Fund Rankings and FEMKX Update, 10/10/2008

Market continued its sell-off and collapsed in the past week. For the week, DJIA and S&P 500 indices have both lost 18 % and NASDAQ has lost 15%. They were worse than a week before, and we thought it was already pretty bad a week ago in my blog. Market sentiment could not be worse. None of the funds in the ranking tables has positive AMI except Promark Income Fund in the N-SSPP ranking table. Have we reached the bottom yet? Only time will tell. This bear is so ferocious, it will last a while and the recovery will take some time to hold.

I hope you are mostly holding cash in the sideline and patiently wait for the market to reverse itself. If you are in this market, do not sell your holdings into the panics. With such strong sell-off, the market deems to rebound along the way. Those will be good time for you to sell your holdings as those rallies will be short lived. Do not afraid to take the loss. Since we do not know how long this bear will last, stay at the sideline will at least make you sleep better at night. There will be always a bull market sometime in the future. We have discussed how to identify the longer term market reversal in the previous blog. When the time comes, we will be ready and will ride the wave up again.

Here is an update for our FEMKX timing model. We have sold FEMKX and moved to sideline since 6/13/2008. FEMKX closed this week at $14.06. An 2.9% loss at that time has saved us a bundle!!

FEMX Trading Log

Fund    Buy On    Buy@    Sell On    Sell@    P/L
FEMKX  03/26/07  $25.15  08/06/07   $29.53   17.42%
FEMKX  09/10/07  $28.98  12/28/07   $33.82   16.71%
FEMKX  04/28/08  $31.73  6/13/08    $30.81   -2.90%
CASH   06/13/08  $1.00

Weekly Average Momentum Index (AMI) rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/