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11/30/05 0900EST

Good Morning: News that the Economy continues to grow at a faster than expected pace, helped contain losses in the overnight markets and very possibly could lead to a resumption to the upside in due course. We've been calling this: The Best Economy Ever for some time now and it doesn't get much better than this. This notion endorsed this morning with the following glowing accolade: "In anybody's book this is an outstanding performance for the economy," said Ken Mayland, president of ClearView Economics.
So where to from here: So far we have the makings of a three wave pullback from Monday's early high and therefore there is a good chance of a resumption today, possibly aided by some month end window dressing.

Gold and the precious metals in general share similar three wave pullback structures along with the Stockmarket indices and in will be somewhat critical for Gold and Silver to resume their upside in short order to avoid further corrective action. Should that occur, the taking out of this weeks highs could be inordinately bullish for the precious metals in general, but we have to get there first.

Copper soared to new high levels overnight, tho it may have peaked for now at 207.5.

The currencies remain under pressure, though we have to be alert for a possible news inspired turnaround and that could also come into play later this week on the employment report. A probing test or two to the downside could inspire a reversal. But for now the US Dollar strength does not seem to be restraining the precious metals by much and further Dollar strength might even be helpful.

The Grain markets are showing signs of bottoming that over the next week or so could produce interesting trading opportunities.


SuperEconomy 1000™ Recap

Last week we introduced our SuperEconomy 1000™ Index concept as being an exceptionally sensitive economic and especially as a sectoral indicator of future trends, that had helped us make some uncannily prescient short term and long term prognoses. In the same way we were able to make such contrarian observations against all odds, we have in the course of this real time analysis, developed a sense for recognizing both short and longer term emerging trends: Back in January 2004, when we first christened this: "The Best Economy Ever", we also identified around a thousand issues that were clearly out-performing the rest of the market. Many of those companies were housing related, but around that time, we first noticed a remarkable preponderance of Oil related issues that were just starting to bubble to the surface, at the time as unknown names, that some later became household names.

Although it was hard to really understand or foresee the significance of this early action as a precursor to a Worldwide phenomenon, that since became the international real estate boom and Global Energy bonanza, it did kind of remind us of the early days of the Internet Boom, wherein the earliest Internet related issues were suddenly popping like champagne corks to sharply higher prices.

Early in 2004, we first referred to those 1000 emergently fast growing companies as being in 'The Sweet Spot' of what we already were seeing as the greatest economy ever and as they were clearly outperforming the rest of the market decided to christen a new index as The SuperEconomy 1000™. The difference between this index and the Dow Jones Industrial Average, S&P 500, Nasdaq or even the Russell 2000, is that while these major indices remain static for prolonged periods and although they are subject to periodic review and alterations, the SuperEconomy 1000™ is a dynamically changing index that tends to follow the winds of change in the economy and the whims of the smart money that powers it. While conventional wisdom dictates that we should try to follow the smart money on Wall Street: As a function of our Dynamic Real Time Quantum Leap Analysis™, we began to realize that at certain times, we could preempt the smart money, by uncovering and recognizing emerging winners very early on.

For example: As the Nasdaq was in the throes of a prolonged correction during the first half of 2004, the Super Economy 1000™ was in a powerful upward mode, as Oil and housing issues were getting progressively stronger. To illustrate the point and power of Dynamic Real Time Quantum Leap Analysis™ and its ability to beat the smart money at its own game: Starting February 11 2004 with a hypothetical $150,000, trading in and out of these SuperEconomy 1000™ issues over the next 7 weeks, all with precisely generated buy and sell signals, would have generated profits of $288,000 by March 31, 2004 and we were able to continue this approximate performance for the remainder of 2004 through March 30 2005, the date we launched our new MODAR™ Momentum Radar service that has since substantially outperformed all of 2004 with a remarkable level of consistency and potential profitability.

In a continuation of this theme we recently launched a new Global Hedge Fund Advisory Service as an addition to and derivative of MODAR, that almost unbelievably, is already up some 2000% since inception 7 months ago. Around the same time and day of our launch, on September 20, 2005, we enrolled in an independent Global Tracking Service that follows some of the best Investors, Traders and Money Managers Worldwide, to see how we might fare against the best of the best. We knew we were moving up the ranks pretty rapidly, in spite of a few teething problems and some early mistakes and by early October we were ranked 5. Then at the end of a very strong week, by Friday October 14, 2005. we actually made the 1 spot, up 55.6% over the previous 5 days.

Under pressure to maintain if not improve upon that performance, we managed to achieve a near 100% gain within the first month of the launch date, but unfortunately that pressure to perform has a way of self-correcting that is not unlike the market itself and on top of that an illness spanning several weeks did not help. The lesson being don't trade or invest unless you can apply all your faculties.

Trade Well
From the Desk of Savant

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