TimingCrystal

[teabull]

* Although the major US stock indices declined noticeably on Tuesday, July 24/07 we would expect at least a modest technical rebound on Wednesday July 25/07. Our market timing system is not geared for short-term forecasting but it is interesting to consider the following after such a marked decline in the broad indices.

Down volume swamped up volume by a measure of 13 to 1 on Tuesday. There have been only 4 other times that selling has reached such an extreme since March of 2003. On average, the next day saw a rebound of approximately 1.0%. Furthermore, looking at daily charts of the Dow 30, S&P 500, Nasdaq 100 and Russell 2000 Indices all reveal that the latest price declines have penetrated each Indices lower Bollinger Bands rather significantly. In fact, by this measure alone the Russell 2000 is oversold on a mid-term basis as well because its weekly lower Bollinger Band has also been penetrated rather dramatically.

We would call this market short-term oversold and are further positioning our portfolios to take advantage of what could prove to be an oustanding short-term buying opportunity.

Sincerely,

Anthony Waller
President
Teabull Asset Timer Ltd
http://www.timingcrystal.com

* Please note: The views of Anthony Waller and Teabull Asset Timer Ltd are not a recommendation or a solicitation that any particular investor should purchase or sell any particular security in any amount, or at all. We always recommend that investors seek investment advice from their licensed investment Advisor or Broker before making any financial decisions.