OUTPACEsys Singular Views for Profitable Investing

OUTPACEsys
Singular Views for Profitable Investing

18 - 22 August 2008

Contents

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

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PORTFOLIO AND TRADES

Equities took a relatively modest dip starting Monday and recovered almost completely by the end of the week. We exited our long positions on Monday and opened some new ones on Friday. During the week those of us who are inclined to riskier postures might have taken a few very fast short positions (These were counter-trend trades which we definitely discourage for the more conservative accounts).

The situation is shown clearly in the following chart which illustrates the short term countertrend signal on Monday and the continuation uptrend signal on Friday.

QQQQ recent signals

As we have been expecting, CRUDE OIL slowed down its correction as it neared its long term support levels. We did get a bullish signal on Tuesday which we could use for fast trades although the mid-term trend is still down.

By and large the same comments can be made for GOLD which seems to be working resistance a bit more aggressively as it bounces back from the very violent fall it took last week. However it does still remains in a downtrend for the mid term.

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

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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!

18-22 August 2008 Market Trends - Equities The weekly performance comparison chart shows the dip we had in equities at the beginning of the week, followed by the nice recovery which still left however a slightly negative weekly performance for all indexes. YTD performance is still negative across the board, with the NASDAQ stil leading the group. 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. Weekly and YTD views are shown. BONDS retreated slightly this week breaking their recent uptrend and once again seem to be working in a trading range. Individual weekly charts for the S&P, DJ and NASDAQ are on the right showing all three indexes in positive territory, with the ND once again shining with a pleasantly strong bounce up. See below for comments on other market components.	Fig.1 - Dow Jones 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 Fig. 7 - Bonds - weekly chart
Country-specific ETFs With the exception of Japan and Australia, INTERNATIONAL stock closed the week losing about 1-2%. Both the three month and the YTD views show them still downtrending. Taiwan lost the uptrending momentum that seemed to mimik the S&P's behaviour and re-joined the downtrend experienced by the other countries. 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.8 - Country specific trend comparison: 1 week Fig.8b - Country specific trend comparison: YTD
Market Trends - Commodities GOLD recovered about half of the 8% loss experience last week, thereby figuring most active in the weekly comparison chart, although both the monthly and YTD views still show the severe retreat experienced in the previous weeks. CRUDE OIL had a strong whipsaw this week as it bounced away from and back to its long term support levels. The YTD view shows Crude raising its head again rather ominously - we'll have to see how this evolves in the upcoming weeks. Weekly charts for Oil and Gold are on the right.	Fig.9 - Crude Oil, Gold and Gov Bonds vs S&P500: 1 week Fig.10 - Crude Oil, Gold and Gov Bonds vs S&P500: 1 month Fig.10b - Crude Oil, Gold and Gov Bonds vs S&P500: YTD Fig.11 - Crude Oil, weekly chart Fig.12 - Gold, weekly chart

Industry Sectors - Best & Worst

The Energy Sector had an impressive performance this week, gaining about 6%, while the other sectors were mostly in the negative.

The YTD performance is not much different from last week.

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

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.13 - Sector comparative performance: this week

Fig.13b - 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.