OUTLOOK

"Transports Rally as Forecasted"

11/30/2007

In our Outlook on 11/20/07, we forecasted a rally in the Dow Jones Transportation Average to 4500 or more from its low of 4354.48 on 11/20/07.  We expected this rally to occur within 4 weeks.

Our forecast was correct.  The Dow Jones Transportation Average rallied to 4500 or more within 10 days, reaching as high as 4712.24 on 11/30/07.  We have taken profits on this trade as our position in Transports has benefited from the rally in the broader market as well as the decline in crude oil prices.

Mark Yuan, CFA