OUTLOOK

"Betting on a Gold Correction"

4/23/2007

We believe that Gold will decline at least 4% from its peak level within the next 10 weeks.  Our system is indicating that the crowd is becoming increasingly bullish, even as Gold has advanced 7 weeks in a row.

As contrarians, we believe this is the time to bet against the crowd.  We have taken positions to profit from a decline in Gold and may add to those positions depending on market conditions.

Mark Yuan, CFA