The Madison Letter:

Daily Commentary
by Staff Writers

January 15, 2010

Madison Trader Comments

We remain invested. The week has gotten off to a good start as we have added about 4 points on the S&P 500. The trick now is to see if the S&P 500 can move above 1150 and push on to 1200. The Dow Jones Industrial Average remains above 10500. The NASDAQ indexes are lagging a bit. Madison sell points are rising to higher levels. We are short Emerging Markets (EEM) and the Netherlands. Japan shows up as a new short this moring and we will go short EWJ on the open.

We began to offer a buy and sell strategy via our Madison Market Timing Indicator at the beginnging of April of 2007. We are currently invested and there are 11 winning trades to 6 losing trades.

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Index Current
Status Date
Open Price
Open Current
Price Current
Rank BUY
Point Neutral
Point SELL
Point Details

S&P 500 Neutral 1148.46 12.93 1095 1128 1159

DJIA Neutral 10710.55 15.12 10296 10532 10768

COMPQ Neutral 2316.74 9.43 2193 2277 2361

NASDAQ 100 Neutral 1886.52 7.45 1790 1860 1930

VIX Neutral 17.87 16.74 16.74 19.63 22.51

Other Open Signals Long
Short Date
Open Price
Open Current
Price Date
Closed Price
Closed Result %Result Details

EWN Short 07/17/09 16.38 21.42 -5.04 -30.77%

EEM Short 01/08/10 42.88 42.44 0.44 1.03%

Year to Date performance of the Madison Letter: We have moved to a new format highlighting all trades since inception. This will provide complete disclosure of all winning and losing trades. To visit go to the home page of www.themadisonletter.com.

Long Term Bull Market: We entered a bear market in October 2007. Alpha will be generated on the short and long side with a series of rallies and failures within the bear market. Currently, a bear market rally is nine months old with a small correction that ended in late November. :

M Cubed Score
The Federal Reserve has been cutting rates as of Tuesday, September 18,2007 and our M Cubed Score is now a buy from sell. This is a significant change. The FOMC concludes a two day meeting last week and remained accomodative. The yield curve is very positive with a spread of 272 basis points between the 2 year and 10 year while monetary growth is growing at 1.0%.(source of data www.nowandfutures.com) Updated 12/30/09.

Aggressive Trader Comments

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