Timing Market Turns

September 5, 2007

We exited back to cash at today's closing after entering 50% short in the Swing
positions in the indexes (25% short NDX) on Tuesday's closing. We were
short last week from the closing on Friday, the 24th, and exited the 31st before
the long weekend at breakeven.

We are expecting an upward bias toward Monday in a choppy lateral nature.
We expect that the action between now and the Fed meeting will get a wee bit
more volatile, as the guessing about a rate cut, or the news of trouble of another
CDO vehicle comes forward.

Sentiment

We expect our Daily Sentiment Index to remain in the neutral zone for several
days as the indexes slog toward the Fed meeting. Daily Index Sentiment Chart

Performance

We are maintaining a steady rise in all the Swing accounts, as seen here in the
SPX Swing position. Here is our verified Performance Graph from TimerTrac.

We remain 100% short in the Investor Core positions, portfolio hedged to
100% neutral, for all indexes.

Rate Cut?

We don't expect the FOMC to cut rates at the September 18th meeting. We
believe that if a Fed Funds rate is coming, it will likely be in early October after
the correction low is set in. A potential late September rapid decline is the only
other alternative that we can project a potential Fed Funds rate cut of 25 basis
points (less than 10% chance for Sept.).

W. B. Busin
W. B. Busin Group Publishing
http://www.market-timing-wbbusin.com/