The Madison Letter:

Daily Commentary
by Staff Writers

June 25, 2010

Madison Trader Comments

Madison scores on the major indexes have moved back under 0. All our recent buy signals now slight losers again. It makes sense to go back on a buyer's strike until BFG scores move above 0.

All our major indexes are open buys and the VIX is an open sell. This is one of our most powerful signals in recent memory. The sell on the VIX is finally starting to kick into gear as a winner.

We began to offer a buy and sell strategy via our Madison Market Timing Indicator at the beginnging of April of 2007. There are now 12 winning trades to 7 losing trades with our market timing results. We established a buy on Monday 5/10.

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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 Buy 1135.68 1073.69 -7.35 1045 1090 1135

DJIA Buy 10755.74 10152.80 -2.24 9789 10199 10608

COMPQ Buy 2365.97 2217.42 -6.61 2149 2251 2353

NASDAQ 100 Buy 1931.52 1844.59 -3.36 1774 1859 1943

VIX Sell 28.65 26.91 -7.15 21.44 29.95 38.46

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

EZA Long 05/06/10 56.01 55.39 -0.62 -1.10%

EWZ Long 05/06/10 66.22 65.54 -0.68 -1.03%

EEM Long 05/06/10 39.31 38.97 -0.34 -0.86%

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 and now have offically exited it. Alpha will be generated on the long side with a series of rallies. Currently, a correction that started in May is now complete and we are in a weekly rally. :

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 releases new thoughts this Wednesday. The yield curve is very positive with a spread of 254 basis points between the 2 year and 10 year (it was 281 basis points on 3/26/10) while monetary growth annual rate of change is falling at -8.70%.(source of data www.nowandfutures.com) Updated 5/17/10.

Aggressive Trader Comments

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