1. Part 1: TrimTabs Liquidity Theory and the Equities Markets Part 2: What the U.S. Government Doesn’t Know it Doesn’t Know and Why We Should Care! Madeline Schnapp, Sr. Research Analyst http://www.trimtabs.com

2. The Stock Market CashStock “The purpose of the equity market is to separate investors from their cash.” Charles Biderman

3. The Stock Market Cash Stock Market Direction =

4. The Stock Market Cash Stock Market Direction =

5. There are 3 types of Liquidity Liquidity L1L2L3

6. L1 L1 = the Net value of shares available to investors Insider Selling New Offerings Cash Buybacks Cash Takeovers

7. L1 – “Float” Insider Selling New Offerings Cash Buybacks Cash Takeovers

8. L1 – “Float” Insider Selling New Offerings Cash Buybacks Cash Takeovers

9. L1 – Net Liquidity L1 - Bullish L1 - Bearish

10. L2 = U.S. Equity Fund Flow

11. L2 – U.S. Equity Fund Flow

12. L1 and L2 - 1999 thru 2003

13. S&P 500 vs. Model Portfolio Value

14. What the U.S. Government Doesn’t Know it Doesn’t Know and Why We Should Care! Part II

15. Cash $ $ Wages and Salaries Employment

16. Wages and Salaries The BEA Way The TrimTabs Way

20. BEA Income Data vs.Tax Witholding Data 1990 through 2004

21. Employment The BLS Way The TrimTabs Way

27. BLS vs. TrimTabs Employment

28. Weekly Unemployment Claims

29. TrimTabs Online Jobs Postings Index

30. Monster Employment Index

31. Temporary Help Services

32. Money Supply Sentiment Debt Other Indicators

33. 2004 Turning Out To Be A Good Year Low Interest Rates Tax Cuts $61 Billion 2003 $149 Billion 2004 $88 Billion 2005 $21 Billion 2006 Deficit Spending

34. U.S. Budget Deficits/Surpluses 1987 through 2004 (p)

35. TrimTabs Financial Research http://www.trimtabs.com

36. Questions?