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0920 EST Tuesday January 31 2006

Good Morning: Readers might have concluded over recent weeks that we have been changing our minds and outlook a lot more often than we did most of last year and even though until recently, we have rarely deviated from our long-term bullish posture, first adopted at the time some of the earliest bottoms were made in stocks around October 10, 2002 when stocks like IBM, put in a resounding bottom and the most washed out of all great stocks began to rebound strongly off near giveaway low prices... Early in 2003, we began to witness increasingly strong early bottoming activity and just prior to the Ides of March 2003, a major bottom was put in as the Iraq war began. By April 2003, we were adopting a super-bull outlook and were unequivocally among the very first in the World to call for new all time record highs in at least three US indices by the fall of 2003 and stronger than expected growth in the 4th Quarter which came in at 8% plus. This was the beginning of what by January 2004 we were soon calling: "The Best Economy Ever" and tonight, we expect President George W. Bush to use every superlative to describe same, short of calling it what it really is: The Best Economy Ever - Bar None: With the greatest period of productivity growth in the history of the World, wherein since 2001, Americans are 17% more productive today, than back then...

The point we are getting at is: We have been zealously bullish on this economy and market since those early days and are truly humbled by how well things have gone since then. So, towards the end of December, when the market fired a warning shot across our bows, we began to get very cautious right after the January 11 highs, fearing and calling for a very sharp selloff indeed, which happened accordingly. But also, thankfully, we were quick to realize that the tectonic shift in Interest Rate behavior that occurred around January 18, followed by subsequent sharply rising interest rates, foretold of a strengthening in economic activity and a diverging yield curve. Equally fortunately, we were able to call for the stunning rebounds that occurred last week, including new multi-year highs in Japan and around the World.

We've now been in a bull market for nigh on 3 years by some measures and perhaps almost 3 1/2 years by others, so naturally, we have to be increasingly alert to the possibility that a major change in trend could occur at any time and with Inflation reaching all time record highs today at 350, Silver knocking at the $10 door and Gold setting new 25 year highs overnight at $570, we have to be a little cautious.

As we've said many times before, what we write here in the morning, can be ancient history by noon and not worth a hill of beans by the close, unless we are right. Years of training, practice and discipline have taught us to react swiftly to unfolding events, such that we can literally be the biggest bulls in the World in the morning and the biggest bears in the World in the afternoon, if conditions so dictate. That is the only way to stay ahead of the curve on Wall St and thankfully our investment selections with one in particular have ranked us in the 1 spot once again and on our emerging hedge funds model, against an intensely competitive Global arena has ranked us at 2. Even though we have grown this model from a $100,000 starting point on 09/20/05 to $354,585 to date, staying at the top is incredibly difficult.

As we explained before, we should have done much better with this endeavor, but a lengthy illness and some degree of ineptitude in not booking some huge early winners and catching or leveraging up on others, would probably have us at 1,000 % plus today. Thanks to CT.

Trade Well
From the Desk of Savant

Our Gold strategy has been ranked the 1 Performer by Ameritrade Research as well as others. For details, vist CFRN. A report is available in PDF Format. We will also continue to update you via - "Trading Markets" - the one stop shop for savvy investors.

Savant, thank you for the kind words. I learned from the best.

Trade Safe
From the Desk of CT

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