2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade...

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The RITE Report Summary The RITE Report generates indices from the monthly compilation of corporate, business, economic, & political news snippets from the Wall Street Journal. Summary As of: 12/01/2013: The RITE Report Recommendations: Stocks: Stay Long 1) Positive corporate news remained strong at 62%, and the Percentage of Positive WSJ Economic and General Business Data Snippets increased precipitously to 61% indicating a positive direction in economic news. M & A decreased to a measly 19 snippets. 2) The RITE Index decreased a little from 66.1% to 65.6%, first downtick in a while. Thus, we extend our call to stay long even though our Index has levelled off. 3) An aside: For the more advanced trader we recommend the following since the RITE Index levelled off: Take some profits and keep on the side a portion - say, 25% - as the possibility of a pull back is developing. Should this pull back materialize, you will have some cash to come back in as the overall investment scene is still positive and as the RITE Report still recommends to be long. Gold: Hold and stay long. Gold has bottomed and going sideways; as the Fed continues to buy and finance the government, let’s continue to stay long. Oil: Go short. We have been on the sidelines on oil; but US production is increasing and Iranian oil may soon hit the market. Thus, a good chance of a downward trend of crude oil prices will develop. Time to short oil. The U.S. Dollar: Stay neutral: no call There is no trend in place. 12/01/2013 RITE Report

Transcript of 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade...

Page 1: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

The RITE Report Summary

The RITE Report generates indices from the monthly compilation of corporate,business, economic, & political news snippets from the Wall Street Journal.

Summary As of: 12/01/2013:

The RITE Report Recommendations:

Stocks: Stay Long

1) Positive corporate news remained strong at 62%, and the Percentage of Positive WSJ Economic and General Business Data Snippets increased precipitously to 61% indicating a positive direction in economic news. M & A decreased to a measly 19 snippets.

2) The RITE Index decreased a little from 66.1% to 65.6%, first downtick in a while. Thus, we extend our call to stay long even though our Index has levelled off.

3) An aside: For the more advanced trader we recommend the following since the RITE Index levelled off:

Take some profits and keep on the side a portion - say, 25% - as the possibility of a pull back is developing. Should this pull back materialize, you will have some cash to come back in as the overall investment scene is still positive and as the RITE Report still recommends to be long.

Gold: Hold and stay long.Gold has bottomed and going sideways; as the Fed continues to buy and finance the government, let’s continue to stay long.

Oil: Go short.We have been on the sidelines on oil; but US production is increasing and Iranian oil may soon hit the market. Thus, a good chance of a downward trend of crude oil prices will develop. Time to short oil.

The U.S. Dollar: Stay neutral: no callThere is no trend in place.

12/01/2013 RITE Report

Page 2: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

For your reference we include a directory of:

The RITE Report Major Trade Advise Summary

Date Approx. Mrkt Level Market Advise20092009/05/01 8,212 Stocks Go long.2009/05/01 895 Gold Go long.2009/05/01 USD Go short2009/06/01 51.12 Oil Go long20102010/02/01 USD Stop going short; Take profits. get out. 20112011/04/01 12,376 Stocks Market to go sideways; end of bull. 2011/05/01 12,763 Stocks Take profits 55.4% Gain2011/06/01 102.7 Oil Go Neutral 100.9% Gain 2011/06/01 12,441 Stocks Take profits (re-confirmation)2011/07/01 USD Go short2011/08/01 USD Cover the short; no direction2011/08/01 12,240 Stocks Trading Range20122012/03/01 107 Oil Go long2012/05/01 104 Oil Take profits; Go neutral 2.8% Loss2012/06/01 12,772 Stocks Take profits; a downtrend started2012/06/01 1,564 Gold Sell: Take profits 74.7% Gain2012/07/01 1,604 Gold Buy: Go long2012/08/01 13,090 Stocks Advised not to be in the Stock Market at all2012/09/01 80.025 USD Go short2012/11/01 13,096 Stocks Confirmation: Not to be in Stock Market20132013/01/02 13,104.30 Stocks Go Long2013/03/01 82.47 USD Index Take loss; go neutral2013/06/01 15,115.57 (05/31 Close) Stocks - Take profits 15.3% Profit2013/08/01 15,499.54 Stocks Go Long

2013/12/01

12/01/2013 RITE Report

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- Stocks Stay Long (16,086.41 - 11/29 Close)- Gold Stay Long (1,251.4 - 11/29 close);- USDollar Index - Stay Neutral; No Call; No Trend- Oil - Go Short (92.78 - 11/29)

CUSTOM RESEARCH:Please note that custom economic and/or macro investment research and advisoryservices are available on request.

Latest TV/Podcast: The Nature of the Inefficiency of the ObamaCare Website

https://www.youtube.com/user/philosophypublishing

The RITE Report Summary

The RITE Report generates indices from the monthly compilation of corporate,business, economic, & political news snippets from the Wall Street Journal.

Summary As of: 12/01/2013:

The RITE Report Recommendations:

Stocks: Stay Long

1) Positive corporate news remained strong at 62%, and the Percentage of Positive WSJ Economic and General Business Data Snippets increased precipitously to 61% indicating a positive direction in economic news. M & A decreased to a measly 19 snippets.

2) The RITE Index decreased a little from 66.1% to 65.6%, first downtick in a while. Thus, we extend our call to stay long even though our Index has levelled off.

3) An aside: For the more advanced trader we recommend the following since the RITE Index levelled off:

Take some profits and keep on the side a portion - say, 25% - as the possibility of a pull back is developing. Should this pull back materialize, you will have some

12/01/2013 RITE Report

Page 4: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

cash to come back in as the overall investment scene is still positive and as the RITE Report still recommends to be long.

Gold: Hold and stay long.Gold has bottomed and going sideways; as the Fed continues to buy and finance the government, let’s continue to stay long.

Oil: Go short.We have been on the sidelines on oil; but US production is increasing and Iranian oil may soon hit the market. Thus, a good chance of a downward trend of crude oil prices will develop. Time to short oil.

The U.S. Dollar: Stay neutral: no callThere is no trend in place.

For your reference we include a directory of:

The RITE Report Major Trade Advise Summary

Date Approx. Mrkt Level Market Advise Gain/Loss20092009/05/01 8,212 Stocks Go long.2009/05/01 895 Gold Go long.2009/05/01 USD Go short2009/06/01 51.12 Oil Go long20102010/02/01 USD Stop going short; Take profits. get out. 20112011/04/01 12,376 Stocks Market to go sideways; end of bull. 2011/05/01 12,763 Stocks Take profits 55.4% Gain2011/06/01 102.7 Oil Go Neutral 100.9% Gain 2011/06/01 12,441 Stocks Take profits (re-confirmation)2011/07/01 USD Go short2011/08/01 USD Cover the short; no direction2011/08/01 12,240 Stocks Trading Range20122012/03/01 107 Oil Go long2012/05/01 104 Oil Take profits; Go neutral 2.8% Loss

12/01/2013 RITE Report

Page 5: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

2012/06/01 12,772 Stocks Take profits; a downtrend started2012/06/01 1,564 Gold Sell: Take profits 74.7% Gain2012/07/01 1,604 Gold Buy: Go long2012/08/01 13,090 Stocks Advised not to be in the Stock Market at all2012/09/01 80.025 USD Go short2012/11/01 13,096 Stocks Confirmation: Not to be in Stock Market20132013/01/02 13,104.30 Stocks Go Long2013/03/01 82.47 USD Index Take loss; go neutral2013/06/01 15,115.57 (05/31 Close) Stocks - Take profits 15.3% Profit2013/08/01 15,499.54 Stocks Go Long

2013/12/01 - Stocks Stay Long (16,086.41 - 11/29 Close)- Gold Stay Long (1,251.4 - 11/29 close);- USDollar Index - Stay Neutral; No Call; No Trend- Oil - Go Short (92.78 - 11/29)

CUSTOM RESEARCH:Please note that custom economic and/or macro investment research and advisoryservices are available on request.

Latest TV/Podcast: The Nature of the Inefficiency of the ObamaCare Website

https://www.youtube.com/user/philosophypublishing

1) Past performance is not indicative of future results.2) Trading stocks, futures, and options involves substantial risk of loss and is not suitable for all investors.

December 1, 2013

The RITE REPORT

The following RITE Report generates indices from the monthly compilation ofcorporate, business, economic, & political news snippets from the Wall StreetJournal.

RITE ReportChris Angle, Editor

12/01/2013 RITE Report

Page 6: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

P.O. Box 708Redding, CT 06896Tel. 203/253-2008Fax. 203/286-2356Email: [email protected]://www.stock-market-direction.net/

CONTENTS

PART 1 - STOCKS1) Business News Compilation Index2) Political & Macro Economic Events Indices3) Indicators for Technical Analysis4) Overall Investment Strategy Index5) Summary

PART 2 - HEDGING1) Hedging and Inflation Snippets2) Hedging Summary

PART 1 - STOCKS

1) Business News Compilation - From The Wall Street Journal

Part A - Negative WSJ Corporate News Snippets

11/01- Forecasts From Nissan and Sony Provide a Japan Inc. Reality Check- Sony Shares Drop 11% on Poor Earnings11/05- BMW Profit Hurt by Investments- HTC Forecasts Fall in Revenue11/06- Coty Sales Fall on Nail Market Weakness- Siemens Profit Edges Down- Whole Foods Lowers Sales Outlook- Qualcomm Sees Sales Gains Slowing11/07- Adidas Loses Traction Against Nike- Wendy's Shares Fall After Disappointing Sales

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11/08- E.W. Scripps Reports Loss- Cablevision Reports Fewer Subscribers- Pimco Hurt by $38.6 Billion Net Outflow- Lions Gate Profit Plunges- Telefónica Profit Drops- Kingfisher Airlines Posts Loss- Indian Oil Profit Falls 82%- SpiceJet Posts Wider Loss- Nvidia Reports Lower Profit, Higher Dividend- Groupon Pinched by Gmail Change11/11- Tribune Reports Profit Despite Revenue Drop: Chief Executive Says Media - - - - Company's Results 'Did Not Meet Our Expectations'11/12- Ad Decline Pressures News Corp- Rackspace Profit Falls on Higher Costs- UniCredit's Net Falls 39%- French Retailer Issues Profit Warning- State Bank of India's Net Profit Falls- Loblaw Warns as Profit Falls- Gree's Earnings Slide 74%- Hon Hai Profit Growth Slows Sharply- Potbelly's Profit Falls as Expenses Rise- Pay-TV Industry Loses More Subscribers11/13- Cisco's Revenue Heads Downward- YRC Worldwide Shares Slide11/14- Lockheed to Cut 4,000 Jobs- Kohl's Reports Lower Profit, Outlook- RWE Deepens Cost-Cutting Drive- Ahold Says Markets to Remain Tough11/15- Posco CEO Offers to Resign- Cisco CEO: 'Never Seen' Such a Falloff in Orders- Nordstrom Profit Falls as Expenses Rise11/19- Best Buy Warns of Margin Pressure- Campbell Soup Earnings Fall 30%, Cuts Outlook for Year

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11/20- Profit Warning Hits WorleyParsons Hard11/21- GameStop Offers Disappointing Outlook- Target's Profit Falls 46%- Abercrombie Reports Loss, Weak Sales- Sears Posts Wider Loss11/22- Foot Locker Net Down on Costs- Target Shoppers Put Less in Their Carts- Pandora Tunes Into 3rd-Quarter Loss- Splunk Posts Wider Third-Quarter Loss11/25- Cablevision Has Cut 400 Workers Since Summer11/26- China Slowdown Hurts Rémy Cointreau- Signet Jewelers' Profit Falls 3.7%

Negative Corporate Snippets Total = 54

Part B - Positive WSJ Corporate News Snippets

11/01- CBOE Products Boost Revenue- DBS, OCBC Report Steady Earnings- Nissan Cuts Profit Forecast11/04- HSBC Third-Quarter Profit Rises- Kellogg to Cut 7% of Workforce by 2017; Reports Profit Up 2.5%- Westpac Raises Dividend- Berkshire's Profit Jumps 29%11/05- Michael Kors Profit Jumps 49%- T-Mobile U.S. Loss Narrows- HCA Profit Edges Up on Modest Admissions Growth- Charter Communications Loss Narrows, Revenue Grows- DirecTV Profit Up on More Subscribers- CVS Caremark Reports Higher Earnings- AOL's Revenue Rises on Higher Ad Sales- Volvo Expects to Exceed China Sales Target

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- Derivatives Shift Lifts CME Earnings- HSBC Third-Quarter Profit Rose 28%11/06- Beazer Homes Reports Profit- Commerzbank 3Q Profit Rises- ArcelorMittal Loss Narrows as Cautious Optimism Reigns- SocGen Net Jumps, but Provision Weighs- Toyota's Net Soars as Yen Falls- Mondelez Profit Jumps on Higher Sales, Tax Gain- CBS Profit Up as Revenue Sources Expand- Time Warner Profit Jumps 44% on Lower Costs: TV Network Revenue Continues to Grow as Publishing Slides Further11/07- J.C. Penney Reports Higher Sales- Apollo Profit Surges on Deal Gains- Tim Hortons Profit Climbs- AMC Networks Profit Up 59%- Wendy's Loss Narrows on Stronger Same-Store Sales- Scripps Networks Profit Rises 8.9%- Lenovo Group's Profit Jumps- Generali Profit Surges 75% on Life, Nonlife Results11/08- Jaguar Land Rover Drives Tata Motors Profit- IAG Profit Doubles11/11- Alibaba Sets Sales Record- Tata Motors' Profit Surges11/12- Virgin America Posts Profit, Eyes IPO- Dish Posts Profit on More Subscribers- Jos. A. Bank Expects Stronger Results- D.R. Horton's Profit Jumps- Dean Foods Net Soars on WhiteWave Gain- Reliance Communications Posts Sharply Higher Profit- Vodafone Swings to Profit, Boosts Spending- Singapore Airlines Sees Margin Pressure: reported a sharp rise in its fiscal second-quarter net profit- Sotheby's Loss Narrows11/13- SeaWorld Profit Up 30%; Downplays 'Blackfish'

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Page 10: 2013:12:01 RITE ReportFor your reference we include a directory of: The RITE Report Major Trade Advise Summary Date Approx. Mrkt Level Market Advise 2009 2009/05/01 8,212 Stocks Go

- Macy's Upbeat About Holidays- Tata Steel Swings to Profit- Maersk Posts Profit, Warns on Demand- Profit Up at Tencent and Sina- ONGC Posts Higher Profit- Sina Profit Rises As Weibo Service Grows11/14- Wal-Mart Profit Rises- Japan's Top 3 Banks Raise Profit Forecasts- Viacom Profit Jumps on Stronger Sales- Gazprom Says Europe Exports to Hit 5-Year High- EADS Posts Profit, Warns on Costs: reported a 45% rise in third-quarter net profit11/15- Vueling Lifts IAG- Applied Materials Reports Profit- Prudential Boosted by Asia11/18- Tyson Foods' Profit Rises11/19- Home Depot Reports Higher Profit, Outlook- Medtronic's Profit Rises 40%- ITV Revenue Rises on Strong Production- Corporate Results Expose Lack of Confidence: Corporate profits rose in the third quarter, but companies reduced capital spending and kept adding to their cash hoards, underscoring a lack of confidence- Salesforce.com's Loss Narrows11/20- Green Mountain's Profit Jumps- Deere Profit Rises- Smucker Profit Rises on Lower Costs, Cuts Sales Guidance- Staples Reports Profit Despite Weak Demand- Lowe's Income Rises But Still Disappoints11/21- L Brands Profit Rises 25% On Higher Sales- Williams-Sonoma Reports Higher Earnings, Outlook11/22- Lockheed Locks In on Korean Order- Ann's Sales, Profit Rise- Gap Profit Climbs 9.4%11/25

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- Given Room to Grow, Range Rover Blossoms11/26- B&N Profit Jumps on Cost Cutting- Tiffany Raises Outlook Again- Hormel Energized by Skippy- DSW, Chico's See Sales Increases- Children's Place Earnings Rise on Lower Expenses- Cracker Barrel Earnings Rise 17%11/29- Wal-Mart, Target See Strong Holiday Traffic- H-P Buys Time, Not Triumph: H-P arrested its slide in some key area- Royal Mail First-Half Profit Rises

Total of Positive Corporate News Snippets = 87

Index of Snippets

Month % Positive % Negative of Snippets(Started 2009)

2012Jan 41% 59%February 46% 54%March 56% 45%April 77% 44%May 52% 48%June 54% 46%July 42% 58%August 53% 47%September 52% 48%October 38% 62%November 60% 40%December 49% 51%2013January 60% 40%February 46% 54%March 63% 37%April 61% 39%May 59% 41%

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June 61% 39%July 62% 38%August 60% 40%September 48% 52%October 64% 36%November 62% 38%

2 & 3) Political Risk & Macro Economic Events/News

A) Negative WSJ Economic and General Business Data Snippets

11/05- EU Forecasts Sluggish Growth to Persist- Third Quarter Likely Dragged Down by Lackluster Business Spending11/07- Alternative Poverty Rate Stuck at 16%- Stock Bubble Driven by Central Banks to Burst in 2014, Analyst Warns11/08- End of Shutdown Doesn't Boost Consumers' Moods11/13- IPO Market Starts to Cool- Japan Growth Slows on Global Weakness11/14- Euro-Zone Recovery Falters, Raising Concerns: The economy expanded 0.1% from the previous quarter, or 0.4% at an annualized rate, raising concerns that the region faces stagnation, weak prices and high unemployment.11/15- Cisco CEO: 'Never Seen' Such a Falloff in Orders- Shoppers Can't Shake the Blues: Wal-Mart offered little reason for holiday cheer, reporting its third straight quarter of poor sales in the U.S. and painting a gloomy picture for the economic recovery.- U.S. Industrial Production Slips- U.S. Trade Gap Widens as Exports Slip11/19- Corporate Results Expose Lack of Confidence: Corporate profits rose in the third quarter, but companies reduced capital spending and kept adding to their cash hoards, underscoring a lack of confidence11/21- Existing Home Sales Fall 3.2%11/22

12/01/2013 RITE Report

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- Hottest Housing Markets Hit Headwinds11/25- Housing Market Gets Another Soft Sign11/26- Gains Shrink for U.S. Stocks: News that consumer confidence fell in November cut into stock-market gains- FDIC Says U.S. Banking Industry Continues Slow Rebound: U.S. banking continued its recovery in third quarter, but earnings fell year-over-year for the first time since 2009, the FDIC said.- U.S. Consumer Confidence Tumbles

Total of Negative General Business and Economic News Snippets = 19

B) Positive WSJ Economic and General Business News Snippets

11/04- Australia Economy Shows Signs of Rebound- Factories Shrug Off Shutdown- Investors Return to IPOs in Force- Euro Zone, China Data Boost U.S. Stocks11/05- EU Raises U.K. Growth Forecast- Cyclical Stocks Are Making a Comeback: Materials, technology, industrial and consumer-goods companies are reporting stronger-than-expected profit growth, underscoring their appeal to investors amid an expanding global economy.11/07- U.S. Economy Grew 2.8% in Third Quarter- Return of Cash Sparks Emerging-Market Rallies: Investors Venture Far Into Risky Territory- Weekly Jobless Claims Decline11/08- U.S. Hiring Picked Up In October- Surprise Jump in China Exports: Exports rebounded sharply in October from a September slump as demand improved in the U.S. and Europe, a potentially positive sign for the global economic outlook.- Consumer Spending Remains Tepid: Personal spending, a broad measure of consumer outlays on items from refrigerators to health care, rose 0.2% in September from a month earlier. Personal income was up 0.5% in the month.- Big Discounts Drive Sales for Retailers11/11

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- Consumer Spending Remains Tepid: Personal spending, a broad measure of consumer outlays on items from refrigerators to health care, rose 0.2% in September from a month earlier. Personal income was up 0.5% in the month.11/12- OECD: Global Growth to Pick Up- About 1-in-4 U.S. Pumps Selling Gas Below $3- Rating the Euro Zone's Progress: Many euro-zone indicators have taken on a more promising outlook in recent months.11/14- U.S. Jobless Claims Fall- U.S. Worker Productivity Climbs11/19- Germany's Economic Sentiment Brightens- Corporate Results Expose Lack of Confidence: Corporate profits rose in the third quarter, but companies reduced capital spending and kept adding to their cash hoards, underscoring a lack of confidence11/20- Sales Brighten Holiday Mood: Consumers Shrug Off Shutdown, Keep Spending Heading Into Gift-Buying Season11/21- U.S. Jobless Claims Fall by 21,00011/22- The New Age of Energy—a Gold Rush in the Oil Patch- Canada Retail Sales Up in September- Continued Signs of Healing in Labor Market: The job market isn't healing quickly. But it is healing.11/26- Home Sector Shows Sign of Strength11/29- Higher Prices Point to Japan Growth- U.S. Jobless Claims Continue Fall11/30- Retail Sales Rise Over Holiday

Total of Positive WSJ General Business and Economic News Snippets: 30

C) Merger/Acquisitions/Public Offerings Snippets From the Wall Street Journal

11/04- Alcatel-Lucent to Raise $2.7 Billion

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11/05- Endo Health to Buy Paladin Labs for $1.6 Billion11/08- Talisman Energy to Sell C$1.5 Billion of Natural-Gas Assets11/11- Shire to Buy ViroPharma- Deutsche Telekom to Buy GTS- Novartis Sells Unit to Grifols for $1.68 Billion11/13- Merger to Shuffle Major Air Routes- Advent to Buy Ocensa Pipeline Stake11/19- Dropbox Seeks Funding Round- Financial Technologies sells Singapore Mercantile Exchange11/20- Nokia Shareholders Support Handset Sale to Microsoft11/21- China's Cinda, Which Thrives on Buying Bad Loans, Set to Go Public- Yahoo Boosts Buyback Plan- T-Mobile Looks to Raise Money111/22- Cinda IPO Is a Market Distress Test11/26- Apple Buys Israel's PrimeSense- Vivendi to Spin Off Telecom Unit- Bayer Can Stretch To Get Algeta- Take-Two Buys Back Icahn's Stake

M & A Total: 19

Table of Positive v. Negative General Economic & Business News WithInvestment Banking (Available Since 2009)

Month % Neg % Pos M & A, & Public Offering Snippet Count2012January 53% 47% 11February 46% 54% 11March 47% 53% 26April 51% 49% 30

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May 57% 43% 20June 77% 23% 22July 71% 29% 37August 63% 37% 16September 72% 28% 19October 57% 43% 27November 54% 46% 21December 68% 32% 382013January 52% 48% 15February 52% 48% 23March 42% 58% 19April 57% 43% 22May 53% 47% 29June 39% 61% 27July 46% 54% 31August 34% 66% 29September 26% 74% 33October 49% 51% 21November 39% 61% 19

3) Technical Analysis Summary

Indicator TREND/COMMENT

REAL GDP Positive: Uptick

UNEMPLOYMENT NegativeUnemployment Rate: 7.3%Civilian Labor Force Participation Rate: 62.8%Employment-Population Ratio: 58.3%

INDUSTRIAL PRODUCTION INDEX (INDPRO) 99.978 - Downtick: Negative

PURCHASINGMANAGERS INDEX Expanding: Increased

RETAIL SALES Increasing: Positive

CONSUMER SPENDING Increasing: Positive

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CONSUMER CONFIDENCE(Conference BoardTM) Downtick: Negative

HOUSING STARTS: Uptick: Positive

EXISTING HOME SALES Downtick: Negative

CONFERENCE BOARDLEADING ECONOMIC INDICATORS TM Increased: Positive

CONFERENCE BOARDCOINCIDENT ECONOMIC INDEX TM Increased: Positive

HIGH YIELD BONDS (HYG) Level: Neutral (93.43 10/31; 93.42 11/30)

DJ SELECT DIVIDEND YIELD Positive (500.89 10/31; 504.21 11/30)

SUMMARY8 Positive4 Negative1 Neutral

4) RITE Investment Strategy Index

Scale:0 = Neutral;+10 = High Opportunity Environment;-10 = Extreme Negative Risk Miasma

EFFORT, RISK, FREEDOM,KNOWLEDGE/INFO Nov 31 COMMENTS

1) Domestic Political Risk + 3 Good: Total Gridlock.

2) Tax Risk + 3 Further taxes very unlikely

3) Individual Incentive (Freedom) - 2 Regulations are burdensome but major shifts in policy will not pass the House.

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4) Production of Knowledge + 2 Positive Corporate profits indications are for only 3% in 2013, hence R & D programs will remain intact.

5) Technical Analysis Market moving upwardof the U.S. Stock Markets + 5

6) Corporate Snippets + 5 Overwhelmingly positive at 62%

7) General Business& Economic Snippets + 8 Positive Snippets increase from 51% to 61%

8) Economic Indicators + 4 From 12/1/0 to 8/2 /3 to Pos 8; Neg 4; Neu. 1

9) Merger/Acquisition Activity - 0 - Decreased down to 19

Sum of Total + 28Average of Total + 13.11RITE Strategy Index: 65.6%

History of Strategy Index (Started 2009)

Month/Yr Index % DJIA Gold Oil USD Index

2012Jan 31 54.4% 12,632.91 1,742.1 98.67 79.465Feb 29 57.2% 12,952.07 1,709.9 107.07 78.794March 31 56.7% 13,212.04 1,671.9 103.02 79.186April 30 59.4% 13,213.63 1,665.3 104.95 78.77May 31 52.2% 12,393.45 1,556.0 86.18 83.28June 30 50.6% 12,880.09 1,598.6 84.96 81.59July 31 48.3% 13,007.47 1,614.6 88.06 82.78August 31 50.6% 13,090.84 1,684.6 96.47 81.216Sept 30 52.8% 13,437.13 1,764.5 91.39 80.096Oct 31 56.7% 13,096.46 1,717.50 86.24 79.99Nov 30 57.2% 13,025.58 1,716.6 88.94 80.23Dec 31 56.7% 13,104.14 1,675.6 91.79 79.6152013Jan 31 56.7% 13,860.58 1,660.60 94.36 79.23Feb 28 60.6% 14,054.49 1,571.40 90.64 82.47

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Mar 31 65.0% 14,578.54 1,596.9 97.28 83.175April 30 60.6% 14,839.80 1,474.4 93.05 81.77May 31 57.8% 15,115.57 1,388.0 91.61 83.30June 30 61.7% 14,909.60 1,234.8 96.49 83.376July 31 63.3% 15,499.54 1,325.00 105.42 81.915August 30 63.9% 14,810.31 1,396.20 107.78 82.10Sept 30 65.0% 15,129.67 1,328.20 102.34 82.24Oct 31 66.1% 15,545.75 1,349.00 96.38 80.26Nov 30 65.6% 16,086.41 1,251.4 92.78 80.657

5) Summary

EQUITY MARKET CONCLUSION:

Stocks: Stay Long

1) Positive corporate news remained strong at 62%, and the Percentage of Positive WSJ Economic and General Business Data Snippets increased precipitously to 61% indicating a positive direction in economic news. M & A decreased to a measly 19 snippets.

2) The RITE Index decreased a little from 66.1% to 65.6%, first downtick in a while. Thus, we extend our call to stay long even though our Index has levelled off.

3) An aside: For the more advanced trader we recommend the following since the RITE Index levelled off:

Take some profits and keep on the side a portion - say, 25% - as the possibility of a pull back is developing. Should this pull back materialize, you will have some cash to come back in as the overall investment scene is still positive and as the RITE Report still recommends to be long.

PART 2: HEDGING

1) HEDGING/INFLATION SNIPPETS FROM THE WSJ

Deflation

11/21

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- U.S. Wholesale Prices Fall 0.2%

Inflation11/04- Bullard: Fed Will Cut Bond Buys When Job Market Improves

DEFLATION SNIPPETS 1/50%INFLATION SNIPPETS 1/50%

INFLATION TABLE

(Month notes RITE Report Issue Date; Statistical Data is the latest which is notedin the WSJ at the date of the RITE Report publication which is the last day of themonth.)

Month Consumer Producer Inflation Infl Defl DJ UBSPrices Prices data.com Snpts Snpts Commodity Idx Annual RateAnnual Rate

2012 ReportsJan + 3.0% + 4.8% + 2.96% 4/80%;1/20% 144.16Feb + 0.2% + 0.4% + 2.93% 5/100%;0/0% 148.04Mar + 0.4% + 0.4% + 2.87% 5/100%;0/0% 141.90April + 0.3% + 0.4% + 2.65% 5/100%;0/0% 141.29May + 0.2% + 0.2% + 2.3% 3/60%;2/40% 128.38June - 0.3% - 1.0% + 1.7% 2/67%;1/33% 135.42July - 0.0% + 0.1% + 1.66% 3/100%;0/0% 144.17Aug + 0.1% + 0.3% + 1.41% /80%//20% 146.03Sept + 0.6% + 1.7% + 1.69% 8/100%/0/0% 148.50Oct + 0.1% + 1.1% + 1.99% 4/100%;0/0% 142.742Nov + 0.1% - 0.2% + 2.16 % 3/100%;0/0% 142.80Dec + 1.8% + 0.1% + 1.76% 6/86%;1/14% 139.072013 ReportsJan + 0.1% - 0.2% + 1.74% 5/71%;2/29% 142.40Feb - 0.0% + 0.2% + 1.59% 4/67%;2/33% 136.57Mar + 0.7% + 0.7% + 1.98% 1/8%;11/92% 137.48April - 0.2% - 0.6% + 1.47 % 3/25%; 9/75% 133.63May - 0.4% - 0.7% + 1.06 % 3/30%;7/70% 130.67

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June + 0.1% +0.5% + 1.36% 3/60%;2/40% 124.66July + 0.5% + 0.8% + 1.75% 1/20%;4/80% 126.157Aug + 0.2% + 0.0 + 1.96% 1/33%;2/67% 130.445Sept + 0.1% + 0.3% + 1.52% 1/20%;4/80% 127.11Oct + 0.2% - 0.1% + 1.18% 1/50%;1/50% 125.23Nov - 0.1% - 0.2% - 0.26% 1/50%;1/50% 124.2190

2) HEDGING SUMMARY

Gold: Hold and stay long.Gold has bottomed and going sideways; as the Fed continues to buy and finance the government, let’s continue to stay long.

Oil: Go short.We have been on the sidelines on oil; but US production is increasing and Iranian oil may soon hit the market. Thus, a good chance of a downward trend of crude oil prices will develop. Time to short oil.

The U.S. Dollar: Stay neutral: no callThere is no trend in place.

For your reference we include a directory of:

The RITE Report Major Trade Advise Summary

Date Approx. Mrkt Level Market Advise20092009/05/01 8,212 Stocks Go long.2009/05/01 895 Gold Go long.2009/05/01 USD Go short2009/06/01 51.12 Oil Go long20102010/02/01 USD Stop going short; Take profits. get out. 20112011/04/01 12,376 Stocks Market to go sideways; end of bull. 2011/05/01 12,763 Stocks Take profits 55.4% Gain

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2011/06/01 102.7 Oil Go Neutral 100.9% Gain 2011/06/01 12,441 Stocks Take profits (re-confirmation)2011/07/01 USD Go short2011/08/01 USD Cover the short; no direction2011/08/01 12,240 Stocks Trading Range20122012/03/01 107 Oil Go long2012/05/01 104 Oil Take profits; Go neutral 2.8% Loss2012/06/01 12,772 Stocks Take profits; a downtrend started2012/06/01 1,564 Gold Sell: Take profits 74.7% Gain2012/07/01 1,604 Gold Buy: Go long2012/08/01 13,090 Stocks Advised not to be in the Stock Market at all2012/09/01 80.025 USD Go short2012/11/01 13,096 Stocks Confirmation: Not to be in Stock Market20132013/01/02 13,104.30 Stocks Go Long2013/03/01 82.47 USD Index Take loss; go neutral2013/06/01 15,115.57 (05/31 Close) Stocks - Take profits 15.3% Profit2013/08/01 15,499.54 Stocks Go Long

2013/12/01 16,086.41 Stocks Stay LongGold - Stay Long (1,251.4 - 11/29);USDollar Index - Stay Neutral; No Call; No TrendOil - (92.78 - 11/29) Go Short

RITE ReportChris Angle, Editor19 Topledge Road (P.O. Box 708)Redding, CT 06896Tel. 203/253-2008Fax. 203/286-2356Email: [email protected]://www.stock-market-direction.net/

(The RITE Report’s name was derived from the acronym of the four variablesinherent in all economic transactions; Risk, Information/Knowledge, Time, andEffort. Of course, this would be for a service, and if the product were a materialgood, there would be an additional factor of Material - or Land as the economistwould say. See The Philosophical Equations of Economics at

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www.philosophypublishing.com for further info on this subject.)

For Your Reference:

CUSTOM RESEARCH: Please note that custom economic and/or macroinvestment research and advisory services are available on request.

SELF-ADVERTISEMENT BLURB:

1) Chris Angle is the author of:

The Nature of Aesthetics - 978-0-9661126-4-1Defining Ethics Good & Evil - 978-0-9661126-5-8Truth and the Nature of Decisions - 978-0-9661126-6-5The Philosophical Equations of Economics - 978-0-9661126-3-4These books may be viewed at: www.philosophypublishing.com

2) Chris Angle is the host of The Philosophical Angle, a TV and Podcast Program,which discusses concepts in current media.http://www.youtube.com/user/philosophypublishing

DISCLAIMERS/CAVEATS:

1) Past performance is not indicative of future results.2) Trading stocks, futures, and options involves substantial risk of loss and is not suitable for all investors. Carefully consider the suitability based upon your experience, objectives, financial resources and other relevant circumstances. Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment performance can be volatile and are not suitable for all investors. An investor could lose all or a substantial amount of his or her investment.3) This communication does not constitute an offer to sell, or a solicitation of anoffer to buy or sell, any products named herein, commodities interests, futurescontracts, or securities, and is intended for informational purposes only. Any offerfor any investment product will be made solely by the appropriate disclosuredocument or private placement memorandum.4) The RITE Report has been prepared either from publicly available informationor reflects the opinions of the author. Information contained in this report isbelieved to be reliable but may not have been independently verified. The RITEReport does not guaranty, represent or warrant, or accept any responsibility or

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liability as to, the accuracy, completeness or appropriateness of the informationcontained herein. At no time will the RITE Report make specificrecommendations for any specific person, and at no time may a reader, caller orviewer be justified in inferring that any such advice is intended. Informationcontained herein may not be current due to, among other things, changes in thefinancial markets or economic environment. Opinions reflected in the materialsare subject to change without notice. Forecasts represent estimates. Informationprovided by the RITE Report is expressed in good faith, but it is not guaranteed.Long-term success, trading or investing in the markets, demands recognition of thefact that error and uncertainty are part of any forecasting effort. Investing carriesrisk of losses. Information provided by the RITE Report does not constitute, andshould not be used as a substitute for tax, legal, or investment advice. Please askyour broker or your advisor to explain all risks before making any trading andinvesting decisions.

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