Equity Market Comment 3/19/2008

The action we saw today was nothing that took us by surprise as it seems to be a running trend now to have exceptionally strong days followed by periods of weakness. We also need to keep in mind that Futures and Option expiration is here and there certainly was some unwinding of those positions today.

The key at this point, in order for us to label the most recent lows as a major intermediate term low is for this trend of weakness following strong days to no longer occur. As I said previously, keeping these lows in place is key to confirmation of a potential monster rally in the offing.

So, we wait and see if in fact we can snap back from today's decline.

We have a few things on our side which include the strength in and around Easter and we are also nearing the end of the month bump up in stock prices.

So, remain with the very conservative 50% equity allocation I have recommended and we will wait and see if in fact these most recent lows can take hold. There certainly is an abundance of technical and psychological indications that a low of major proportions has been put into place.