Weekly Commentary

May 25, 2010

The markets continue their wayward slide, with little positive price movement through the last week. Continued global angst over the sovereign debt crisis in Europe, potential conflict in Korea, and increasing bank borrowing costs, as well as decreasing global demand for commodities continue to weigh on the markets. As these global situations unfold, the markets remain in their recent negative trend. The Stadion Investment Model continues to analyze the daily flow of incoming market data. Currently all major indicators within the Investment Model are giving negative signals, and they are continuing to dive deeper into the negative level on a daily basis. Until the markets stabilize, and a strong positive price trend develops with supporting market breadth data, the Stadion Investment Model will continue to have us in a defensive posture. All portfolios are currently defensively positioned in cash and short term fixed income ETFs. - SMM-052010-017

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