Week of 2-1-2009

Timing Model = -3.5
0% long, 100% cash

Global allocation of long positions
MSCI EAFE Index 20%
MCCI Emerging Markets Index 10%
Russell 3000 Index - U.S. 70%

Top U.S. Sectors
U.S. Health Care 5.5
U.S. Biotechnology 4.0
U.S. Utilities 3.5
U.S. Oil & Gas 3.0
U.S. Pharmaceuticals 3.0
U.S. Semiconductor 2.5

Top Intl. ETFs
MSCI Malaysia Index Fund 1
FTSE/Xinhua China 25 Index Fund 1
FTSE China (HK Listed) Index Fund 1
MSCI All Country Asia ex Japan Index Fund 1

Strategy 3
Money Market 50%
U.S. Long Bonds 50%

Strategy 4
U.S. Long Bonds 25%
Agriculture 25%
Precious Metals 25%
U.S. Small Caps 25%

The Value Line Composite Index briefly peaked above it's 75 day moving average earlier this past week but it wasn't enough to bump my timing model into any long positions. Because intermediate sentiment has become dead neutral, another thrust above the 75 day moving average will likely result in adding long positions.

This week should be interesting if not unpredictable. Sentiment isn't providing any guidance right now, even in the short term. The key again is to stay in tune with tape and be ready to add quickly, even if we see a huge single day move.