Where do we go from here? May 13th, 2010

The markets have been turbulent over the last two weeks. What does our behavioral model have to say going forward. The long-term indicators indicate that we should stay long for all markets for the time being. However, we have not seen such a change in our behavioral indicators since March of 2007 and July of 2007. Those were weeks of turbulent markets that preceded the financial crisis of 2008. According to our back-tests, large changes in our indicators predict down markets in the upcoming months. We therefore, believe that last week was a similar event to that of March and July of 2007, events to proceed a longer term downfall. Currently, we are remaining long, however, we will be on the look out for the appropriate time to exit. This could be in the next 6 months to 18 months. We will keep you updated.