Rotational Structure

All bear markets can vary in terms of structure

This bear appears to be rotational in nature

Note the price peak in the leading Financials in May 2007 - and the subsequent A-B-C type correction

Plan now for the same A-B-C correction in the lagging commodity sensitive sectors.

Tech stocks vs Gold stocks

Technology stocks on a relative basis under-performed gold stocks through 2005 - 2006

In late 2006 our Relative Averages (RA) began to display a shift away from gold stocks to technology stocks

Any new 52-week high in the XIT would confirm our studies

Bollinger Bands vs True Range

I tried Bollinger Bands and found they generate too many "False" signals

True Range bands solve this problem

Bill Carrigan