Good Morning:

• Due to my schedule this week, my public commentary will be brief and to the point. 
• As indicated Friday, the market appeared poised to run the stops below the June 52-week low at 3639. 
• However, as also mentioned, there was a risk of a short-covering rally due to the extreme position of the put/call ratio. 
• As it turned out, the market experienced the highest put volume in history on Friday. 
• The activity in puts and the ratio itself counsel that a short-term low is near.
• The market did not quite make it down to the June low, which in and of itself was a sign that the market was strengthening – at least for Friday
• Soon after, the Founders Group notified subscribers that they covered their short positions at 3671.25 to enjoy a peaceful, worry-free weekend. 
• Right after we covered, a short covering rally did kick in and brought the market back to close just above 3700.
• While the market may bounce here as we go into the close of the calendar quarter on Friday, nothing has changed. 
• We are still in a bear market and the trend is down until proven otherwise. 
• As such, we prefer to sell rallies and cover on dips. 
• For the braver among us, reversing from long to short and vice versa on subscriber signals has been quite rewarding.
• A recent, respected tactition said to nibble at 3400, buy at 3200, and load up the truck at 3000. Not such bad advice given all we know at this moment.

A.F. Thornton