OUTLOOK

"Taking Profits on the S&P 500 Rally"

3/30/2007

In our Outlook on 3/6/07, we stated, "We believe the S&P 500 will rally to 1425 or more from its close of 1374.12 on 3/5/07."  We said this rally would occur within 8 weeks.

Our forecast on the S&P 500 was correct as the S&P 500 surpassed 1425, reaching a high of 1438.89 on 3/23/07.  As of 3/30/07, we have exited our long position in SPY for a total profit of 2.71% in 3 weeks.

Year-to-Date, the YieldSafe Signal has outperformed the S&P 500 by 8%.  To see verified results, go to the TimerTrac link on our Home Page.

Mark Yuan, CFA