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The Madison Letter:

Daily Commentary
by Staff Writers

February 8, 2010

Madison Trader Comments

The S&P 500 is now at 1066 and still no buy signals. We remain in cash. This is good. Watch for a potential intraday alert if we move back to a buy on the Madison Market Timing Indicator.

We began to offer a buy and sell strategy via our Madison Market Timing Indicator at the beginnging of April of 2007. We moved to cash Friday morning 1/22 and there are 11 winning trades to 6 losing trades with our market timing results.

[Image 1] [Image 2]

Index Current
Status
Date
Open
Price
Open
Current
Price
Current
Rank
BUY
Point
Neutral
Point
SELL
Point
Details
S&P 500 Neutral     1063.11 -14.15 1048 1111 1174

 

DJIA Neutral     10012.23 -13.10 9824 10369 10914

 

COMPQ Neutral     2141.12 -13.25 2093 2234 2375

 

NASDAQ 100 Neutral     1746.12 -12.53 1701 1821 1941

VIX Neutral     26.11 12.37 14.37 21.62 28.88

 

 

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 18.94     -2.56 -15.62%  
SWH Long 02/01/10 39.99 39.25     -0.74 -1.85%  

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. A new pullback is currently underway. :

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 this 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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