COMMENTARY
Our new Daily Forecast format is approaching a satisfactory layout. If anyone spots typos or glitches in the text, or anything else, please let us know.
Also, we are very interested in suggestions as to things to add, informational text to refine and clarify, etc.

Hyperlinks: We have now added hyperlinks at the top of the Report that will immediately jump you to a desired Section.

Portfolios: We have expanded the original set of 2 Grail System Portfolios and there are now 5. Since the largest of these, the SUPER15, will
handle as much money as any of our subscribers are likely to want to invest, this spectrum of 5-, 7-, 10-, 12-, and 15-stock portfolios should be
quite sufficient without the need for digging into our larger portfolios (with up to 48 or 62 stocks maximum), as these are unwieldy and expensive
to operate. There are now direct Portfolio hyperlinks as well, also at the top of the Report.

For each Portfolio there is a pair of Tables: the first Table shows the mandatory trades for the next Open, and the immediately following Table
shows the back-tested performance for that Portfolio. The Super15 has been traded with real money for the past year and has performed well -- and has
generated a decent profit over the February 2, 2018 to February 8, 2019 period. It did suffer some considerable drawdown towards the end of 2018, but
this has been largely addressed (for future situations) by the addition of ADC (Active Drawdown Control) logic. The other portfolios only have back-tested
data to support them, but we have automatic tracking machinery that shows, for example, that the NOVA07 performs as well or better than the SUPER15 and
has the advantage of fewer trades and reduced commission costs.

For the time being we are attaching the Forcast6.htm file (Section 6 Report) to each Daily Forecast in lieu of the rather large and excessively detailed
allinds.csv report. The signals.csv report will, of course, always be provided. And we have a large number of other interesting reports that may be
added occasionally.


T h e   S T O C K   S T R A T E G I S T   N E W S L E T T E R

Full Subscription

Market  FORECAST  for:  02/11/2019

SECTION Links

1. Daily, Intermediate-Term, and Long-Term Outlook>
2. Daily Index ETF Signals
3. Collective2 Strategies
4. Subscriber-Generated Portfolios
5. Grail System Portfolios
6. Back-Tested Performance (Daily Index ETF Signals)

PORTFOLIO Links

NOVA05 Portfolio
NOVA07 Portfolio
NOVA10 Portfolio
NOVA12 Portfolio
SUPER15 Portfolio


1a. Daily Market Direction

"Z" Market Strength Indicator for 02/11/2019: +1.00
-1.00 :: Strongly SHORT Market
-0.75 :: Moderately SHORT Market
-0.50 :: Weakly SHORT Market
-0.25 :: Slightly Negative Market
 0.00 :: Weak/Neutral/Stable Market
+0.25 :: Slightly Positive Market
+0.50 :: Weakly LONG Market
+0.75 :: Moderately LONG Market
+1.00 :: Strongly LONG Market

[info]

1b. Intermediate-Term Market Direction

RLP: 100.00% (Range: 50% to 100% :: Recommended Long Percentage for Stock Portfolios)
GSI: 0.96    (Range: 0.0 to 1.0  :: Grail Strength Indicator; Status of Grail System models)
MSI: 0.98    (Range: -1.0 to 1.0 :: Market Strength Indicator; Status of Voted Signals System models)

[info]

1c. Long-Term Market Direction

MFTI-A: BUY (Mutual Fund Timing Indicator "A")
MFTI-B: BUY (Mutual Fund Timing Indicator "B")
CNNI:   8.07 (Combined Neural Network Indicator; Average of NN1 thru NN10; critical value = 0.6127)

[info]


2. Daily Index ETF Signals (Full Subscription Only)

SPY Signal: +100% (BUY)    (SPYPRED5 Model: S&P 500)
QQQ Signal: +100% (BUY)    (QQQPRED2 Model: NASDAQ 100)
DIA Signal: +100% (BUY)    (DIAPRED2 Model: DOW 30)
IWM Signal: +100% (BUY)    (IWMPRED2 Model: RUSSELL 2000)

[info]


3. Collective2 Strategies (collective2.com)

C2Star Hyperbolic SPY (an IRA-friendly conservative strategy for the S&P)
3X Hyperbolic SPY (an aggressive 3x strategy for the S&P)
3X Hyperbolic QQQ (an aggressive 3x strategy for the NASDAQ 100)
3X Hyperbolic DIA (an aggressive 3x strategy for the DOW 30)
3X Hyperbolic IWM (an aggressive 3x strategy for the RUSSELL 2000)

[info]


4. Subscriber-Generated Portfolios (using signals.csv)

RLP: 100.00% (Range: 50% to 100% :: Recommended Long Percentage for Stock Portfolios)

[info]

5. Grail System Portfolios (SUPER, NOVA)

[info]

***************************************************************************************

Trading Actions for Portfolio NOVA05 for 02/11/2019:
Slot #Current HoldingActionNew HoldingDescription
1CHKP---CHKPCheck Point Software Technologie
2CHRW---CHRWC.H. Robinson Worldwide
3CMCSA---CMCSAComcast Corp Cl A
4CTAS---CTASCintas Corp
5ORCL---ORCLOracle Corp


Back-Tested Performance of Portfolio: NOVA05
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2005 31.04% -4.25%102705 7.30 85
2006 57.39% -9.66%020606 5.94 202
2007 63.48% -4.87%031307 13.03 196
2008 147.44% -9.16%120108 16.09 226
2009 180.46% -6.62%070809 27.28 254
2010 68.08% -6.97%070610 9.76 180
2011 29.88% -9.89%112511 3.02 202
2012 11.41% -9.38%060412 1.22 114
2013 43.44% -5.34%062413 8.13 114
2014 17.73% -5.19%020314 3.42 104
2015 2.04% -6.82%100115 0.30 140
2016 5.08% -9.40%102716 0.54 122
2017 34.89% -4.73%091517 7.37 93
2018 24.34% -9.33%121718 2.61 118
2019 8.99% -1.72%012219 5.24 17
Avgs. 48.38% -6.89% 7.02 144

***************************************************************************************

Trading Actions for Portfolio NOVA07 for 02/11/2019:
Slot #Current HoldingActionNew HoldingDescription
1BA---BABoeing Co
2CHKP---CHKPCheck Point Software Technologie
3CHRW---CHRWC.H. Robinson Worldwide
4CTAS---CTASCintas Corp
5DISH---DISHDish Network Corp Cl A
6ORCL---ORCLOracle Corp
7SYMC---SYMCSymantec Corp


Back-Tested Performance of Portfolio: NOVA07
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2005 25.38% -4.42%123005 5.74 112
2006 61.57% -8.12%020606 7.58 245
2007 53.65% -5.53%030507 9.71 266
2008 118.96% -8.19%120108 14.52 276
2009 136.95% -7.12%090209 19.24 340
2010 53.27% -6.92%070610 7.69 252
2011 18.18% -12.06%112511 1.51 259
2012 7.84% -11.30%060412 0.69 142
2013 28.59% -5.50%062413 5.20 145
2014 9.18% -5.60%020314 1.64 154
2015 2.74% -7.72%092915 0.35 167
2016 9.82% -5.46%062716 1.80 160
2017 32.74% -4.37%081117 7.49 101
2018 15.33% -9.33%121718 1.64 132
2019 12.46% -1.62%012219 7.67 22
Avgs. 39.11% -6.88% 5.68 184

***************************************************************************************

Trading Actions for Portfolio NOVA10 for 02/11/2019:
Slot #Current HoldingActionNew HoldingDescription
1ADSK---ADSKAutodesk Inc
2BA---BABoeing Co
3C---CCitigroup
4CHKP---CHKPCheck Point Software Technologie
5CHRW---CHRWC.H. Robinson Worldwide
6CTAS---CTASCintas Corp
7EXPD---EXPDExpeditors International of Wash
8ORCL---ORCLOracle Corp
9SYMC---SYMCSymantec Corp
10VRTX---VRTXVertex Pharmaceuticals Inc


Back-Tested Performance of Portfolio: NOVA10
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2005 19.84% -3.96%123005 5.01 147
2006 45.76% -5.59%020606 8.18 320
2007 43.79% -4.47%022707 9.79 312
2008 89.46% -8.29%120108 10.79 343
2009 92.64% -6.83%012609 13.56 440
2010 49.55% -7.01%070610 7.07 318
2011 18.91% -9.40%112511 2.01 327
2012 9.33% -8.92%060412 1.05 167
2013 29.13% -5.55%062413 5.25 193
2014 12.71% -5.76%081514 2.21 213
2015 0.02% -7.49%090115 0.00 185
2016 11.26% -5.37%062716 2.10 216
2017 33.17% -4.68%081017 7.09 97
2018 7.71% -8.72%102418 0.88 168
2019 8.81% -1.27%010319 6.96 38
Avgs. 31.47% -6.22% 5.06 232

***************************************************************************************

Trading Actions for Portfolio NOVA12 for 02/11/2019:
Slot #Current HoldingActionNew HoldingDescription
1ADSK---ADSKAutodesk Inc
2BA---BABoeing Co
3C---CCitigroup
4CHKP---CHKPCheck Point Software Technologie
5CHRW---CHRWC.H. Robinson Worldwide
6CTAS---CTASCintas Corp
7EXPD---EXPDExpeditors International of Wash
8GESell & BuyADIAnalog Devices Inc
9ORCL---ORCLOracle Corp
10SYMC---SYMCSymantec Corp
11VRSN---VRSNVerisign Inc
12VRTX---VRTXVertex Pharmaceuticals Inc


Back-Tested Performance of Portfolio: NOVA12
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2005 15.35% -3.43%123005 4.48 175
2006 44.40% -3.77%110306 11.77 379
2007 38.78% -4.55%121707 8.52 343
2008 82.19% -9.25%120108 8.89 395
2009 120.26% -5.88%021009 20.46 518
2010 50.64% -7.26%070610 6.97 354
2011 17.41% -8.46%112511 2.06 377
2012 9.90% -7.83%072412 1.27 177
2013 29.52% -5.01%062413 5.89 213
2014 6.03% -5.83%101314 1.03 231
2015 -1.02% -7.77%092915 -0.13 200
2016 6.75% -6.24%062716 1.08 248
2017 34.32% -4.34%081717 7.91 96
2018 6.21% -8.74%121718 0.71 209
2019 7.31% -1.49%010319 4.92 39
Avgs. 31.20% -5.99% 5.21 263

***************************************************************************************

Trading Actions for Portfolio SUPER15 for 02/11/2019:
Slot #Current HoldingActionNew HoldingDescription
1ADI---ADIAnalog Devices Inc
2AMT---AMTAmerican Tower Corp
3BA---BABoeing Co
4CCI---CCICrown Castle Intl Corp
5HD---HDHome Depot Inc
6HRS---HRSHarris Corporation
7INTU---INTUIntuit Inc
8LAMR---LAMRLamar Advertising Co A
9NFLX---NFLXNetflix Inc
10ORCL---ORCLOracle Corp
11ORLY---ORLYO'reilly Automotive Inc
12SBAC---SBACSba Communications Corp
13SNPS---SNPSSynopsys Inc
14TSCO---TSCOTractor Supply Co
15TSM---TSMTaiwan Semiconductor Manufacturi


Back-Tested Performance of Portfolio: SUPER15
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2005 10.20% -4.46%081905 2.29 115
2006 31.28% -4.28%122206 7.30 172
2007 38.52% -6.54%082807 5.89 194
2008 47.75% -11.34%112008 4.21 398
2009 53.89% -11.16%030209 4.83 312
2010 47.55% -7.53%070210 6.32 148
2011 30.67% -10.15%100311 3.02 300
2012 19.66% -7.28%051812 2.70 88
2013 39.88% -6.12%062413 6.52 82
2014 9.97% -8.94%101614 1.12 114
2015 13.09% -10.32%082515 1.27 76
2016 20.18% -6.07%011316 3.32 125
2017 34.29% -4.41%070617 7.78 15
2018 3.27% -12.02%122018 0.27 218
2019 11.45% -2.61%010319 4.38 40
Avgs. 27.44% -7.55% 3.64 159

6. Back-Tested Performance (Daily Index ETF Models)

[info]

Back-Tested Performance of Model: SPYPRED5
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2004 18.23% -1.95%122804 9.37 33
2005 32.94% -4.34%060105 7.59 102
2006 94.43% -2.26%020706 41.73 154
2007 119.23% -3.11%082807 38.34 118
20082307.73% -4.14%072308 557.11 162
2009 609.38% -5.01%070709 121.64 164
2010 212.25% -4.18%070210 50.78 142
2011 271.58% -4.92%062411 55.17 138
2012 65.17% -5.19%030112 12.56 116
2013 46.46% -3.07%022013 15.14 164
2014 49.62% -4.96%120514 10.00 96
2015 84.18% -4.47%110315 18.82 118
2016 73.93% -3.72%110416 19.88 120
2017 33.33% -3.07%032117 10.86 122
2018 132.05% -5.39%121818 24.49 114
2019 13.76% -1.33%012219 10.33 10
Avgs. 260.27% -3.82% 68.14 117

Back-Tested Performance of Model: QQQPRED2
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2004 29.68% -2.65%102504 11.20 29
2005 84.82% -2.88%102705 29.42 94
2006 160.68% -5.26%030606 30.56 144
2007 146.09% -6.58%121707 22.21 114
20082515.16% -3.97%120508 634.13 178
2009 544.71% -5.27%070709 103.41 170
2010 224.52% -4.29%041510 52.38 134
2011 261.44% -7.50%062411 34.88 148
2012 66.10% -6.03%092412 10.96 124
2013 45.70% -7.27%123113 6.28 144
2014 67.99% -4.59%112814 14.82 118
2015 96.10% -6.91%110415 13.90 104
2016 96.50% -4.95%110416 19.49 96
2017 32.70% -3.85%062717 8.50 104
2018 212.33% -6.72%102418 31.62 116
2019 16.20% -2.19%012919 7.41 4
Avgs. 287.54% -5.06% 56.87 113

Back-Tested Performance of Model: DIAPRED2
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2004 13.44% -2.11%123004 6.37 29
2005 40.73% -4.10%062405 9.92 102
2006 77.71% -3.58%012006 21.73 132
2007 94.24% -3.19%060107 29.55 96
20081808.78% -3.65%071608 495.31 188
2009 426.44% -4.34%070709 98.25 156
2010 183.34% -3.10%070210 59.05 128
2011 249.66% -4.30%102711 58.04 140
2012 60.53% -4.46%091412 13.56 144
2013 26.95% -4.01%022013 6.73 144
2014 43.68% -3.51%120514 12.44 102
2015 79.89% -4.56%110615 17.50 114
2016 59.80% -3.66%012016 16.36 124
2017 39.19% -3.18%032317 12.32 112
2018 160.24% -5.24%121718 30.58 118
2019 12.64% -1.22%012219 10.40 8
Avgs. 211.08% -3.64% 58.02 114

Back-Tested Performance of Model: IWMPRED2
YearAvg. Gain%Max. DrawdownDate (Max. Drawdown)G/d#trades
2004 27.23% -1.70%102204 16.02 31
2005 65.49% -7.24%061005 9.05 100
2006 209.36% -3.27%021306 64.10 122
2007 167.02% -4.90%060407 34.08 114
20083529.15% -7.63%072308 462.27 174
20091154.70% -6.69%070709 172.61 152
2010 293.43% -8.03%070610 36.55 142
2011 494.64% -5.56%061311 88.95 142
2012 66.17% -8.42%091412 7.86 114
2013 79.23% -3.47%100913 22.84 144
2014 55.84% -3.82%020314 14.63 88
2015 56.62% -8.13%072715 6.96 122
2016 77.98% -7.70%110316 10.12 112
2017 32.37% -6.07%051717 5.34 100
2018 80.55% -7.98%102418 10.10 96
2019 16.53% -1.83%012319 9.02 12
Avgs. 400.40% -5.78% 69.30 110

Detailed [INFO] for each Report Section

1a. **********************************************************
The "Z" Indicator is produced by weighting the output signals from our 4 Daily Index ETF Signals for the S&P, NASDAQ 100, DOW 30, and the Russell 2000.
Its value ranges from -1.0, which is very Bearish, up to +1.0, which is very Bullish for the entire US Stock Market.
It is quantized in units of 0.25, thus producing the following range of discrete values: -1.0, -0.75, -0.50, -0.25, 0, 0.25, 0.50, 0.75, and 1.0.

1b. **********************************************************
In order to gauge Market strength over the near term, we have several useful indicators:

(a) RLP (Recommended Long Percentage): This is generated by the Automatic Drawdown Control (ADC) logic in our Grail Portfolio System and indicates the
optimal Long "exposure" for a given day. A 100% value will mean that the Portfolios should be fully populated (all stocks and no cash), and as the RLP
decreases, stock holdings are sold off so that the amount of Portfolio cash will increase correspondingly. However, even in a severe downtrend, the RLP
will usually not dip below about a 50% Long and 50% Cash holding.

(b) GSI (Grail System Indicator): This indicator shows the percentage of the 1000 Grail System models that are in the "BUY" state, as opposed to the
Cash state. The GSI will thus vary between 0 (very weak Market) and 1 (strong Market).

(c) MSI (Market Strength Indicator): This indicator is generally more accurate than the GSI since it is based upon the Voted Signal System. To generate
the MSI, any of the 140 Voted Signals that are in the BUY state are assigned the value of '1'; any signal in the Cash state gets a '0', and any signal
in the Short state gets a '-1' value assigned. Then, all of these '1's, '0's, and '-1's are added and the result is divided by 140. The MSI will thus
vary between -1 (very weak Market) and +1 (strong Market).

1c. **********************************************************
The "A" version of the Mutual Fund Timing Indicator was developed in 2004 and its historical values have been tracked ever since.
The "B" version was created in about 2007. It switches a bit more frequently between the Uptrend (BUY) and Downtrend (SELL) states than does the "A".

Note that these Long-Term signals DO NOT detect "every" correction; they detect "some" corrections, but they are really looking for "trends" and
not sudden (unjustified) negative Market reactions that are superimposed on an uptrend that carries right on through the period of weakness.

For managing subaccounts or mutual funds in a 401(k) or 403(b) account, the MFTI-A signal is generally quite adequate -- and it doesn't tend to
suffer as much from short-term oscillations like the MFTI-B does, and that can create some timing problems within a retirement account.

The CNNI Indicator is the average value of our primary neural networks NN1 through NN10. This is our most "sensitive" indicator in determining
whether the MFTI-A or MFTI-B long-term signals will switch from a BUY to a SELL. As the CNNI drops, a downtrend becomes more likely (i.e., MFTI-A
or MFTI-B goes from a BUY to a SELL). The "critical value" for the CNNI is 0.6127, although there are subsidiary conditions that must be satisfied,
meaning that a downtrend "may" not be signaled if the CNNI drops to this value or below.

2. ***********************************************************
After 17 years of software development, all of our work culminates in 4 new Daily Index ETF Models which make accurate predictions of the following:

- The S&P 500, as represented by the SPY ETF.
- The Nasdaq 100, as represented by the QQQ ETF.
- The Dow 30, as represented by the DIA ETF.
- The Russell 2000, as represented by the IWM ETF.

The SPYPRED5, QQQPRED2, DIAPRED2, and IWMPRED2 Models generate daily Buy, Short, and Cash signals for these ETFs.
If these signals are traded, about 2.4 trades per week will be required on average.
The trading accuracy of Long trades (did they make a profit?) are approximately 73-75% based upon 14.5 years of back-tested results.
The trading accuracy of Short trades is somewhat lower, and will generally be in the range of 66-70%.

3. ***********************************************************
We are currently paying to operate 5 different trading strategies on Collective2 (www.collective2.com):

(1) The "C2Star Hyperbolic SPY" strategy is intended for conservative investors and is easily traded in an IRA. It goes Long and Short by
using the 3x UPRO ETF and the 3x inverse SPXU ETF, but it does this by only using 1/3rd of the account's value so that it is effectively unleveraged.
The use of 3x ETFs facilitates trades within a "cash account" because there will always be "settled funds: to permit the trades to be made.
This strategy is currently being evaluated by Collective2 for being awarded "C2Star" status, meaning that it meets stringent constraints on
performance, including a maximum drawdown less than 10% under worst-case conditions.

(2) The "3x Hyperbolic SPY" strategy is a fully 3x-leveraged S&P trading strategy. It will have 3 times the gains, and 3 times the drawdowns
of the "C2Star Hyperbolic SPY" strategy. It clearly uses "all" funds to buy UPRO or SPXU.

(3) The "3x Hyperbolic QQQ" strategy is a fully 3x-leveraged Nasdaq 100 trading strategy. It will have 3 times the gains, and 3 times the drawdowns of
an unleveraged system. Conservative investors should never use leverage.

(4) The "3x Hyperbolic DIA" strategy is a fully 3x-leveraged Dow 30 trading strategy. It will have 3 times the gains, and 3 times the drawdowns of
an unleveraged system. Conservative investors should never use leverage.

(5) The "3x Hyperbolic IWM" strategy is a fully 3x-leveraged Russell 2000 trading strategy. It will have 3 times the gains, and 3 times the drawdowns of
an unleveraged system. Conservative investors should never use leverage.

Subscribers to the "Strategist Newsletter (Full version)" can monitor the performance of these alternative strategies by clicking on the Collective2 links.
There is no need to subscribe to Collective2 since the preceding report section gives you the daily signals, allowing you to make your own trades.

Subscribers to the "Strategist Newsletter (Limited version)" who are interested in these various high-performance trading strategies can "subscribe" to
one of these signals by creating an account on Collective2 and paying the requisite monthly subscription fee. Collective2 will even permit a subscribed
strategy to be "auto-traded" in the subscriber's brokerage account.

4. ***********************************************************
The "signals.csv" file is attached to every Daily Forecast and it gives up to 3 separate BUY/SELL signals for 1669 equities (stocks and ETFs).

(1) The Preprocessor signals are the 'least' accurate signals because they originate in the very first operational software layer of our System --
but there are 1669 such signals. A 'BUY' state indicates that the Preprocessor holds that particular equity Long. If the Preprocessor DOES NOT hold
that equity, then you will see '---'. If the equity is currently 'owned' by the Preprocessor, then its 'BUY DATE' is shown, as well as the number of
days that it has been held. In addition, the percentage gain/loss is shown that reflects how the equity has done since the Preprocessor bought it.

(2) The Grail System signals are generally more accurate than the Preprocessor signals, but there are only 1000 of them (actually 999). The Grail
System signals will either be in a 'BUY' or a 'SELL' state. Note that 'SELL' does not mean to 'SHORT'!

(3) The Voted System signals are usually more accurate even than the Grail System signals, but there are only about 140 of them. These signals can
be in the 'BUY', 'SHORT' or '$$$$ (Cash)' state.

You can construct your own stock or ETF portfolios by selecting, say, 5 to 10 stocks from the signals.csv file that is attached to the Forecast.
Usually, 5-7 equities is a fairly reasonable minimum portfolio size, and anything bigger than 12-15 just becomes unwieldy and offers little benefit
from a diversification standpoint. The 'sweet spot' is often in the 5-8 range. When you construct your portfolio, it is best to keep things simple
and strive for approximately equal dollar weighting. Here is where the RLP (Recommended Long Percentage) value comes into play. The RLP is derived
from statistics produced by the 192 standard Grail System Portfolios, and it represents the optimal amount of Market exposure at the current time.
So, if your portfolio is going to hold a maximum of 10 stocks or ETFs, then if the RLP value is only 60%, you should sell your 4 weakest holdings,
dropping your active number down from 10 to 6, i.e., 60% Long.

Since up to 3 signals are available for some equities, the safest possible equities would be those with 3 'BUY' signals (Preprocessor, Grail, Voted).
The next best choice would be where the Grail and Voted signals are in the 'BUY' state.
The third best scenario would be where the Preprocessor and Grail signals are in the 'BUY' state.
Any equity that has only one 'BUY' signal, or any equity that has one or more SELL signals, should NOT be bought, or if it is already owned, then
it should be replaced by a stronger equity.

The RLP is very important -- perhaps just as important as picking the specific equities that you are going to use. The RLP reduces RISK!

5. ***********************************************************
PORTFOLIO FAMILIES
==================
Every day we generate several hundred different Grail System Portfolios. They are organized into "Families" such that all portfolios belonging to a
given family have similar trading characteristics, as well as a shared "universe" of equities that they can choose from, but they differ in the
maximum number of holdings that they can have at any given time. The "size" of a Portfolio varies from 1 up to 48 (for a NOVA family portfolio), or
up to 62 (for a SUPER family portfolio). In general, the NOVA portfolios have somewhat higher performance than do the SUPER portfolios, and this is
because in addition to using Grail system models to "time" the individual equities, the NOVA family portfolios limit themselves to only those equities
that have Voted Signals models as well, and these more accurate individual equity signals are "or'ed" into the overall decision as to when to buy or
sell.

PORTFOLIO DOWNLOADS
===================
Every night a healthy subset of portfolio data is uploaded to our website, and this includes historical performance tracking files, files that can
be used to generate performance plots, and summaries of portfolio performance by Family. This downloadable information is available upon request to
subscribers to the full version of the Newsletter. Just let us know and we will provide you with the download link and the necessary password to unpack
everything.

INCLUDED PORTFOLIOS
===================
For the convenience of Newsletter subscribers, we provide within the Daily Forecast both the daily transactions for a core set of 5 small- to medium-size
portfolios, as well as their back-tested performance characteristics.

The usual disclaimer applies to the all of our signals and portfolios: future performance can never be guaranteed to be as good as back-tested performance!

NOVA05: A super high-performance 5-stock Portfolio (with ADC -- Active Drawdown Control).
NOVA07: A super high-performance 7-stock Portfolio (with ADC -- Active Drawdown Control).
NOVA10: A super high-performance 10-stock Portfolio (with ADC -- Active Drawdown Control).
NOVA12: A super high-performance 12-stock Portfolio (with ADC -- Active Drawdown Control).
SUPER15: A battle-tested 15-stock Portfolio (with ADC -- Active Drawdown Control).


PORTFOLIO MONEY MANAGEMENT
==========================
The general guideline for managing a Grail System Portfolio is to maintain roughly equal dollar values for each cash or stock holding. As buys and
sells are made, of course, winning stocks will soon represent a disproportionately larger share of the portfolio's value, while underperforming stocks
will gradually decline in their dollar value. When buying multiple equities, always divide the available cash evenly amongst them, and remember that the
fundamental idea for these Portfolios is to think of them in terms of N 'buckets' or 'slots' of cash holdings (or stock holdings) that are roughly equal
in dollar value. Clearly, when the Portfolio has gone to an all-cash state and then begins to reacquire equities, the new holdings will initially be very
close in their dollar values.


PORTFOLIO BACK-TESTED PERFORMANCE
=================================
All Grail System Portfolios are back-tested every day over the period from 8/01/05 to the present day. It is the nature of our system, and
probably everyone else's stock market analysis system for that matter, that models and portfolios will gradually undergo at least minor shifts
almost continually. These shifts are unavoidable with any high-performance analysis and modeling system, and as a result, annualized performance
gain estimates, maximum drawdown estimates, trading accuracy estimates, etc., all will show daily variation.

In the Performance Tables for each portfolio, the back-tested 'yearly' performance figures are shown. Bear in mind that in 2005 there were only 5 months
of activity since the starting date is 8/01/05.

The maximum drawdown that occurred during each calendar year is shown, as well as the date on which the drawdown value was attained.
The G/d value is the yearly percentage gain divided by the absolute value of the maximum drawdown, and the #trades figure shows the sums of all Buys,
Sells, Shorts, and Covers that occurred during that year. If this figure is divided by 52, then the average weekly number of trades can be estimated.
`

6. ***********************************************************
The 4 Daily Index ETF Models are back-tested every day over the period from 9/16/04 to the present day. It is the nature of our system, and
probably everyone else's stock market analysis system for that matter, that models will gradually undergo at least minor shifts almost continually.
These shifts are unavoidable with any high-performance analysis and modeling system, and as a result, annualized performance gain estimates,
maximum drawdown estimates, trading accuracy estimates, etc., all will show daily variation.

In the following 4 Tables, the back-tested 'yearly' performance figures are shown. Bear in mind that in 2004 there were only 3.5 months of activity
since the starting date is 9/16/04.

The maximum drawdown that occurred during each calendar year is shown, as well as the date on which the drawdown value was attained.
The G/d value is the yearly percentage gain divided by the absolute value of the maximum drawdown, and the #trades figure shows the sums of all Buys,
Sells, Shorts, and Covers that occurred during that year. If this figure is divided by 52, then the average weekly number of trades can be estimated.


End of Daily Forecast