Bushong Capital Systems Business Services & Investment Properties


	Market Opinion July 21, 2008 [Stocks] SHORT TERM: (3 days - 3 weeks) - Check 'Biz Chat' for up-to-date information. MEDIUM TERM: (1 month - 5 months) - Buy - The down leg appears complete. If you were frequenting Biz Chat, you know that I missed my projected bottom by 2 weeks and about 50-60 points (daily close, S&P). That's not very good, for me. But, if I had been using some of the other major indexes, it would have worked out just fine, because they held up quite nicely. IMO, the reason for the miss is that financial institutions have been selling large cap stocks to raise cash. And those large cap stocks are only listed in the S&P and DJIA. So does that mean the small caps will lead the parade? I don't know, but I doubt it. My proprietary 844 Switch has now given numerous buy signals, with the most recent signal equalling the January low. I have been loading up with stocks for 2 weeks. LONG TERM: (More than 6 months) - Neutral - Just more sideways action, or the 'Real McCoy'? The market could trade in a wide range for years, or it could take out the 03 low. If the latter were to happen, there's not much holding it up until 450. Ouch! [Bonds] LONG TERM: - Neutral - Bonds are acting better, but within a trading range. They're probably at the middle range right now. I don't see any value, and it may be years before I get interested again. [Gold] LONG TERM: - Sell - If the gold bugs couldn't get their way in the past 2 weeks, I just don't see how they'll ever do it. The world was coming apart and they couldn't take it out the top. Folks, you just got to believe that deflation is gaining to upper hand. The XAU is the vehicle of choice. [Real Estate] LONG TERM: - Buy - Most real estate has not hit bottom. But your best deals come long before the actual bottom is reached. The whole thing has me excited. I have my ear to the ground, searching for deals. Believe me, they're out there. Can you recognize one? If you need help, call me! [Antiques/Collectibles] LONG TERM: - Buy - This asset class will always be very rewarding for those in-the-know. As long as world economies depend in ‘fiat currencies’ this baby is solid. But, you have to do your homework. Smart investors are trend followers. There are no PE’s to get out of whack, so prices can go to the moon. Don’t be afraid to buy inexpensive items, but always go for “quality and a theme”. Disclaimer: This analysis is only for informational and educational purposes and does not represent a proposal for buying or selling stocks, bonds, gold, futures contracts, or investment grade assets of any kind. BCS, Inc. is not in the business of selling Market Advice.

Market Opinion
July 21, 2008

[Stocks]

SHORT TERM: (3 days - 3 weeks) - Check 'Biz Chat' for up-to-date information.

MEDIUM TERM: (1 month - 5 months) - Buy - The down leg appears complete. If you were frequenting Biz Chat, you know that I missed my projected bottom by 2 weeks and about 50-60 points (daily close, S&P). That's not very good, for me. But, if I had been using some of the other major indexes, it would have worked out just fine, because they held up quite nicely. IMO, the reason for the miss is that financial institutions have been selling large cap stocks to raise cash. And those large cap stocks are only listed in the S&P and DJIA. So does that mean the small caps will lead the parade? I don't know, but I doubt it.
My proprietary 844 Switch has now given numerous buy signals, with the most recent signal equalling the January low. I have been loading up with stocks for 2 weeks.

LONG TERM: (More than 6 months) - Neutral - Just more sideways action, or the 'Real McCoy'? The market could trade in a wide range for years, or it could take out the 03 low. If the latter were to happen, there's not much holding it up until 450. Ouch!

[Bonds]
LONG TERM: - Neutral - Bonds are acting better, but within a trading range. They're probably at the middle range right now. I don't see any value, and it may be years before I get interested again.

[Gold]
LONG TERM: - Sell - If the gold bugs couldn't get their way in the past 2 weeks, I just don't see how they'll ever do it. The world was coming apart and they couldn't take it out the top. Folks, you just got to believe that deflation is gaining to upper hand. The XAU is the vehicle of choice.

[Real Estate]
LONG TERM: - Buy - Most real estate has not hit bottom. But your best deals come long before the actual bottom is reached. The whole thing has me excited. I have my ear to the ground, searching for deals. Believe me, they're out there. Can you recognize one? If you need help, call me!

[Antiques/Collectibles]
LONG TERM: - Buy - This asset class will always be very rewarding for those in-the-know. As long as world economies depend in ‘fiat currencies’ this baby is solid. But, you have to do your homework. Smart investors are trend followers. There are no PE’s to get out of whack, so prices can go to the moon. Don’t be afraid to buy inexpensive items, but always go for “quality and a theme”.

Disclaimer: This analysis is only for informational and educational purposes and does not represent a proposal for buying or selling stocks, bonds, gold, futures contracts, or investment grade assets of any kind. BCS, Inc. is not in the business of selling Market Advice.