Trading Signals and Current Outlook

Our stock market models remain long right now. Depending on market action, our intermediate models may go neutral at the end of the week. The long-term models will remain bullish so that the net position will remain at least slightly bullish. In addition, there still appears to be enough bearishness out there so that contrarian investors can see a continued rise in the equities.

Futures Markets

Many of the futures sectors saw a vicious reversal from the middle of January until the end of the month. This caused losses for trend-followers. Our models had to manage risk and reduce positions a bit, but we generally remained long commodities and rode the recovery over the past two days. The long-term trends have not broken down, so our technical models look for some sustained moves. A look at some markets:

• Metals (precious metals and copper) - long
• Energy - long
• Grains - long
• Meats - short
• Softs - generally long (especially sugar, coffee, cotton)
• Currencies - transitional, so generally flat