AlphaKing.com
Weekly Trend and Trade Review	January 8, 2010
Trader Talk The short term momentum oscillators remain positive, confirming the bullish stance of the AlphaKing Trading indicator. The accumulation/distribution profile remains positive, with zero high volume distribution days this week. The leadership profile remains very positive, with 697 new 52 week highs, versus 80 new 52 week lows. The 4% rule remains positive, confirmed with bullish Federal Reserve policy. The VXO volatility indicator closed the week at 17, showing a continuation of the pullback in fear, with is contrarian bearish. We continue to await a corrective plunge that sticks to confirm the wave 2 bear market rally peak is in, and the next down-leg of the secular bear market underway, with the recent push to new highs for the stock indexes opening the door to an extended blow-off run to test the resistance shelf near Dow 12,000. Traditional seasonal trends have us looking for a year end rally that carries into the new year. The Presidential cycle suggests a grim 2010 once the current rally stalls and reverses. The Benner-Fibonacci cycle is fast approaching the end of the bullish period, with a crashing bear going forward expected into 2011. The AlphaKing combination cycle sees a rally into early March. Summary: The first full trading week of 2010 ended with yet another victory for the bulls as the Energizer Bunny rally continued, with the average stock doing much better than the stock indexes themselves. While the stock market bull run off the March 2009 lows is very overdue a pullback, all investment ducks line up in the same direction - up - and only a fool would stand in the way of a such a trend with everything going for it. For sure, the reversal once the peak is in will be brutally swift, and painful for those expecting even higher prices. Our research of past mega moves suggest the optimal exposure is to trade ½ the portfolio in-line with the trend, while keeping the other ½ tucked away in cash, which helps to dampen the volatility seen at blow-offs and blow-off reversals. Cycles, backed by current technical action, suggest a Dow 12,000 by March peak, and the bears would get their financial heads handed to them under such a scenario as individual stocks, which are acting very well now, would likely go melt-up as the last of the sucker lemmings get drawn in. 2010 is setting up to be a spectacular year. 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. Have a great weekend! 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* 0.9% 0.9% Annual 1973-2009* 13.6% 18.8% GrQ/4 Portfolio 2010* 2.5% 2.5% Annual 2000-2009* 13.6% 20.3% GrQ/8 Hedge Fund Portfolio 2010* 2.9% 2.9% Annual 1999-2009* 5.8% 22.3% GrQ/25 Small Cap Portfolio 2010** 3.7% 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 46.55 0.65% GrQ/4 Portfolio* Position Entry Date Entry Current Profit/Loss Long IYM 12/24/2009 60.63 64.12 5.76% Long EWS 12/24/2009 11.35 11.80 3.96% Cash x 2 GrQ/8 Hedge Fund Portfolio* Position Entry Date Entry Current Profit/Loss Long FIG 12/29/2009 4.64 5.28 13.79% Long RYAAY 12/30/2009 26.80 27.50 2.61% Long CELG 12/24/2009 56.61 57.27 1.17% Long EVVV 12/24/2009 13.77 13.37 (2.90%) Cash x 4 GrQ/25 Small Cap Portfolio** Position Entry Date Entry Current Profit/Loss Long KFN 12/29/2009 5.30 6.75 27.36% Long CQP 12/24/2009 11.80 14.60 23.73% Long THC 12/30/2009 5.26 6.25 18.82% Long NM 12/24/2009 6.18 6.90 11.65% Long UMC 12/29/2009 3.76 4.19 11.44% Long KLIC 12/30/2009 5.35 5.95 11.22% Long SMOD 12/24/2009 6.70 7.09 5.82% Long EV 12/30/2009 30.62 31.80 3.85% Long INSU 12/30/2009 22.10 22.69 2.67% Long GFF 12/24/2009 12.34 12.60 2.11% Long JBLU 12/24/2009 5.73 5.80 1.22% Long PLAB 12/29/2009 4.50 4.34 (3.56%) Long FRZ 12/30/2009 4.44 3.98 (10.36%) Cash x 12