1. THE MSR PRIMARY WAVE SYSTEM 212-422-8040 Over the years, the stock market has generated Major Secular Bull Markets. Examples: 1914-1929, 1949-1964 and 1982-2000. The Buy-Hold strategy became dominant and mostly unquestioned. Consequently, many investors and asset managers were forced to give up much of their profits during the lengthy intervening secular corrections. The MSR Primary Wave System is designed to provide investors with a major alternative. It is applied here to ETFs of Major US Economic Sectors from mid 2002 to mid 2009. The investment signals are derived from a series of broad price wave components labeled A, B, C, D and E, mathematically measured in most US and Global financial markets. The system protects capital when a broader price wave A or B is set to decline along with a shorter component. This permits substantially greater cumulative gains over time. Primary long trades also require a “Resonance Principle” which often leads to a high percentage of successful trades of extended duration. Long Term Total Returns substantial Capital Protection APPLIED TO MAJOR US INDUSTRY SECTORS LONG SHORT REPORT

2. The MSR Primary Wave System For ETFs of Major US Sectors Pages Introduction..................................................................................... 1 Primary Wave Long Short Results................................................... 3 - 5 System Charts for Individual Sectors............................................... 6 – 9Appendix: Monthly Long Short ETF Sector Performance................................. 10 Developer and MSR Founder ………………………………………..... 11 Trades and Wave Signals for Individual Sectors …………………….. 12 - 18 Additional Information ……………………………………………….... 19 212-422-8040

3. 3 Basic Materials Consumer Services Energy Technology Financial Industrials Telecom Dates are from initial Primary Wave signal in 2002. Dates are specified in tables to follow. Interest income and transaction costs are not included. 212-422-8040

4. 4 Yearly Performance

5. 5 212-422-8040 Percent Appreciation MSR Monthly ETF Performance June 30, 2002 – June 30, 2009 MSR Long Only + 115.67 % ETF Benchmark + 6.71 % MSR Long/Short, MSR Long Only vs. ETF Benchmark MSR U.S. Sector ETF Performance Long/Short MSR U.S. Sector ETF Performance Long OnlyU.S. Sector ETF Benchmark Total percent gain for the period = 302.95 % Total percent gain for the period = 115.67 %Total percent gain for the period = 6.71 % Compounded annual rate of return = 22.03 % Compounded annual rate of return = 11.61 %Compounded annual rate of return = 0.93 % l 2004 l 2003 l 2005 l 2006 l 2007 l 2008 l 2009 MSR Long/Short + 302.95 % U.S. Sector ETFS IYM Basic Materials IYC Consumer Services IYE Energy Sector IYF Financial Sector IYJ Industrial Sector IYW Technology Sector IYZ Telecom Sector

6. 6 Market Systems Research, Inc. 212-422-8040 Cumulative Results: ETF Benchmark -17.4 % MSR Long Only 130.1 % MSR Long Short 335.7 %

7. 7 Financial Sector ETF Benchmark -45.5 % MSR Long Only 113.9 % MSR Long Short 304.7 % Energy Sector ETF Benchmark 85.7 % MSR Long Only 176.2 % MSR Long Short 314.1 % Market Systems Research, Inc. 212-422-8040 7

8. 8 Industrials Sector ETF Benchmark -7.6 % MSR Long Only 115.6 % MSR Long Short 286.4 % Consumer Services Sector ETF Benchmark -20.6 % MSR Long Only 65.3 % MSR Long Short 177.1 % Market Systems Research, Inc. 212-422-8040 8

9. 9 Basic Materials Sector ETF Benchmark 7.7 % MSR Long Only 104.3 % MSR Long Short 195.4 % Telecom Sector ETF Benchmark -41.9 % MSR Long Only 81.8 % MSR Long Short 274.7 % Market Systems Research, Inc. 212-422-8040 9

10. 10 212-422-8040 Monthly ETF Sector Performance: June 30, 2002 – June 30, 2009 Interest income and transaction costs are not included. MSR U.S. Sector ETF Performance Long/Short MSR U.S. Sector ETF Performance Long OnlyU.S. Sector ETF Benchmark Total percent gain for the period = 302.95 % Total percent gain for the period = 115.67 %Total percent gain for the period = 6.71 % Compounded annual rate of return = 22.03 % Compounded annual rate of return = 11.61 %Compounded annual rate of return = 0.93 % Appendix 1

11. 11 212-422-8040 Frank A. Peluso: brief fact sheet Market Systems Research, Inc., New York 1970-Present; Founder, CEO and Research Director Developed MSR original Quantitative Selection Model, Provided Ranking Results to varied institutional client base, Strong Performance Relative to SP500 in 27 of 29 3-Yr Periods, Author of successful MSR Bond Timing Letter 1983-1997, Co-Founder, President of MSR Advisors, 1984 to 2000, Co-Managed the MSR Market Oriented Equity portfolios for the Lexington Management Company and its subsequent owner, ING, from 1984 to 2000, and Advisor to Market Oriented Domestic Equity portfolios for Strategy Asset Managers from 2000 to present. Developed the MSR Quantitative Primary Wave System 2007 Author of Global Wave Analysis Report 2007 - Present Princeton University: Princeton, NJ; AB Magna Cum Laude in Physics; Princeton University: Putnam Graduate Fellowship in Mathematical Physics. Appendix 2

12. 12 212-422-8040 Appendix 3

13. 13 212-422-8040 Appendix 4

14. 14 212-422-8040 Appendix 5

15. 15 212-422-8040 Appendix 6

16. 16 212-422-8040 Appendix 7

17. 17 212-422-8040 Appendix 8

18. 18 212-422-8040 Appendix 9

19. 19 Additional Information The statistical and other information contained in this report has been obtained from official reports, electronic data and other sources which we believe reliable. While we cannot guarantee its entire accuracy or completeness, we believe it may be accepted as substantially correct. Past research performance is not an indication of future results. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. Back-tested data has inherent limitations because it does not reflect actual transactions. There is no representation that actual future results will be similar. The examples of specific research are included merely to illustrate the process and strategies which may be utilized. The officers of and/or Market Systems Research, Inc. may at times have a position on any security herein. Appendix 10