Good Morning

Short-Term Technical Indicators – The 21-Day Volume and Breadth indicators for the Dow weakened on Wednesday, but strength was prevalent in the 15-Day Stochastic and Relative Strength indicators. Overall, the short-term indicators remain bearish for the Dow.

Long-Term Market Model – Bullish since August 23rd.

Investor Sentiment – Both the VIX and VXN edged higher yesterday coupled with an increase in the Total and Equity Put / Call ratios. The percentage of Bullish Investment Advisors surveyed increased this week after losing ground last week. Conversely, the percentage of Bearish Advisors also increased after several weeks of stagnation.

Asset Allocation – 100% invested within the actively-managed, alpha producing portion of the overall portable alpha portfolio.

Beta Exposure and Portable Alpha Generation
Date = Date of AAS “Buy” or “Short/Sell” Recommendation

Top Rated Major Market Derivative – iShares Russell 2000 (IWM 11/6/06)

Top Rated Style-Box Derivative – iShares Morningstar Small Cap Core (JKJ 11/6/06)

Top Rated Sector Derivative – iShares Dow Jones Energy (IYE 11/10/06)

Today’s Top “Buy” Recommended Stocks

1. Alleghany Technologies Inc. (ATI 10/5/06)
   
2. RTI International Metals Inc. (RTI 10/11/06)
   
3. Daktronics Inc. (DAKT 10/31/06)
   
4. Goldman Sachs Group Inc. (GS 9/12/06)
   
5. Chaparral Steel Co. (CHAP 11/1/06)
   
6. Robbins & Myers Inc. (RBN 8/10/06)
   
7. Manitowoc Company Inc. (MTW 8/10/06)
   
8. Veritas DGC Inc. (VTS 7/28/06)
   
9. Sequa Corporation. (SQA-A 10/5/06)
   
10. F5 Networks Inc. (FFIV 9/20/06)
    

Today’s Top “Sell” Recommended Stocks

1. The Washington Post Co. (WPO 7/5/06)
   
2. Emmis Communications Corp. (EMMS 11/20/06)
   
3. Christopher & Banks Corp. (CBK 10/18/06)
   
4. Bausch & Lomb Inc. (BOL 11/8/06)
   
5. EGL Inc. (EAGL 10/18/06)