AlphaKing.com
Daily Trend and Trade Review	January 27, 2010
Trader Talk The major stock indexes traded back and forth the unchanged level once again today, with modest gains going into the close run on higher volume. Officially, the Dow Industrials advanced 0.4% on NYSE volume of 6.1 billion shares, while the NASDAQ rose 0.8% on 2.44 billion. The leadership profile continues to weaken, though remains positive for now, with 128 stocks making new highs versus 87 making new lows. The short term momentum oscillators remain negative, non-confirming the bullish stance of the AlphaKing Trading Indicator. We have no new trades at this time. Our research suggests that once the current stock market rally runs out of steam they should fall hard into a deeper correction, one that will likely trigger a sell signal from our trend following indicators. We are likely to see a day or so more of rally to retest the 50 day moving averages (blue lines in charts below) prior to the resumption of the attempted crash run. New highs for the stock indexes would completely nix this destined to be bearish view. While volume was higher today, the gains were very modest, and well shy of what we would expect to see if a major bottom was in. 2%+ rally days run on high volume is what is needed to turn the tape truly bullish again, and while that remains missing in action we will stick to our destined to be bearish view that lower prices will eventually land once the current rally hits an inevitable snag. The trend does remain up for now, so we continue to sit tight with ½ a portfolio of longs hedged with the other ½ in cash. We expect our trend indicators to be in position to issue a sell signal later this week - early next - though for now sitting tight is the way to go, as not every threat of a trend change turns into the real thing. 401K investors should have ½ of their portfolio invested in a stock index, or aggressive growth, mutual fund, with the other ½ remaining in a money market fund. The Index portfolio is ½ invested in QQQQ with the other ½ remaining in cash. Kevin Wilde, Chief Trading Strategist AlphaKing.com. Portfolio Update Archive Trades: Index Portfolio: No new trades GrQ/4 ETF Portfolio: No new trades GrQ/8 Hedge Fund Portfolio: No new trades GrQ/25 Small Cap Portfolio: No new trades Performance: Portfolio Long Only Long/Short Index Portfolio 2010* (1.1%) (1.1%) Annual 1973-2009* 13.6% 18.8% GrQ/4 Portfolio 2010* (2.2%) (2.2%) Annual 2000-2009* 13.6% 20.3% GrQ/8 Hedge Fund Portfolio 2010* 2.4% 2.4% Annual 1999-2009* 5.8% 22.3% GrQ/25 Small Cap Portfolio 2010** 0.9% N/A Annual 2001-2009** 16.0% N/A GrQ/25 M100 NASDAQ S&P500 DJIA * Compounded results before commissions, dividends, or interest income during those periods when portfolio invested in money market funds or short. Back-tested data used to compile results prior to 2004, actual trades since. ** Performance tracked by Marketocracy.com, and results include commissions of $0.05 per share per trade. Trade the AlphaKing Portfolios at FolioFN.com Current Positions: Index Portfolio* Position Entry Date Entry Current Profit/Loss Long QQQQ 12/31/2009 46.25 44.70 (3.35%) GrQ/4 Portfolio* Position Entry Date Entry Current Profit/Loss Long EWS 12/24/2009 11.35 10.82 (4.67%) Long IYM 12/24/2009 60.63 57.43 (5.28%) Cash x 2 GrQ/8 Hedge Fund Portfolio* Position Entry Date Entry Current Profit/Loss Long EVVV 12/24/2009 13.77 14.52 5.45% Long FIG 12/29/2009 4.64 4.81 3.66% Long CELG 12/24/2009 56.61 58.11 2.65% Long RYAAY 12/30/2009 26.80 26.33 (1.75%) Cash x 4 GrQ/25 Small Cap Portfolio** Position Entry Date Entry Current Profit/Loss Long CQP 12/24/2009 11.80 15.19 28.73% Long KFN 12/29/2009 5.30 6.08 14.72% Long FRZ 12/30/2009 4.44 4.94 11.27% Long NM 12/24/2009 6.18 6.60 6.80% Long THC 12/30/2009 5.26 5.39 2.47% Long EV 12/30/2009 30.62 30.93 1.01% Long UMC 12/29/2009 3.76 3.73 (0.80%) Long GFF 12/24/2009 12.34 12.09 (2.03%) Long SMOD 12/24/2009 6.70 6.52 (2.69%) Long JBLU 12/24/2009 5.73 5.55 (3.14%) Long INSU 12/30/2009 22.10 21.30 (3.62%) Long KLIC 12/30/2009 5.35 5.13 (4.11%) Cash x 13