Thoughts from the Frontline

I have not written in a week or so, as my daughter was out on vacation and I found I could not send an e-letter correctly. That will never happen again, as this old dog is going to learn a new trick or two. One of my readers wrote that my last e-letter took a long time to reach the conclusion that I had no clue, but that he appreciated my honesty. I hope I can satisfy him today as I take a leap and take a position.

The Millennium Wave Investor Sentiment Index is 77, and moving down. The Millennium Wave Sentiment Momentum Index is 35.25, still trending down. The Millennium Wave Sentiment Percentage Uptrends is 29.52, and has gone flat! The Millennium Wave Sector Model has moved to Basic Services (RYBIX) from Energy Services (RYVIX). We entered and left Energy Services with a slight loss, so that means 7 of the last 8 trades have been losers. I still think the market is too volatile for sector trading, and will continue to be for some time. I look forward, more than you can possibly imagine, to the time when the markets have some reasonable value and basis to them, so we can use sector rotation and other systems profitably.

The Millennium Wave Investor Sentiment Index is 83, down somewhat The Millennium Wave Sentiment Momentum Index is 42.25, still trending down The Millennium Wave Sentiment Percentage Uptrends is 29.32, still leaping up! The Millennium Wave Sector Model is still in Energy Services (RYVIX), with a small profit for a change, but after today, who knows? (comments below)

This is an important e-letter. Not only does it suggest things may get better sooner than I had previously thought, it will also be important in understanding the new Income Investment Model I will be introducing within a very short time.

The Millennium Wave Sector Model has switched into the Rydex Energy (RYVIX) from the Internet fund (RYIIX). As I predicted, that trade lost money. We are now down 6 out of 7 trades for January alone, when "normal" would only see 2 or 3 trades in a month. This market is too volatile for sector rotation models, but this investment style will have its day before the end of the year. Patience, Dr. Siddique. We will get there.

The Millennium Wave Investor Sentiment Index is a red-hot 84.4, trending up The Millennium Wave Sentiment Momentum Index is 46.6, trending down The Millennium Wave Sentiment Percentage Uptrends is 23.75, leaping up! The Millennium Wave Sector Model has switched into the Rydex Internet fund (RYIIX) Your outspoken analyst is back from DC and the inaugural shindig. While I was there, I went to Baltimore and met with the editors and publishers of The Fleet Street Letter. They asked me to be a contributing editor and I gladly accepted. The Editor, Lynn Carpenter, is a no-nonsense value oriented stock picker with a solid track record. I asked her if she would share a pick with us or so every month and she agreed to do so, so the Millennium Wave Investor Online is going to be even better! I have always been a big fan of Fleet Street, and am proud to be associated with them. I will still write my letter as always, but of course, some time in the near future I will tell you how you can subscribe if you want that letter.

I like airplane trips. They give me the time to read and think, free from phones and to-do lists. I have spent the last hour going over our lengthy investment sentiment numbers. And what I find is very interesting.

The Millennium Wave Sector Model has switched into the Rydex Energy Services fund (RYVIX) First, I can count to five. I know last issue I said the four most dangerous words are "This time it is different" -- is five words. But I meant to write "This time it's different." I promise you if you look at the punch ballot, you can see the dimpled chad which clearly indicates I meant to use the contraction. And besides, there was a crowd outside my office, etc. I hate it when I make mistakes so publicly. I guess it comes with the territory. Now, on to the markets......

The Investor Sentiment Index is 82 The Investor Sentiment Momentum Index is 52 The Investor Sentiment Uptrends Index is 20.3 The Sector Rotation model switches from Energy Services to Banking What a week in the markets! These are the times that try men's soul's, and their pocketbooks. I think today I will give you some insight into the mind (and stomach) of a market timer. You will find it instructive.