexes and key sectors of the market. We will also report on Alternate Markets and on the performance of specific industries.

These reviews form the basis of the in-depth analyses that feed our analytical models, upon which we base our trading approach and drive our trade selection process.

In the interest of not wasting anybody's time, we keep these notes concise and to the point, while we strive to provide clear indications on the identified trends and very actionable suggestions.

We hope you will enjoy the following reviews of this week's events.

If you have any questions or suggestions, please feel free to e-mail us here!

Portfolio & Trades - No changes in our portfolio this week.

2-6 June, 2008 Market Trends - Equities The nice uptrend we saw last week suffered a big bow this week, when, between the unemployment claims going higher and the crude oil continuing its wild climb, the Dow lost 428 points. Things have actually been very volatile all week, with a bad monday and tuesday, balanced by a reprise wednesday and thursday, only to close on friday with a loss of 394 points on a memorable descend-to-hell-day.,(Daily ranges like this are not so unusual, but always surprising nonetheless - quite good at rocking people off their chair..). This week brought the Dow's three months performance to zero and its YTD performance down to -8%. S$P's performance is quite similar, whereas the NASAQ currently enjoys a rather meager +2% YTD. Well, this makes it even more enjoyable to see how much stronger our portfolios' performance has been so far this year, delivering many multiples of these performances! Interestingly, the Dow continues on its rather different and quite negative path, closing this week below its 10 week moving average for the tird time in a row, while both the S&P and the NASDAQ remain above such line. Who's gonna follow whom? We'll see. The charts at the right show the price history, in terms of relative performance, of the S&P500, the Dow Jones, and the Nasdaq 100 indexes. ==================== LOOK AHEAD - The markets are having a tough time trying to shake off this range-trading we've now seenfo r the whole year so far. This week's events only exacerbate the support- testing we've discussed over the weeks now. While the longer term scenarios suffer from this very "boring" behavior, shorter term portfolios can benefit from the extreme volatility we are experiencing. Capital for long term opportunities remains in cash. We will be looking at short positions in the short term portfolio. ==================== Individual weekly charts for the S&P, DJ and NASDAQ are on the right. See below for comments on other market components.	Fig.1 - DJ Ind, NASDAQ100 and S&P500: 1 week comparative performance Fig.2 - DJ Ind, NASDAQ100 and S&P500: 3 months comparative performance Fig.3 - S&P500 - weekly chart Fig.4 - DowJones Industrial - weekly chart Fig.6 - NASDAQ 100 - weekly chart
Market Trends - Commodities As everybody is well aware by now, crude oil is dwarfing the performance of just about all other market components. This week alone it climbed another 8%, and the YTD performance is now touching a very impressive 50%. On the other hand, Gold, has given back more than half of that nice 20% mark it had reached in mid March, and is facing some resistance in the short term.	Fig.7 - Crude Oil, Gold and Gov Bonds vs S&P500: 1 week Fig.8 - Crude Oil, Gold and Gov Bonds vs S&P500: YTD
Country-specific ETFs On the right is a chart showing the relative Year-to-Date performance of five of the country-specific ETF's that we chose to represent current round- the-world status. Japan, Taiwan and Australia continue to show the best performance, which amounts however to a very unremarkable few percent points. Hong Kong shares continue struggling with a significant downtrend.	Fig.9 - Country specific trend comparison: YTD

Industry Sectors - Best & Worst

This is the Year-to-Date performance of the ETFs we selected to represent Sector performance.

Energy and Materials continue their upwards march, while the other sectors struggle with this uncertain situation.

Financials are taking the worst beating (now down about 20% for the year), followed by Health Care at -10% YTD.

Legend:
Materials Select Sector, XLB
Energy Select Sector, XLE
Financial Select Sector, XLF
Rydex Russell Top 50, XLG
Industrial Select Sector, XLI
Technology Select Sector, XLK
Consumer Staples Select, XLP
Utilities Select Sector, XLU
Health Care Select Sector, XLV
Consumer Discretionary, XLY

Fig.10 - Sector comparative perfromance: Year to Date

Portfolio & Trades - No changes in our portfolio this week.



	Bottom line: Our plan for 2008 is to continue following our proven approach and strategies to achieve outstanding returns, and manage a skillfully diversified portfolio We will do that in the comfort of our safe money management techniques that ensure full control of occasional minor losses while allowing full realization of large profits. As usual, the full details of our market analysis and real-time trade suggestions will be delivered to you via the OUTPACEsys e-mail alert system. * [Want to supercharge your trading skills, boost your profits and limit risk? Read about our proven approach to winning trades and get high accuracy trade alerts at OUTPACEsys * Disclaimer \| Terms Of Use \| Privacy Notice © OUTPACEsys 2005-2008 All Rights Reserved The subjects addressed in this message should not be considered as personalized investment advice. Our employees may answer your general customer service questions, but they are not licensed under securities laws to address your particular and personal investment situation. No discussion with our employees should be deemed as personalized investment advice. Any of the investment concepts discussed in our websites and publications should be acted upon only after consulting with your broker or investment advisor and only after reviewing the prospectus or financial statements of the companies involved.