OUTPACEsys Singular Views for Profitable Investing 25 July 2008

OUTPACEsys
Singular Views for Profitable Investing

21-25 July 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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IN A NUTSHELL - In the past couple of weeks stocks have been trying to recover from the severe downtrend that got renewed strength at the beginning of June and recently caused a nose-dive to multi-year lows. The closest level of resistance has been broken and now the indexes are struggling to define a longer term posture for the various markets.

Crude Oil has surely taken a beating in the past two weeks although the clamor of a bear market for oil that's being touted in the news these days may be a bit premature since this fall stopped right at the long-term support levels we've been watching and there will probably be some meandering around these levels until the new direction is defined.

Gold receded a bit too, down to less severe support levels than crude oil and for the time being remains in a bullish long-term posture.

LOOK AHEAD - Given the indecisive posture of the markets, next week we'll focus on short term trades. We'll keep on hold our long term positions.

PORTFOLIO AND TRADES - This week we closed a short position in DIA, initiated on Thursday and closed on Friday, which quickly benefited from this week's retracement.
Underlying Equity	Symbol	Description	% Profit/Loss	Time in trade
DIA	DIA TG	AUG08 111 Put	+85%	2 days

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!

21-25 July, 2008 Market Trends - Equities In the past several days we've seen a welcome turn to the upside in equities, at about a couple percent points. The bearish posture we've been following for several weeks is now being somewhat challenged but we'll need to wait for clarification in the next days. 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. 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: 2 week comparative performance Fig.2 - DJ Ind, NASDAQ100 and S&P500: YTD comparative performance Fig.3 - S&P500 - weekly chart Fig.4 - DowJones Industrial - weekly chart Fig.6 - NASDAQ 100 - weekly chart
Country-specific ETFs The long-term downtrend discussed above is reflected on most of the international markets we follow, which have also followed the slight upturn experienced in the US equities.. All the international markets we follow are in negative territory YTD. 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.	Fig.7 - Country specific trend comparison: YTD
Market Trends - Commodities Crude Oil lost more than 15% in the last ten days, triggering hopes for a substantial ease in the world economies. This may be a bit premature, since long-term support levels have not been broken down yet so we'll have to wait and see what will transpire next. Gold has had a positive trend in the past month and seems to be still continuing that way unless some short twerm support levels get broken. Weekly charts for Oil and Gold are on the right.	Fig.8 - Crude Oil, Gold and Gov Bonds vs S&P500: 3 months Fig.9 - Crude Oil, Gold and Gov Bonds vs S&P500: YTD Fig.10 - Crude Oil, weekly chart Fig.11 - Gold, weekly chart

Industry Sectors - Best & Worst

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

The Energy Sector has been hit realtively hard in the past two weeks, turning to negative YTD performance.

The Financials have recovered some from the recent -40% low but are still the worst performing sector for the year.

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.12 - Sector comparative performance: Year to Date



	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.