Week of 8-30-2009

Timing Model = 0.5

60% long, 40% cash

Global allocation of long positions

MSCI EAFE Index 30%

MCCI Emerging Markets Index 40%

Russell 3000 Index - U.S. 30%

Top U.S. Sectors

Composite Internet 2.0

Precious Metals 2.0

U.S. Banks 1.5

U.S. Real Estate 1.5

U.S. Financials 1.0

U.S. Technology 1.0

U.S. Biotechnology 1.0

U.S. Basic Materials 1.0

U.S. Pharmaceuticals 1.0

Top Intl. ETFs

MSCI South Korea Index Fund 3

MSCI Pacific ex-Japan Index Fund 3

MSCI Spain Index Fund 2

MSCI Sweden Index Fund 2

MSCI Australia Index Fund 2

MSCI Austria Index Fund 2

MSCI All Country Asia ex Japan Index Fundb2

MSCI South Africa Index Fund 2

Strategy 3

Money Markets 9%

Emerging Markets 9%

Precious Metals 9%

Industrial Materials 9%

EAFE 9%

U.S. Large Cap 9%

International Real Estate 9%

U.S. REITs 9%

U.S. Small Caps 9%

Energy 9%

Agriculture 9%

Strategy 4

Money Markets 20%

International Real Estate 20%

Industrial Materials 20%

Precious Metals 20%

Emerging Markets 20%

Not much change in my models from last week. The trend is up, sentiment is overly optimistic, and there's not much to mention on sector rotation. This is as defensive as I get when the trend is solidly up as it currently is.

Any bad news could be a catalyst for a sell off, but I wouldn't make any big bets against this market.