Where to Look for Buying Opportunities if a Big Drop Occurs Daryl Montgomery June 29, 2011 Copyright 2011, 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 Bollinger Bands – plus or minus 2 standard deviations from a ~20-unit moving average. 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).

What to Buy in a Big Drop In general, whatever goes down the most or is most off of its previous high. Things which have been depressed for a while: natural gas, interest rates, solar, uranium, and silver. If oil has a drop to around $80, grab it. Consider gold miners, particularly junior miners. Look at lithium, rare earth metals and base metals. Emerging market ETFs including small countries. On any drop, you can always buy the Swiss franc, Australian and New Zealand dollars, and gold.

State of the Market

Volatility Index VIX: Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

Volatility Index VIX: One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

DJIA Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

DJIA One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

DJIA Three-Years Weekly with Volume

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

S&P 500 One-Year Daily 50, 200-Day Moving Average and RSI, DMI, MACD

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

Nasdaq One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

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

Russell 2000 One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

DXY Dollar Index: Three-Years Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

DXY Dollar Index: One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

Things that Have Been Going Down for a While

Natural Gas ETF GAZ Three-Years Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

Natural Gas ETF GAZ One-Year Daily 50, 200-Day Moving Averages, RSI, MACD, DMI

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

Solar ETF KWT One-Year Daily 50, 200-Day Moving Averages, RSI, MACD, DMI

Uranium Miner DNN Three-Years Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

Uranium Miner DNN One-Year Daily 50, 200-Day Moving Averages, RSI, MACD, DMI

10-Year Bond Interest Rate Three-Years Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

10-Year Bond Interest Rate One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

30-Year Bond Interest Rate Three-Years Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

30-Year Bond Interest Rate One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

Silver ETF SLV Three-Year Weekly 10, 40-Week Moving Averages, RSI, DMI, MACD

Silver ETF SLV One-Year Daily 50, 200-Day Moving Averages, RSI, MACD, DMI

Oil ETF DBO Three-Years Weekly 10, 40-Week moving average, RSI, DMI, MACD

Oil ETF DBO One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Oil 200% ETF UCO Three-Years Weekly 10, 40-Week moving average, RSI, DMI, MACD

Oil 200% ETF UCO One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Uranium ETF URA One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Gold Miners and Metals

Gold ETF GLD Three-Years Weekly Week Moving Averages and RSI, DMI, MACD

Gold ETF GLD One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

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

Mining ETF GDX One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

Mining ETF GDXJ One-Year Daily 50-Day Moving Average, RSI, DMI, MACD

Gold Mining 200% ETF NUGT One-Year Daily 50-Day Moving Average, RSI, DMI, MACD

Nova Gold (NG) Five-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

Nova Gold (NG) One-Year Daily 50, 200-Day Moving Averages, RSI, DMI, MACD

Copper ETF JJC Three-Years Weekly 10, 40-Week moving average, RSI, DMI, MACD

Copper ETF JJC One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Nickel ETF JJN Three-Years Weekly 10, 40-Week moving average, RSI, DMI, MACD

Nickel ETF JJN One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Tin ETF JJT Three-Years Weekly 10, 40-Week moving average, RSI, DMI, MACD

Tin ETF JJT One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Lithium ETF LIT One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Rare Earth ETF REMX One-Year Daily 50, 200-day moving average, RSI, DMI, MACD

Emerging Markets

EMERGING MARKET ETF EEM Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

EMERGING MARKET ETF EEM One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

BRAZIL ETF EWZ Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

BRAZIL ETF EWZ One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

INDIA ETF IFN Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

INDIA ETF IFN One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

CHINA ETF FXI Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

CHINA ETF FXI One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD

RUSSIA ETF RSX Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD

RUSSIA ETF RSX One-Year Daily 50, 200-Day Moving Averages and RSI, DMI, MACD