Tactical Analytics

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Tactical Analytics
Serving Portfolio Managers of Institutions and
Hedge Funds
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What does Tactical Analytics do?

• Services are provided to fundamentally and/or
  quantitatively based
• Portfolio Managers of institutions and hedge
  funds with assets that
• need to be cared for.
• We continually monitor and analyze markets,
  sectors, groups and
• individual stocks.
• Our ratings, which are based on technical
  analysis, allow us to grade
• our results with a buy, sell or hold
  recommendation.
• Our approach is based on the fact that equity
  research combining
• fundamental, quantitative and technical
  analysis is the most
• explanatory, predictive and robust method to
  understand equity
• market behavior and outcome. Research
  incorporating these
• triangulated disciplines produce above average
  returns for clients and
• their portfolios.
• Our goal is to help improve portfolio
  performance.

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Tactical Analytics Products
Technical Research Products

• Tactical Analytics offers 5 different technical
  reports on 1500 stocks.
• Our coverage includes all the stocks in the SP
  500 (SPY), Dow Jones
• Industrials (DIA), NASDAQ 100 (QQQ), SP Mid
  Cap 400(MDY) and SP
• Small Cap 600(IJR).
• Three stock reports are issued daily Trend
  Changes, Ratings Summary, and
• Indices, Sectors, Groups Stock Trends
• Tactical Analytics issues two weekly market
  reports The Investor Sentiment
• Index (Weekly Review of Trend Changes) and
  HedgeEdge DIA-SPY-QQQ-
• MDY-IJR trading levels.

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Tactical Analytics PRODUCTS
DAILY FOCUS ON STOCKS 1. Trend Changes 2.
Ratings Summary 3. Indices, Sectors, Groups
Stock Trends WEEKLY FOCUS ON MARKETS 4. The
Investor Sentiment Index (Weekly Review of
Trend Changes) 5. HedgeEdge DIA-SPY-QQQ-MDY-IJR
trading levels
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TREND CHANGES
DAILY REPORT

• Tracks the stocks of the Dow Jones 30, NASDAQ
  100,SP 500,
• SP 400 and SP 600 for trend changes.
• Stocks changing to buy require that the stock be
  trading above
• its 30/70/200 day moving averages.
• Stocks changing to sell require that the stock
  be trading below its
• 30/70/200 day moving averages.

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Trend Changes Example
STOCKS CHANGING TO BUY (52) This Week (52) Total Current Buys (189) STOCKS CHANGING TO BUY (52) This Week (52) Total Current Buys (189) STOCKS CHANGING TO BUY (52) This Week (52) Total Current Buys (189) STOCKS CHANGING TO BUY (52) This Week (52) Total Current Buys (189) STOCKS CHANGING TO BUY (52) This Week (52) Total Current Buys (189)
SYMBOL COMPANY Tactical Buy/Price   SP 500 SECTOR
ASO AmSouth Bancorporation 25.5 L FINANCIALS
AT ALLTEL Corp. 55.9 L TELECOMM
BCF Burlington Coat Factory 28.04 SC CONS DISCR
BID Sotheby's Holdings 17.45 M INDUSTRIALS
DPMI DuPont Photomasks 26.6 SC INFO TECH
STOCKS CHANGING TO SELL (24) This Week (24) Total Current Sells (768) STOCKS CHANGING TO SELL (24) This Week (24) Total Current Sells (768) STOCKS CHANGING TO SELL (24) This Week (24) Total Current Sells (768) STOCKS CHANGING TO SELL (24) This Week (24) Total Current Sells (768) STOCKS CHANGING TO SELL (24) This Week (24) Total Current Sells (768)
SYMBOL COMPANY Tactical Sell/Price   SP 500 SECTOR
ABI Applera Corp-Applied Biosystems Group 19.96 L HLTH CARE
ADBE Adobe Systems 55.55 L INFO TECH
AMGN Amgen 59.19 L HLTH CARE
CAI CACI International Services 54.45 SC INFO TECH
CBH Commerce Bancorp. 28.91 M FINANCIALS
CHKP Check Point Software Technologies Ltd.   21.64 Q  
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RATINGS SUMMARY
DAILY REPORT

• A ratings summary of 1500 stocks.
• A color-coded review of each stock as it
  
• relates to its group, sector and index.
• A summary of all the stocks as to their key
• support and resistance points.

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Ratings Summary Example
Ratings Summary   SP 500 66 188 246 4/18/2005    
    SP 1500 189 582 768      
   
TACTICAL LIKE TRADING LIKE TRADING SP PRIMARY     BARRA
TICKER SUMMARY GROUP SECTOR SECTOR MARKET RESISTANCE SUPPORT INDEX
A 4 INSTRMNT TECHNLGY INFO TECH S 22.3 V
AA 4 ALUMIN BASICMAT MATERIALS D 30.31 V
AAI 3 AIRLINES TRANSPOR INDUSTRIAL M 10.39 8.86 V
AAP 3 RETLSPHD CNSMRCYC CONS DISCR M 50.33 47.69 G
AAPL 3 NC_TECH TECHNLGY INFO TECH Q 40.05 28.62 G
ABC 2 MEDDIST HEALTH HLTH CARE S 59.28 V
ABCW 3 SAVELOAN FINANCE FINANCIALS SC 27.57 26.99 V
ABFS 4 TRUCKING TRANSPOR INDUSTRIAL SC 38.85 V
ABI 4 NC_HLTH HEALTH HLTH CARE S 19.96 V
ABK 4 INSURPC FINANCE FINANCIALS S 76.62 V
ABM 4 INDUSRV INDUSTRY INDUSTRIAL SC 18.74 V
ABS 4 FOODRETL CNSMRNCY CONS STAPLE S 20.22 V
ABT 2 DRUGS HEALTH HLTH CARE S 46.44 G
ACAT 4 NC_TRANS TRANSPOR CONS DISCR SC 26.33 G
ACDO 2 MEDMGT HEALTH HLTH CARE SC 44.18 V
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INDICES, SECTORS, GROUPS STOCK TRENDS

• DAILY REPORT

• A Current Rating and Historical Review of
• 15 Indices
• 9 SP Sectors
• 25 Like Trading Sectors
• 207 Like Trading Groups
• 1500 Component Stocks
• Seven different technical indicators are used
  in
• evaluating the indices, sectors and groups.
• Key moving averages are used in rating
• individual stocks.

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MARKET TRENDS Example
Market Ranking                              
  3/29 3/30 3/31 4/1 4/4 4/5 4/6 4/7 4/8 4/11 4/12 4/13 4/14 4/15 4/18
Dow NYSE 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4
SP 500 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4
SP 400 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
SP 600 3 3 3 3 3 3 3 3 3 3 3 3 3 4 3
NAS 100 4 4 4 4 4 4 4 3 4 4 4 4 4 4 4
KEY
Buy
Neutral
Sell
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SP SECTOR TRENDSExample
SP Ranking                              
  3/29 3/30 3/31 4/1 4/4 4/5 4/6 4/7 4/8 4/11 4/12 4/13 4/14 4/15 4/18
MATERIALS 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4
ENERGY 3 3 3 2 2 3 2 2 3 3 3 3 3 3 3
FINANCIALS 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
INDUSTRIAL 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4
IT TELE 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
CONS STAPL 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
UTILITIES 3 3 2 2 2 2 2 2 2 2 2 2 2 3 3
HLTH CARE 3 2 3 3 3 2 2 2 2 2 2 2 2 2 2
CONS DISCR 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4
KEY
Buy
Neutral
Sell
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SECTOR TRENDS Example
Sector Rankings                              
  3/29 3/30 3/31 4/1 4/4 4/5 4/6 4/7 4/8 4/11 4/12 4/13 4/14 4/15 4/18
BASICMAT 3 3 3 3 3 3 3 3 3 3 3 3 3 4 3
BUSINESS 3 2 2 2 2 2 2 2 2 2 2 2 2 3 3
CNSMRCY 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
CNSMRNC 3 2 2 3 3 2 2 2 2 2 2 2 2 3 3
ENERGY 3 3 3 2 2 2 2 2 3 3 3 3 3 3 3
FINANCE 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4
HEALTH 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
INDUSTRY 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4
INTERNTL 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
MARKET 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
MEDIA 3 3 3 3 3 3 2 2 2 3 2 3 3 3 3
TECHNLGY 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4
TELECOM 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
TRANSPOR 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4
YIELD 3 3 3 3 3 3 3 3 3 3 2 3 3 3 3
KEY
Buy
Neutral
Sell
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GROUP TRENDS Example
Group Ranking Sector Rank                            
MARKET 3/30 3/31 4/1 4/4 4/5 4/6 4/7 4/8 4/11 4/12 4/13 4/14 4/15 4/18
ALUMIN BASICMAT 3 3 3 3 3 3 2 3 3 3 3 4 4 4
CEMENT BASICMAT 3 3 3 3 3 3 3 3 3 3 3 3 3 3
ADVER BUSINESS 3 3 3 3 3 3 3 3 3 3 3 3 3 3
CMRCLFRN BUSINESS 2 2 2 2 2 2 2 2 2 2 2 2 2 2
APPLIANC CNSMRCYC 4 4 4 4 4 4 4 4 4 4 3 4 4 4
CASINOS CNSMRCYC 3 3 3 3 3 3 3 3 3 3 3 3 3 3
BEVERAG CNSMRNCY 3 3 3 3 2 2 2 2 2 2 2 2 3 2
FOODGEN CNSMRNCY 3 3 3 3 3 3 3 3 3 3 3 3 3 3
CANADOIL ENERGY 3 2 2 2 3 2 3 3 3 3 3 3 3 3
DRILLERS ENERGY 3 2 2 2 2 2 2 3 3 3 3 3 3 3
BANKREG FINANCE 4 4 4 4 4 4 4 4 4 4 4 4 4 4
BROKERS FINANCE 3 3 3 3 3 3 2 3 3 3 3 3 3 3
DRUGDLVY HEALTH 4 4 4 4 4 4 4 4 4 3 3 4 4 4
DRUGS HEALTH 2 3 3 3 2 2 2 2 2 2 2 2 2 2
AGRMACH INDUSTRY 3 3 3 3 3 3 3 3 3 3 3 3 4 3
ARSPCDFN INDUSTRY 3 3 3 3 3 3 3 3 3 3 3 3 3 3
BRDCSTRD MEDIA 3 3 3 3 3 3 3 3 4 3 4 4 4 4
BRDCSTTV MEDIA 3 3 4 4 4 2 2 2 2 2 2 2 2 2
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STOCK TRENDS Example
Tactical Summary                            
  3/29 3/30 3/31 4/1 4/4 4/5 4/6 4/7 4/8 4/11 4/12 4/13 4/14 4/15 4/18
A 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
AA 4 4 4 4 4 4 4 3 2 3 3 3 4 4 4
AAPL 3 2 3 3 3 3 2 2 2 3 2 3 3 3 3
ABC 4 4 3 4 3 3 3 3 3 3 3 3 2 2 2
ABI 3 4 4 4 4 4 3 2 3 3 2 3 3 3 4
ABK 4 4 4 4 4 4 4 4 4 4 2 4 4 4 4
ABS 4 4 4 4 4 4 4 4 4 4 4 3 3 4 4
ABT 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2
ACE 3 3 3 4 3 3 3 3 4 4 4 4 4 4 4
ACS 4 3 3 3 3 3 3 3 3 4 3 3 3 4 4
ACV 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
ADBE 2 2 2 2 2 2 2 2 2 2 2 3 3 3 4
ADCT 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
ADI 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4
ADM 3 3 2 2 2 3 3 3 3 3 3 3 3 3 3
ADP 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3
ADSK 3 3 3 3 2 3 2 2 2 2 2 2 2 2 2
AEE 3 3 3 3 3 3 2 2 3 2 2 2 2 3 3
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INVESTOR SENTIMENT INDEX
WEEKLY REPORT

• The Investor Sentiment Index is comprised of
  all 500 stocks that are in
• the SP 500 trading universe.
• The stocks are ranked as to where they trade in
  relation to the
• 30/70/200 day moving averages.
• It is a breath index of the stock markets key
  stocks.
• For a stock to be ranked up, the stock must
  trade above all three
• moving averages.
• For a stock to be ranked down, the stock must
  trade below all three
• moving averages.
• A weekly advance decline line is also shown as
  the A/D line has proven
• to be an excellent early warning signal for
  changes in the stock
• markets direction

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The Investor Sentiment IndexExample
Weekly Trend Changes
Date Stocks Up Stocks Sideways Stocks Down
01/03/05 365 145 33
01/10/05 133 318 92
01/18/05 167 264 112
01/24/05 131 267 145
01/31/05 161 235 147
02/07/05 268 143 89
02/14/05 264 149 87
02/22/05 222 174 104
02/28/05 243 154 103
03/07/05 277 149 74
03/14/05 211 187 102
03/21/05 149 204 147
03/28/05 106 217 177
04/04/05 136 181 183
04/11/05 151 196 153
04/18/05 49 193 258
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INVESTOR SENTIMENT INDEXExample
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HedgeEdge DIA-SPY-QQQ-MDY-IJR
WEEKLY REPORT

• Locates where the Dow 30, SP 500, NASDAQ 100,
  SP 400 and
• SP 600 are in relationship to their moving
  averages.
• When an index is trading above the 3 key moving
  averages (30/70/200),
• the index price gains support from those
  prices.
• When the index trades below the 3 key moving
  averages (30/70/200),
• then the index finds resistance to an upward
  move at those moving
• average prices.
• Also recent highs and lows for the indices
  create significant support and
• resistance points.

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HedgeEdge DIA-SPY-QQQ-MDY-IJR Example
DIA SPY QQQ MDY IJR
119.09 Upper Channel 129.97 Upper Channel 43.77 Upper Channel 127.92 Upper Channel 167.63 Upper Channel
107.92 116.60 39.00 112.50 147.30
106.00 115.00 37.90 111.10 145.69
103.17 200 MAV 112.25 200 MAV 35.80 200 MAV 109.05 144.24 Closing Price
102.00 30 MAV 111.81 30 MAV 35.14 Closing Price 108.35 Closing Price 141.18 30 MAV
101.72 70 MAV 111.76 Closing Price 34.83 70 MAV 107.64 200 MAV 139.83 70 MAV
100.87 Closing Price 111.16 70 MAV 34.71 30 MAV 106.96 30 MAV 139.19 200 MAV
97.17 Lower Channel 106.78 Lower Channel 33.39 Lower Channel 106.45 70 MAV 135.13 Lower Channel
72.03 Oct 02 Low 77.07 Oct 02 Low 19.76 Oct 02 Low 103.60 Lower Channel 84.00 Oct 02 Low
      68.00 Oct 02 Low  
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IN SUMMARY WE PROVIDE YOU

• EVERY MARKET
• EVERY SECTOR
• EVERY GROUP
• EVERY STOCK
• EVERY PRICE
• EVERY DAY!

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Tactical Analytics Independent Research Design
CHART DIRECTION IMPROVES PORTFOLIO PERFORMANCE