OUTLOOK

"Bearish on Crude Oil"

9/14/2007

We believe Crude Oil is due for a decline of at least 4% from its peak level. We expect this correction to occur within the next 6 weeks.

Just two months ago in our Outlook on 7/17/07, we issued a Bearish Signal on Crude Oil in which we saw Crude Oil decline over 7% from its peak level within 6 weeks.  Today on 9/14/07, we are bearish on Crude Oil yet again.  Our System is indicating extremes in bullish sentiment and overbought conditions in Crude Oil which should unwind and lead to a correction within the next 6 weeks.

Mark Yuan, CFA