Week of 5-3-2009

Timing Model = 0.0
50% long, 50% cash

Global allocation of long positions
MSCI EAFE Index 20%
MCCI Emerging Markets Index 30%
Russell 3000 Index - U.S. 50%

Top U.S. Sectors
U.S. Health Care 3.5
U.S. Consumer Services 2.5
Precious Metals 3.0
Composite Internet 2.0
U.S. Pharmaceuticals 2.5
U.S. Consumer Goods 2.0
U.S. Oil Equipment, Services & Distribution 1.5

Top Intl. ETFs
MSCI Brazil Index Fund 2
FTSE China (HK Listed) Index Fund 2
FTSE/Xinhua China 25 Index Fund 2
MSCI Emerging Markets Index Fund 2
MSCI South Korea Index Fund 2
MSCI All Country Asia ex Japan Index Fund 2
MSCI Taiwan Index Fund 2
MSCI South Africa Index Fund 2
MSCI Sweden Index Fund EWD 2

Strategy 3
Money Market 50%
Emerging Markets 50%

Strategy 4
U.S. Long Bonds 25%
Emerging Markets 25%
Precious Metals 25%
Agriculture 25%

Equities continue to plunge forward as sentiment continues to signal caution. Mid/Small caps are leading the pack along with Emerging Markets. Due to this strength, my timing model has moved back to fence sitting.

The key indicator to watch this week is the Value Line Composite and it's relationship to it's own 200 day moving average. A move below it's 200 day moving average would signal a defensive posture.