Prices failed to stabilize on the bottom of their channels and a selloff has begun.

Fridays last hour rally helped reduce

the percentage loss for the week but with so many channel violations across sectors more selling next week is most likely.
The macro concern has returned in the face of some good earning news. Next week however many of the sicker finan-
cials are reporting and expectations have been too high across all sectors and indexes. A disappointment is likely and
markets this week began preparing for that. In spite of companies beating analyst estimates (they usually do) the con-
cerns of Europe and the US debt ceiling has returned to the forefront. The political overhang will continue to create trou-
ble and markets need resolution soon. The Euro reversal has run out of gas and a run to channel support is likely in the
near term.. I will post more charts and commentary on www.sealionllc.com on my technical analysis blog.
Markets give more ground
Chart #1SPY, SPDR S&P 500
Please support us by choosing services from our partners. The offers are free and help support this
chart book, our video analysis on YouTube, and other great services. Your support is greatly appreci-
ated. Visit our website www.sealionllc.com for more ETF technical analysis, Forex technical analysis
and thoughts on ETF position trading and Forex position trading. We maintain a technical analysis
blog and demonstrate ETF expertise and Forex expertise. You can get more information on our part-
ners there as well.
This chart book is for educational purposes only and not a solicitation to buy or sell any security.
07/15/2011 Volume 1, Issue 9
Sea Lion Capital Management LLC
Chart Book
Chart Notes
3. Possible lower high with
shooting star candle
4. Prices are now above the
median line of the bullish
channel and have found
short-term resistance.
5. Prices rally through resis-
tance and out of the
channel. A consolidation
will be required before
the next move up.
6. No consolidation yet as
prices are rising along
channel resistance.
7. Prices retreat to prior
resistance now support
for consolidation
8. Prices testing lower
channel support and
need to reverse quickly
to maintain the rally
9. Prices could be back
testing setting up a move
lower but more likely the
channel needs to be
redrawn or this is a tem-
porary noisy overshoot.
10. Prices have no violated
the channel support and
are trying a back test.
The back looks weak in
nature.
Page 2
Sea Lion Capital Management LLC
The Russell 2000 ETF continues to outperform the S&P 500 ETF. Prices failed to stop falling at the
median line and found support at the lower channel line. If prices move higher from here they will
need to rally to resistance and higher to avoid having placed in the lower low and lower high.
There is no room on the downside to fall and maintain the bullish rally as channel support is being
tested.
Chart Notes:
3. Possible change in
trend needs confirma-
tion with a new high.
4. Prices are now in the
upper half of the bull-
ish channel and have
more room to run.
5. Prices have continued
up and no extend be-
yond the channel.
Prices will need to
consolidate before the
next leg higher.
6. Prices rising along
resistance.
7. A return to former
resistance now turned
support. A mild con-
solidation has begun.
8. Testing the median
line. Price often finds
support here.
9. Prices found support
at the median line and
are poised to move
higher.
10. Prices are holding
their channel support
and a bounce may
occur.
Chart #2IWM, iShares Russell 2000
Page 3
Volume 1, Issue 9
The reversal stand as a one day event as prices are now below the reversal high. The lack of follow
through is concerning and makes a return to channel support most likely. For now a sideways chan-
nel in place. With Bernankes comments regarding a lack of interest in QE3 a violation of support
could create a bearish channel. The Euros state in fragile but has been buoyed by a weakening
dollar. This situation may reverse for a little while.
Chart# 3EUR/USD, Eurodollar
Chart Notes:
1. Markets bullish
trend broken with
violation of prior
swing low.
2. Markets bounces and
reverses but puts in
a lower high.
3. Market retests $1.40
low and if it holds a
sideways channel is
in place.
4. Prices reverse on
support in an
evening star rever-
sal in a show of
strength and the
markets wiliness to
be open to risk.
5. Prices have failed to
advance the reversal
and are now below
the reversal high. A
retest of lower
channel support
looks likely.
Why Sea Lion Capital Management?
Everyone needs help investing money. Whether for retirement or addi-
tional income everyone wants to benefit from our free market capitalist
system to increase their wealth. The problem is most individual investors
lose money. In every trade there is a winner and a loser and the global
marketplace moves so fast and is so complex the "Average Joe" investor
has no chance. Most individual investors end up losing money in misplaced
stocks and mutual funds. The psychological pain of watching hard earned
money be lost makes most individual investors "buy high and sell low".
More than half of all managed mutual funds cannot even keep up with the
market indexes. If you have invested in the past and are frustrated with
the lack of quality returns we can help.

The Difference
Sea Lion Capital is a unique approach to wealth management. While most
investment advisors require their clients to have hundreds of thousands of
dollars we can work with you with as little as $10,000. Most investment
advisors require you to use an expensive broker whereas Sea Lion Capital
is partners with one whose commission fees are some of the lowest in the
industry. We know everyone is concerned about wealth management but
few know what to do about it. The internet has revolutionized home mort-
gages, tax services, insurance, and other financial services - the time has
come for Investment Advisory services as well.
633 Normandy Vlg
Nanuet, NY 10954
Phone: 877-242-8880
Fax: 877-242-8880
E-mail: support@sealionllc.com
Sea Lion Capital
Management LLC
Coming Soon.
Video Introduction to Sea Lion Capital Management LLC
Uncommon Wisdom for All
VI SI T OUR WEB S I TE AND OUR BLOG
WWW. SEALI ONLLC. COM