============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

=====================================================================
FORECAST Report 1: DIFFERENTIAL SIGNALS (as of the Close on 02/03/12)
=====================================================================

*** The MTI value for the next trading day is:  1.3500.
*** Since this value is > 1.0, the two Partially Hedged portfolios ({QQQQ/SPY}
*** and {QQQQ/DIA}) should drop the hedging ETF (SPY or DIA), and QQQQ should
*** be traded in accordance with the QQQQ Voted Signal:
***
*** The QQQQ Voted Signal is now: BUY

Fully-Hedged and Partially-Hedged ({}) Portfolios
=================================================
Note: All 2-equity ETF portfolios shown in this Report are fully hedged,
except for the two portfolios that are enclosed in curly braces ({}). By
'fully hedged' we mean that at all times one ETF is held Long while the other
is Shorted. The two special portfolios shown in braces, {QQQQ/DIA} and
{QQQQ/SPY} are 'partially' hedged and are traded according to the following
strategy:

   Rule 1: When the MTI value is <= 1.0, then full hedging is performed
           using the indicated equity Ratio, and following the indicated
           pair of signals (OLD SIG and NEW SIG). Thus, for low MTI regions
           there is NO difference between the 31 fully hedged portfolios,
           and the 2 partially hedged ones -- in the way that they are
           set up and managed.
   Rule 2: When the MTI value is > 1.0, and the QQQQ signal is a BUY or a
           SHORT, then QQQQ is traded exclusively and will be Long or Short,
           respectively, and will utilize 100% of allocated funds. In this
           situation the Signal that is to be used for QQQQ is our standard
           Voted Signal (see Forecast Report 3 or the ALLVOTES.TXT report).
           If the QQQQ signal is CASH ($$$$), however, it is slightly better
           to go ahead and hedge anyway -- rather than cashing out altogether.
           So, in this fairly rare case we perform full hedging (as in Rule 1)
           despite the high MTI value.


   The Actual and Back-Tested performance figures shown in this Report for
   these two Partially Hedged portfolios assume that Rule 1 and Rule 2 are
   followed completely. Nonetheless, the following trading variations may
   be useful:

   Variation 1: When in a high MTI region, the trader may optionally reimpose
           the hedge (as though the MTI were <= 1.0) if the QQQQ signal is a
           SHORT. This is a more conservative way to implement the portfolio.
           The same might be done at any time if the trader suspects that
           the market might 'tank'. To reimpose the 'hedge', of course, the
           second ETF (DIA or SPY) has to be added to the QQQQ trade, and the
           current 'differential signal' (NEW SIG) must be used to set up the
           pair -- and not the QQQQ Voted Signal. Thus a possible 100% Short
           of QQQQ 'might' get converted into a 60% Long on QQQQ and a 40%
           Short on DIA, for example.

   Variation 2: Instead of buying and shorting QQQQ and DIA (or SPY), the
           trader may consider using the 2x ETF equivalents from Proshares:
           (a) buying QLD instead of QQQQ, (b) buying QID instead of shorting
           QQQQ, (c) buying DDM instead of DIA, (d) buying DXD instead of
           shorting DIA, (e) buying SSO instead of SPY, and (f) buying SDS
           instead of shorting SPY. This procedure is actually necessary for
           Cash accounts that do not permit shorting.

   Note 1: Because of the IRS' Wash Rule, if one of these hedging strategies
           is implemented in a taxable account, we recommend that you
           cease using this method by Thanksgiving (late November), and then
           either stay in cash, or switch to a totally different trading
           strategy that doesn't utilize QQQQ, DIA, SPY, QLD, QID, SDS, SSO,
           or any equivalent equities.  This will ensure that all losses
           that are necessarily incurred as part of the hedging process can
           be fully deducted from the gains in the current trading year.

   Note 2: Because of the IRS' Settling Rules, if one of these hedging
           strategies is implemented in a Cash account (e.g., IRA), we
           recommend that you subdivide your available funds into three
           piles (sometimes two will work most of the time, and at other
           times four may be needed), and only trade the portfolio with
           one money 'pile' at a time. By keeping some of your money in
           Cash you provide time for previous trades to 'settle', so that
           the proceeds are ready when you need them again. Because only
           a portion (say, one-third) of your funds may be 'active' at any
           given time, this is another reason to utilize the 2x ETFs
           (QLD, QID, DDM, DXD, SDS, SSO) in order to boost potential
           gains back up to reasonable levels (i.e., by achieving a
           leveraging effect).



The material in this Report has been gathered from 33 different Tracking
Reports, each of which corresponds to one of our Differential Signals. This
extract, however, is based upon what we feel is an 'optimal' equity ratio
(RATIO) between the two ETFs. You should consult the appropriate Tracking
Reports if you believe that there is a better equity RATIO for your trading
objectives.

*** Important Note: The REC (Recommendation) field has 4 possible values:

    blank = Provided for Informational Purposes Only
    *     = Possibly OK for trading
    **    = Probably BETTER for trading
    ***   = Probably BEST for trading

These REC values are a function of the G/d (Annualized Gain divided by the
Drawdown) and the Trading Accuracy of the hedged pair -- as determined by
back-testing. Poorer performing pairs are shown so that they may provide
clues as to the relative strength of different market segments.  We will
be doing more with these more marginal differential signals in the future.


Actual Hedging Portfolio Performance (6/24/09 - Present)
========================================================
The figures below are for the tracking period from 6/24/09 - Present
... EXCEPT for the last three lines that show QQQQ/DIA performance. The
    tracking period for QQQQ and DIA began on 10/16/08.  There are three
    separate QQQQ/DIA Hedging Portfolios, and these are tracked in three
    separate Tracking Reports.

    Report 1: TRKQQ-DW.TXT   Use of QQQQ and DIA, either Long or Short
    Report 2: TRKQQDW1.TXT   Use of QQQQ/PSQ and DIA/DOG (1x ETFs, always Long)
    Report 3: TRKQQDW2.TXT   Use of QLD/QID and DDM/DXD (2x ETFs, always Long)


Key:

REC       Recommendation (*=OK, **=Better, ***=Best)

{...}     The curly braces indicate that the portfolio is Partially Hedged,
          that is, hedging occurs only when the MTI (Market Timing Indicator)
          value is <= 1.0 (or when QQQQ has a CASH signal). See the discussion
          at the top of this Report that relates to our two Partially Hedged
          portfolios {QQQQ/DIA} and {QQQQ/SPY}.

OLD SIG   The OLD (previous) differential Signal (the one used to generate the
            DAYGAIN, TOTGAIN, ANNGAIN, MAXdraw, and G/d figures.

NEW SIG   The NEW (latest) differential Signal (for the next trading day)
            A '+/-' signal means that the first ETF of the Pair is LONG, and
                    the second ETF of the Pair should be Shorted.
            A '-/+' signal means that the first ETF of the Pair should be
                    shorted, and the second ETF of the Pair should be Long.

RATIO     The percentage of ETF #1: The percentage of ETF #2
            See the appropriate Tracking Report to determine if a different
            equity RATIO might be better for your trading objectives, i.e.,
            other Ratios might produce higher annualized gains (but with
            increased drawdowns).

DAYGAIN   The percentage gain/loss for the last trading day (based on
             the previous day's signal (SIG-prev)
TOTGAIN   The total percentage gain/loss since the start of tracking
ANNGAIN   The projected 'annualized' percentage gain (based upon Actual data)
MAXdraw   The Actual maximum drawdown over the tracking interval
G/d       The Reward/Risk Ratio (Annualized Gain divided by Max Drawdown)

*** Important Note 1: The ANNGAIN, MAXdraw, and G/d figures are based on the
currently available Actual data, and thus will probably not be indicative of
long-term values -- at least until more Actual data has been accumulated. Use
the back-tested values in the following Table to get a better idea of what
'might' be true over longer periods.

*** Important Note 2: If you are following one of the two 'Partially Hedged'
portfolios ({QQQQ/SPY} OR {QQQQ/DIA}), remember that the OLD SIG and NEW SIG
fields are NOT applicable if the current MTI (Market Timing Indicator) value
is > 1.0; instead, you must trade JUST QQQQ (with 100% of available funds),
and in accordance with the QQQQ Voted Signal (see Report 3 in this Forecast).



              OLD   NEW  equity   <---- ACTUAL performance based on OLD SIG --->
REC ETF pair  SIG   SIG  RATIO    DAYGAIN   TOTGAIN   ANNGAIN   MAXdraw    G/d
=== ========  ===   ===  =====    =======   =======   =======   =======   ======
    The following Hedging portfolios have been tracked since 6/24/09:
    The first two portfolios (in {} brackets) are Partially Hedged:
** {QQQQ/DIA} +/-        60:40      0.44%    50.36%    16.85%   -14.43%     1.17
*  {QQQQ/SPY} +/-        60:40      0.44%    37.70%    12.99%   -14.38%     0.90

    IYW /DIA  +/-        55:45      0.14%     3.78%     1.42%    -5.75%     0.25
    XLK /DIA  +/-        50:50      0.08%    -6.02%    -2.34%    -8.49%    -0.28
    QQQQ/SPY  +/-        60:40      0.10%    16.49%     6.00%    -4.50%     1.33
    QQQQ/IWM  +/-        60:40      0.03%    -8.95%    -3.52%   -11.07%    -0.32
    QQQQ/GLD  >      55:45     -0.83%    -9.43%    -3.71%   -18.27%    -0.20
**  QQQQ/XLF  +/-        55:45     -0.19%    -4.48%    -1.74%   -10.48%    -0.17
    QQQQ/XLE  +/-        65:35      0.12%   -15.30%    -6.14%   -25.24%    -0.24
    QQQQ/XLP  +/-        55:45      0.24%    -5.81%    -2.26%   -15.77%    -0.14
*   QQQQ/XLU  +/-        65:35      0.23%    23.06%     8.24%   -14.20%     0.58
    SPY /DIA  -/+        60:40     -0.15%     5.08%     1.91%    -7.18%     0.27
    SMH /DIA  +/-        55:45       NaN%      NaN%      NaN%   100.00%      NaN
    SMH /IBB  +/-        55:45       NaN%      NaN%      NaN%   100.00%      NaN
    SMH /IYJ  +/-        55:45       NaN%      NaN%      NaN%   100.00%      NaN
    SMH /IWM  +/-        55:45      0.04%    -0.95%    -0.36%   -13.07%    -0.03
*   SMH /SPY  +/-        55:45      0.12%   -17.79%    -7.21%   -26.88%    -0.27
*   SMH /XLF  +/-        55:45     -0.13%    12.83%     4.72%   -15.98%     0.30
**  SMH /XLP  +/-        55:45      0.30%     2.64%     1.00%   -13.95%     0.07
    IWM /DIA  +/-        55:45      0.21%    26.92%     9.53%    -9.42%     1.01
    IWM /SPY  +/-        60:40      0.19%    21.32%     7.66%   -14.65%     0.52
    IWM /QQQ  +/-        65:35      0.23%    12.04%     4.44%   -13.51%     0.33
    IWM /SMH  -/+ > +/-  65:35     -0.19%    22.33%     8.00%   -11.79%     0.68
    XLF /SPY  -/+ > +/-  50:50     -0.28%   -15.12%    -6.07%   -16.21%    -0.37
    XLF /DIA  -/+ > +/-  55:45     -0.42%     3.35%     1.27%   -18.15%     0.07
    XLF /IWM  -/+ > +/-  60:40     -0.34%   -11.18%    -4.43%   -20.44%    -0.22
    XLF /GLD  >      55:45     -1.12%   -33.67%   -14.51%   -40.87%    -0.35
    XLE /SPY  +/-        55:45      0.07%     2.94%     1.11%   -11.24%     0.10
    XLE /DIA  +/-        60:40      0.18%    18.49%     6.69%   -14.78%     0.45
    XLE /IWM  -/+ > +/-  65:35     -0.09%    -1.80%    -0.69%   -21.12%    -0.03
    XLE /GLD  >      65:35     -0.76%   -12.87%    -5.12%   -28.22%    -0.18
*   QQQQ/DIA  +/-        55:45      0.13%    28.35%     7.85%    -5.25%     1.50

    For 660 days of tracking ...
    Averages (all pairs):            NaN%      NaN%      NaN%    -3.88%      NaN
    Averages ("*" pairs):           0.09%    11.61%     3.40%   -15.58%     0.53
    Averages ("**" pairs):          0.06%    -0.92%    -0.37%   -12.22%    -0.05
    Averages ("***" pairs):          NaN%      NaN%      NaN%      NaN%      NaN

    The following QQQQ/DIA portfolios have been tracked since 10/16/08:
    QQQQ/DIA  +/-        55:45      0.12%    25.64%     7.16%    -6.18%     1.16
    QQQQ/DIA  +/-        55:45      0.30%    54.14%    14.00%   -12.27%     1.14


Back-Tested Hedging Portfolio Performance
=========================================
Use the Tracking File (Section II) to explore other RATIOs. The back-tested
data shown is for the single equity ratio indicated by RATIO. Note that other
RATIOs may fit better with your trading objectives: producing higher potential
annualized yields ... although with larger maximum drawdowns. By the same
token, you may prefer a RATIO that is more conservative, and thus may result
in a lower drawdown.

Key:

REC       Recommendation (*=OK, **=Better, ***=Best)

{...}     The curly braces indicate that the portfolio is Partially Hedged,
          that is, hedging occurs only when the MTI (Market Timing Indicator)
          value is <= 1.0 (or when QQQQ has a CASH signal). See the discussion
          at the top of this Report that relates to our two Partially Hedged
          portfolios {QQQQ/DIA} and {QQQQ/SPY}.

RATIO     The percentage of ETF #1: The percentage of ETF #2
ANNGAIN   The back-tested 'annualized' percentage gain
MAXdraw   The back-tested maximum drawdown (8/16/02-present)
G/d       The Reward/Risk Ratio (Annualized Gain divided by Max Drawdown)
TradeAcc  The back-tested average accuracy per Trade

                            equity   <------ Based on Back-Testing ------>
REC ETF Pair    Track File  RATIO    ANNGAIN   MAXdraw    G/d     TradeAcc
=== ========  ============  =====    =======   =======   ======   ========
** {QQQQ/DIA} SSSQQ-DW.TXT  60:40     86.62%    -6.57%    13.18     71.40%
*  {QQQQ/SPY} SSSQQ-SP.TXT  60:40     83.09%    -8.42%     9.87     72.96%

    IYW /DIA  TRKYW-DW.TXT  55:45     46.64%    -4.15%    11.24     69.09%
    XLK /DIA  TRKXL-DW.TXT  50:50     28.92%    -4.52%     6.39     70.57%
    QQQQ/SPY  TRKQQ-SP.TXT  60:40     36.77%    -4.79%     7.68     69.69%
    QQQQ/IWM  TRKQQ-RU.TXT  60:40     28.80%    -8.01%     3.59     58.46%
    QQQQ/GLD  TRKQQ-AU.TXT  55:45     71.65%    -9.76%     7.34     66.23%
**  QQQQ/XLF  TRKQQ-FN.TXT  55:45     54.82%    -5.35%    10.24     79.16%
    QQQQ/XLE  TRKQQ-LE.TXT  65:35     50.96%    -8.87%     5.74     61.76%
    QQQQ/XLP  TRKQQ-LP.TXT  55:45     53.64%    -7.01%     7.65     76.17%
*   QQQQ/XLU  TRKQQ-LU.TXT  65:35     73.91%    -6.60%    11.20     73.00%
    SPY /DIA  TRKSP-DW.TXT  60:40      7.83%    -6.96%     1.12     53.43%
    SMH /DIA  TRKSM-DW.TXT  55:45       NaN%   100.00%      NaN      0.00%
    SMH /IBB  TRKSM-BB.TXT  55:45       NaN%   100.00%      NaN      0.00%
    SMH /IYJ  TRKSM-YJ.TXT  55:45       NaN%   100.00%      NaN      0.00%
    SMH /IWM  TRKSM-RU.TXT  55:45     54.54%    -5.91%     9.23     67.12%
*   SMH /SPY  TRKSM-SP.TXT  55:45     70.08%    -6.61%    10.61     70.56%
*   SMH /XLF  TRKSM-FN.TXT  55:45     87.59%    -8.58%    10.21     70.90%
**  SMH /XLP  TRKSM-LP.TXT  55:45     94.03%    -7.33%    12.84     76.34%
    IWM /DIA  TRKRU-DW.TXT  55:45     37.72%    -4.28%     8.82     71.60%
    IWM /SPY  TRKRU-SP.TXT  60:40     38.63%    -5.19%     7.44     65.03%
    IWM /QQQ  TRKRU-NQ.TXT  65:35     45.12%    -6.62%     6.82     64.59%
    IWM /SMH  TRKRU-SM.TXT  65:35     33.60%   -12.82%     2.62     60.60%
    XLF /SPY  TRKFN-SP.TXT  50:50     47.44%    -6.03%     7.86     64.62%
    XLF /DIA  TRKFN-DW.TXT  55:45     68.43%    -6.93%     9.88     65.63%
    XLF /IWM  TRKFN-RU.TXT  60:40     60.81%   -10.38%     5.86     60.65%
    XLF /GLD  TRKFN-AU.TXT  55:45    114.52%   -10.72%    10.68     60.05%
    XLE /SPY  TRKLE-SP.TXT  55:45     42.91%    -7.84%     5.47     70.64%
    XLE /DIA  TRKLE-DW.TXT  60:40     67.14%    -9.78%     6.87     65.27%
    XLE /IWM  TRKLE-RU.TXT  65:35     57.97%   -11.26%     5.15     64.00%
    XLE /GLD  TRKLE-AU.TXT  65:35    105.31%    -9.86%    10.68     69.09%
*   QQQQ/DIA  TRKQQ-DW.TXT  55:45     34.29%    -3.22%    10.65     71.57%
    QQQQ/DIA  TRKQQDW1.TXT  55:45     26.20%    -3.34%     7.85     68.92%
    QQQQ/DIA  TRKQQDW2.TXT  55:45     56.17%    -6.80%     8.26     63.78%

===============
END OF REPORT 1
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

=======================================================================
FORECAST Report 2: Selected TRADING PAIRS (as of the Close on 02/03/12)
=======================================================================

The material in this Report has been extracted from the TRKPAIRS.TXT Report,
which itself works with 20 ETF pairs that have been pulled from the much larger
STKPAIRS.TXT Report.  Unlike our various Differential Signals, these Trading
Pairs are bought or shorted in accordance with our Voted signals (see the
ALLVOTES.TXT Report), and thus they may be both Long, both Short, or one may
be Long while the other is Short.

The Equity Ratio has been empirically determined to produce the best G/d
ratio for the pair of ETFs. All of the data shown is Back-Tested EXCEPT for
the Actual TotGain% field which shows the amount of gain or loss that would
have been achieved if the pair of ETFs, at the equity ratio shown, had been
traded in accordance with our published Voted Signals (see the TRKVOTEB.TXT
Report) since 9/4/08.


KEY:
====
NEW SIG          The Voted Signals (Class "B") for the equity pair for the
                   next trading day (see ALLVOTES.TXT Report):
                         +  ==> Go Long
                         -  ==> Go Short
                         $  ==> Stay in Cash
Best G/d         This value is the ratio of back-tested annualized gain
                   (Best AnnGain%) to back-tested maximum drawdown
                   (Best MaxDraw%). The largest G/d values correspond to an
                   'optimal' equity ratio.
Best AnnGain%     Back-tested (theoretical) annualized gain.
Best MaxDraw%     Back-tested (theoretical) maximum drawdown.
Actual TotGain%   The ACTUAL gain (based upon our published TimerTrac monitored
                    signals since 9/4/08.


Optimal Equity Ratios (Based on back-tested Gain/draw figures)
==============================================================
ETF1/ETF2   NEW    Equity   Best      Best       Best      Actual
portfolio   SIG    Ratio     G/d    AnnGain%   MaxDraw%   TotGain%
---------   ---    -----    -----   --------   --------   --------
DIA/IWM     +/+     5-95    37.84    329.19%     -8.70%    114.82%
DIA/QQQQ    +/+     5-95    46.11    241.42%     -5.24%     -3.82%
DIA/SMH     +/+    45-55    34.61    260.46%     -7.53%     17.08%
DIA/SPY     +/+     5-95    31.63    196.30%     -6.21%     21.94%
IWM/IWZ     +/+    95- 5    38.08    332.86%     -8.74%    123.05%
IWM/IYY     +/+    95- 5    38.04    333.17%     -8.76%    112.56%
IWM/QQQQ    +/+     5-95    46.34    250.42%     -5.40%     -0.90%
IWM/SMH     +/+    60-40    45.84    351.54%     -7.67%     69.76%
IWM/VTI     +/+    95- 5    37.98    332.79%     -8.76%    119.76%
QQQQ/IBB    +/+    80-20    49.58    244.12%     -4.92%     19.77%
QQQQ/IWV    +/+    95- 5    47.26    240.84%     -5.10%      0.01%
QQQQ/IWW    +/+    95- 5    45.98    243.37%     -5.29%     -1.10%
QQQQ/MDY    +/+    95- 5    47.33    243.15%     -5.14%     -3.50%
IBB/IWZ     +/+    45-55    35.94    223.48%     -6.22%    170.50%
IBB/IYJ     +/+    50-50    38.84    230.01%     -5.92%    256.62%
IBB/IYW     +/+    55-45    44.04    242.61%     -5.51%    105.86%
IBB/MDY     +/+    35-65    37.73    205.42%     -5.44%     76.72%
IBB/VTI     +/+    65-35    38.08    226.29%     -5.94%    148.98%
IWW/IYW     +/+     5-95    38.91    248.52%     -6.39%     34.50%
IWV/SWH     +/?     0- 0     0.00      0.00%      0.00%      0.00%


===============
END OF REPORT 2
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

==============================================================
FORECAST Report 3: Voted Signals (as of the Close on 02/03/12)
==============================================================

*** Note: This is a summary report. Please consult the larger report
ALLVOTES.TXT for more complete information, including both Actual performance
data and additional back-tested data.


Section I. Special Signals
==========================

This first Section summarizes the official (Class "B") signals for some
major ETFs, and the 2x Long and Short (or 3x Long and Short) equivalent
ETFs are shown for reference purposes.  The "Raw" (or Class "A") signal
is shown for the sake of comparison, but the Class "B" signal is almost
always more accurate.


       Official   "Raw"
       Class "B" Class "A"  2x Long   2x Short
ETF     Signal    Signal      ETF       ETF
===    ========  ========  ========  ==========
QQQQ     BUY       BUY        QLD       QID
SPY      BUY       BUY        SSO       SDS
DIA      BUY       BUY        DDM       DXD
IWM      BUY       BUY        UWM       TWM
MDY      BUY       BUY        MVV       MZZ
SMH      BUY       BUY        USD       SSG
VTI      BUY       BUY        ---       ---
IYY      BUY       BUY        ---       ---
FAS      BUY       BUY        ---       FAZ (3x)
UYG      BUY       BUY        ---       SKF (2x)
ERX      BUY       BUY        ---       ERY (3x)
BGU      BUY       BUY        ---       BGZ (3x)
TNA      BUY       BUY        ---       TZA (3x)


Section II. All Voted Signals
=============================

This second Section lists all 140 Voted Signals in alphabetical order, giving
both the current ("official" = Class "B") signal and the previous signal. If
there has been a change in the signal, then the symbols "<<<<" are used to
highlight the signal change.

Actual Performance data (over #days):

#days -- This is the total number of days for which actual performance data
         is available (see the appropriate Tracking Report for complete
         information, e.g., TRKVOTEB.TXT).

Total Gain% -- The total (compounded) gain reflecting the actual performance
         of Long/Short/Cash trades over the period #days.

Annualized Gain% -- The equivalent annual gain% if the Total Gain% value is
         projected to a full trading year.


Back-tested data (over a 7 years period) is also shown to help suggest trades
that may be more profitable:

G/d -- This is the back-tested annualized Gain divided by the back-tested maximum
      drawdown observed for the equity. High G/d ratios are better than low ones,
      either because higher gains might be expected, or because the drawdowns
      will be lower.

Accuracy -- This is the back-tested trading accuracy for the equity, and there
      is no guarantee, of course, that future actual trading accuracies will
      be as high.


                               Actual Performance         Back-Tested Performance
                            ========================      =======================
         New         Prev    #     Total  Annualized      (8/16/02 -> present)
Equity  Signal      Signal  days   Gain%     Gain%          G/d       Accuracy    Company Name
======  ======      ======  ==== ======== ==========      ======      ========    ============
AA       BUY         BUY     692    7.39%      2.63%        6.52       84.48%     Alcoa Inc
AAPL     BUY         BUY     815  118.58%     27.35%        5.74       76.60%     Apple Inc
ADBE     BUY         BUY     815  127.76%     28.99%        7.21       85.49%     Adobe Systems Inc
ADP      BUY         BUY     692   11.30%      3.98%       11.28       79.97%     Automatic Data Processing Inc.
ADSK     BUY         BUY     786  103.05%     25.50%        4.38       83.89%     Autodesk Inc
AKAM     BUY         BUY     692  171.83%     43.93%        3.79       83.53%     Akamai Technologies Inc
ALTR     BUY         BUY     786  -10.61%     -3.53%        5.89       81.14%     Altera Corp
AMAT     BUY         BUY     786  -28.01%    -10.00%        7.85       85.09%     Applied Materials Inc
AMGN     BUY         BUY     815   73.24%     18.52%        8.78       82.94%     Amgen Inc
AMZN     BUY         BUY     815   26.29%      7.48%        4.74       80.96%     Amazon.Com Inc
APOL     BUY         BUY     786  -28.93%    -10.37%        4.95       70.39%     Apollo Group Inc Cl A
ATVI     BUY         BUY     815   63.95%     16.52%        4.29       83.14%     Activision Blizzard` Inc
AXP      BUY         BUY     815  152.36%     33.14%        5.42       83.03%     American Express Co
BA       BUY         BUY     815   54.87%     14.48%        7.94       83.48%     Boeing Co
BAC      BUY         BUY     815  -46.34%    -17.51%        3.17       82.70%     Bank Of America Corp
BBBY     BUY         BUY     786   29.40%      8.61%        7.46       85.97%     Bed Bath & Beyond Inc
BGU      BUY         BUY     692  -22.17%     -8.72%        5.01       80.18%     Direxion Large Cap Bull 3x Share
BIIB     BUY         BUY     786  274.18%     52.66%        5.87       83.19%     Biogen Idec Inc
BRCM     BUY         BUY     786  -26.26%     -9.30%        3.87       79.96%     Broadcom Corp Cl A
C        BUY   <<<<  SHORT   692  -19.77%     -7.71%        3.62       83.77%     Citigroup
CA       BUY         BUY     786   -6.25%     -2.05%        6.60       85.40%     CA Inc
CAT      BUY         BUY     815   45.15%     12.21%        7.24       78.39%     Caterpillar Inc
CELG     BUY         BUY     815   22.92%      6.59%        4.92       75.69%     Celgene Corp
CERN     BUY         BUY     626   14.57%      5.63%        3.39       72.14%     Cerner Corp
CHKP     BUY         BUY     692   83.58%     24.76%        3.64       84.51%     Check Point Software Technologie
CHRW     BUY         BUY     786   75.86%     19.84%        6.33       80.82%     C.H. Robinson Worldwide
CMCSA    BUY         BUY     815   81.30%     20.20%        6.89       76.40%     Comcast Corp Cl A
COST     BUY         BUY     786   -5.40%     -1.76%       10.72       84.65%     Costco Wholesale Corp
CSCO     BUY         BUY     815   96.92%     23.31%        7.04       83.23%     Cisco Systems Inc
CTAS     BUY         BUY     786   26.23%      7.76%        6.20       75.17%     Cintas Corp
CTSH     BUY         BUY     786   46.53%     13.03%        5.88       78.79%     Cognizant Tech Sol Cp A
CTXS     BUY         BUY     786   27.38%      8.07%        5.65       80.90%     Citrix Systems Inc
CVX      BUY         BUY     815   27.28%      7.74%        9.15       84.57%     Chevron Corp
DD       BUY         BUY     815  -14.39%     -4.69%        9.19       81.03%     E. I. du Pont de Nemours and Co
DELL     BUY         BUY     786   20.49%      6.16%        5.72       81.96%     Dell Inc
DIA      BUY         BUY     862   25.55%      6.88%       14.03       80.38%     DIAMONDS Trust Series ETF
DIS      BUY         BUY     692    5.51%      1.97%        6.91       80.29%     The Walt Disney Company
DISH     BUY         BUY     626    0.40%      0.16%        6.10       74.90%     Dish Network Corp Cl A
DTV      BUY         BUY     815   94.78%     22.89%        6.26       82.51%     The DIRECTV Group` Inc.
EA       BUY         BUY     786  -48.97%    -19.40%        3.86       82.57%     Electronic Arts Inc
EBAY     BUY         BUY     815  177.54%     37.11%        5.61       84.29%     Ebay Inc
ERX      BUY         BUY     692  -47.88%    -21.12%        3.15       83.55%     Direxion Energy Bull 3x Shares
ESRX     BUY         BUY     815   52.90%     14.03%        6.37       82.15%     Express Scripts Inc
EXPD     BUY         BUY     786   -5.39%     -1.76%        5.70       80.38%     Expeditors International of Wash
FAS      BUY   <<<<  $$$$    692  -37.95%    -15.95%        3.41       87.64%     Direxion Financial Bull 3x Share
FAST     BUY         BUY     786   60.00%     16.26%        4.84       81.31%     Fastenal Company
FISV     BUY         BUY     786   40.32%     11.47%        8.78       82.26%     Fiserv Inc
FLEX     BUY         BUY     626  209.65%     57.62%        3.38       80.10%     Flextronics Internat Ltd
FLIR     BUY         BUY     786   69.12%     18.35%        5.58       82.30%     Flir Systems Inc
GE       BUY         BUY     692   24.21%      8.22%        8.02       82.41%     General Electric Co
GILD     BUY         BUY     815   18.29%      5.33%        5.96       82.58%     Gilead Sciences Inc
GRMN     BUY         BUY     786  239.57%     47.98%        4.92       81.29%     Garmin Ltd
HD       BUY         BUY     692   35.65%     11.74%        6.30       85.21%     Home Depot Inc
HOLX     BUY         BUY     626  232.48%     62.20%        3.87       80.16%     Hologic Inc
HPQ      BUY         BUY     815  -42.98%    -15.94%        5.70       81.07%     Hewlett-Packard Co
HSIC     BUY         BUY     626   32.90%     12.13%        6.98       84.70%     Henry Schein Inc
IACI     BUY         BUY     626   15.55%      5.99%        6.16       74.59%     IAC/Interactive Corp
IBB      BUY         BUY     862  179.70%     35.08%       12.02       83.51%     iShares Nasdaq Biotechnology Ind
IBM      BUY         BUY     815   40.84%     11.17%       12.67       83.23%     International Business Machines
IJH      BUY         BUY                                   12.74       81.80%     iShares S&P MidCap 400 Index Fun
ILMN     BUY         BUY     626  321.96%     78.53%        3.95       80.76%     Illumina Inc
INFY     BUY         BUY     626    1.82%      0.73%        5.83       82.70%     Infosys Technologies Limited ADS
INTC     BUY   <<<<  SHORT   815   11.48%      3.42%        6.57       70.96%     Intel Corp
INTU     BUY         BUY     786   83.23%     21.43%        6.98       79.31%     Intuit Inc
ISRG     BUY         BUY     786   21.47%      6.43%        3.93       76.65%     Intuitive Surgical Inc
IWM      BUY         BUY     862  120.21%     25.96%        9.46       83.79%     iShares Russell 2000 Index Fund
IWMZ     BUY         BUY                                    8.35       80.08%
IWV      BUY         BUY     862  157.88%     31.91%       13.52       84.49%     iShares Russell 3000 Index Fund
IWW      BUY         BUY     862  104.00%     23.17%       10.13       81.88%     iShares Russell 3000 Value Index
IWZ      BUY         BUY     862  151.57%     30.96%       10.95       82.24%     iShares Russell 3000 Growth Inde
IXN      BUY         BUY     862  -31.62%    -10.52%       13.46       78.06%     iShares S&P Global Technology Se
IYJ      BUY         BUY     862  324.00%     52.55%       10.19       85.97%     iShares Dow Jones US Industrial
IYW      BUY         BUY     862   30.79%      8.16%       13.21       84.12%     iShares Dow Jones US Technology
IYY      BUY         BUY     862    1.67%      0.48%       10.47       82.16%     iShares Dow Jones US Total Marke
IYZ      BUY         BUY     862   65.83%     15.94%        8.77       79.35%     iShares Dow Jones US Telecommuni
JBHT     BUY         BUY     626   37.83%     13.79%        5.32       79.14%     JB Hunt Transport Services
JNJ      BUY         BUY     815   16.82%      4.93%        9.69       84.27%     Johnson & Johnson
JNPR     BUY         BUY     786   46.03%     12.91%        6.14       83.41%     Juniper Networks
JOY      BUY         BUY     626   96.59%     31.27%        5.01       82.94%     Joy Global Inc
JPM      BUY         BUY     815    7.05%      2.13%        5.39       81.56%     JPMorgan Chase and Co
KFT      BUY         BUY     815   46.58%     12.55%       12.18       80.98%     Kraft Foods Inc
KLAC     BUY         BUY     786  -16.44%     -5.60%        6.52       80.97%     Kla-Tencor Corp
KO       BUY         BUY     815   15.67%      4.61%        8.35       80.52%     Coca-Cola Co
LIFE     BUY         BUY     626   62.97%     21.73%        7.32       80.73%     Life Technologies Corporation
LLTC     BUY         BUY     786   16.01%      4.88%        7.66       83.15%     Linear Technology Corp
LOGI     BUY         BUY     626   -5.71%     -2.34%        2.73       83.64%     Logitech Intl Sa Ord
LRCX     BUY         BUY     692  -30.05%    -12.21%        4.30       81.58%     Lam Research Corp
MAT      BUY         BUY     815   88.92%     21.74%        8.81       77.19%     Mattel Inc
MCD      BUY         BUY     815   71.00%     18.04%        8.19       78.18%     McDonalds Corp
MCHP     BUY         BUY     626  -18.00%     -7.68%        6.44       80.27%     Microchip Technology Inc
MDY      BUY         BUY     862   31.66%      8.37%       14.01       85.62%     SPDRs S&P Midcap Trust Series ET
MMM      BUY         BUY     815   59.63%     15.56%        9.19       83.37%     3M Company
MNST     BUY         BUY     626    7.37%      2.90%        3.23       79.29%     Monster Beverage Corporation
MRK      BUY         BUY     815   68.65%     17.54%        6.40       76.01%     Merck & Co
MRVL     BUY         BUY     786  -27.45%     -9.78%        3.36       81.28%     Marvell Technology Group
MSFT     BUY         BUY     815   59.73%     15.58%        8.53       80.83%     Microsoft Corp
NTAP     BUY         BUY     786   29.95%      8.76%        4.59       79.29%     Netapp Inc
NVDA     BUY         BUY     786   32.19%      9.36%        3.73       81.59%     NVIDIA Corporation
NWSA     BUY         BUY     626   40.54%     14.68%        5.17       82.39%     News Corp Inc Cl A
ORCL     BUY         BUY     815  239.60%     45.94%        6.53       83.84%     Oracle Corporation
ORLY     BUY         BUY     626  -17.99%     -7.67%        7.10       84.11%     O'reilly Automotive Inc
PAYX     BUY         BUY     786   73.71%     19.37%        5.36       82.84%     Paychex Inc
PCAR     BUY         BUY     786  -39.79%    -15.01%        5.97       80.00%     Paccar Inc
PDCO     BUY         BUY     626  -32.81%    -14.79%        4.13       76.24%     Patterson Companies Inc
PFE      BUY         BUY     692    7.99%      2.84%        4.52       78.78%     Pfizer Inc
PG       BUY         BUY     815   18.32%      5.34%       11.06       73.79%     Procter & Gamble Co
QCOM     BUY         BUY     815  238.27%     45.76%        6.84       82.71%     Qualcomm Inc
QQQQ     BUY         BUY     862   -5.38%     -1.60%       17.17       89.61%     PowerShares QQQTrust Ser 1
RF       BUY         BUY     692   25.60%      8.66%        2.46       77.88%     Regions Financial Corp
RIMM     BUY         BUY     815   10.12%      3.02%        3.96       80.69%     Research In Motion Ltd
ROST     BUY         BUY     626   47.09%     16.80%        8.20       79.17%     Ross Stores Inc
RYAAY    BUY         BUY     626   65.51%     22.48%        6.52       78.09%     Ryanair Hldgs Plc Adr
SBUX     BUY         BUY     786   50.89%     14.10%        6.61       81.94%     Starbucks Corporation
SIAL     BUY         BUY     786   51.81%     14.32%        7.96       82.81%     Sigma-Aldrich Corp
SMH      BUY         BUY     862    4.92%      1.41%        7.38       83.41%     HOLDRS Semiconductor ETF
SPLS     BUY         BUY     786   27.50%      8.10%        5.49       78.95%     Staples Inc
SPY      BUY         BUY     862   21.52%      5.86%       13.28       82.86%     SPDRs S&P 500 Trust Series ETF
SRCL     BUY         BUY     786    5.54%      1.75%        7.27       82.35%     Stericycle Inc
STLD     BUY         BUY                                    3.69       82.53%     Steel Dynamics Inc
SYMC     BUY         BUY     815   59.24%     15.47%        4.15       83.88%     Symantec Corp
T        BUY         BUY     692  -17.27%     -6.67%       10.15       78.89%     AT&T Inc
TEVA     BUY         BUY     815  175.17%     36.75%        6.78       81.34%     Teva Pharm Ind
TNA      BUY         BUY     692    5.83%      2.09%        3.28       80.98%     Direxion Small Cap Bull 3x Share
URBN     BUY         BUY                                    3.85       76.04%     Urban Outfitters Inc
UTX      BUY         BUY     815   62.90%     16.29%        9.27       84.78%     United Technologies Corp
UYG      BUY         BUY     692   18.78%      6.47%        4.69       89.53%     ProShares Ultra Financials
VRSN     BUY         BUY     692  -16.94%     -6.54%        6.43       81.03%     Verisign Inc
VRTX     BUY         BUY     786  -15.82%     -5.37%        4.06       80.50%     Vertex Pharmaceuticals
VTI      BUY         BUY     862   87.56%     20.19%       10.48       83.09%     Vanguard Total Stock Mkt Etf
VZ       BUY         BUY     815   12.32%      3.66%        8.61       76.78%     Verizon Communications
WFC      BUY         BUY     692   78.38%     23.46%        5.74       84.17%     Wells Fargo & Company
WMT      BUY         BUY     815   86.22%     21.20%        7.94       76.87%     Wal-Mart Stores Inc
XLE      BUY         BUY     862  111.82%     24.54%        8.27       84.94%     SPDRs Select Sector Energy ETF
XLF      BUY         BUY     862  134.36%     28.27%        7.68       88.10%     SPDRs Select Sector Financial ET
XLK      BUY         BUY     862    5.94%      1.70%       12.68       87.74%     SPDRs Select Sector Technology E
XLNX     BUY         BUY     786   30.39%      8.88%        4.93       79.59%     Xilinx Inc
XOM      BUY   <<<<  SHORT   815   59.44%     15.52%        8.97       78.23%     Exxon Mobil Corporation
XRAY     BUY         BUY     786   37.33%     10.70%        8.62       84.08%     Dentsply Internat Inc
YHOO     BUY         BUY     786   15.67%      4.78%        6.56       78.77%     Yahoo! Inc

===============
END OF REPORT 3
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

========================================================================
FORECAST Report 4: New Signals of Interest (as of the Close on 02/03/12)
========================================================================

This Report consists of 6 subreports:

4.1   Possible Trades for Next Market Day

      This subreport lists all of our 'picks' for the next trading day,
      broken down into 7 categories based upon our Signal Type.

4.2   New Signal Type 1 PAIRS (Sorted by Portfolio G/d Value)

      This subreport takes all of the Signal Type 1 equities from subreport
      4.1 and groups them into Trading Pairs, sorted by the back-tested value
      for the G/d parameter (annualized Gain divided by maximum drawdown) that
      characterizes the Trading Pair.

4.3   Daily Results for Trades (Committed Based on QQQQ Signal)

      This subreport shows the actual gains and losses for the trades identified
      on the previous day's 4.1 subreport. This shows us how well our 'picks'
      actually performed TODAY.

4.4   Daily Results for Signal Type 1 PAIRS Trades

      This subreport shows the actual gains and losses for the Trading Pairs
      identified on the previous day's 4.2 subreport. This shows us how well
      our Trading Pair 'picks' actually performed TODAY.

4.5   Global Statistics for All Trades Grouped by Signal Types

      This subreport shows the actual gains and losses for our 'picks' since
      our tracking began on 7/17/09. Statistics are maintained separately
      for each Signal Type. In other words, this subreport is essentially a
      synopsis of all of the previous 4.3 subreports since the inception of
      tracking.

4.6   Global Statistics for All Pairs Trades Grouped by G/d Range

      This subreport shows the actual gains and losses for our Signal Type 1
      Trading Pairs since our tracking began on 7/17/09. All Trading Pairs
      are derived from our highly accurate Type 1 signals, and statistics
      are maintained for Long-only pairs (BUY/BUY), Short-only pairs (SHORT/
      SHORT), and Hedged pairs (BUY/SHORT or SHORT/BUY). For each category
      separate statistics are shown for key G/d ranges.


Subreport 4.1:
==============
The following lines have been extracted from the SELECTOR.HTM Report, and
they show Signals that may represent profitable trading opportunities for
the next market day.

This Report is based upon looking for agreement between our 3 fundamental
types of signals:

(1) VoteS = Voted Signals (see ALLVOTES.TXT): Our short-term signals
(2) GrailS = Grail System Signals: Our intermediate-term signals
(3) Preprocessor Signals (see NEWPICKS.TXT): Our longer-term signals

If the Preprocessor's acquisition date field is followed by a '+++', this means
that the Preprocessor has just bought (or Shorted) the equity.

You should closely examine all equities listed here, and you should Chart them
and look for corroborating technical patterns before making trades. The basic
idea behind this report is to try to identify possible trades that may have
the most profit potential, but this should be confirmed by Charting.

If the signal in the VoteS column is shown in parentheses, then there is no
Voted Signal for the equity, and instead the 'Consensus' signal is shown. The
Consensus Signal will be the Preprocessor's signal for new trades (marked by
'+++' following the acquisition date field), and it will be the Grail System
signal otherwise.

Key:
====
T    The TYPE of the "pick":

       1 --> Voted Signal is in agreement with the Grail System signal and
             the Preprocessor signal.
       2 --> Voted Signal is in agreement with the Grail System signal, but
             is NOT confirmed by the Preprocessor signal.
       3 --> Voted Signal is in agreement with the Preprocessor signal, but
             is NOT confirmed by the Grail System signal.
       4 --> Voted Signal is NOT confirmed by either the Grail System signal
             or the Preprocesor signal.
       5 --> Preprocessor "New Pick" that is confirmed by the Grail System
             signal.
       6 --> Preprocessor "New Pick" that is unconfirmed.
       7 --> Preprocessor Signal (BUY) that is confirmed by the Grail System.


G/d  The Ratio of the 'back-tested' annualized gain (G) to the 'back-tested'
     maximum drawdown (d). Prospective trades will larger G/d values 'should'
     be better trades. This is not a guarantee, however. If an equity doesn't
     like 'healthy' at the market Open, it would be better to pick an alternate
     that looks better, even if its back-tested G/d value is lower.

Long Qual  This is an experimental value, and it comes out of our Generalized
           Candlestick neural network. It is desirable to have a large positive
           number if we have a BUY, and a large negative number if we have a
           SHORT.



                   4.1  Possible Trades for Next Market Day
                   ========================================

Note: Our procedure is to only act on BUY signals if our QQQQ Voted Signal is
a BUY, and to SHORT only if the QQQQ signal had been a SHORT. We suggest that
no trading be done if the QQQQ signal is Cash ($$$$).

The candidate trades are grouped by their Signal Type (1, 2, 3, ... 7), and
within each Signal Type grouping, stocks are ordered by increasing G/d value,
thus suggesting the best theoretical ranking. Remember, however, that what is
more important is how the equity 'looks' at the Open; don't blindly trade based
strictly on the G/d value.

*** NOTE 1: The "VoteS" column thus contains the official signal. If the value
is NOT in parentheses then it is the actual Voted Signal -- and we NEVER go
against this signal. If the value is in parentheses, e.g., (BUY), then there
is no Voted Signal available; instead, this is the Consensus signal between
the Grail System models and the Preprocessor. So, in all cases, the VoteS
column defines the direction of the trade.

*** NOTE 2: We gather trading statistics assuming that Protective Stops are
used to prevent unnecessary losses. The Stop values used are:

Long  -3.00%  (We sell the equity if it drops below the Open price by more than
               this value)
Short +3.00%  (We cover the Short if the price rises above the Open price by
               more than this value)

*** NOTE 3: Within Signal Types 1-4, if the Preprocessor signal has the '+++'
(New Trade) flag, then that equity might be a better trade than those that
have not just been picked up by the Preprocessor.


                                                             Long
T Eqty G/d  VoteS   GrailS       Preprocessor Signal         Qual  Company Name
= ==== ==== =====   ======   ==============================  ===== ================================
1 QQQQ 47.1 BUY      BUY     (BUY      112811       13.46%)   2.30 PowerShares QQQTrust Ser 1
1 AAPL 40.9 BUY      BUY     (BUY      102611       12.79%)   2.60 Apple Inc
1 CTXS 39.2 BUY      BUY     (BUY      020212        1.15%)   1.30 Citrix Systems Inc
1 IWM  38.4 BUY      BUY     (BUY      082411       18.50%)   3.91 iShares Russell 2000 Index Fund
1 SPY  31.7 BUY      BUY     (BUY      091211       14.94%)   2.88 SPDRs S&P 500 Trust Series ETF
1 MDY  30.7 BUY      BUY     (BUY      112811       15.00%)   3.97 SPDRs S&P Midcap Trust Series ET
1 MRVL 26.3 BUY      BUY     (BUY      112811       23.44%)   4.99 Marvell Technology Group
1 QCOM 25.5 BUY      BUY     (BUY      072811       12.26%)   2.52 Qualcomm Inc
1 ATVI 21.8 BUY      BUY     (BUY      121511        2.93%)   5.38 Activision Blizzard` Inc
1 GILD 16.8 BUY      BUY     (BUY      122111       40.84%)   2.00 Gilead Sciences Inc
1 TNA   4.9 BUY      BUY     (BUY      122011       44.36%)   5.13 Direxion Small Cap Bull 3x Share
1 BGU   2.5 BUY      BUY     (BUY      121511       33.98%)  -2.03 Direxion Large Cap Bull 3x Share

2 AKAM 56.2 BUY      BUY     (short?                      )  -0.72 Akamai Technologies Inc
2 JOY  44.7 BUY      BUY     (short?                      )   5.89 Joy Global Inc
2 IYW  39.4 BUY      BUY     (short?                      )   2.13 iShares Dow Jones US Technology
2 WFC  36.9 BUY      BUY     (short?                      )   5.73 Wells Fargo & Company
2 UYG  36.2 BUY      BUY     (short?                      )   5.12 ProShares Ultra Financials
2 IBB  33.2 BUY      BUY     (short?                      )   5.12 iShares Nasdaq Biotechnology Ind
2 C    32.5 BUY      BUY     (short?                      )   5.61 Citigroup
2 MAT  32.3 BUY      BUY     (short?                      )   2.01 Mattel Inc
2 SMH  31.8 BUY      BUY     (short?                      )   2.58 HOLDRS Semiconductor ETF
2 AMZN 31.7 BUY      BUY     (short?                      )   3.12 Amazon.Com Inc
2 INFY 30.8 BUY      BUY     (short?                      )  -2.26 Infosys Technologies Limited ADS
2 RF   30.3 BUY      BUY     (short?                      )   0.67 Regions Financial Corp
2 IWZ  28.5 BUY      BUY     (short?                      )   5.21 iShares Russell 3000 Growth Inde
2 CSCO 28.3 BUY      BUY     (short?                      )   2.02 Cisco Systems Inc
2 PCAR 28.2 BUY      BUY     (short?                      )   5.17 Paccar Inc
2 IYY  27.8 BUY      BUY     (short?                      )   3.69 iShares Dow Jones US Total Marke
2 VTI  26.9 BUY      BUY     (short?                      )   2.53 Vanguard Total Stock Mkt Etf
2 XLE  25.3 BUY      BUY     (short?                      )   3.03 SPDRs Select Sector Energy ETF
2 IWV  24.6 BUY      BUY     (short?                      )   2.67 iShares Russell 3000 Index Fund
2 BIIB 24.1 BUY      BUY     (short?                      )   5.16 Biogen Idec Inc
2 EXPD 24.0 BUY      BUY     (short?                      )   1.76 Expeditors International of Wash
2 BAC  22.4 BUY      BUY     (short?                      )   5.47 Bank Of America Corp
2 CHRW 20.2 BUY      BUY     (short?                      )   1.55 C.H. Robinson Worldwide
2 MCD  18.3 BUY      BUY     (short?                      )   2.00 McDonalds Corp
2 IYZ  18.2 BUY      BUY     (short?                      )   3.27 iShares Dow Jones US Telecommuni
2 BBBY 18.1 BUY      BUY     (short?                      )   2.47 Bed Bath & Beyond Inc
2 CVX  16.9 BUY      BUY     (short?                      )   2.73 Chevron Corp
2 CHKP 15.0 BUY      BUY     (short?                      )  -1.63 Check Point Software Technologie
2 ERX   9.8 BUY      BUY     (short?                      )   4.88 Direxion Energy Bull 3x Shares
2 PFE   7.6 BUY      BUY     (short?                      )   3.33 Pfizer Inc
2 FAS   5.3 BUY      BUY     (short?                      )   0.57 Direxion Financial Bull 3x Share

3 NVDA 63.1 BUY      SHORT   (BUY      102111        8.80%)   4.44 NVIDIA Corporation
3 NTAP 44.3 BUY      SHORT   (BUY      122011       12.71%)  -1.58 Netapp Inc
3 XLK  36.4 BUY      SHORT   (BUY      122211        9.26%)   2.29 SPDRs Select Sector Technology E
3 EBAY 25.3 BUY      SHORT   (BUY      122211        6.98%)   2.08 Ebay Inc
3 MCHP 22.5 BUY      SHORT   (BUY      121511       13.30%)   1.81 Microchip Technology Inc
3 DELL 21.4 BUY      SHORT   (BUY      121611       17.50%)   1.51 Dell Inc
3 CA   21.0 BUY      SHORT   (BUY      110211       24.09%)   5.83 CA Inc
3 SRCL 15.6 BUY      SHORT   (BUY      010512       12.97%)   4.72 Stericycle Inc
3 CERN  7.8 BUY      SHORT   (BUY      120911        5.13%)   1.74 Cerner Corp

4 AA   41.9 BUY      SHORT   (short?                      )  -1.72 Alcoa Inc
4 XLF  41.1 BUY      SHORT   (short?                      )   2.61 SPDRs Select Sector Financial ET
4 AMAT 37.3 BUY      SHORT   (short?                      )   2.16 Applied Materials Inc
4 IXN  37.1 BUY      SHORT   (short?                      )   5.35 iShares S&P Global Technology Se
4 ALTR 35.0 BUY      SHORT   (short?                      )  -0.30 Altera Corp
4 GRMN 33.9 BUY      SHORT   (short?                      )   5.79 Garmin Ltd
4 ISRG 33.8 BUY      SHORT   (short?                      )  -3.43 Intuitive Surgical Inc
4 ADBE 28.2 BUY      SHORT   (short?                      )   0.53 Adobe Systems Inc
4 IWW  24.3 BUY      SHORT   (short?                      )   5.39 iShares Russell 3000 Value Index
4 T    23.1 BUY      SHORT   (short?                      )   2.52 AT&T Inc
4 AXP  21.6 BUY      SHORT   (short?                      )  -2.11 American Express Co
4 MSFT 18.2 BUY      SHORT   (short?                      )  -2.26 Microsoft Corp
4 KFT  17.7 BUY      SHORT   (short?                      )   1.33 Kraft Foods Inc
4 LOGI 12.3 BUY      SHORT   (short?                      )  -1.94 Logitech Intl Sa Ord
4 EA   14.3 BUY      SHORT   (short?                      )   5.91 Electronic Arts Inc
4 MMM  14.2 BUY      SHORT   (short?                      )   2.00 3M Company
4 HSIC 13.8 BUY      SHORT   (short?                      )  -1.80 Henry Schein Inc
4 JNJ   9.4 BUY      SHORT   (short?                      )   1.69 Johnson & Johnson

5 RCL  30.2 (BUY)    BUY     (BUY      020312+++     0.00%)  -1.37 Royal Caribbean Cruises
5 TRMB 26.2 (BUY)    BUY     (BUY      020312+++     0.00%)  -2.73 Trimble Navigation Ltd
5 EWU  23.5 (BUY)    BUY     (BUY      020312+++     0.00%)   2.75 iShares MSCI United Kingdom Inde
5 COLM 16.1 (BUY)    BUY     (BUY      020312+++     0.00%)   5.88 Columbia Sportswear Co

6 CVC       (BUY)    SHORT   (BUY      020312+++     0.00%)  -1.50 Cablevision Systems Cl A
6 BVN       (BUY)            (BUY      020312+++     0.00%)  -2.27 Compania De Minas Buena
6 HL        (BUY)            (BUY      020312+++     0.00%)  -0.69 Hecla Mining Co
6 PWER      (BUY)            (BUY      020312+++     0.00%)  -3.23 Power-One Inc

7 INFA 38.4 (BUY)    BUY     (BUY      122011       14.13%)   1.99 Informatica Corporation
7 CLF  35.4 (BUY)    BUY     (BUY      020212        0.15%)   1.62 Cliffs Nat'l Resources Inc
7 IJH  34.3 (BUY)    BUY     (BUY      112811       15.03%)   4.83 iShares S&P MidCap 400 Index Fun
7 GLW  31.7 (BUY)    BUY     (BUY      120911        0.00%)   1.62 Corning Inc
7 IWP  29.4 (BUY)    BUY     (BUY      112811       13.57%)   5.42 iShares Russell MidCap Growth In
7 IVW  29.1 (BUY)    BUY     (BUY      121611        8.40%)   3.75 iShares S&P 500/Barra Growth Ind
7 IWS  28.6 (BUY)    BUY     (BUY      120911        9.59%)   3.78 iShares Russell MidCap Value Ind
7 TIBX 28.6 (BUY)    BUY     (BUY      011112       15.85%)   5.74 Tibco Software Inc
7 ING  27.6 (BUY)    BUY     (BUY      121511       44.28%)   2.33 ING Group N.V.
7 OTEX 27.6 (BUY)    BUY     (BUY      020212       -0.16%)   5.98 Open Text Cp
7 HON  26.0 (BUY)    BUY     (BUY      121511       14.91%)   5.00 Honeywell International
7 IEV  25.7 (BUY)    BUY     (BUY      120911        9.38%)   5.43 iShares S&P Europe 350 Index Fun
7 OVTI 25.1 (BUY)    BUY     (BUY      010512       25.36%)   5.88 Omnivision Technologies
7 CPWR 24.8 (BUY)    BUY     (BUY      011112       -2.01%)   0.27 Compuware Corp
7 EP   24.3 (BUY)    BUY     (BUY      121611        8.33%)   2.94 El Paso Corp
7 M    24.2 (BUY)    BUY     (BUY      121411       15.11%)   5.06 Macy's Inc
7 WAT  24.2 (BUY)    BUY     (BUY      122011       21.01%)   2.57 Waters Corp
7 HSC  23.9 (BUY)    BUY     (BUY      012712        5.77%)  -3.67 Harsco Corp
7 GT   23.3 (BUY)    BUY     (BUY      121511        1.32%)   5.00 Goodyear Tire&Rubber Co
7 BMC  22.2 (BUY)    BUY     (BUY      020212       -1.48%)  -1.97 Bmc Software Inc
7 PCP  21.8 (BUY)    BUY     (BUY      101111        4.18%)  -0.77 Precision Castparts Corp
7 MEOH 20.9 (BUY)    BUY     (BUY      011812        4.65%)   1.41 Methanex Corporation
7 CDNS 20.6 (BUY)    BUY     (BUY      121611       12.79%)  -3.59 Cadence Design Systems
7 ELP  20.6 (BUY)    BUY     (BUY      102111       22.79%)   2.35 Companhia Paranaense De
7 XLI  20.5 (BUY)    BUY     (BUY      082411       19.85%)   2.69 SPDRs Select Sector Industrial E
7 CSGP 20.2 (BUY)    BUY     (BUY      082311       21.01%)  -1.68 Costar Group Inc
7 NOV  19.9 (BUY)    BUY     (BUY      122011       21.92%)  -3.94 National Oilwell Varco Inc
7 SPYG 19.6 (BUY)    BUY     (BUY      112911        7.14%)   5.42 SPDR S&P 500 Growth ETF
7 BTU  18.8 (BUY)    BUY     (BUY      122011       14.39%)   3.28 Peabody Energy
7 DDS  18.5 (BUY)    BUY     (BUY      020212        4.62%)   2.71 Dillard's Inc
7 MKSI 18.1 (BUY)    BUY     (BUY      112811       31.25%)  -1.61 Mks Instruments Inc
7 MU   18.1 (BUY)    BUY     (BUY      112811       41.21%)  -1.53 Micron Technology Inc
7 MOGA 18.0 (BUY)    BUY     (BUY      013112        4.46%)   2.99 Moog Inc
7 OIH  17.8 (BUY)    BUY     (BUY      121611       16.84%)   5.36 HOLDRS Oil Service ETF
7 HLX  16.7 (BUY)    BUY     (BUY      012012       12.18%)  -3.31 Helix Energy Solutions Group Inc
7 WHR  16.5 (BUY)    BUY     (BUY      020112       11.17%)  -3.81 Whirlpool Corp
7 GPS  16.4 (BUY)    BUY     (BUY      121511       17.10%)   4.58 Gap Inc
7 AMCC 16.2 (BUY)    BUY     (BUY      112811       12.68%)  -1.99 Applied Micro Circuits
7 EZU  16.2 (BUY)    BUY     (BUY      110211        2.50%)   0.74 iShares MSCI EMU Index Fund ETF
7 BBOX 15.9 (BUY)    BUY     (BUY      090711       25.69%)   2.01 Black Box Corp
7 RBC  15.8 (BUY)    BUY     (BUY      111111       21.15%)   0.27 Regal-Beloit Corp
7 UWM  15.4 (BUY)    BUY     (BUY      112811       40.69%)  -1.89 ProShares Ultra Russell 2000 ETF
7 EWC  15.2 (BUY)    BUY     (BUY      122011       11.98%)   5.39 iShares MSCI Canada Index Fund E
7 EWW  15.1 (BUY)    BUY     (BUY      111811       15.81%)   5.78 iShares MSCI Mexico Index Fund E
7 VCLK 15.1 (BUY)    BUY     (BUY      120211       15.05%)  -1.65 Valueclick Inc
7 GCO  14.2 (BUY)    BUY     (BUY      012712        2.30%)   2.11 Genesco Inc
7 HOV  14.2 (BUY)    BUY     (BUY      010612       61.14%)  -3.94 Hovnanian Enterprises A
7 SCHW 14.0 (BUY)    BUY     (BUY      112511       16.35%)   5.33 Charles Schwab Corp
7 CBT  12.8 (BUY)    BUY     (BUY      121511       33.57%)  -3.06 Cabot Corp
7 BPFH 12.7 (BUY)    BUY     (BUY      013012       11.36%)   3.30 Boston Private Fincl Hld
7 IYR  12.4 (BUY)    BUY     (BUY      112511       16.54%)   3.22 iShares Dow Jones US Real Estate
7 XLP  12.0 (BUY)    BUY     (BUY      112211        6.91%)   1.61 SPDRs Select Sector Consumer Sta
7 EWP  11.8 (BUY)    BUY     (BUY      112911       -0.61%)   5.27 iShares MSCI Spain Index Fund ET
7 IR   11.2 (BUY)    BUY     (BUY      121511       20.18%)   5.83 Ingersoll-rand Ltd Cl A
7 IYG  11.1 (BUY)    BUY     (BUY      112511       22.82%)   5.59 iShares Dow Jones US Financial S
7 IWB  10.5 (BUY)    BUY     (BUY      112911        9.46%)   3.01 iShares Russell 1000 Index Fund
7 SFY  10.4 (BUY)    BUY     (BUY      121511       16.54%)   5.34 Swift Energy Co
7 ELON  9.4 (BUY)    BUY     (BUY      112811       19.56%)   4.84 Echelon Corporation




          4.2  New Signal Type 1 PAIRS (Sorted by Portfolio G/d Value)
          ============================================================

The following Table shows all pairs of Signal Type 1 equities (fully confirmed
Voted Signals), and they are sorted in decreasing order of 'back-tested' G/d
(Annualized Gain% divided by Maximum Drawdown) value. The back-tested Annualized
Gain figure is shown also, although in actual trading this level of performance
will almost always be unattainable.  Also bear in mind that the back-tested
figures were derived by assuming that trades were always made at the market
Open; in our situation, we assume that the positions are exited at the
market Close -- removing the uncertainty and risk involved with holding
equities overnight.


This Table is being limited to Signal Type 1 PAIRS because this is our most
accurate timing signal, and this also helps keep the length of the Table from
growing excessively long; at times there might still be several hundred entries
in the Table. We are currently investigating the appropriateness of chopping
the Table off once the G/d values go below a prescribed threshhold, e.g., 30 or
40.


Remember that properly chosen pairs of equities will have a combined (portfolio)
drawdown that is LESS than the drawdown of either equity alone. The G/d value
for the portfolio (that is, both equities traded together in equal dollar
amounts), will similarly be better than the G/d values of the two equities
would suggest. This is because drawdowns tend to add like electrical resistances
in parallel (1/R = 1/R1 + 1/R2). Of course, back-tested information can only
serve as a general guide; in any specific situation, the stock market will do
whatever it wants to do.


Pairs selected from near the top of the list 'might' be expected to be more
profitable, either having potentially larger gains -- or lower than average draw-
downs. If it is desired to trade three equities, then simply find two high-ranked
pairs that have one equity in common; to select four equities, simply pick two
high-ranked pairs that have no common equity, etc.

Note that the following Table is broken up into three subtables: (1) LONG Pairs,
(2) Hedged Pairs, and (3) SHORT Pairs.  LONG Pairs have BUY signals for both
equities, while SHORT Pairs have SHORT signals for both equities. The HEDGED
Pairs will have one equity shown as a BUY, while the other one is a SHORT.
In general, we would prefer LONG Pairs if the market is moving upward (e.g.,
QQQQ signal is a BUY), SHORT Pairs if the market is moving downward (e.g.,
QQQQ Signal is a SHORT), and HEDGED Pairs when the market is choppy (e.g.,
QQQQ Signal is CASH).


*** IMPORTANT NOTE: In trading PAIRs, or more than two of these equities, the
same rules apply about Protective Stops; we currently set Stops for Longs with
the trigger level set at -3.0% below the Open (purchase) price, and our Short
Stops are similarly set at +3.0% above the Open (shorting) price.



                             Back-Tested
                          ================
Equity Pair   Signals       G/d   Ann.Gain
=========== ===========   ======  ========
(1) === LONG Pairs: BUY/BUY ===
AAPL /TNA   BUY  /BUY      67.21   973.31%
MRVL /TNA   BUY  /BUY      64.26  1055.95%
CTXS /TNA   BUY  /BUY      63.61   986.62%
BGU  /TNA   BUY  /BUY      55.91   946.03%
ATVI /TNA   BUY  /BUY      51.60   870.61%
AAPL /CTXS  BUY  /BUY      51.06   572.02%
CTXS /IWM   BUY  /BUY      50.58   449.01%
BGU  /MRVL  BUY  /BUY      50.46   610.10%
AAPL /MRVL  BUY  /BUY      49.95   613.64%
BGU  /CTXS  BUY  /BUY      49.60   568.24%
CTXS /SPY   BUY  /BUY      49.52   351.67%
AAPL /IWM   BUY  /BUY      49.07   441.48%
CTXS /QQQQ  BUY  /BUY      47.84   385.92%
AAPL /BGU   BUY  /BUY      46.81   558.55%
CTXS /MDY   BUY  /BUY      46.79   345.73%
AAPL /MDY   BUY  /BUY      46.31   339.72%
CTXS /MRVL  BUY  /BUY      45.95   623.62%
AAPL /QQQQ  BUY  /BUY      45.86   379.45%
MDY  /QQQQ  BUY  /BUY      45.77   217.83%
QCOM /TNA   BUY  /BUY      45.67   752.58%
AAPL /ATVI  BUY  /BUY      45.29   497.98%
IWM  /TNA   BUY  /BUY      45.24   765.56%
QQQQ /TNA   BUY  /BUY      44.32   672.84%
MDY  /TNA   BUY  /BUY      43.46   608.39%
BGU  /IWM   BUY  /BUY      42.80   436.83%
AAPL /SPY   BUY  /BUY      42.42   345.29%
BGU  /QQQQ  BUY  /BUY      41.72   376.36%
IWM  /QQQQ  BUY  /BUY      41.37   291.69%
IWM  /MDY   BUY  /BUY      40.90   258.75%
AAPL /QCOM  BUY  /BUY      40.21   425.25%
CTXS /QCOM  BUY  /BUY      39.84   431.78%
ATVI /CTXS  BUY  /BUY      39.48   505.47%
SPY  /TNA   BUY  /BUY      39.25   615.26%
IWM  /QCOM  BUY  /BUY      39.21   329.89%
QQQQ /SPY   BUY  /BUY      38.69   221.71%
GILD /TNA   BUY  /BUY      38.68   673.79%
IWM  /MRVL  BUY  /BUY      37.90   483.90%
BGU  /SPY   BUY  /BUY      36.27   341.42%
CTXS /GILD  BUY  /BUY      36.14   381.65%
MDY  /SPY   BUY  /BUY      35.85   194.87%
QCOM /QQQQ  BUY  /BUY      35.83   280.24%
ATVI /IWM   BUY  /BUY      35.64   389.01%
ATVI /MRVL  BUY  /BUY      35.54   544.85%
ATVI /BGU   BUY  /BUY      35.39   494.00%
AAPL /GILD  BUY  /BUY      35.21   374.87%
ATVI /QCOM  BUY  /BUY      34.86   374.19%
IWM  /SPY   BUY  /BUY      34.84   263.26%
MDY  /QCOM  BUY  /BUY      34.41   248.59%
MRVL /QCOM  BUY  /BUY      34.22   465.44%
MRVL /QQQQ  BUY  /BUY      33.91   416.76%
QCOM /SPY   BUY  /BUY      33.61   253.24%
BGU  /QCOM  BUY  /BUY      33.49   423.10%
MRVL /SPY   BUY  /BUY      32.58   380.51%
BGU  /GILD  BUY  /BUY      31.52   373.22%
MDY  /MRVL  BUY  /BUY      31.23   374.05%
ATVI /QQQQ  BUY  /BUY      30.90   332.55%
BGU  /MDY   BUY  /BUY      30.31   335.36%
ATVI /MDY   BUY  /BUY      29.73   296.23%
GILD /MRVL  BUY  /BUY      28.98   412.17%
ATVI /SPY   BUY  /BUY      28.76   301.66%
GILD /IWM   BUY  /BUY      28.31   288.83%
GILD /QQQQ  BUY  /BUY      27.08   244.04%
ATVI /GILD  BUY  /BUY      24.69   328.07%
GILD /QCOM  BUY  /BUY      24.48   276.55%
GILD /MDY   BUY  /BUY      23.68   215.30%
GILD /SPY   BUY  /BUY      23.28   219.52%

(2) === Hedged Pairs: BUY/SHORT or SHORT/BUY ===
*** No PAIRS found in this Category

(3) === SHORT Pairs: SHORT/SHORT ===
*** No PAIRS found in this Category





        4.3  Daily Results for Trades (Committed Based on QQQQ Signal)
        ==============================================================

Result of Trade Signals generated on previous market day. Notice that BUYs
are only initiated if the QQQQ signal had been a BUY, and Shorts are only
initiated if the QQQQ signal had been a SHORT. No trades are attempted if
the QQQQ signal (the Voted Signal) had been Cash ($$$$).

*** NOTE: The following trades assume that Protective Stops are being used to
prevent unnecessary losses. The Stop values used are:

Long  -3.00%  (We sell the equity if it drops below the Open price by more than
               this value)
Short +3.00%  (We cover the Short if the price rises above the Open price by
               more than this value)

If the Stop is 'hit' during the day, you will see a Comment to that effect on
the far right side of the trading line, and the SELL or COVER price will be
forced to the Stop value -- and not the Close price for the day.


*** The Stock/ETF "Picks" were generated on:  020212
*** The QQQQ Voted Signal was calculated as:  BUY
*** "Day" Trades (Open-->Close) were made on: 020312

Type 1: Voted Signal (confirmed: Grail/Preproc)
Type 2: Voted Signal (confirmed: Grail System only)
Type 3: Voted Signal (confirmed: Preprocessor only)
Type 4: Voted Signal (unconfirmed)
Type 5: Preprocessor "New Pick" (confirmed: Grail)
Type 6: Preprocessor "New Pick" (unconfirmed)
Type 7: Grail System Signal (confirmed: Preproc)


Type: 1  TRADE: QQQQ    BUY    GAIN:    0.44%  BUY   @  61.78  SELL  @  62.05
Type: 1  TRADE: VRSN    BUY    GAIN:   -0.22%  BUY   @  37.12  SELL  @  37.04
Type: 1  TRADE: CTXS    BUY    GAIN:    1.15%  BUY   @  68.00  SELL  @  68.78
Type: 1  TRADE: IWM     BUY    GAIN:    0.58%  BUY   @  82.47  SELL  @  82.95
Type: 1  TRADE: MRVL    BUY    GAIN:   -0.66%  BUY   @  16.75  SELL  @  16.64
Type: 1  TRADE: QCOM    BUY    GAIN:    0.11%  BUY   @  60.99  SELL  @  61.06
Type: 1  TRADE: TNA     BUY    GAIN:    1.76%  BUY   @  62.04  SELL  @  63.13

Type: 2  TRADE: RIMM    BUY    GAIN:   -0.18%  BUY   @  16.91  SELL  @  16.88
Type: 2  TRADE: IYW     BUY    GAIN:    0.45%  BUY   @  70.75  SELL  @  71.07
Type: 2  TRADE: WFC     BUY    GAIN:    0.62%  BUY   @  30.44  SELL  @  30.63
Type: 2  TRADE: UYG     BUY    GAIN:    1.53%  BUY   @  54.73  SELL  @  55.57
Type: 2  TRADE: VRTX    BUY    GAIN:   -3.00%  BUY   @  37.52  SELL  @  36.39  Protective Stop at:   36.39
Type: 2  TRADE: SBUX    BUY    GAIN:    0.79%  BUY   @  47.94  SELL  @  48.32
Type: 2  TRADE: IBB     BUY    GAIN:   -0.15%  BUY   @ 120.82  SELL  @ 120.64
Type: 2  TRADE: MAT     BUY    GAIN:    1.19%  BUY   @  31.16  SELL  @  31.53
Type: 2  TRADE: SMH     BUY    GAIN:    0.55%  BUY   @  34.43  SELL  @  34.62
Type: 2  TRADE: CAT     BUY    GAIN:    1.58%  BUY   @ 112.17  SELL  @ 113.94
Type: 2  TRADE: INFY    BUY    GAIN:    0.25%  BUY   @  56.95  SELL  @  57.09
Type: 2  TRADE: DISH    BUY    GAIN:    1.01%  BUY   @  28.62  SELL  @  28.91
Type: 2  TRADE: RF      BUY    GAIN:    1.62%  BUY   @   5.55  SELL  @   5.64
Type: 2  TRADE: IACI    BUY    GAIN:   -1.46%  BUY   @  46.48  SELL  @  45.80
Type: 2  TRADE: IWZ     BUY    GAIN:    0.49%  BUY   @  51.12  SELL  @  51.37
Type: 2  TRADE: CSCO    BUY    GAIN:    0.65%  BUY   @  19.96  SELL  @  20.09
Type: 2  TRADE: IYY     BUY    GAIN:    0.34%  BUY   @  67.58  SELL  @  67.81
Type: 2  TRADE: MNST    BUY    GAIN:   -0.80%  BUY   @ 106.56  SELL  @ 105.71
Type: 2  TRADE: VTI     BUY    GAIN:    0.45%  BUY   @  69.17  SELL  @  69.48
Type: 2  TRADE: IYJ     BUY    GAIN:    0.51%  BUY   @  70.14  SELL  @  70.50
Type: 2  TRADE: XLE     BUY    GAIN:    0.46%  BUY   @  72.44  SELL  @  72.77
Type: 2  TRADE: CELG    BUY    GAIN:   -1.33%  BUY   @  74.20  SELL  @  73.21
Type: 2  TRADE: IWV     BUY    GAIN:    0.49%  BUY   @  79.73  SELL  @  80.12
Type: 2  TRADE: BIIB    BUY    GAIN:   -0.29%  BUY   @ 122.24  SELL  @ 121.88
Type: 2  TRADE: IYZ     BUY    GAIN:    0.14%  BUY   @  21.95  SELL  @  21.98
Type: 2  TRADE: BBBY    BUY    GAIN:    1.25%  BUY   @  62.37  SELL  @  63.15
Type: 2  TRADE: CVX     BUY    GAIN:    0.56%  BUY   @ 104.91  SELL  @ 105.50
Type: 2  TRADE: ESRX    BUY    GAIN:   -0.08%  BUY   @  52.12  SELL  @  52.08
Type: 2  TRADE: CHKP    BUY    GAIN:    1.04%  BUY   @  58.50  SELL  @  59.11
Type: 2  TRADE: ERX     BUY    GAIN:    1.80%  BUY   @  51.75  SELL  @  52.68
Type: 2  TRADE: PFE     BUY    GAIN:    0.05%  BUY   @  21.19  SELL  @  21.20

Type: 3  TRADE: NVDA    BUY    GAIN:    0.76%  BUY   @  15.70  SELL  @  15.82
Type: 3  TRADE: YHOO    BUY    GAIN:   -0.25%  BUY   @  15.96  SELL  @  15.92
Type: 3  TRADE: NTAP    BUY    GAIN:    1.51%  BUY   @  39.75  SELL  @  40.35
Type: 3  TRADE: XLK     BUY    GAIN:    0.40%  BUY   @  27.61  SELL  @  27.72
Type: 3  TRADE: LRCX    BUY    GAIN:   -0.99%  BUY   @  44.63  SELL  @  44.19
Type: 3  TRADE: SPY     BUY    GAIN:    0.40%  BUY   @ 134.00  SELL  @ 134.54
Type: 3  TRADE: BRCM    BUY    GAIN:    0.78%  BUY   @  37.38  SELL  @  37.67
Type: 3  TRADE: MDY     BUY    GAIN:    0.30%  BUY   @ 176.10  SELL  @ 176.63
Type: 3  TRADE: DIA     BUY    GAIN:    0.23%  BUY   @ 128.07  SELL  @ 128.37
Type: 3  TRADE: EBAY    BUY    GAIN:   -0.15%  BUY   @  33.00  SELL  @  32.95
Type: 3  TRADE: MCHP    BUY    GAIN:    0.37%  BUY   @  38.28  SELL  @  38.42
Type: 3  TRADE: LIFE    BUY    GAIN:   -0.32%  BUY   @  49.73  SELL  @  49.57
Type: 3  TRADE: DELL    BUY    GAIN:   -0.79%  BUY   @  17.80  SELL  @  17.66
Type: 3  TRADE: CA      BUY    GAIN:   -0.26%  BUY   @  26.60  SELL  @  26.53
Type: 3  TRADE: DIS     BUY    GAIN:    1.45%  BUY   @  39.43  SELL  @  40.00
Type: 3  TRADE: GILD    BUY    GAIN:    2.40%  BUY   @  53.41  SELL  @  54.69
Type: 3  TRADE: SRCL    BUY    GAIN:    0.81%  BUY   @  86.20  SELL  @  86.90
Type: 3  TRADE: PAYX    BUY    GAIN:   -0.37%  BUY   @  32.07  SELL  @  31.95
Type: 3  TRADE: CERN    BUY    GAIN:    1.41%  BUY   @  62.21  SELL  @  63.09
Type: 3  TRADE: BGU     BUY    GAIN:    1.23%  BUY   @  74.58  SELL  @  75.50

Type: 4  TRADE: JNPR    BUY    GAIN:    2.78%  BUY   @  21.94  SELL  @  22.55
Type: 4  TRADE: JOY     BUY    GAIN:    3.25%  BUY   @  92.70  SELL  @  95.71
Type: 4  TRADE: AA      BUY    GAIN:    1.70%  BUY   @  10.58  SELL  @  10.76
Type: 4  TRADE: XLF     BUY    GAIN:    0.96%  BUY   @  14.59  SELL  @  14.73
Type: 4  TRADE: IXN     BUY    GAIN:    0.39%  BUY   @  64.15  SELL  @  64.40
Type: 4  TRADE: AMAT    BUY    GAIN:   -0.16%  BUY   @  12.81  SELL  @  12.79
Type: 4  TRADE: GRMN    BUY    GAIN:    0.46%  BUY   @  43.90  SELL  @  44.10
Type: 4  TRADE: ISRG    BUY    GAIN:    1.16%  BUY   @ 486.35  SELL  @ 492.01
Type: 4  TRADE: APOL    BUY    GAIN:   -0.81%  BUY   @  52.84  SELL  @  52.41
Type: 4  TRADE: GE      BUY    GAIN:    0.11%  BUY   @  19.00  SELL  @  19.02
Type: 4  TRADE: ADBE    BUY    GAIN:    0.47%  BUY   @  31.70  SELL  @  31.85
Type: 4  TRADE: COST    BUY    GAIN:   -0.76%  BUY   @  86.01  SELL  @  85.36
Type: 4  TRADE: DD      BUY    GAIN:    0.02%  BUY   @  52.00  SELL  @  52.01
Type: 4  TRADE: IWW     BUY    GAIN:    0.46%  BUY   @  88.57  SELL  @  88.98
Type: 4  TRADE: ORCL    BUY    GAIN:   -0.07%  BUY   @  29.13  SELL  @  29.11
Type: 4  TRADE: T       BUY    GAIN:   -0.07%  BUY   @  29.97  SELL  @  29.95
Type: 4  TRADE: INTU    BUY    GAIN:    0.38%  BUY   @  58.25  SELL  @  58.47
Type: 4  TRADE: BAC     BUY    GAIN:    2.35%  BUY   @   7.66  SELL  @   7.84
Type: 4  TRADE: AMGN    BUY    GAIN:   -0.47%  BUY   @  69.61  SELL  @  69.28
Type: 4  TRADE: AXP     BUY    GAIN:    0.77%  BUY   @  51.85  SELL  @  52.25
Type: 4  TRADE: ADP     BUY    GAIN:    0.20%  BUY   @  55.40  SELL  @  55.51
Type: 4  TRADE: SIAL    BUY    GAIN:    0.78%  BUY   @  70.22  SELL  @  70.77
Type: 4  TRADE: MSFT    BUY    GAIN:    0.43%  BUY   @  30.11  SELL  @  30.24
Type: 4  TRADE: HD      BUY    GAIN:    0.78%  BUY   @  44.82  SELL  @  45.17
Type: 4  TRADE: LOGI    BUY    GAIN:    1.84%  BUY   @   8.16  SELL  @   8.31
Type: 4  TRADE: NWSA    BUY    GAIN:    0.42%  BUY   @  19.20  SELL  @  19.28
Type: 4  TRADE: XLNX    BUY    GAIN:    0.96%  BUY   @  36.57  SELL  @  36.92
Type: 4  TRADE: SPLS    BUY    GAIN:    0.82%  BUY   @  14.65  SELL  @  14.77
Type: 4  TRADE: KFT     BUY    GAIN:    0.18%  BUY   @  38.81  SELL  @  38.88
Type: 4  TRADE: ORLY    BUY    GAIN:    0.49%  BUY   @  82.43  SELL  @  82.83
Type: 4  TRADE: XRAY    BUY    GAIN:   -0.29%  BUY   @  38.35  SELL  @  38.24
Type: 4  TRADE: MRK     BUY    GAIN:   -0.34%  BUY   @  38.50  SELL  @  38.37
Type: 4  TRADE: MMM     BUY    GAIN:   -0.40%  BUY   @  88.08  SELL  @  87.73
Type: 4  TRADE: HSIC    BUY    GAIN:   -0.44%  BUY   @  73.48  SELL  @  73.16
Type: 4  TRADE: PG      BUY    GAIN:   -0.93%  BUY   @  63.36  SELL  @  62.77

Type: 5  TRADE: CLF     BUY    GAIN:    0.15%  BUY   @  75.01  SELL  @  75.12
Type: 5  TRADE: OTEX    BUY    GAIN:   -0.16%  BUY   @  60.91  SELL  @  60.81

Type: 6  TRADE: MDCO    BUY    GAIN:    0.05%  BUY   @  21.89  SELL  @  21.90
Type: 6  TRADE: BBY     BUY    GAIN:   -3.00%  BUY   @  24.55  SELL  @  23.81  Protective Stop at:   23.81
Type: 6  TRADE: DDS     BUY    GAIN:    4.62%  BUY   @  45.85  SELL  @  47.97
Type: 6  TRADE: URBN    BUY    GAIN:    0.00%  BUY   @  27.68  SELL  @  27.68
Type: 6  TRADE: BIOS    BUY    GAIN:   -3.00%  BUY   @   6.80  SELL  @   6.60  Protective Stop at:    6.60
Type: 6  TRADE: RDEN    BUY    GAIN:   -3.00%  BUY   @  38.70  SELL  @  37.54  Protective Stop at:   37.54

Type: 7  TRADE: INFA    BUY    GAIN:    2.38%  BUY   @  44.59  SELL  @  45.65
Type: 7  TRADE: IWP     BUY    GAIN:    0.30%  BUY   @  60.84  SELL  @  61.02
Type: 7  TRADE: CNX     BUY    GAIN:   -1.23%  BUY   @  38.14  SELL  @  37.67
Type: 7  TRADE: IVW     BUY    GAIN:    0.24%  BUY   @  71.48  SELL  @  71.65
Type: 7  TRADE: IWS     BUY    GAIN:    0.28%  BUY   @  46.82  SELL  @  46.95
Type: 7  TRADE: TIBX    BUY    GAIN:    1.78%  BUY   @  27.50  SELL  @  27.99
Type: 7  TRADE: ING     BUY    GAIN:    1.13%  BUY   @   9.73  SELL  @   9.84
Type: 7  TRADE: THO     BUY    GAIN:    1.71%  BUY   @  31.67  SELL  @  32.21
Type: 7  TRADE: PGI     BUY    GAIN:   -0.63%  BUY   @   9.55  SELL  @   9.49
Type: 7  TRADE: TROW    BUY    GAIN:    1.72%  BUY   @  58.30  SELL  @  59.30
Type: 7  TRADE: IEV     BUY    GAIN:    1.31%  BUY   @  36.61  SELL  @  37.09
Type: 7  TRADE: OVTI    BUY    GAIN:    1.35%  BUY   @  15.56  SELL  @  15.77
Type: 7  TRADE: WAT     BUY    GAIN:   -0.13%  BUY   @  89.61  SELL  @  89.49
Type: 7  TRADE: EP      BUY    GAIN:    0.04%  BUY   @  27.04  SELL  @  27.05
Type: 7  TRADE: M       BUY    GAIN:    1.40%  BUY   @  35.62  SELL  @  36.12
Type: 7  TRADE: HSC     BUY    GAIN:    3.57%  BUY   @  23.00  SELL  @  23.82
Type: 7  TRADE: GT      BUY    GAIN:    2.74%  BUY   @  13.49  SELL  @  13.86
Type: 7  TRADE: SKX     BUY    GAIN:    3.15%  BUY   @  12.68  SELL  @  13.08
Type: 7  TRADE: HLIT    BUY    GAIN:    0.16%  BUY   @   6.38  SELL  @   6.39
Type: 7  TRADE: MEOH    BUY    GAIN:    1.64%  BUY   @  28.59  SELL  @  29.06
Type: 7  TRADE: ELP     BUY    GAIN:   -1.24%  BUY   @  23.40  SELL  @  23.11
Type: 7  TRADE: CDNS    BUY    GAIN:   -0.09%  BUY   @  11.74  SELL  @  11.73
Type: 7  TRADE: XLI     BUY    GAIN:    0.59%  BUY   @  37.04  SELL  @  37.26
Type: 7  TRADE: CSGP    BUY    GAIN:    1.93%  BUY   @  58.10  SELL  @  59.22
Type: 7  TRADE: NOV     BUY    GAIN:    4.34%  BUY   @  78.72  SELL  @  82.14
Type: 7  TRADE: BTU     BUY    GAIN:    0.03%  BUY   @  37.98  SELL  @  37.99
Type: 7  TRADE: SPYG    BUY    GAIN:    0.39%  BUY   @  61.74  SELL  @  61.98
Type: 7  TRADE: MKSI    BUY    GAIN:   -0.83%  BUY   @  32.44  SELL  @  32.17
Type: 7  TRADE: MOGA    BUY    GAIN:   -0.07%  BUY   @  45.00  SELL  @  44.97
Type: 7  TRADE: RHI     BUY    GAIN:    2.99%  BUY   @  28.74  SELL  @  29.60
Type: 7  TRADE: AON     BUY    GAIN:    1.95%  BUY   @  47.14  SELL  @  48.06
Type: 7  TRADE: FDS     BUY    GAIN:    0.41%  BUY   @  90.67  SELL  @  91.04
Type: 7  TRADE: GPS     BUY    GAIN:    1.07%  BUY   @  21.48  SELL  @  21.71
Type: 7  TRADE: AMCC    BUY    GAIN:   -1.42%  BUY   @   7.75  SELL  @   7.64
Type: 7  TRADE: WHR     BUY    GAIN:    5.52%  BUY   @  65.07  SELL  @  68.66
Type: 7  TRADE: RBC     BUY    GAIN:    1.45%  BUY   @  60.75  SELL  @  61.63
Type: 7  TRADE: EWC     BUY    GAIN:    0.17%  BUY   @  28.73  SELL  @  28.78
Type: 7  TRADE: VCLK    BUY    GAIN:    0.60%  BUY   @  18.31  SELL  @  18.42
Type: 7  TRADE: PAAS    BUY    GAIN:    0.92%  BUY   @  23.80  SELL  @  24.02
Type: 7  TRADE: GCO     BUY    GAIN:   -0.25%  BUY   @  62.77  SELL  @  62.61
Type: 7  TRADE: UBS     BUY    GAIN:    0.89%  BUY   @  14.54  SELL  @  14.67
Type: 7  TRADE: CBT     BUY    GAIN:    0.58%  BUY   @  41.70  SELL  @  41.94
Type: 7  TRADE: BPFH    BUY    GAIN:    2.27%  BUY   @   8.82  SELL  @   9.02
Type: 7  TRADE: IYR     BUY    GAIN:    0.49%  BUY   @  61.72  SELL  @  62.02
Type: 7  TRADE: XLP     BUY    GAIN:    0.00%  BUY   @  32.48  SELL  @  32.48
Type: 7  TRADE: IR      BUY    GAIN:    2.18%  BUY   @  36.72  SELL  @  37.52
Type: 7  TRADE: IYG     BUY    GAIN:    1.31%  BUY   @  51.32  SELL  @  51.99
Type: 7  TRADE: IWB     BUY    GAIN:    0.50%  BUY   @  74.40  SELL  @  74.77
Type: 7  TRADE: SFY     BUY    GAIN:    0.24%  BUY   @  33.03  SELL  @  33.11
Type: 7  TRADE: WDR     BUY    GAIN:    2.46%  BUY   @  28.90  SELL  @  29.61
Type: 7  TRADE: ELON    BUY    GAIN:    1.02%  BUY   @   5.87  SELL  @   5.93
Type: 7  TRADE: RDC     BUY    GAIN:   -2.48%  BUY   @  37.54  SELL  @  36.61

Avg. Gain (All):                        0.57%   #equities: 153
Avg. Gain (# 1):                        0.45%   #equities:   7
Avg. Gain (# 2):                        0.34%   #equities:  31
Avg. Gain (# 3):                        0.45%   #equities:  20
Avg. Gain (# 4):                        0.50%   #equities:  35
Avg. Gain (# 5):                        0.00%   #equities:   2
Avg. Gain (# 6):                       -0.72%   #equities:   6
Avg. Gain (# 7):                        0.98%   #equities:  52




              4.4  Daily Results for Signal Type 1 PAIRS Trades
              =================================================

The following Table shows the actual gain/loss for each of the Trading Pairs
that had been previously identified for the current day. When using Trading
Pairs, however, we 'always' make the trade, whether Long or Short, regardless
of what the QQQQ signal might have been. The reason for this is that Pairs
Trading 'should' be safer than trading individual equities, and additionally
we are interested in tracking the accuracy of Shorts and hedged trading pairs
(one Long and one Short), and these would not normally be tracked if we were
keying off the QQQQ signal (or some other Master Trading Switch).

The current statistics assume, however, that each Long trade is protected by
a Stop set -3% below the Open price, and that all Short trades are protected
by a Stop set +3% above the Open price.

In our current implementation, all Trading Pairs are constructed ONLY from
our Type 1 Signals (fully confirmed Voted Signals), and this is already
sufficient to produce a long list of candidate pairs.

The following Table is broken up into 3 subtables according to whether the
Trading Pair is a Long-only (BUY/BUY), Short-only (SHORT/SHORT), or Hedged
trade (BUY/SHORT or SHORT/BUY). An additional assumption is made that equal
dollar amounts are allocated to each equity so that their individual gains
and losses can be simply averaged. A future extension of this Pairs Trading
system will be to calculate more optimal equity ratios for each pair.


                                  Actual Day's Performance Data
                                  ==============================
                                    Pair            Individual
Equity Pair   Signals       G/d   Gain/Loss        Gains/Losses
=========== ===========   ======  =========       ==============
(1) === LONG Pairs: BUY/BUY ===
TNA  /VRSN  BUY  /BUY      75.91     0.77%          1.76% -0.22%
MRVL /TNA   BUY  /BUY      64.26     0.55%         -0.66%  1.76%
CTXS /TNA   BUY  /BUY      63.61     1.45%          1.15%  1.76%
IWM  /VRSN  BUY  /BUY      57.69     0.18%          0.58% -0.22%
QCOM /VRSN  BUY  /BUY      52.45    -0.05%          0.11% -0.22%
CTXS /IWM   BUY  /BUY      50.58     0.87%          1.15%  0.58%
CTXS /VRSN  BUY  /BUY      50.54     0.46%          1.15% -0.22%
QQQQ /VRSN  BUY  /BUY      48.75     0.11%          0.44% -0.22%
CTXS /QQQQ  BUY  /BUY      47.84     0.79%          1.15%  0.44%
CTXS /MRVL  BUY  /BUY      45.95     0.24%          1.15% -0.66%
QCOM /TNA   BUY  /BUY      45.67     0.94%          0.11%  1.76%
IWM  /TNA   BUY  /BUY      45.24     1.17%          0.58%  1.76%
QQQQ /TNA   BUY  /BUY      44.32     1.10%          0.44%  1.76%
IWM  /QQQQ  BUY  /BUY      41.37     0.51%          0.58%  0.44%
MRVL /VRSN  BUY  /BUY      40.86    -0.44%         -0.66% -0.22%
CTXS /QCOM  BUY  /BUY      39.84     0.63%          1.15%  0.11%
IWM  /QCOM  BUY  /BUY      39.21     0.34%          0.58%  0.11%
IWM  /MRVL  BUY  /BUY      37.90    -0.04%          0.58% -0.66%
QCOM /QQQQ  BUY  /BUY      35.83     0.28%          0.11%  0.44%
MRVL /QCOM  BUY  /BUY      34.22    -0.28%         -0.66%  0.11%
MRVL /QQQQ  BUY  /BUY      33.91    -0.11%         -0.66%  0.44%

(2) === Hedged Pairs: BUY/SHORT or SHORT/BUY ===
*** No PAIRS found in this Category

(3) === SHORT Pairs: SHORT/SHORT ===
*** No PAIRS found in this Category





         4.5  Global Statistics for All Trades Grouped by Signal Types
         =============================================================

                H I S T O R I C A L   T R A C K I N G   D A T A
                            (since 7/17/09)


The following Report presents performance summaries based upon our published
history of stock/ETF daily 'picks', and separate data lines are shown for each
of the 7 types of signals that we are currently tracking.  This information
is being used to determine: (1) which of the 7 signal types produce the highest
G/d ratio (annualized gain divided by maximum drawdown), (2) whether SHORT
trades are equally as profitable as Long trades, and (3) whether the current
strategy of trading ONLY when the QQQQ Voted Signal is a BUY or a SHORT is an
effective strategy or not. In considering #3, it might be more profitable to
trade based upon MTI value, MSI (Market Strength Indicator) values, our
Generalized Japanese Candlestick neural networks, or something else...


KEY:
====
Note 1: The 'Avg. Gain per trade' takes into account ONLY those market days
when we actually make trades, i.e., when the QQQQ Voted Signal is a BUY or a
SHORT. These figures combine both the Long and Short trades, and separate values
for BUY and SHORT trades are shown in the adjacent two columns.

Note 2: The 'Avg. Gain per BUY' only looks at days when BUYs are made, and it
averages the net gain or loss made for all BUY trades on those days, and these
figures are maintained by Signal 'Type'. The idea is to compare the 'Avg. Gain
per BUY' value with the 'Avg. Gain per SHORT' value to see how well our BUY
profits compare to our Shorting profits -- for each of our 7 signal Types.
Corresponding to the 'Avg. Gain per BUY' is the 'Avg. Accuracy per BUY'. This
shows the percentage of BUY signals for that 'type' that produced winning
trades for the day.

Note 3: The 'Avg. Gain per SHORT' only looks at days when SHORTs are made, and
it averages the net gain or loss made for all SHORT trades on those days, and
these figures are maintained by Signal 'Type'. Corresponding to the 'Avg. Gain
per SHORT' is the 'Avg. Accuracy per SHORT'. This shows the percentage of SHORT
signals for that 'type' that produced winning trades for the day.

Note 4: The 'Total Gain' counts ALL market days, even those on which no trades
were made (QQQQ Voted Signal = Cash). Since we base all statistics upon buying
(or shorting) at the Open, and Selling (or Covering) at the Close price, we
are always in cash on the 'off days'. This gain is compounded, and is thus not
equal to the 'Avg. Gain per trade' multiplied by the '# of days trades were
made'.  Although these values don't account for commissions or slippage, they
represent the Actual percentage gains that might be realistically made if ALL
signals for the given TYPE were traded.

Note 5: The 'Annualized Gain' takes the 'Total Gain' values and annualizes
them to a full trading year. Since 'Total Gain' is maintained for all market
days -- even those days when we make no trades at all -- it is easy to
annualize.


        Average Gain per Trade/BUY/SHORT                         Trading Portfolio Performance
        =======================================================  ===================================
Signal  Avg. Gain  Avg. Gain  Avg. Acc.   Avg. Gain   Avg. Acc.       Total   Annualized    Maximum
Type    per trade   per BUY    per BUY    per SHORT   per SHORT       Gain       Gain       Drawdown
=====   =========  =========  ==========  =========  ==========    ========   ==========   =========
All       0.04%       0.07%      52.53%      -0.05%      45.14%      21.31%       7.88%     -13.63%

# 1       0.04%       0.06%      54.14%      -0.04%      46.09%      20.42%       7.57%     -16.11%
# 2      -0.01%       0.02%      52.93%      -0.10%      43.66%      -9.31%      -3.77%     -24.72%
# 3       0.05%       0.05%      51.01%       0.06%      45.79%      29.89%      10.81%     -12.47%
# 4       0.03%       0.07%      52.42%      -0.09%      35.85%      17.30%       6.46%     -12.46%
# 5       0.03%       0.05%      50.88%      -0.02%      33.33%      13.64%       5.15%     -26.89%
# 6       0.01%       0.00%      48.54%       0.04%      27.27%       0.15%       0.06%     -31.12%
# 7       0.05%       0.07%      53.07%       0.00%       0.00%      30.14%      10.89%     -15.35%

# of market days:  642;   # of days trades were made:  572




      4.6   Global Statistics for All Pairs Trades Grouped by G/d Range
      =================================================================

The purpose of this subreport is to track the actual performance of all of
the Trading Pairs generated since tracking was initiated on 7/17/09. The
Pairs are grouped into 3 categories: LONG-only Pairs (BUY/BUY), SHORT-only
Pairs (SHORT/SHORT), and Hedged Pairs (BUY/SHORT or SHORT/BUY). Within each
Pair category, there are 5 breakdowns determined by the back-tested G/d values
associated with each Pair (G/d = Annualized Gain divided by Maximum Drawdown):

   Top Pair Only        Only the top (largest G/d) pair is traded each day.
   All G/d Pairs        All pairs within that category are traded each day
   G/d >= 60.0          Only pairs having G/d values of 60.0 or greater are
                           traded each day.
   60.0 > G/d >= 40.0   Only pairs having G/d values between 40.0 and 60.0 are
                           traded each day.
   40.0 > G/d >= 20.0   Only pairs having G/d values between 20.0 and 40.0 are
                           traded each day.

Within each of the 5 G/d breakdowns within each of the three Trading Pair
categories, the number of historical trades is shown that were averaged
together.

Note that all trades were made with Protective Stops set at -3.0% for Longs
(Open price - 3.0%), and at +3.0% for Shorts (Open price + 3.0%).

At the present time our focus is on gathering data, and on learning which
types of Pairs Trades -- and which G/d value ranges -- produce the best
returns. We will eventually add the usual tracking parameters to this Table:
(a) total compounded gain, (b) annualized gain, and (c) maximum drawdown.


                    Avg.Gain   # trades
G/d Range           per trade  averaged
==================  =========  ========
(1) === LONG Pairs: BUY/BUY ===
Top Pair Only          0.34%       358
All G/d Pairs          0.43%     33583
G/d >= 60.0            0.21%       846
60.0 > G/d >= 40.0     0.40%      9069
40.0 > G/d >= 20.0     0.45%     23210

(2) === Hedged Pairs: BUY/SHORT or SHORT/BUY ===
Top Pair Only          0.00%       258
All G/d Pairs          0.01%      6268
G/d >= 60.0            0.00%       229
60.0 > G/d >= 40.0     0.00%      1685
40.0 > G/d >= 20.0     0.01%      4162

(3) === SHORT Pairs: SHORT/SHORT ===
Top Pair Only         -0.25%       373
All G/d Pairs         -0.26%     97088
G/d >= 60.0           -0.29%      3426
60.0 > G/d >= 40.0    -0.28%     22358
40.0 > G/d >= 20.0    -0.26%     63462


===============
END OF REPORT 4
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

================================================================================
FORECAST Report 5: Intra-Day Tactics Using MOS/MCS (as of the Close on  2/04/12)
================================================================================

The following two Tables have been extracted from the Report predtabl.htm, and
they share the common theme of using "signatures", plus the current MTI value,
in an attempt to predict how 3 key ETFs will Close based upon the morning's
Open price, or will Open tomorrow based upon today's Close price.

The "signatures" are based upon the changes in the prices of QQQQ, SMH, and
DIA, and in that specific order. The MOS (Market Open Signature) depicts how
QQQQ, SMH, and SPY 'opened' in comparison to the previous day's Close, and
the MCS (Market Close Signature) depicts how QQQQ, SMH, and SPY 'closed' in
comparison to the current day's Open.  In Table I-A we use the MOS (which must
be determined at the market Open) to try to forecast what might be expected
to happen at the Close, and in Table I-B we look at the MCS (which we project
for the market Close) to try to forecast what might be expected to happen at
the next market Open.

The use of these Tables is still experimental, but the next logical step is
to use the probabilities to help decide whether to commit to a short-term
trade during the current day, or to keep a trade overnight.



                         Table I-A (extracted from predtabl.htm)
                         =======================================

Probabilities that QQQQ, SMH, and SPY will close higher based upon the MOS
(Market Open Signature) value.  The idea is to use historical values of the
MTI and MOS to determine the most likely outcome for QQQQ, SMH, and SPY
Closing prices.

MOS = (xyz) where x = '+' if QQQQ Opens higher than previous Close, otherwise '-'
                  y = '+' if SMH  Opens higher than previous Close, otherwise '-'
                  z = '+' if SPY  Opens higher than previous Close, otherwise '-'

Key:
====
CL>OP%    Probability that the ETF will Close higher than its Open price
CL>CL%    Probability that the ETF will Close higher than the Preceding Close price


MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (+++)   285    QQQQ    54.04%  71.58%
                      SMH    51.58%  67.02%
                      SPY    50.53%  73.68%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (++-)    41    QQQQ    68.29%  75.61%
                      SMH    60.98%  73.17%
                      SPY    75.61%  60.98%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (+-+)    50    QQQQ    50.00%  60.00%
                      SMH    52.00%  50.00%
                      SPY    48.00%  68.00%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (+--)    25    QQQQ    52.00%  64.00%
                      SMH    44.00%  36.00%
                      SPY    60.00%  44.00%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (-++)    15    QQQQ    80.00%  66.67%
                      SMH    66.67%  66.67%
                      SPY    73.33%  73.33%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (-+-)    42    QQQQ    61.90%  52.38%
                      SMH    45.24%  52.38%
                      SPY    64.29%  52.38%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (--+)    28    QQQQ    57.14%  57.14%
                      SMH    60.71%  53.57%
                      SPY    53.57%  57.14%

MTI   (MOS)  #cases   ETF    CL>OP%  CL>CL%
-------------------------------------------
1.35  (---)   250    QQQQ    58.00%  40.00%
                      SMH    53.60%  32.40%
                      SPY    59.60%  40.00%



                         Table I-B (extracted from predtabl.htm)
                         =======================================

Probabilities that QQQQ, SMH, and SPY will Open higher on the following trading
day based upon the MCS (Market Close Signature) value at today's Close -- and
at the current MTI (Market Timing Indicator) value.


MCS = (xyz) where x = '+' if QQQQ Closes higher than today's Open, otherwise '-'
                  y = '+' if SMH  Closes higher than today's Open, otherwise '-'
                  z = '+' if SPY  Closes higher than today's Open, otherwise '-'


Key:
====
OP>CL%    Probability that the ETF will Open higher than today's Close price.

There are two probabilities given that depend upon whether today's Close was
higher than today's Open (case 1), or today's Close was lower than today's
Open (case 2).

                   1:ETF Close > Open  2:ETF Close < Open
MTI   (MCS)   ETF  (#cases   OP%>CL%)  (#cases   OP%>CL%)
---------------------------------------------------------
1.35  (+++)  QQQQ      257    50.19%        36    52.78%
              SMH      261    46.36%        32    53.12%
              SPY      250    44.80%        43    55.81%
1.35  (++-)  QQQQ       30    66.67%         8    62.50%
              SMH       31    54.84%         7    57.14%
              SPY       16    56.25%        22    63.64%
1.35  (+-+)  QQQQ       57    42.11%        11    36.36%
              SMH       19    42.11%        49    55.10%
              SPY       55    45.45%        13    69.23%
1.35  (+--)  QQQQ       23    56.52%         6    66.67%
              SMH        6    50.00%        23    56.52%
              SPY       11    63.64%        18    55.56%
1.35  (-++)  QQQQ        9    66.67%        12    58.33%
              SMH       18    50.00%         3     0.00%
              SPY       16    62.50%         5    40.00%
1.35  (-+-)  QQQQ        4    25.00%        26    42.31%
              SMH       20    55.00%        10    30.00%
              SPY        3     0.00%        27    48.15%
1.35  (--+)  QQQQ        9    55.56%        37    51.35%
              SMH        6    50.00%        40    60.00%
              SPY       30    40.00%        16    56.25%
1.35  (---)  QQQQ       29    55.17%       181    62.98%
              SMH       27    51.85%       183    58.47%
              SPY       34    58.82%       176    62.50%

===============
END OF REPORT 5
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

===============================================================================
FORECAST Report 6: Primary Indicators and Signals (as of the Close on 02/03/12)
===============================================================================

The following Table shows all of our PRIMARY indicators, drawn from all
components of our System.

++/--/?? symbols are used to indicate whether the indicator (or CHANGE in the
indicator) is favorable for Longs (++), unfavorable for Longs (--), or
ambiguous (??). We utilize this Table to help us gauge the overall condition
of the market, and as a checklist to ensure that we don't overlook any
pertinent factor.

   Indicator      02/03/12             02/02/12
-----------------------------------------------------
?? MutFnd MFTI:   hold            <--  hold
?? MutFnd Score:  8.21            <--  7.82

?? GrailSys Buy%: 58.86%          <--  50.25%
?? 80+%Club Buy%: 48.48%          <--  48.39%

?? MTI (MktTim):  1.3500          <--  1.2500
?? MktColorCode:  ORANGE          <--  RED
?? LSI/SSI:       6.88/ 0.24      <--  6.21/ 0.76
?? TSI ("techs"): 28.6            <--  28.0

?? Preproc. TOT:  294             <--  296
?? Preproc. #L:   11              <--  10
?? Preproc. #S:   0               <--  0
?? #LongRawSigs:  5               <--  4

?? NN1 (1-day):   5.66%           <--  0.71%
?? NN3 (3-day):   -2.13%          <--  -3.42%
?? NN8 (8-day):   1.75%           <--  3.38%
?? CNNI (avg.):   3.20%           <--  3.39%
?? QQQQ 5-day:    -----           <--  -----

?? Prudent A.V.:  (  0,  0,100)%  <--  (  0,  0,100)%
?? AllocVec #0:   ( 31,  0, 69)%  <--  ( 28,  0, 72)%
?? AllocVec #1:   ( 40, 60,  0)%  <--  ( 35, 65,  0)%
?? AllocVec #2:   ( 39, 61,  0)%  <--  ( 32, 68,  0)%
?? Recommended:   0-31% LONG      <--  0-28% LONG

?? Preproc. L/1:  1               <--  1
?? MRI Indicator: 0.05            <--  0.10

?? PredTablSigs:  ****/SS         <--  */S
?? PredTablQQQQ:  DN              <--  DN
?? PredTablSMH:   DN              <--  DN
?? PredTablSPY:   ??              <--  UP
?? PredTablDIA:   DN              <--  DN

++ VotedClA QQQQ: BUY             <--  BUY
++ VotedClA SPY:  BUY             <--  BUY
++ VotedClA DIA:  BUY             <--  BUY
++ VotedClA IWM:  BUY             <--  BUY
++ VotedClA MDY:  BUY             <--  BUY
++ VotedClA SMH:  BUY             <--  BUY
++ VotedClA XLK:  BUY             <--  BUY
++ VotedClA IYW:  BUY             <--  BUY
++ VotedClA IXN:  BUY             <--  BUY
++ VotedClA IYY:  BUY             <--  BUY
++ VotedClA IYZ:  BUY             <--  BUY
++ VotedClA IWZ:  BUY             <--  BUY
++ VotedClA IWW:  BUY             <--  BUY
++ VotedClA IBB:  BUY             <--  BUY
++ VotedClA IYJ:  BUY             <--  BUY

++ VotedClB QQQQ: BUY             <--  BUY
++ VotedClB SPY:  BUY             <--  BUY
++ VotedClB DIA:  BUY             <--  BUY
++ VotedClB IWM:  BUY             <--  BUY
++ VotedClB MDY:  BUY             <--  BUY
++ VotedClB SMH:  BUY             <--  BUY
++ VotedClB XLK:  BUY             <--  BUY
++ VotedClB IYW:  BUY             <--  BUY
++ VotedClB IXN:  BUY             <--  BUY
++ VotedClB IYY:  BUY             <--  BUY
++ VotedClB IYZ:  BUY             <--  BUY
++ VotedClB IWZ:  BUY             <--  BUY
++ VotedClB IWW:  BUY             <--  BUY
++ VotedClB IBB:  BUY             <--  BUY
++ VotedClB IYJ:  BUY             <--  BUY

++ VotedClC QQQQ: BUY             <--  BUY
++ VotedClC SPY:  BUY             <--  BUY
++ VotedClC DIA:  BUY             <--  BUY
++ VotedClC IWM:  BUY             <--  BUY
++ VotedClC MDY:  BUY             <--  BUY
++ VotedClC SMH:  BUY             <--  BUY
++ VotedClC XLK:  BUY             <--  BUY
++ VotedClC IYW:  BUY             <--  BUY
++ VotedClC IXN:  BUY             <--  BUY
++ VotedClC IYY:  BUY             <--  BUY
++ VotedClC IYZ:  BUY             <--  BUY
++ VotedClC IWZ:  BUY             <--  BUY
?? VotedClC IWW:  $$$$            <--  $$$$
?? VotedClC IBB:  $$$$            <--  $$$$
?? VotedClC IYJ:  $$$$            <--  $$$$

?? $NQ-RU:        +/-             <--  +/-
?? $NQ-SP:        +/-             <--  +/-
?? $NQ-DW:        +/-             <--  +/-

Definitions:
============
MutFnd MFTI    Mutual Fund Timing Indicator (BUY/SELL/HOLD)
MutFnd Score   (0=Hard Sell, 5=Hold, 10=Strong Buy)

GrailSys Buy%  Percentage of 1000 Grail System equities in the BUY state
80+%Club Buy%  Percentage of BUYS among Grail models with accuracies >= 80%

MTI (MktTim)   Market Timing Indicator (calculated by Preprocessor)
MktColorCode   Market Color Code (GREEN,BLUE,YELLOW,ORANGE,RED)
LSI/SSI        Long Strength Indicator/Short Strength Indicator
TSI ("techs")  Technical Strength Indicator ('tech' stocks)

Preproc. TOT   Preprocessor Value: Total # of equities held LONG
Preproc. #L    Preprocessor Value: # of new LONGs for tomorrow
Preproc. #S    Preprocessor Value: # of new SHORTs for tomorrow
#LongRawSigs   Preprocessor Value: # of 'Raw' (unvoted) Long Signals (0-10)

NN1 (1-day)    Neural Network: 1-day projection for QQQQ
NN3 (3-day)    Neural Network: 3-day projection for QQQQ
NN8 (8-day)    Neural Network: 8-day projection for QQQQ
CNNI (avg.)    Neural Network: Combined (avg.) n-day projection for QQQQ
QQQQ 5-day     QQQQ 5-day 'Weather Forecast'

Prudent A.V.   Prudent Asset Allocation Vector:    (%Long, 0,    %Cash)
AllocVec #0    Long/Cash Asset Allocation Vector:  (%Long, 0,    %Cash)
AllocVec #1    "Official" Asset Allocation Vector: (%Long,%Short,%Cash)
AllocVec #2    Aggressive Asset Allocation Vector: (%Long,%Short,    0)
Recommended    Recommended LONG% Allocation Range (Prudent to Aggressive)

Preproc. L/1   Preprocessor L/1 Portfolio: 0 if NO holding; 1 if FULL
MRI Indicator  MRI Indicator (negative values can portend major movements)

PredTablSigs   Prediction Table (PREDTABL) Class 1/2 QQQQ Signals
PredTablQQQQ   Prediction Table (PREDTABL) 'Probable' Direction of QQQQ (UP/DN)
PredTablSMH    Prediction Table (PREDTABL) 'Probable' Direction of SMH  (UP/DN)
PredTablSPY    Prediction Table (PREDTABL) 'Probable' Direction of SPY  (UP/DN)
PredTablDIA    Prediction Table (PREDTABL) 'Probable' Direction of DIA  (UP/DN)

VARPORT Buy%   VARPORTA-G (Intermediate-Term) portfolios: Max Long%
"H" Buy%       PORTSTAT (Grail System) portfolios: Avg Long% of "H" portfolios
"N" Buy%       PORTSTAT (Grail System) portfolios: Avg Long% of "N" portfolios
"C" Buy%       PORTSTAT (Grail System) portfolios: Avg Long% of "C" portfolios
"E" Buy%       PORTSTAT (Grail System) portfolios: Avg Long% of "E" portfolios
"U" Buy%       PORTSTAT (Grail System) portfolios: Avg Long% of "U" portfolios

VotedSigQQQQ   Voted QQQQ Signal (from voteqqqq.htm report)
$NQ-RU         Differential Signal (from diffhist.htm): QQQQ vs. IWM
$NQ-SP         Differential Signal (from diffhist.htm): QQQQ vs. SPY
$NQ-DW         Differential Signal (from diffhist.htm): QQQQ vs. DIA
$NQ-AU         Differential Signal (from diffhist.htm): QQQQ vs. GLD (Gold)



===============
END OF REPORT 6
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================

=============================================================================
FORECAST Report A: Portfolio/Strategy Directory (as of the Close on 02/03/12)
=============================================================================

The following Table organizes many of the more effective strategies supported
by the myriad reports of the Strategist Newsletter, and organizes them into
families and subfamilies of similar strategies. For each type of strategy,
the Directory points you to the Reports that are necessary to support that
strategy, and lists some examples of the 'best' specific strategy within
the subfamily. Symbolic names are used for families, subfamilies, and strategy
variations in order to facilitate future discussions and studies.

The 'top' strategy at the present time is considered to be E2PH:{QQQQ/DIA},
a high-performing, but conservative strategy that is fully hedged during weak
market conditions, and which trades QQQQ aggressively during strong market
conditions. E2PH:{QQQQ/SPY} runs a very close second in performance and safety.

Whenever it is clear that subscribers need further information in order to
choose the strategy that is best for them, or to actually 'run' the strategy,
then we will add more explanatory text -- or hyperlinks to more detailed
instructions. Please let us know what you need.


3 Fundamental Proprietary Techniques
====================================
The Schulenberg Stock Strategist System is constructed using 3 powerful and
unique mathematical modeling concepts:

1. MTI (Market Timing Indicator). The MTI is an accurate 'predictor' of the
strength of the market -- not just an estimate of its current strength, but
an indicator of short-term 'future' market strength. The MTI might also be
called the 'Market Temperature Indicator' because it is analogous to the
equations in Physics by which the temperature of a gas can be determined by
looking at the distribution of speeds (momenta) of gas molecults. Rather than
counting the number of molecules contained within various speed partitions,
however, we construct a spectrum of stock portfolios that vary in size, and
that have very special (and rather surprising) buy and sell rules. We then
gauge the temperature of the market by looking at the number of stocks that
are currently contained within each portfolio, as well as looking at the
overall 'curve' that is produced by looking across the spectrum of portfolios
from the smallest to the largest portfolios.

2. Generalized Japanese Candlestick Neural Networks. What we do here is to
convert the four prices for each day (Open, High, Low, Close) to a transformed
set of four dimensionless numbers -- rather than converting them directly to
Japanese candlesticks. We call this the RaDiSH Transform because the four
prices become the dimensionless and time-invariant R, D, S, and H parameters.
We then incorporate these 4 parameters with the previous 2 days of values,
throw in the recent time history of the MTI as well as some commodities
prices (gold, oil, etc.), and train a neural network to predict the price of
QQQQ 1 day in advance. What this effectively does is to find the Japanese
Candlestick patterns that actually have predictive power, and we obtain the
prediction -- without ever actually knowing what kind of a pattern had been
detected. Since the R, D, S, and H parameters are both dimensionless and
time-invariant, they produce neural networks that have predictive power not
only over QQQQ, but also over other stocks and ETFs -- and over wide ranges
of price histories.

3. Mutual Fund Timing Indicator. Our MFTI is constructed based upon our MTI
value, and it produces a mutual fund buy/sell signal that is not only highly
accurate, but that also switches (buy > sell, sell > buy) fairly infrequently.
Another proprietary idea, however, is that we develop a relative strength for
1000 different mutual funds by the following process:

    a. Determine the current composition of each mutual fund by finding the
       weighted sum of 5 ETFs (or key stocks) whose price history over the
       past N market days most closely matches the actual price history of
       the mutual fund. This is done by a Monte Carlo (Darwinian) process
       and it generates surprisingly good results -- generally developing
       decompositions into ETFs that match closely the stated 'objectives'
       of the mutual fund.

    b. Use the estimated composition of each mutual fund as a weighted sum
       of equities for which we have timing signals, and then calcule a net
       timing signal for the entire mutual fund.  The resulting timing
       information is contained within the MUTFUNDS.TXT report, and the
       decompositions can be provided upon request (because of the size of
       the decomposition report it is not included in the daily report archive).



I.   E1    Work with 1 ETF exclusively.
=======================================
Method: We use our Voted Signals for each ETF, and these take into account not
only the recent price history for a particular ETF, but also factor in the
Voted Signals for related ETFs -- and for the market as a whole.


      (1) E1LS   Trade 1 ETF both Long and Short (we have over 20 ETF signals)
                 Relevant Reports: TRKVOTEB.TXT, ALLVOTES.TXT
                 Tracked by TimerTrac(TM): QQQQ, SPY, DIA, SMH, MDY, IWM
  >>>            Favorites: E1LS:QQQQ, E1LS:IWM, E1LS:SMH
                 See Forecast Report 3 for 2x and 3x ETF equivalents
                   (QLD, QID, SSO, SDS, DDM, DXD, ...)
                 Stops/Exits: See TRKVOTEB.TXT

      (2) E1LO   Trade 1 ETF Long-Only (more conservative)
                 Relevant Reports: TRKVOTEB.TXT, ALLVOTES.TXT
  >>>            Favorites: E1LO:QQQQ, E1LO:IWM, E1LO:SMH
                 Stops/Exits: See TRKVOTEB.TXT


II.  E2    Work with 2 ETFs as a portfolio.
===========================================
Method (E2FH/E2PH): We construct a 'pseudo-ETF' whose price history is the
ratio of ETF1 to ETF2 (the quotient), and whose daily trading volume is the
harmonic mean of the two ETFs. We then generate a Voted Signal (utilizing
our MTI value and related Voted Signals) for this 'differential' ETF and
it accurately generates the BUY/SHORT or SHORT/BUY signals for the ETF pair.

Method (E2TP): We analyze all possible pairs of our 140 Voted Signals (this
is 9730 possible 2-equity portfolios), and we back-test all pairs over a
7 year trading history in order to determine the pairs that have the highest
G/d ratio (annualized gain divided by maximum drawdown). This analysis is
summarized in the STKPAIRS.TXT report. We then select the 20 best pairs of
ETFs, and we back-test these again, but this time varying the equity ratio
between the two ETFs in order to find the optimum percentages of ETF1 and
ETF2 that produce the maximal G/d ratio. This analysis is summarized in the
TRKPAIRS.TXT report.


      (1) E2FH   Trade 2 ETFs in a Fully Hedged fashion (ALL the time)
                 Relevant Reports: Forecast Report 1
  >>>            Favorites: E2FH:QQQQ/DIA, E2FH:QQQQ/SPY, E2FH:SMH/SPY
                 See Forecast Report 3 for 2x and 3x ETF equivalents
                   (QLD, QID, SSO, SDS, DDM, DXD, ...)

      (2) E2PH   Trade 2 ETFs in a Partially Hedged fashion
                 Relevant Reports: Forecast Report 1
  >>>            Favorites: E2PH:{QQQQ/DIA}, E2PH:{QQQQ/SPY}
                 See Forecast Report 3 for 2x and 3x ETF equivalents
                   (QLD, QID, SSO, SDS, DDM, DXD, ...)

      (3) E2TP   Trade 2 ETFs as a Trading Pair
                 Relevant Reports: Forecast Report 2, STKPAIRS.TXT,
                   TRKPAIRS.TXT, ALLVOTES.TXT
  >>>            Favorites: E2TP:IWM/SMH


III. En    Work with a portfolio of 'n' ETFs.
=============================================
      (1) En     Trade 'n' ETFs as a portfolio
                 Relevant Reports: Forecast Report 2, STKPAIRS.TXT,
                   TRKPAIRS.TXT, ALLVOTES.TXT
                 Method: Use Forecast Report 2 to construct portfolios
                   of 3 ETFs (by selecting two Trading Pairs with an ETF
                   in common) or 4 ETFs (by selecting two Trading Pairs
                   with no ETFs in common). Use the Equity Ratios for the
                   Trading Pairs to determine the overall portfolio equity
                   ratios. Construct portfolios of 5 or more ETFs in a
                   similar fashion. Trade the portfolio by following the
                   signals in the ALLVOTES.TXT Report.


IV.  S1    Work with a single stock.
====================================
Method: We use our Voted Signals for each stock, and these take into account not
only the recent price history for a particular stock, but also factor in the
Voted Signals for related stocks -- and for the market as a whole.

      (1) S1LS   Trade 1 stock both Long and Short (we have 120 stock signals)
                 Relevant Reports: ALLVOTES.TXT, TRKQSTKA.TXT, TKQ1STKA.TXT,
                   TKQ2STKA.TXT, TKQ3STKA.TXT, TRKDSTKA.TXT, TKM1STKA.TXT
  >>>            Favorites: S1LS:AMZN, S1LS:ATVI, S1LS:MSFT, S1LS:AAPL
                    also,   S1LS:FAS(FAZ). Use TKM1STKA.TXT for tracking of
                    FAS, and TRKQSTKA.TXT for AMZN, ATVI, MSFT, and AAPL
                 Stops/Exits: See appropriate tracking report, e.g.,
                   TRKQSTKA.TXT.

      (2) S1LO   Trade 1 stock Long-Only (more conservative)
                 Trade only on BUY signals
                 Stops/Exits: See appropriate tracking report, e.g.,
                   TRKQSTKA.TXT.

      (3) S1LOHZ Trade 1 stock Long-Only and only in the MTI High-Zone
                 (most conservative). Trade only on BUY signals and only if
                 the MTI is >= 1.0 (trading only on MTI > 1.0 signals would
                 result in protracted stays in Cash).
                 Stops/Exits: See appropriate tracking report, e.g.,
                   TRKQSTKA.TXT.


V.   S2    Work with a pair of stocks as a portfolio.
=====================================================
      (1) S2TP   Trade 2 stocks, both Long and Short, as a Trading Pair.
                 Relevant Reports: STKPAIRS.TXT, ALLVOTES.TXT
                 Good Candidates: S2TP:ALTR/JNPR, S2TP:ALTR/VRTX,
                   S2TP:JPM/LRCX, S2TP:AXP/NTAP, ...


VI.  Sn    Work with a portfolio of 'n' stocks.
===============================================
      (1) Sn     Trade 'n' stocks as a portfolio.
                 Relevant Reports: STKPAIRS.TXT, ALLVOTES.TXT
                 Method: Use STKPAIRS.TXTE Report to construct portfolios
                   of 3 stocks (by selecting two Trading Pairs with a stock
                   in common) or 4 stocks (by selecting two Trading Pairs
                   with no stocks in common). Use an even equity distribution
                   that assigns equal funds to each stock. Construct portfolios
                   of 5 or more stocks in a similar fashion.  Trade the
                   portfolio by following the signals in the ALLVOTES.TXT
                   Report.


VII.  Mutual Funds (see MUTFUNDS.TXT Report and keep an eye on the Mutual
                 Fund Timing Indicator, MFTI).
==============================================

===============
END OF REPORT A
===============
============ Forecast Reports ============
Report 1: Differential Signals
Report 2: Pairs Trading
Report 3: Voted Signals
Report 4: Day Trades
Report 5: Prediction Table
Report 6: Primary Indicators
Report A: Major Strategies
==========================================