The Madison Letter:

Daily Commentary
by Staff Writers

July 8, 2010

Madison Trader Comments

Madison scores on the major indexes are on the move towards 0. All our recent buy signals close back to winners and in fact EZA is a winner. Last week we noted, "It makes sense to go back on a buyer's strike until Madison scores move above 0. We will remain with our open buys." We have ALMOST but not QUITE accomplished this. A move back above 1076 on the S&P 500 is key here.

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.

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 1060.27 -4.56 1007 1076 1146

DJIA Buy 10755.74 10018.28 -3.81 9572 10123 10674

COMPQ Buy 2365.97 2159.47 -6.53 2050 2213 2375

NASDAQ 100 Buy 1931.52 1789.72 -5.80 1693 1829 1966

VIX Sell 28.65 26.84 -5.95 22.13 28.84 35.54

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 56.26 .25 0.45%

EWZ Long 05/06/10 66.22 66.02 -.20 -0.30%

EEM Long 05/06/10 39.31 39.30 -.01 0.00%

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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