Example: Published Friday, January 11, 2008

            The FundTrading Newsletter

Current Conditions

It was a great week to be short the market, even with the slowing trend, we racked up good returns.

Plunging earnings estimates led by the realization the consumer is curtailing their spending, set the tone for most of the week.

The Nasdaq Composite has declined 9 days out of the last 11.

Panic selling ensued on Tuesday and Friday, as the leadership groups sold off, including technology and consumer goods.

The Fed Chief Ben Bernanke spoke on Thursday, indicating the Fed would be more aggressive with rate cuts, as the economy shows more serious signs of weakening. The market is focusing on the deteriorating economic fundamentals, which is driving waves of selling, as equity exposure is reduced.

With financials starting to reporting earnings next week, they can be expected to aggressively report write downs to move beyond the credit crisis. This could create the capitulation that is needed, allowing the markets to move back to the upside. This will not indicate the declining market is over, since it is common to have a rally during a longer term declining trend.  

The international funds continue to trade in a tight trading range. Europe/Asia and the Pacific have rolled over, if this spreads to the broader international ETFs, the market will loose important leadership and both the international and U.S. markets will fall.  

In that case, we could see another 15% to 20% decline, not that unusual, as we generally experience 20% to 30% declines every few years. 

Follow the 7 steps indicated below to take better advantage of the weekly newsletter.  

Step #1: Review signal summary to confirm you are up to date

                  Market Trend Trading System

              Current U.S. Short Trade Performance thru 1/11/08     

 * Short applies to Growth & Speculative Portfolio Strategies only, Conservative & Aggressive Portfolio Trading Strategies move into cash.

Nasdaq 100 Exit Point:    1/9/2008 liquidate 33% of your Short position

Russell 2000 Exit Points:  1/9/2008 liquidate 33% of your Short position

S&P 500 Exit Points:        1/9/2008 liquidate 33% of your Short position

International Exit Points: none - no active trades

For more consistent returns, follow Editor's Exit Points, indicating when to take partial profits by selling 33% of your position. For help, see the Editor's Recommendations in the "How To Trade / Trading Tips" section on the website or just follow the Market Alerts that are e-mailed to you indicating when to take some profit.

Step #4: Current Percent Invested when following the Editor's Exit Points

Like a gas gauge, indicates percent of shares still invested in a current trade; Full, 66%, 33%, or Trade Closed. Each time take some profit is indicated, sell 33% of your shares. Note: If trade is disrupted, it could fall directly to Trade Closed.

    Index/ETF        Current Position       Trading Strategy

    Nasdaq 100:    Cash position              Conservative & Aggressive

                            66% Short position      Growth & Speculative

    Russell 2000:   Cash position              Conservative & Aggressive

                            66% Short position      Growth & Speculative

    S&P 500:          Cash position              Conservative & Aggressive

                            66% Short position       Growth & Speculative

    International:    Cash position              All

                                  Trend Strength Rank 

Market Movers Next Week: Tuesday's Financial Earnings, Retail Sales, Core PPI & CPI, Job Claims, Leading Indicators

Reports to Watch Next Week