5/25/2008 10:20:55 AM

Welcome Subscribers:

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Sometimes you have to guard yourself from having Buck Fever. In my haste to get my Market Letter off and running, I probably chased a few ETF's with market orders and not waiting for a better entry price. Now that we have 6 to 8 positions on, we can start being a little more cautious in how we enter a trade. We would like to have 10 to 12 positions on but there might be times that we drop back to 5 or 6 and just keep the rest in cash. Still I feel that we are well positioned for the future. NRL and COW are working well for us. Inflation is heating up and we have some good hedges on. We are looking to add two more positions and another order of PAL. I still feel EWT, the Taiwan Fund should get up to 18 to 20. After hitting 17 1/2 it has faltered, so we will keep our stop in at 16.

Trade Actions:

Sell Short REM Mortgage Real Estate Investment Trust @ 25.2 or Better
Buy FUE Elements BioFuel @ 10.0 or Better
Also add another PAL @ 6.00 or Better

Market Outlook/Potential Opportunities:

The US Stock Market probably still has another Major leg to the downside. Before that happens, I think a short-term bounce to the upside could happen here. We want to set up Short positions at that time. Last week I was looking at ITB home construction and IAT regional banks as shorts. I should have made the trade. Now we would be chasing them. We will also be looking at a few more shorts in the Stock Market. We will wait for a rally and another opportunity. We are also keeping a close eye on Gold and Silver ETF's for possible buys. We are looking for a pullback here for a better entry.

Current Long Portfolio:

Current Short Portfolio:

None at this time, looking for our first short.

Recently Closed Positions

N/A

Thank You
Any questions you can e mail me bill@stockbarometer.com.