Over the past week most of our core market health indicators improved.  Our measures of the economy are still negative, but improving slowly.  Our measures of risk showed some weakness that signals investors are getting a bit more concerned about the market.  However, we believe that this is a normal condition when the market stalls rather than an indication of substantially lower prices. Our measures of market quality, trend, and strength jumped substantially this week.  It is interesting that our measures of trend followed quality and strength in going positive especially since the rally out of the November lows has trended so strongly.  It is an indication of how odd this rally has been from a underlying technical perspective. The positive changes in market trend is causing a change in our core portfolio allocations.  Our Long / Cash strategies are now 80% long and 20% cash.  Our Hedged portfolio is now 90% long and 10% short (using a simple short of the S&P 500 Index — or the ETF

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