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Buy Signal

By on November 21, 2008

The Tactical Timing System generated a buy signal today. To comply with the system the following positions were purchased.

Aggressive Portfolio:

Alcoa (AA) 7% Allocation

Seagate Technology (STX) 6% Allocation

Whirlpool (WHR), increased to an 11% Allocation

Conservative Portfolio: No Changes

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Target Allocations:

Aggressive Portfolio: 165% equities; -65% cash

Conservative Portfolio: 75% equities; 25% fixed income

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Commentary: We are witness to a historic market collapse. Unless worldwide capitalism is doomed, this appears to be an opportune time to purchase stocks at bargain prices one only sees a few times in a lifetime. One of the explanations for the crash would have to be a rash of margin calls. The market appears to be washed out to the downside and due for a sharp rally. The economic news can continue to be bad without the market sliding further down from here.

Disclaimer: It is challenging to outperform a buy and hold strategy. Many investors have found themselves well-served over long time horizons by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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Marker: Dow 7,476
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