OUTLOOK

"Oil Stocks Rally"

4/2/2008

In our Outlook on 3/24/08, we stated that the XOI index would rally to 1380 or more from its low of 1282.90 on 3/20/08.  We expected this rally to occur within 4 weeks.

As forecasted, the XOI index rallied to 1380 or more within 4 weeks, closing at 1386.27 on 4/2/08.

Mark Yuan, CFA