OUTPACEsys Singular Views for Profitable Investing 27 June 2008

OUTPACEsys
Singular Views for Profitable Investing

23-27 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 - Our current short-term positions are designed to short the market and will all stay open until the ongoing drop slows down. No changes in our portfolio this week.

23-27 June, 2008 In a nutshell: The equities drop we initially noticed at the end of May in the Dow Jones Industrials has since then spread to all indexes and has now reached severe levels with four consecutive down weeks. Support levels are being broken and, unless they somehow get new strength, we are going to see further down movement International markets are mostly doing the same Bond markets have been in a range, trading lower, for the past two weeks After three weeks of sideways movements (which as we discussed had not yet broken the up-trend, in spite of the crowds' hopes), crude oil spiked up again this week, breaking new historical highs Gold shared the same good fortune and is now in an up-trend, at least in the short term. Market Trends - Equities This week the equities indexes fell 3-4%, bringing the Dow and the S&P down to -15% so far this year, while the NASDAQ is at about -5% YTD. The bearish posture we've been following for several weeks now has been confirmed, with supporting levels now far down. 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 - Support levels are lower than the current positions and we expect a bit of a further fall for at least the next several days. Markets are likely to show a lot of volatility. 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: 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 downtrend discussed above is reflected on most of the international markets we follow, with the exception of Australia that showed a (very) small up-close last week. All the international markets we follow are now down 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: 1 week Fig.7b - Country specific trend comparison: YTD
Market Trends - Commodities All hopes of a retreat in crude prices voiced in the past few weeks have now been shattered, with crude closing at yet another historical high, +4% this week alone, and now at +50% for the year! Gold followed suit with a 3% up move this week, which, significantly, moved the short term trend into a positive mode.	Fig.8 - Crude Oil, Gold and Gov Bonds vs S&P500: 1 week 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 continues its sideways move, while Materials, after sharing for a few months the good fortunes of Energy have now plunged to approx 0% YTD and have taken the same downtrend posture of all others.

The Financials are now almost -30% down 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

Portfolio & Trades - Our current short-term positions are designed to short the market and will all stay open until the ongoing drop slows down. 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.