If you had any doubts about the efficacy of VectorVest's Market Timing System, they should have been dispelled over the past year. Our work could hardly have been any better.

One year ago, July 20, 2007 to be exact, I wrote a brief commentary called, "Beware the July High." It noted that "the Price of the V V C had corrected sharply in eight of the past eleven Julys and is down 1.30% from its July 13th high." In the Strategy section of these Views, we advised Prudent Investors not to buy stocks. We advised Aggressive Investors to play the market to the downside, and we were in cash in the Model Portfolio. Moreover, our "Strategy of the Week" was that of "Protecting Profits."

Sure enough, the Price of the V V C crashed 61 cents per share two days later, July 24th, and we got a Confirmed Down signal on July 26th. A month later, a gentleman I had never met got up from his dinner table while I was at the Cleveland Airport Marriott Hotel to give my fantastic presentation on "How to Master the Market," and thanked me for all the money I had saved him and his brother who was also a VectorVest user. He said the July 20th call was all they needed to lock in their profits.

Well, that wasn't the only great call we made last year. I am particularly proud of my October 19, 2007 essay called "The Canary's Warning," in which I explained how a special signal from the Buy/Sell Ratio "marked the beginning of the downward journey for the market." Of course, we then got the "shocking" C/Dn signal on November 1, 2007 that no one would believe. Fortunately, on the very next day, November 2, 2007, I wrote about how you could make money in a down market by buying Contra ETFs. Our Strategy of the Week was, "How to Make Money Using CONTRA ETFs."

Once again, this strategy made huge profits for our subscribers when they followed our lead of using it to play the downturn of June 6, 2008 to July 14, 2008. At present, I am especially pleased with the guidance we gave you over the past week regarding the expectation of this week's explosive rally. It was about as close as we're ever going to get to Perfect Timing.

P.S. Don't assume the current rally means the Bear Market has ended, because it hasn't. Please see the Investment Climate section shown below. We're in a Case 5, Bear Market Scenario. Inflation rates are soaring, interest rates are still way too low and Ben Bernanke can't do a darn thing about it. Finally, and most importantly, earnings are still trending lower. The Bear Market will not end until this indicator goes above 1.00 and that's going to be a while yet.