The Madison Letter:

Daily Commentary
by Staff Writers

February 22, 2010

Madison Trader Comments

The S&P 500 is now back above 1100 and the Madison scores are nicely above 0. We moved out of cash back to a buy on the Madison Market Timing Indicator last Thursday. This is a correct signal as we went to a buy at 1099 and the S&P 500 is now at 1109.

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 buy on Thursday morning 02/18 and there are now 12 winning trades to 6 losing trades with our market timing results. As noted above, we move back to a buy this morning.

[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 1109.17 14.11 1053 1086 1119

DJIA Neutral 10402.35 16.55 9887 10169 10451

COMPQ Neutral 2243.87 15.22 2107 2185 2262

NASDAQ 100 Neutral 1823.32 13.84 1716 1779 1843

VIX Neutral 20.02 -16.71 19.28 23.79 28.31

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 19.38 -3.00 -18.31%

SWH Long 02/01/10 39.99 40.65 0.66 1.65%

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 eleven months old with a small correction that ended in two weeks ago. A new rally 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 its last two day meeting and remained accomodative. The yield curve is very positive with a spread of 289 basis points between the 2 year and 10 year (it was 272 basis points on 12/31/09) while monetary growth is falling at -4.0%.(source of data www.nowandfutures.com) Updated 2/22/09.

Aggressive Trader Comments

The Madison Letter Archives