January 20, 2006 11:56 am (Mountain)

For our capital not managed by mechancial methods, at today's close, we are moving the remaining 50% of our discretionary accounts into SPX related funds. Today's drop is down to strong support S1 (as labeled in the last ULTRA Timer Report). Normally, Friday weakness would tend to carry into Monday but we believe that S1 is strong enough to counter this effect. However, if this drop had occurred on a Monday instead of Friday, we'd be taking NDX positions as well. In other words, because this is a weak Friday we are being cautious. Having said that, If Monday is flat we'll probably split our investment into thirds, NDX, SPX, RUT at Monday's close.