Daily Signal Wed Feb 12, 2003 6:30am

Dow feels confused (obviously) so the signal is not strong but the pressure feels down at first then mild evening out. Today: DN/FLAT 0.5% Nasdaq feels more depressed. Today: DN 1.0% News: There seems to be a real threat of terrorism being prepared. While I don't like to do negative predictions unless they are highly probable, this seems to be getting serious. I sense it's towards Europe primarily but also sense US and Isreal on list. I really sense that some terrorism "starting" to happen is going to be part of the initial Iraq situation.

LAST 7 DAY ACCURACY: click here to see news articles and time/date stamps from 7 different online groups (AOL, MSN, Yahoo, ICQ, Lycos, Topica, Usenet/Goggle)
last week: Mon-Fri 2/3 100% on markets and news
Fri 2/7/03: 100% on Daily Market Signal
Mon 2/10/03: 100% on Daily Market Signal
Tue 2/11/03: 100% on Daily Market Signal
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AOL-GROUP PROPREDICTIONS http://groups.aol.com/propredictions
Subject: ProPredictions 030202-030802 Date: 2/4/03 8:42 AM MST
Author: ProPredict
ProPredictions 030202-030802
SUN-030202
(My predictions are in no way my opinion, what I want to happen or what I feel is best. While I do give public predictions as clearly as possible good/bad, I do not make any negative predictions that are not highly probable in my intuition and no negative predictions about specific people.)
The weekly ProPredictions Ezine will be sent in the graphic presentation for quick overview and links to more indepth and a text-only version with all predictions for that week will always be on http://propredict.com/predictionstxt.htm
MARKETS:
(This is a perfect week to see the benefit of the Daily Signals since with as much news that has free-will components to it, I have to affirm most everything daily but just the front page of www.propredict.com/predictions..htm for any updates and know it will be a bit of a confusing, somewhat volatile week and the medium-term and long-term predictions will prevail.)
PORTFOLIO BALANCE:
START INCOME-AVERAGING FROM MOSTLY CASH TO 33/33/33 STOCKS/BONDS/CASH BY 2ND-QTR and anticipate 50/25/25 stocks/bonds/cash by 3rd-Qtr (I'll confirm this prediction.)
DJIA: (8053.81-2/2/03) SP500: (855.70-2/2/03) This is the long-term bottom (with maybe a quick dip to 7700 during the worst of the initial Iraq war concerns).
WK: DN 1-2% (range during week is up is 1-2%) While fundamentally I don't sense the market will be comfortable below 8000, it seems that it is not healthy enough not to stumble below 8000, maybe to 7800-7700. On Wed after Powell's presentation to the UN which seems to have a positive influence on the news, the market reacts a bit on the upside but seems too concerned about the length of involvement in Iraq to sustain it.
DIA: (STAY/SHORT)
SPDR: (STAY/SHORT)
(all predictions past this week will be updated next week as per current conditions)
MO: FLAT/DN Markets seem to have a ?weeks not months? (Mar03) reaction to the concerns of the war in Iraq and then that is the bottom of the long-trend with maybe a quick dip to 7700 during the worst week (Feb03). This is the time (Feb-Jul03) to start to tip-toe back into the market through income-averaging of specific stocks or types of stocks but very few sectors will have broad growth so be picky. Not all stocks or even many of them at their lows are cheap.
(continues...)

100% ACCURATE!
02/03/03 8152.08 8053.74 8109.82
02/04/03 8104.60 7934.77 8013.29
02/05/03 8152.53 7967.82 7985.18
02/06/03 7991.96 7881.30 7929.30
02/07/03 8001.08 7830.02 7864.23

YAHOO GROUP - PROPREDICT PREDICTIONS http://groups.yahoo.com/group/ProPredictPredictions/
From: "ProPredict (Jeff) "
Date: Fri Feb 7, 2003 5:26 am
Subject: Subject: Beta-Test "Daily Signals"
Subject: Beta-Test "Daily Signals"
Sent: Friday, February 07, 2003 5:44 AM
Subject: Beta-Test "Daily Signals"
FRIDAY 2/7/03 7:00AM-EasternUSA
DJIA: 0.5-1.0%DN (prediction-strength A, clarity-B+)
Market has a sense of feeling anxious and staying down.
NEWS: Allies and US-people increase support for war in Iraq.
Significant concern of terrorism plans reported.

100% ACCURATE!

CNBC Market Dispatches 2/7/2003 4:08:22 PM
Orange alert helps turn stocks red
Terror-assessment level rises to high. Stocks fall on little demand. Unemployment numbers were not as good as they looked. Is it time to buy platinum?

A mild (and perhaps misleading) boost in employment data Friday failed to shine brighter than the new orange or "high," terror alert level. As the federal government hiked the threat-assessment color to one level below red, stocks faded to close moderately lower on light volume. The S&P 500 is now down about 3% this month. With an invasion of Iraq appearing near, buyers simply arent willing to commit in this tense environment. CNBCs Bob Pisani pointed out that stock mutual fund outflows continue to be high. Stock mutual funds shrank for the fourth straight week, according to Lipper.

MSN GROUP - PROPREDICT PREDICTIONS http://groups.msn.com/ProPredictPredictions
From: Intuitive Consultant (Original Message) Sent: 2/10/2003 7:37 AM
Monday Feb10,2003
UP 0.5-1%
My markets feel slightly a bit more positive but clouded by the war concerns. I'd have to rate this a B-strength.

100% ACCURATE!

02/10/03 7933.68 7801.29 7920.11

TOPICA GROUP - PROPREDICTIONS http://www.topica.com/lists/propredictions1
2/11/03 Daily ProPredictions on Markets and News    ProPredict
Feb 11, 2003 06:00 PST
2/11/03 Daily ProPredictions on Markets and News
updated 10am-EasternUSA everyday
DJIA: Market starts out a bit up then...
when Greenspan is finished talking,...
it doesn't feel supported by his comments and gets soft.
DOW for today...FLAT/DN 0.5-1.0%
(note: this signal doesn't feel as strong to me)
In the next few weeks...
it will be the start of one of the best buying
periods in the Dow (pick stocks not sectors)
as it hits a long-term bottom during the initial
concerns about Iraq and it's resolution start to end.
Accuracy and Time/Date-Stamps of Predictions documented daily
on "Accuracy" button on site.

100% ACCURATE!

02/11/03 7985.52 7806.50 7843.11