This module presents the Beasley Market Scorecard and explains how risk is associated with different market scores. Also the percentage of your money that should be at risk when the score is at certain values and when the environment is positive or negative. THE BEASLEY SCORECARD ====================================== Risk Profile ------------ 0 to 5 points --> High Risk 6 to 10 points --> Medium Risk 11 to 15 points --> Low Risk In Negative In Positive Environment Environment Portfolio Management Model Only Invest Only Invest -------------------------- --------------- --------------- 0 to 5 points--High Risk 0 to 25 percent 25 to 50 percent 6 to 10 points--Med. Risk 50 to 75 percent 75 to 100 percent 11 to 15 points--Low Risk 100 percent 100 percent How Don Beasley's Market Scoreboard is calculated: -------------------------------------------------- 1) DOMINANT INDEX 1 point ---- if NYSE (NYC-N) is the dominant index (if MACD(76, 38, 20) of OTC-C / NYC-N is < 0) 3 points --- if NASDAQ (OTC-C) is the dominant index (if MACD(76, 38, 20) of OTC-C / NYC-N is > 0) The NASDAQ is heavier weighted and gets 3 points when it is the dominant market rather than only one for the NYSE when it is dominant because it is easier to make money in the stock market when the NASDAQ is dominant. Bad things can happen when the NYSE is the dominant market as we saw the last half of March and first half of April, 2000. -------------------------------------------------------------------------------- 2) INTEREST RATES 1 point ---- if Interest rate environment is positive (if 17-day Ema of BTFTX is greater than its 47-day Ema) 2 points --- if U.S. Treasury measure is positive (if 13-day Ema of US30- is greater than its 55-day Ema) The math for interest rates has been worked to maintain the concept that positive numbers are GOOD and negative numbers are BAD thoughout this module. -------------------------------------------------------------------------------- 3) ADVANCING/DECLINING ISSUES FOR NYSE AND NASDAQ 1 point ---- if McClellan Summation index > +1000 level 2 points --- if McClellan Summation index > +1500 level McC. Sum Ind - 1000 = > 0 -----> 1 point McC. Sum. Ind. - 1500 = > 0 -----> 2 points A value of 1000 is considered to be NEUTRAL. So, a value greater than 1000 is POSITIVE and is GOOD. A value that is less than 1000 is NEGATIVE, which is BAD, especially if it continues to decline. -------------------------------------------------------------------------------- 4) HIGH/LOW ISSUES 3 points --- if MACD(30, 15, 15) of High-Low Summation > 0 -------------------------------------------------------------------------------- \ft\nyc15.fnu created \ft\nas15.fnu created 5) UP/DOWN VOLUME 1 point ---- if Up/Down volume summation is greater than it's 39-day EMA. 2 points --- if Up/Down volume summation is greater than its 19-day EMA. --------------------------------------------------------------------------------- \ft\19nyv.fnu created \ft\39nyv.fnu created \ft\19nsv.fnu created \ft\39nsv.fnu created \ft\ldiff.fnu created \ft\sdiff.fnu created HOW THE NASDAQ ENVIRONMENT IS DETERMINED ---------------------------------------- 06/04/10 06/03/10 06/02/10 06/01/10 05/28/10 -------- -------- -------- -------- -------- Two Of The Following 3 Indicators Must Be Positive: Ema(otc-c, 19)-Ema(otc-c, 39) -40.98 -39.08 -41.53 -42.87 -40.75 99.78% of OTC Rtn when > 0 NSMCS - 1000 -1704.83 -1618.47 -1629.40 -1594.53 -1447.57 78% Of OTC Rtn When Positive Or When Increasing In Value 30Y Bond 445.13 434.06 465.60 486.07 493.13 NYSE Return 5 Days Fwd: Avg 0.38% If Positive Avg 0.07% if negative The NASDAQ Environment Is NEGATIVE. HOW THE NYSE ENVIRONMENT IS DETERMINED -------------------------------------- 06/04/10 06/03/10 06/02/10 06/01/10 05/28/10 -------- -------- -------- -------- -------- Two Of The Following 3 Indicators Must Be Positive: Ema(NYC-N, 19)-Ema(NYC-N, 39) -175.65 -167.80 -172.84 -176.52 -169.35 70.78% of NYSE Return if > 0 NYMCS - 1000 -997.93 -903.19 -934.70 -919.07 -765.29 73% of NYSE Rtn when positive Or When Increasing In Value 30Y Bond 445.13 434.06 465.60 486.07 493.13 NYSE Return 5 Days Fwd: Avg 0.38% if positive Avg 0.07% if negative The NYSE Environment Is NEGATIVE. Below are three tables that display the daily 'VALUE' for each component of the Market Scorecard, the SCORE for the NASDAQ and the NYSE (NYC-N) and the status of the ENVIRONMENT for the NASDAQ and NYSE. Each component of the Market Scorecard is displayed for the last six market days. The way you interpret which market is dominant is with the SMLG component. SMLG stands for SMall cap and LarGe cap markets. Or in other words for the NASDAQ or NYC-N. If the VALUE for this component is POSITIVE, the NASDAQ is dominant and receives 3 points for the NASDAQ score. If the number is NEGATIVE, the NYSE is dominant and the NYSE receives 1 point for the NYSE score. The NASDAQ is heavier weighted for the scorecard because it is easier to make money in the stock market when the NASDAQ is dominant. The VALUE for each of the remaining components must be POSITIVE for each to receive points as stated above. Shown below the VALUES are the daily SCORES for each component and the TOTAL score for each market and below that the status of it's environment. When the VALUES, SCORES and ENVIRONMENT STATUS are displayed in this format, one can easily see the trend that is developing over the last six market days. Keep in mind that numbers increasing in value are GOOD. Especially when the signals whose status is displayed below are in a BUY mode. Even if the NASDAQ McClellan Summation Index numbers (NSONE and NSTWO, NYONE and NYTWO) are negative, if they are increasing in value and advancing toward turning positive, that's good. However, if they continue to decline that is VERY bad. Status Of MORUT2.SIG (Sell, 05/05/10) Status Of RUTTR.SIG (Sell, 05/06/10) Status Of RUTTR2.SIG (Sell, 05/07/10) Status Of DFSTR.SIG (Sell, 05/06/10) DFSTR CONFIRMS THE RUTTR SIGNAL. THE BEASLEY MARKET SCORECARD ============================ 06/04/10 06/03/10 06/02/10 06/01/10 05/28/10 05/27/10 -------- -------- -------- -------- -------- -------- SMLG 3.44 1.92 0.32 0.05 -0.57 -0.39 US30A 445.13 434.06 465.60 486.07 493.13 507.61 BFTFA 102.46 99.26 103.12 106.19 106.45 107.48 LRG15 -0.45 -0.46 -0.47 -0.48 -0.48 -0.48 SML15 -0.31 -0.32 -0.32 -0.32 -0.32 -0.31 NS19V -32.43 -14.46 -28.07 -48.31 -39.51 -31.85 NS39V -57.25 -38.69 -52.74 -72.63 -62.28 -53.52 NY19V -22.73 -9.18 -13.37 -27.04 -17.96 -10.48 NY39V -39.99 -26.02 -30.55 -44.35 -34.60 -26.95 NSONE -1704.83 -1618.47 -1629.40 -1594.53 -1447.57 -1369.80 NSTWO -2204.83 -2118.47 -2129.40 -2094.53 -1947.57 -1869.80 NYONE -997.93 -903.19 -934.70 -919.07 -765.29 -684.88 NYTWO -1497.93 -1403.19 -1434.70 -1419.07 -1265.29 -1184.88 NYDIF -175.65 -167.80 -172.84 -176.52 -169.35 -167.60 NSDIF -40.98 -39.08 -41.53 -42.87 -40.75 -40.07 The NASDAQ Is The DOMINANT Market As Indicated By The Positive SMLG Component Above. This is the preferred time to be invested in the stock market. Especially when the NASDAQ environment is Positive. See below for status of the NASDAQ and NYSE Environments. CURRENT SCORE FOR EACH COMPONENT OF THE NASDAQ ======= ===== === ==== ========= == === ====== 06/04/10 06/03/10 06/02/10 06/01/10 05/28/10 05/27/10 -------- -------- -------- -------- -------- -------- NASDAQ (SML Cap) 3.00 3.00 3.00 3.00 0.00 0.00 US30A 2.00 2.00 2.00 2.00 2.00 2.00 BFTFX 1.00 1.00 1.00 1.00 1.00 1.00 SML15 0.00 0.00 0.00 0.00 0.00 0.00 NSONE 0.00 0.00 0.00 0.00 0.00 0.00 NSTWO 0.00 0.00 0.00 0.00 0.00 0.00 NS19V 0.00 0.00 0.00 0.00 0.00 0.00 NS39V 0.00 0.00 0.00 0.00 0.00 0.00 ======================================================= Today's NASDAQ Scor 6.00 6.00 6.00 6.00 3.00 3.00 The NASDAQ Environment Is NEGATIVE. These Are Very Dangerous Times. EXERCISE EXTREME CAUTION! Maximum Investment: 25 to 50 percent CURRENT SCORES FOR EACH COMPONENT OF THE NYSE ======= ====== === ==== ========= == === ==== 06/04/10 06/03/10 06/02/10 06/01/10 05/28/10 05/27/10 -------- -------- -------- -------- -------- -------- NYSE (LRG Cap) 0.00 0.00 0.00 0.00 1.00 1.00 US30A 2.00 2.00 2.00 2.00 2.00 2.00 BFTFX 1.00 1.00 1.00 1.00 1.00 1.00 LRG15 0.00 0.00 0.00 0.00 0.00 0.00 NYONE 0.00 0.00 0.00 0.00 0.00 0.00 NYTWO 0.00 0.00 0.00 0.00 0.00 0.00 NY19V 0.00 0.00 0.00 0.00 0.00 0.00 NY39V 0.00 0.00 0.00 0.00 0.00 0.00 ======================================================= Today's NYSE Score 3.00 3.00 3.00 3.00 4.00 4.00 The NYSE Environment Is NEGATIVE. Maximum Investment: 0% to 25% The Best Time To Be Invested In The Market Is When The NASDAQ Is Dominant And The NASDAQ Environment Is POSITIVE. The Perfect Time To Be Invested In The Market Is When The Nasdaq Score Is 15, The NYSE Score Is 12, And The Environment For Both Markets Is Positive. IF YOU ARE VERY CONSERVATIVE, YOU SHOULD CONSIDER SWITCHING TO MONEY MARKET FUNDS ALTOGETHER WHEN THE NASDAQ IS NOT THE DOMINANT MARKET AND THE NASDAQ ENVIRONMENT IS NEGATIVE. WHEN THAT COMBINATION OCCURS, UNLESS YOU ARE A VERY NIMBLE INVESTOR, YOU SHOULD EXERCISE EXTREME CAUTION BY SWITCHING TO MONEY MARKET FUNDS FOR SAFETY. Risk Profile ------------ 0 to 5 points --> High Risk 6 to 10 points --> Medium Risk 11 to 15 points --> Low Risk In Negative In Positive Environment Environment Portfolio Management Model Only Invest Only Invest -------------------------- --------------- --------------- 0 to 5 points--High Risk 0 to 25 percent 25 to 50 percent 6 to 10 points--Med. Risk 50 to 75 percent 75 to 100 percent 11 to 15 points--Low Risk 100 percent 100 percent