The Stock Market Model used by TSI is a modified version of the model described by Martin Zweig in his book "Winning On Wall Street". Points are allocated based on monetary, momentum and sentiment indicators. The maximum total number of points is 9 and the minimum possible total is 0. A total of 5 points or more gives a BUY signal and a total of 4 points or less gives a SELL signal.

The TSI Model requires confirmation from the Momentum indicator prior to switching signals, that is, if a change in the Monetary or Sentiment indicators causes the total model points to switch from giving a SELL signal to giving a BUY signal, or vice versa, the signal change is provisional (P) until it is confirmed by the Momentum indicator.

Current Market Situation

Refer to the latest Weekly Market Update for our current analysis.

Notes

1. The Monetary indicator points are determined based on changes in the Fed Funds Rate. The range of points is 0 (extremely bearish) to 4 (extremely bullish).
   
2. The Momentum indicator points are determined based on changes in the Value Line Index (VLI). The indicator switches from 0 to 2 when the VLI closes 5% above its lowest daily close. The indicator will then remain at 2 until the VLI closes 5% below its highest daily close, when it switches back to 0.
   
3. Sentiment points are allocated based on the values of a number of sentiment indicators, including the Volatility Index (VIX), the equity put/call ratio, and various sentiment surveys. Points range from 0 to 3, where 0 indicates a high level of bullish sentiment (indicating that the market may be near a short term top) and 3 indicates a high level of fear or negative sentiment (indicating that the market may be near a short term bottom).

The gold momentum model used by TSI gives BUY or SELL signals based on percentage changes in the spot gold price and the TSI Gold Stock Index (TGSI). Note - prior to October 00 the XAU was used in place of the TGSI. The momentum of both the gold price and the TGSI must confirm a move before a BUY or SELL signal is generated. A NEUTRAL reading indicates that the gold price and the TGSI are giving conflicting signals.

Daily Momentum signals are calculated using daily closing prices, Weekly Momentum signals are calculated using weekly closing prices, and Monthly Momentum signals are calculated using monthly closing prices.

Current Market Situation

Refer to the latest Weekly Market Update for our current analysis.