4 50

4 45

4 40

THE

4 35

4 30

4 25

L AN CLEL c ET ARK ORT REP

4 20

4 15

DAILY EDITION
Prepared after the close of trading, Tuesday, June 14, 2011

STOCKS: Bearish short, intermediate, and long term. Tuesdays up move looks like just a bounce within a downtrend, and not (yet) the start of a real bottom. The ideal day for the real bottom is Thursday. T-BONDS: Bearish short and intermediate term. GDM & GOLD: Bullish short and intermediate term. Gold has bounced up off of an important uptrend line. But if the August gold contract closes below $1511.30/oz (5% Trend), that would be a sign that the 1980 scenario is starting to unfold with a big down leg.
Note: Time frames mentioned refer to trading styles, and not to the duration of a forecast.

CURRENT OPINIONS

It was a Turnaround Tuesday that actu- 1380 ally started Monday night, when stock index futures started rising because of what was 1360 CASH SP500 happening in Asian markets on their Tuesday. Chinas government released data on 1340 inflation and industrial production in that country which implied that its economy is doing well and wont see a slowdown. And 1320 their inflation is under control. Its a good thing we can all believe in the high level of 1300 integrity of the governments data on a government run economy (that was sarcasm, just 1280 in case it wasnt clear). The US markets rebound took the 1260 SP500 up to an interesting intraday high. It was simultaneously a test of the Price Oscillator Unchanged line, the lower channel line, 1240 03/02/11 03/31/11 and the level of the April 18 intraday low. Segment Rank Score As such, it is a great place for a one-day rebound to Sm Cap Value 4 -2.16% bonk. Sm Cap Grwth 5 -2.40% Even though the market is really oversold, and Lg Cap Value 2 -1.41% deserves to make an important bottom here, I still Lg Cap Grwth 3 -1.58% believe that Monday was not that bottom, and that this Cash 1 0.00%
ADVDECL ADV DECL A-D 10%T 5%T

Osc Unch'd 10% Trend 5% Trend Sum/10

05/02/11

06/01/11

06/30/11

Current Managed Account Program Positions

Stock Optimizer: 100% 1x Inv SP500
RS 2000: 19% 2x Russ2000, 31% SP500 Value, 50% Cash

Rising Star: 10% Invested, 90% Cash Program funds managed by Global Investment Solutions, LLC For more information, call (866) 547-3123

A-D OSC

SUMM INDEX

OSC UNCH'd

OSC TO ZERO

NYSE NASDAQ NDQ 100

VOLUME

06/14/11 06/14/11 06/14/11

2548 2041 90
UP VOL

516 597 10
DN VOL

2032 1444 80
UV-DV

-101.897 -237.703 -10.655

10%T

-33.503 -197.130 -6.858

5%T

-68.394 -40.573 -3.797

Volume OSC

1280.525 -606.138 -34.412

SUMM INDEX

-170 -278 -14

OSC UNCH'd

1198 533 61
OSC TO ZERO

NYSE NASDAQ NDQ 100

PRICES

06/14/11 06/14/11 06/14/11

HIGH

806609 1464722 615543

LOW

101940 223225 58084

CLOSE

704669 1241497 557460

10%T

-66096 -218228 -109875

5%T

-54918 -141851 -82232

PRICE OSC

-11178 -76377 -27643

OSC Direction

-448577 -731125 -573535

OSC UNCH'd

-77274 -294605 -137518

Sum/10 Level

146284 1232929 415339

1%T

DJIA NYComp SP500 SP400 NASDAQ NDX Russ2000 GDM TYX

12120.80 8160.18 1292.50 948.78 2685.65 2256.46 795.89 1489.77 4.304

11951.38 8067.21 1272.22 929.70 2662.73 2240.39 777.17 1453.42

12076.11 8132.77 1287.87 945.84 2678.72 2250.34 793.99 1480.53

12228.32 8216.47 1303.08 961.31 2728.78 2291.77 807.60 1530.80

12317.59 8291.49 1314.12 970.84 2756.48 2315.39 817.71 1565.28 4.306 123.282

-89.271 -75.024 -11.045 -9.525 -27.706 -23.622 -10.113 -34.478 -0.053 1.213

DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN UP DOWN 3%

12139.05 8141.44 1292.03 951.79 2701.07 2268.14 797.48 1496.32 4.201 125.709

12397.94 8359.01 1324.06 979.41 2781.42 2336.65 826.81 1596.31 4.353 122.190

11785.46 7996.63 1263.17 914.60 2642.32 2218.50 776.43 1564.44 4.345 122.648

125.531 Sep Bonds DJI Osc Rising Index:

NDX stocks >100MA:

4.219 4.301 4.253 123.719 123.875 124.496 Low Neutral,Trend Dn 27% Arms Index: 42 0.62

DJI Osc Pos & Rising:

Oversold,Rising from Oversold

VIX: 18.26

Uppr Band: 18.14

Lw r Band: 15.73

2011, McClellan Financial Publications, Inc.

42 1400 pop will get unwound between now and the end of the week. SP500 w/50-day SMA The VIX dropped by 7% on 1350 38 Tuesday, but that was only enough to take it back down to 1300 its upper 50-1 Bollinger Band. 34 That is the same sort of behavior 1250 that we saw in late February to 30 early March, as the market was fluttering like a kestrel before CBOE Volatility Index (VIX) 1200 finally breaking down (with the 26 help of an earthquake and tsuUPPER BAND 1SD 1150 nami in Japan). To really get a 50 MA new uptrend going, we will need 22 LOWER BAND1100 1SD to see the market rally enough to take the VIX back down below 18 that upper band, and also back 1050 down below the 50-day moving average which is at 16.94 right 14 1000 now. So far, this just looks like 11/01/10 12/01/10 12/31/10 02/01/11 03/03/11 04/01/11 05/03/11 06/02/11 07/01/11 a robust one-day countertrend rally, much like what we saw last Thursday. That is an important point about countertrend moves, but in uptrends and downtrends. They tend to be bigger than the moves seen on days when the price is moving in the direction of the trend, because traders suddenly get all excited and start concluding that a reversal is underway and they dont want to miss it. The problem is that the first day of big new uptrends like the one that began March 17, and like the one that began Dec. 1, 2010, often look exactly like snapback days. So it is tough to tell the difference based just upon the size of the move, especially when there is an oversold condition that is wor thy of a big important bottom. So we have to look to other factors, such as what else is happening in the price chart as discussed on page 1, as well as what is happening on the calendar with quarterly options expiration going on this week. I still think tha t Thursday is the best candidate for the final bottom to be in. It is worth noting that the Rising Star Stock Program is down to just 5 stocks on buy signals. All of those are still sitting on gains, which is one of the nice things about the design of that program: it lets winners run, and it pares the losers fairly promptly. But having only 10% of the stocks in the program is something we only see at really important market bottoms. T-Bonds finally got the breakdown that has been overdue, and it was not the news out of China (our #1 foreign holder o f Treasury debt) which was responsible. Instead, it was a report on May retail sales that came out stronger than expected, and that gave bond prices a nudge 128 lower as soon as the report came out. Retail sales actually showed the first monthly drop in 126 SEPT T-BONDS 11 months, but it was not as big of a drop as the consensus 124 expectation, and that is what bothered the bond market. 122 OSC UNCH The lower chart on page 2 10%T shows that this breakdown move has taken the September T-Bond 120 5%T futures contract down below its SUM/10 118 10% Trend, something that has not happened since shortly after the bottom in April. The price 116 drop also broke the dashed uptrend line drawn into this 114 chart, which is all the more reason for a meaningful decline. 112 Some people might take 01/31/11 03/02/11 03/31/11 05/02/11 06/01/11 06/30/11 issue with the way I drew that
2011, McClellan Financial Publications, Inc., P.O. Box 39779, Lakewood, WA 98496-3779, www.mcoscillator.com, (253) 581-4889, (800) 872-3737, fax:253=584=8194. This copyrighted periodical is published on stock market trading days by McClellan Financial Publications, Inc., and is intended solely f or use by designated recipients. No reproduction, retransmission, or other use of the information or images is author ized. Legitimate news media may quote representative passages, in context and with full attribution, for the purpose of reporting on our opinions. Analysis is derived from dat a believed to be accurate, but such accuracy or completeness cannot be guaranteed. It should not be assumed that such analysis, past or future, will be profitable or will equal past performance or guarantee future performance or trends. All trading and investment decisions are the sole responsibility of the reader. Inclusion of information about managed accounts program positions and other information is not intended as any type of recommendation, nor solicitation. For more info rmation, contact Global Investment Solutions at (888) 359-4723. We reserve the right to refuse service to anyone for any reason. The principals of McClellan Financial Publications, Inc. may have open positions in the markets covered. Subscription cost: $600/year, or $160/qtr. Subscribers paying quarterly agree to accept automatic subscription renewal by credit card. We also publish the twice monthly McClellan Market Report newsletter, which is available by separate subscription at $195/year.

line, since it does not originate from the lowest low in April. In a couple of decades of staring at price charts, I have found (others have too) that the best trendlines are not always ones drawn from the lowest low. You could draw an uptrend line from that lowest low, and just about any way you draw it that line would now be broken. But I like the way I drew my line because it more accurately describes the slope of the price trend once the initial rapid up move had ended. It also connects 5 separate lows, lending it more legitimacy than any line that could be drawn from the absolute low in early April. Gold rebounded after Mon- 1600 days selloff, and its chart provides us with another example for discussion about how to draw 1550 AUGUST GOLD trendlines. As with the uptrend line in the T-Bond chart, the one I have drawn in the chart of 1500 August gold futures prices does not originate at the Jan. 29 low. 1450 Instead it connects the later lows. If I were to redraw this OSC UNCH line starting at the Jan. 29 low, 1400 10% TREND then it would not connect as may 5% TREND other lows, and might already be broken depending on which way SUM/10 1350 it was drawn. As drawn this way, we can see that this uptrend line has 1300 offered support for gold prices, 11/01/10 12/01/10 12/31/10 02/01/11 03/03/11 04/01/11 05/03/11 06/02/11 and that Tuesdays rebound constitutes a bounce up off of that line. It is also a bounce up off of the 5% Trend (green) line, which has been an important sup port agent for gold prices. When the 5% Trend was decisively broken back in early January 2011, it led to a significant downward move. Other tests of the 5% Trend shown in this chart saw just minor penetrations and then gold prices turned back upward again. So to see gold prices turn up here at this latest test of the 5% Trend is a bullish sign. 2011, McClellan Financial Publications, Inc.

Daily Edition, The McClellan Market Report, 6/14/2011

Stocks Currently on a "Buy"

Company Name

Recent Sales
% Change Company Name

Hansen Natural Telvent Git Medifast Valassis Commun. Freeport McMoran

HANS TLVT MED VCI FCX

Symbol Buy Date 3/25/2011 4/5/2011 5/9/2011 6/8/2011 6/10/2011

Buy Price Current Price

$59.08 $28.64 $20.39 $28.66 $48.93

$72.98 $39.81 $22.76 $29.27 $49.88

23.53% 39.00% 11.62% 2.13% 1.94%

Mesabi Trust Millicom Intl Cellular W.R. Grace Resmed Apple Factset Research Sys Cree Flir Systems Valassis Comm Express Scripts Catalyst Health Sol Sykes Enterprises Precision Castparts NII Holdings Medco Health Solutions TRW Automotive Wynn Resorts Polo Ralph Lauren Nordstrom Urban Outfitters Tenneco General Dynamics Infosys Tech Lululemon Athletica
220% 200% 180% 160% 140% 120%

Symbol Buy Date MSB 6/10/2011 MIICF 3/23/2011 GRA 3/31/2011 RMD 6/6/2011 AAPL 6/7/2011 FDS 4/5/2011 CREE 5/19/2011 3/22/2011 FLIR 4/28/2011 VCI ESRX 5/2/2011 2/23/2011 CHSI SYKE 5/3/2011 3/29/2011 PCP NIHD 5/5/2011 4/20/2011 MHS 4/29/2011 TRW WYNN 4/1/2011 4/4/2011 RL JWN 4/5/2011 URBN 4/19/2011 4/26/2011 TEN 5/17/2011 GD 5/23/2011 INFY 3/28/2011 LULU

Sell Date Buy Price Sale Price % Change 6/14/2011 $30.58 $30.80 0.72% 6/13/2011 $91.05 $104.84 15.15% 6/10/2011 $38.29 $41.73 8.98% 6/10/2011 $31.08 $30.57 -1.64% 6/10/2011 $332.04 $325.90 -1.85% 6/8/2011 $105.62 $104.78 -0.80% 6/8/2011 $42.30 $37.85 -10.52% 6/7/2011 $33.53 $33.63 0.30% 6/6/2011 $30.09 $28.28 -6.02% 6/6/2011 $57.70 $56.25 -2.51% 6/3/2011 $43.37 $57.42 32.40% 6/3/2011 $21.20 $19.48 -8.11% 6/2/2011 $148.15 $153.73 3.77% 6/1/2011 $43.26 $42.96 -0.69% 5/27/2011 $58.62 $58.66 0.07% 2/26/1900 $57.06 $55.88 -2.07% 5/26/2011 $133.01 $145.34 9.27% 5/25/2011 $128.00 $114.70 -10.39% 5/25/2011 $45.66 $45.60 -0.13% 5/25/2011 $31.43 $30.18 -3.98% 5/25/2011 $44.08 $40.34 -8.48% 5/25/2011 $73.50 $70.53 -4.04% 5/24/2011 $62.51 $62.57 0.10% 5/20/2011 $85.27 $96.29 12.92%
1400

SP500

1300 1200 1100 1000 900

100% 80% 60%

Buy and Sell signals are generated by technical indicators often referred to as "directional" indicators. In backtesting, best results were obtained when new positions were taken upon "New Buy" signals, and when stocks that generate a "Sell" were promptly removed from a portfolio. Since many of the stocks in this program carry above average risk, stocks should be bought only by investors financially able to purchase speculative stocks. Investors should be prepared to lose their entire investment and prudence should be displayed when entering a position. Trading based on these signals is available in a managed accounts program through Global Investment Solutions, LLC. For more information on this program, contact Roger Kliminski at 949-660-7960 or Roger@Globalinvestsolutions.com.

800 700 600 500

40% 20% 0%

% of Stocks on Buy Signal

9/1/09 11/1/09 1/1/10 3/1/10 5/1/10 7/1/10 9/1/10 11/1/10 1/1/11 3/1/11 5/1/11

400

7/1/09

2011, McClellan Financial Publications