Daryl Montgomery August 14, 2012 Copyright 2012, All Rights Reserved Market Update – August 2012 Daryl Montgomery August 14, 2012 Copyright 2012, All Rights Reserved The contents of this presentation are not intended as a recommendation to buy or sell any security.

Background Material for Charts Moving Averages – 50-day, 200-day, 325-day or 10-week, 40-week, 65 week RSI – relative strength index, 80-overbought, 20 oversold, 50 divides bearish and bullish MACD – moving average convergence divergence, zero divide bullish bearish, peak and bottom numbers variable DMI – Directional Movement Index, +DI (blue), -DI (red) and trend line (black).

Market Outlook There are potential problems in the market until next spring (possibly to fall 2013). A market crash will become increasingly likely during this period. Market has held up despite very bad news, this can only happen if a lot of liquidity is being injected. Money printing will not materialize as claimed. Gold, silver and Bond Interest rates trying to bottom.

Leveraged Emerging Markets & Stocks LBJ – 3x Latin America YINN – 3x China RUSL – 3x Russia EDC – 3x Emerging Markets INDL – 3x India UBR – 2x Brazil BRIL – 3x BRIC (Brazil, Russia, India, China) TNA – 3x Small Cap SOXL – 3x Semiconductors

Leveraged Commodities UGLD – 3x Gold USLV – 3x SLV NUGT – 3x Miners ERX – 3x oil stocks COWL – 3x agribusiness UCO – 2x oil WTI commodity MATL – 3x basic materials

Major Markets

Volume Dow Jones 5 Years Weekly

Dow Jones 3-Years Weekly 10, 40, 65-Week Moving Average and RSI, DMI, MACD

Dow Jones Transportation 3-Years Weekly 10, 40, 65-Week Moving Average and RSI, DMI, MACD

S&P 500 3-Years Weekly 10, 40, 65-Week Moving Average and RSI, DMI, MACD

Nasdaq 3-Years Weekly 10, 40,65-Week Moving Averages, RSI, DMI, MACD

Russell 2000 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

VIX 5-Years Weekly 10, 40, 65-Week Moving Average and RSI, DMI, MACD

VIX Six-Month Daily 50, 200, 325-Day Moving Average and RSI, DMI, MACD

UK FTSE 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

German DAX 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

France: CAC-40 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Japan: Nikkei 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Emerging Market Indices

Hong Kong Hang Seng 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Brazil Bovespa 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

India Sensex 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Shanghai Composite 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Russia RTS 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Commodities

GOLD ETF: GLD 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

GOLD ETF: GLD 7-Years Monthly 40 Month Moving Average, RSI, DMI, MACD

Mining ETF GDX 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Mining ETF GDXJ 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Silver ETF SLV 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

WTI Crude Oil 9-Years Monthly

CA:U (Uranium) 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

KWT Solar ETF 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Copper ETF JJC 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Agriculture ETF RJA 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

Currencies

U.S. $ DXY 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Euro FXE 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Swiss Franc FXF 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Australian $ FXA 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Canadian $ FXC 3-Years Weekly 10, 40, 65-Week Moving Averages and RSI, DMI, MACD

Bonds

30-Year Treasury Yield 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD

10-Year Treasury Yield 3-Years Weekly 10, 40, 65-Week Moving Averages, RSI, DMI, MACD