The RITE Report Summary (Full Report Below)

The RITE Report generates indices from the monthly compilation of corporate, business, economic, & political news snippets from the Wall Street Journal.

Summary:

1) Wall Street Journal Corporate Profit Snippets are strong at 61% positive, 39% negative.

2) WSJ General Business and Economics Snippets: Positive snippets remained at 32% positive and 68% negative.

3) WSJ M&A Snippet activity increased from 30 to 38.

4) The RITE Investment Strategy Index increased slightly to 59.4. The market appears to have hit bottom. You may begin to re-establish long positions and slightly increase your equity investment commitment to 59.4%

5) Gold: The news and the Inflation Table continues to indicate that inflation is with us. However, the Inflation Snippets have subsided. The European debt crisis is holding up the Gold level. Therefore, it is time to take profits for the short term on your gold or put a downside hedge on your Gold holdings. This is the first time in two and a half years this Report has modified its stance on Gold. (However, to clarify: this report does not call for going short; it advocates only taking some profits.)

6) Oil: As previously advised go neutral on this. Hence, the RITE makes no call on oil presently. If you own it, consider a straddle.

7) Inflation and the U.S. Dollar: With the decrease in Inflation Snippets, the Dollar has hit a bottom. If you are short the dollar, cover it. We do not yet call an uptrend in the USD Index, but it is OK start long positions.

8) EQUITY MARKET CONCLUSION: - The corporate profit news is good; the General Business and Political News continues to be very negative remaining at 68% negative.

- The RITE Strategy Index dropped 3 months in a row but has reversed and went up sightly this month which presages a floor to the stock market. This means the investor may begin increasing his position again!

_____________________________________________________________

The RITE REPORT

The following RITE Report generates indices from the monthly compilation of corporate, business, economic, & political news snippets from the Wall Street Journal.

RITE ReportChris Angle, Editor19 Topledge Road (P.O. Box 708)Redding, CT 06896Tel. 203/253-2008Fax. 203/286-2356Email: chrisangle1@gmail.comhttp://www.stock-market-direction.net/

Date: July 31st, 2011

CONTENTS

PART 1 - STOCKS

1) Business News Compilation Index2) Political & Macro Economic Events Indices3) Indicators for Technical Analysis4) Overall Investment Strategy Index5) Summary

PART 2 - HEDGING

1) Hedging and Inflation Snippets2) Hedging Summary

PART 1 - STOCKS

1) Business News Compilation - From The Wall Street Journal

Part A - Negative WSJ Corporate News Snippets

07/05- HSBC to Cut Jobs in France07/07- Samsung Estimates Weaker Earnings Amid LCD Woes- Japan Retail Giant Sees Profit Tumble07/08- Google Margins to Shrink, Morgan Stanley Warns in Downgrade07/13- Carrefour Predicts Profit Drop- Thomas Cook Warns on Profit- ASML Gives Demand Warning- Sales Stagnate at L'Oréal- Banesto Profit Falls on Bad Loans07/14- Hartford Issues Profit Warning- Allstate Warns of Big Losses07/15- Quake Costs Sony Ericsson07/18- Philips Hurt by Weak Demand07/19- BofA Swings to Loss- Electrolux Feels Pressure- Gannett Earnings Decline by 22%- Cisco to Drop 6,500 Employees- Kodak's Bonds Fading Fast- WebMD Lowers Its Outlook07/20- Altria Profit Slips 57%- PNC, U.S. Bancorp, M&T Score Profit Gains- Goldman Bets Less, Takes Hit- Northern Trust Profit Falls 24%- AMR's Loss Widens- TD Ameritrade Profit Slips 12%- Charges Hit J&J Profit

- Ashok Leyland Profit Falls 30%- Nokia Expected to Give Downbeat Forecast- Polaris Software Profit Falls 4.4%07/21- Morgan Stanley Swings to Loss- AT&T's Revenue Up, Profit Down- Nokia Posts Loss as Sales Drop- Roche's Profit Drops 6%- United Continental Slips- Ericsson's Profits Disappoint- Biocon Net Profit Falls 8.7%- Akzo Nobel's Profit Drops 2%07/22- Shrinking Demand Hits TomTom- Julius Baer's Profit Drops 21%- LG Display's Net Plunges 96%07/25- Costs Hurt Kimberly-Clark- Canon Posts 20% Fall in Net Profit- RIM to Cut 2,000 Jobs- Patni Computer Profit Falls Nearly 93%07/26- Ford's Profit Falls- Chrysler's Net Loss Widens- UBS Slashes Costs: after second-quarter net profit collapsed by almost half07/27- Conoco's Profit Falls 18%- Saab May Face Bankruptcy- Dr Pepper Profit Falls- Delta Profit Falls 58%- U.K. Claims Hit Santander- Nasdaq's Profit Edges Lower- WellPoint Slips- Merck KGaA Cuts Profit Forecast- LG Electronics Net Plunges 87%- Moody's Downgrades Nokia07/28- Credit Suisse to Cut 2,000 Jobs- Avon Sales in China Fall- Sony Slides to Loss, Cuts Guidance

- Alcatel Tumbles as Outlook Disappoints- Sprint's Loss Widens- Singapore Airlines' Net Sinks 82% on Fuel Costs- Quake Disruptions Hit Japan Tobacco Results- Juniper Sends Grim Signal- Nintendo Slashes 3DS Price, Cuts Outlook- Missteps Slow Motorola- Fujitsu Slips to Net Loss- TSMC Posts 11% Profit Drop- Rising Costs Hurt Telefónica07/29- EADS Hit By Currency Swings- Weyerhaeuser Profit Slides 29%- Idea Cellular Profit Falls 12%- Mazda Motor Net Loss Widens- Total Hit by Weaker Production- Eni's Net Falls on Libyan Cutbacks- Thomson Reuters CEO Cautions on Markets Unit- Horton, Pulte Report Weak Quarters- Samsung Electronics Profit Falls- Motorola Posts Loss, Lowers Outlook07/30- Merck to Cut 13,000 More Jobs- Chicken Glut Humbles Pilgrim's Pride- Rosneft Shares Fall As Profits Disappoint- SAIL Profit Drops 29%

Negative Corporate Snippets Total = 84

Part B - Positive WSJ Corporate News Snippets

07/07- Temasek's Net More Than Doubles07/08- HDFC's Net Profit Soars 22%07/11- Essar Oil Swings to Profit07/12- Infosys Profit Rises 16%07/13

- Alcoa Earnings Soar; Outlook Stays Upbeat- Capital One's Earnings Rise 50%- M&S Sales Edge Up Amid Caution- Levi Battles Higher Cotton Prices: swung to a profit as tax expenses eased and sales rose 12%.07/14- Google Regains Tech Spotlight: Google posted a 36% jump in quarterly profit.- Uniqlo Says Rebound Will Come- J.P. Morgan Profit Jumps- J.B. Hunt's Profit Rises 26%- Tata Consultancy's Profit Climbs- Marriott's Profit Rises 13%07/15- Citi Profit Rises- 'Cars 2' Drives Up Mattel's Profit- Modelo Sales Rise, Net Falls07/18- Halliburton Profit Surges- A Boutique Can't Rest on Sunday: Greenhill reported a 22% rise in profit07/19- UnitedHealth Profit Rises 13%- Hermès Raises Forecast- Eye Care Boosts Novartis- IBM Raises 2011 Outlook- HDFC Profit Rises 34%- Wynn's Profit More Than Doubles- Transformers Boosts Hasbro- Wells Fargo Profit Jumps 29%- Goldman Profit Rises but Revenue Falls- BNY Mellon, State Street Beat Earnings Estimates- KeyCorp Profit Surges07/20- BlackRock Profit Jumps 43%- United Technologies Earnings Climb- American Air Orders 460 Planes- LSE Profit Rises 14%- BHP's Iron Ore Output Rises- Dr. Reddy Profit Rises 25%, Misses Forecast- MindTree Net Profit Doubles- Apple's Profit More Than Doubles

- Coke's Profit Jumps 18%- Harley Sales Gets Back in Gear- CSX Posts 22% Rise in Profit- Omnicom's Profit Rises 13%- Wipro Net Profit Rises 1.2%07/21- Pepsi's Revenue Growth Drives Profit- Blackstone Swings to Profit- Janus Profit Up 38%- BB&T, Fifth Third Report Surging Profits- Hindustan Zinc Net Profit Up 68%- ABB's Net Profit Rises 43%- Yes Bank Net Profit Up 39%- Latin American Demand Boosts Iberdrola- Publicis Revenue Rises 2.7%07/22- GE Sounds Positive Note- Honeywell's Profit Rises 43%- Caterpillar's Profit Surges- McDonald's Rolls Along- Schlumberger Profit Climbs 65%- Syngenta's Profit Rises 14%- Xerox Registers Profit, Lifts Forecast- Morgan Stanley Comes Up Golden- Microsoft's Office Still Sells- Yahoo Japan's Net Profit Rises07/25- Ryanair's Net Climbs 49%- Luxottica Net Rises Despite Dollar Impact- Eaton Profit Climbs 49%- Reckitt's Profit Rises 6%- Reliance Industries Net Profit Rises 17%- Lorillard Profit Rises- Fiat Industrial's Profit Soars- Allied Irish Swings Back to Black07/26- UPS Profit Jumps 26%- 3M's Net Edges Higher- Lockheed Martin Posts Profit- BP Posts Profit; Production Slips

- Deutsche Bank Profit Rises- Glenmark Profit Increases 23%- Glaxo Sees Return to Health- JSW Steel Profit Surges 64%- Lower Costs Help BG Group- Bharat Heavy Profit Grows 22%- Reckitt's Profit Rises 6%- Baidu Profit Jumps on Customer Growth07/27- Boeing Boosts Forecast as Earnings Rise- Aetna Profit Rises 9.3%- Surge in Demand Fuels Daimler- Marico Net Profit Grows 15%- BAT Rides Recovery- GAIL India Net Profit Rises 11%- Dow Chemical Profit Jumps- HCL Technologies Profit Surges- UltraTech Profit Rises 22%- Elan's Loss Narrows- Peugeot's Profit Rises 19%- Amazon's Growth Is Costly- Maruti Suzuki Profit Rises 18%- Electronic Arts' Net Jumps07/28- Kellogg Profit Rises 14%- Bristol-Myers Net Falls, but Plavix Sales Are Up- Exxon Mobil Profit Soars- Shell's Profit Soars- Statoil's Net Profit Soars- Thomson Reuters Profit Up- Hyundai Motor Net Rises 37%- ONGC Profit Rises 12% on Higher Crude Prices- Forex Gains Fuel Korean Air Profit- Goodyear Net Surges- Sony Slides to Loss, Cuts Guidance- International Paper Profit Soars- Danone's Profit Edges Higher- Volkswagen's Net Profit Surges- ArcelorMittal Ups Forecast for Steel- Legg Mason's Profit Rises

- Lazard, Evercore See Profits Jump as Deal Making Picks Up- CME's Net Rises 8.5%- Softbank Sees Profit Surge- Strong Sales Boost Infineon- Time Warner Cable Profit Jumps 23%- Toshiba Profit Rises- BT Group's Earnings Rise07/29- Verizon Wireless to Pay Big Dividend- PPR's Profit Jumps- Shiseido Nearly Breaks Even- Nuclear Output Powers EDF- DoCoMo Sees Net Profit Rise 12%- ICICI Bank Net Profit Up 30%- IAG Swings to Profit- Pearson Raises Profit Forecast- Kia Net Soars 67%- Starbucks Profit Jumps 34%- Chevron Profit Jumps 43%07/30- ICICI Bank Net Profit Up 30%- AllianceBernstein Profit Rises 11%- Newell Rubbermaid's Earnings Rise 13%

Total of Positive Corporate News Snippets = 133

Index of Snippets: Maintaining High Level of Positive Snippets

Month of Snippets % Positive % NegativeApril 09 35% 65%May 09 55% 45%June 09 56% 44%July 09 44% 56%August 09 41% 59%September 09 51% 49%October 09 57% 43%November 09 58% 42%December 09 59% 41%January 2010 72% 28%February 2010 69% 31%

March 2010 65% 35%April 2010 73% 27%May 2010 78% 22%June 2010 74% 26%July 2010 73% 27%August 2010 69% 31%September 2010 63% 37%October 2010 76% 24%November 2010 69% 31%December 2010 63% 37%2011January 63% 37%February 63% 37%March 67% 33%April 62% 38%May 64% 36%June 53% 49%July 63% 39%

2 & 3) Political Risk & Macro Economic Events/News

A) Negative WSJ Economic and General Business Data Snippets

07/01- Asia Economy Slows As Policy Tightening Cools Growth07/05- Moody's Gives Banks Greek Debt Warning- Euro-Zone Economy Hits the Brakes- Inside the Disappointing U.S. Recovery- Australia Retail Sales Slump, Denting Case for Rate Rise07/06- U.S. Service-Sector Expansion Slows- Portugal's Rating Cut to Junk07/07- Dutch Raise Doubts Over Greek Debt Plan07/08- Jobs Report Dims Hopes for Recovery- Europe Banks Slide on Italy Concerns- More Empty Stores at Malls- Italian Default Insurance Costs Rise Sharply

07/11- Earnings Scorecard: Banks Face Ho-Hum Quarter- Moody's Raises 'Red Flags' At Chinese Firms- Little Hiring Seen by Small Business- Worries Grow Over U.S. Jobs- India Car Sales Growth Slows in June07/12- Italy Fears Jolt Markets: Debt, Political Concerns Fuel Flight From Nation's Bonds, Boosting Risk to Euro07/13- China GDP Growth Slows to 9.5%- Ireland's Bonds Downgraded to Junk- Denmark Gets Financial Warning- Wider Trade Deficit Lowers Some GDP Forecasts- U.K. Stores Face Gloom- Earnings Scorecard: Banks Face Ho-Hum Quarter- Euro-Zone Growth Set to Slow- U.K. Jobseekers Grow in Number07/14- Slowing Sales Imperil Growth07/15- Debt Concerns Weigh on Stocks- IMF Warns on Europe's Banks07/18- Dearth of Demand Hits Hiring in U.S.- Southern Exposure for Europe Banks- Wireless Jobs Vanish- Economists See Deepening Euro Crisis- Fitch Sees Risk in China Accounting Standards- Concern for Australian Growth- Raters Move Closer to U.S. Downgrade07/19- Debt Worries Roil Markets: Investors Fear Contagion of Greek Crisis, Washington Stalemate Over Deficit- German ZEW Index Drops07/20- BOE, Data Point to U.K. Weakness07/21

- Banks Cut Costs to Juice Profits: Banks and securities firms are intensifying efforts to cut costs as the sluggish economy, weak loan demand and new regulations eat into earnings.- Layoffs Pick Up as Recovery Hopes Ebb: Companies are laying off employees at a level not seen in nearly a year, hobbling the job market and intensifying fears about the pace of the economic recovery.- Jobless Claims Jump- Euro-Zone Consumer Confidence Weakens- Home Resales Decline Again- Euro-Zone Growth Slows07/22- Airline Profits Slip as Fuel Costs Rise- Jobless Rate Rose in 28 States in June07/25- Moody's Cuts Greek Debt Rating Further- IMF Cites U.S. Debt Risks07/26- Spanish, Italian Borrowing Costs Soar- U.K. Ekes Out Feeble Growth- German Consumer Confidence Slipping- Downgrade Threat Looms in U.S.07/27- Durable-Goods Orders Fall- Debt Jitters Spook Markets- Demand Slide Stings Japan Steelmakers- Euro-Zone Lending Growth Slows- Home Sales, Prices Reflect Malaise- U.K. Ekes Out Feeble Growth07/28- Jobless Claims Below Key Level- Europe Inc. Warns on Outlook- Euro-Zone Confidence Weakens- Beige Book: Pace of Recovery Slows- S&P Cuts Greece's Ratings07/29- European Firms Express Gloom- Little to Smile About With Growth Outlook07/30- Slow Growth Stirs Recession Fears- U.S. Economy Loses Resilience

- Economy Losing Its Cushion

Total of Negative General Business and Economic News Snippets = 69

B) Positive WSJ Economic and General Business News Snippets

07/01- Turkey's Economy Surged 11% in Quarter07/05- Factory Orders Rose in May- Profits Thrive in Weak Recovery- Japan's June Auto Sales Sag, but Rebound on Track- Factories Pick Up in Chicago Region07/06- OECD Growth Steady07/07- ADP, Jobless Data Suggest Improvement- Luxury-Car Sales Surge- Goldman: Tight Supply to Push Up Oil- U.S. Rents Rise, Vacancies Go Down- Bright Days for the Bottom Line- Japan's June Auto Sales Sag, but Rebound on Track- Promotions Fuel June Retail Sales- German Industrial Output Rises- U.K. Industrial Output Recovers- Citigroup Aims to Boost China Outlets by 50%07/08- Progress Seen in Talks on Greece- German Exports Rebound07/11- China Boosts Lead in Global Exports07/13- BOJ Raises Economic Estimate- Bragging Rights for REITs: Real-estate companies are expected to deliver robust second-quarter profits as office, retail and apartment landlords were able to raise rents and sign up new tenants.07/18- Greece Seeks Advisers for Privatization07/19- Demand for ECB Loans Surges

- Calpers Posts Best Return in Years07/20- Home Construction Increases07/21- Art Sales Soar in First Half- Foreign Sales Boost U.S. Toy Makers- Demand for Luxury Cars Accelerates: Luxury car dealers in Silicon Valley are reporting a strong pickup in business amid a resurgence in the tech industry.07/25- World Trade Picks Up07/27- Car Makers Help Drive Economic Recovery07/28- German Jobless Numbers Fall07/29- Japan Forecasts Rising Industrial Output

Total of Positive WSJ General Business and Economic News Snippets: 32

C) Merger/Acquisitions/Public Offerings Snippets From the Wall Street Journal

07/05- TPG to Buy Immucor- Southern Union Gets New Deal- Nippon Life to Buy Allianz Stake- National Oilwell to Buy Ameron- Phil Falcone's LightSquared Raises $265 Million- Amazon Buys U.K. Bookseller- Virtual Farms, Rich Harvest: Game Maker Zynga's IPO Seeks $20 Billion Value, - Reveals Revenue Quadrupled07/07- NYSE Holders Approve Merger- Gazprom in Power Merger- HTC to Buy U.S. Graphics Firm07/08- Sun Art Raises $1.1 Billion in IPO- BMW Buys ING Car-Leasing Unit- EBay to BuysMobile-Payments Firm Zong07/11- Dunkin' Sets IPO Price Range

- Lonza Buys U.S. Chemicals Firm- Foxtel, Austar Reach Takeover Deal- LivingSocial Seeks $1 Billion IPO- Elpida to Raise Nearly $1 Billion From Issuances- Baidu, DoCoMo to Set Up JV in China07/14- BHP Billiton to Buy Petrohawk for $12.1 Billion- Fiat Preps Chrysler Merger07/18- Man Group Buys Lehman Exposure07/19- Baidu, Record Labels in Deal- OZ Minerals to Launch Buyback as Costs Fall- Reputation.com Raises a New $41 Million Round07/20- Cnooc to Buy OPTI Canada- Ecolab to Acquire Nalco for $5.38 Billion- A Believer in Sino-Forest07/21- Express Scripts to Buy Medco- Acer to Buy Cloud-Tech Firm07/25- Airbnb Fetches $1 Billion Value07/26- New Mountain Buys Majority Stake In SNL Financial- Cognizant to Buy CoreLogic India Unit07/28- Tea Party: Teavana Jumps 70% in IPO- Punjab National Bank to Buy 30% in MetLife India07/29- Google Buys IBM Patents- BSkyB in Share Buyback

M & A Total: 38

Table of Positive v. Negative General Economic & Business News With Investment Banking Snippet Count

Month % Neg % Pos M & A,

Public Offering Snippets2009August 09 40% 60% 12Sept 09 48% 52% 30October 09 34% 66% 24November 33% 67% 31December 38% 62% 352010January 48% 52% 25February 43% 57% 28March 34% 66% 40April 33% 67% 47May 53% 47% 38June 51% 49% 52July 50% 50% 42August 50% 50% 49September 48% 52% 67October 48% 52% 58November 41% 59% 46December 39% 61% 552011January 31% 69% 65February 31% 69% 55March 51% 49% 45April 47% 53% 33May 46% 43% 27June 68% 32% 30July 68% 32% 38

Comment: High level of negative snippets has emerged

D) NEGATIVE OPINION SNIPPETS FROM THE WSJ

07/14- The Disappearing Recovery By DANIEL HENNINGERWhat if the weak recovery is all the recovery we are going to get? - Prof. Lucas sees public-policy analogies to the 1930s: "The likelihood of much higher taxes, focused on 'the rich'; medical legislation that promises a large increase in the role of government; financial legislation that assigns vast, poorly defined responsibilities to the Fed and others." "If we're going to move to a European

welfare state," says Prof. Lucas, "we're going to have to pay a European price." And that price could be a permanently lower level of GDP per person. The U.S.'s amazing 100-year ride would slow.

E) POSITIVE OPINION SNIPPETS FROM THE WSJ

- None seen this month.

3) Technical Analysis Summary

Indicator June 30 July 31 TREND/COMMENT

REAL GDP Q1: 1.9% Q2: 1.3% Negative

UNEMPLOY-MENT RATE 9.1% 9.2% Negative

INDUSTRIAL PRODUCTION 0.1% 0.2% Positive

PURCHASING MANAGERS INDEX 53.5% 55.3% Positive

RETAIL SALES $387.12 billion 387.79 Neutral

CONSUMER SPENDING 0.0% 0.0% Neutral

CONSUMER CONFIDENCE (Conference BoardTM) 58.5 59.5 Positive

HOUSING STARTS 560,000 629,000 Positive

EXISTING HOME SALES 4.81 mil 4.77 million Negative

TRADE DEFICIT April: $43.68 bil May $50.23 bil Positive

CONFERENCE BOARD LEADING ECONOMIC INDICATORSTM Increased

CONFERENCE BOARD COINCIDENT ECONOMIC INDEXTM Increased

SUMMARY

7 Positive3 Negative2 Neutral

4) RITE Investment Strategy Index

Scale:0 = Neutral;+10 = High Opportunity Environment; -10 = Extreme Negative Risk Miasma

EFFORT, RISK, FREEDOM, KNOWLEDGE/INFO Mar 31 COMMENTS

1) Domestic Political Risk + 5 No bad: Political Gridlock

2) Tax Risk + 1 The risks of taxes & inflation are decreasing.

3) Individual Incentive - Freedom - 1 WSJ indicates loss of freedom; Regulations of Dodd-Frank et al looming.

4) Production of Knowledge + 3 Corporate profit is good. R & D outlook good

5) Technical Analysis of the U.S. Stock Markets - 0 - Market levelled off and in trading range.

6) Corporate Snippets + 7 Positive Snippets

7) General Business & Economic Snippets - 4 Negative Snippets Maintaining High Level 68% Neg, Pos 32%

8) Economic Indicators + 3 Came back a little to 7 Pos, 3 Neg, 2 Neutral

9) Merger/Acquisition Activity + 3 Increased slightly

Sum of Total + 17Average of Total 1.88Percentage of Equity Commitment 57.8% last month; increases slightly to 59.4%.

History of Strategy Index

Month & Year Index % DJIA Gold Oil USD Index2009October 72.2%November 71.6%December 72.8%2010January 71.1%February 73.35%March 66%April 68%May 1 70% 11,008.61June 1 56.1% 10,024.02June 30 56.6% 9,774.02July 30 52.8% 10,465.94 1,183.5 78.99 81.655Aug 31 55.7% 10,014.72 1,248.1 72.29 83.165Sept 30 61.1% 10,788.05 1,309.3 79.81 78.94Oct 29 77% 11,118.49 1,359.8 81.45 77.165Nov 30 70% 11,008.02 1,386.1 84.11 81.42Dec 31 74.5% 11,577.51 1,422 91.4 79.282011Jan 31 77.2% 11,891.93 1,337 91.93 77.715Feb 28 77.2% 12,226.34 1,412.6 96.94 76.93March 31 67.7% 12,319.73 1,439.9 106.72 76.335April 30 65.6% 12,810.54 1,565.8 113.73 73.18May 31 56.1% 12,569.79 1,531.5 102.89 74.55June 30 56.1% 12,414.34 1,499.8 94.74 74.77July 30 59.4% 12,143.24 1,631.2 95.70 73.895

5) Summary

EQUITY MARKET CONCLUSION:

- The corporate profit news is good; the General Business and Political News continues to be very negative remaining at 68% negative. - The RITE Strategy Index dropped 3 months in a row but has reversed and went up sightly this month which presages a floor to the stock market. This means the investor may begin increasing his position again!

PART 2: HEDGING

1) HEDGING/INFLATION SNIPPETS FROM THE WSJ

Deflation

07/14- Bernanke Not Ready to Step In07/15- Fed Chief Cool on More Bond Purchases: Bernanke said that the central bank isn't inclined to launch a third round of bond-buying soon to boost the U.S. economy...

Inflation

07/07- Food Prices Near Highs07/14- Gold Soars to Record- Fed Crafts Exit Plan but Won't Act Soon07/25- Crop Prices Erode Farm Subsidy Program

Deflation Snippets = 2Inflation Snippets = 4

DEFLATION SNIPPETS 33%INFLATION SNIPPETS 67%

INFLATION TABLE

(Month notes RITE Report Issue Date; Statistical Data is the latest which is noted in the WSJ at the date of the RITE Report publication which is the last day of the month.)

Month Consumer Producer Inflation Infl Defl DJ UBS Prices Prices data.com Snpts Snpts Commodity Idx

2010Jan + 2.7% + 4.4% + 2.72% 44% 56%Feb + 2.6 + 4.6% + 2.63 % 44% 56%March + 2.1% + 4.4% + 2.14% 40% 60%April + 2.3% + 6.0% + 2.31% 29% 71%May + 2.2% + 5.5% + 2.24% 50% 50%June + 2.0% + 5.3% + 2.02% 25% 75%July + 1.1% + 2.8% + 1.05% 25% 75%Aug 31 + 1.2% + 4.2% + 1.24% 33% 67% 130.77Sept 30 + 1.1% + 3.1% + 1.15% 75% 25% 140.29Oct 31 + 1.1% + 4.0% + 1.14 % 95% 5% 147.269Nov + 1.2% + 4.3% + 1.17 % 78% 22% 146.73Dec + 1.1% + 3.5% + 1.14 % 86% 14% 162.393

2011Jan + 1.5 + 4.0 + 1.50 % 91% 9% 161.29Feb + 1.6 + 3.6 + 1.63 % 100% 0% 166.14March + 2.1 + 5.6 + 2.11% 89% 11% 169.56April + 2.7 + 5.8 + 2.68% 89% 11% 175.42May + 3.2% + 6.8% + 3.16 % 14/93% 1/7% 166.54June + 3.6% + 7.3% + 3.57 % 9/100% 0/0% 158.13July + 3.6% + 7.0% + 3.56% 4/67% 2/33% 162.81

2) HEDGING SUMMARY

a) Gold: The news and the Inflation Table continues to indicate that inflation is with us. However, the Inflation Snippets have subsided. The European debt crisis is holding up the Gold level. Therefore, it is time to take profits for the short term on your gold or put a downside hedge on your Gold holdings. This is the first time in two and a half years this Report has modified its stance on Gold. (However, to

clarify: this report does not call for going short; it advocates only taking some profits.)

b) Oil: As previously advised go neutral on this. Hence, the RITE makes no call on oil presently. If you own it, consider a straddle.

c) The U.S. Dollar: With the decrease in Inflation Snippets, the Dollar has hit a bottom. If you are short the dollar, cover it. We do not yet call an uptrend in the USD Index, but it is OK start long positions.

RITE ReportChris Angle, Editor19 Topledge Road (P.O. Box 708)Redding, CT 06896Tel. 203/253-2008Fax. 203/286-2356Email: chrisangle1@gmail.comhttp://www.stock-market-direction.net/

(The RITE Report’s name was derived from the acronym of the four variables inherent in all economic transactions; Risk, Information/Knowledge, Time, and Effort. Of course, this would be for a service, and if the product were a material good, there would be an additional factor of Material - or Land as the economist would say. See The Philosophical Equations of Economics at www.philosophypublishing.com for further info on this subject.)

For Your Reference:

CUSTOM RESEARCH: Please note that custom economic and/or macro investment research is available on request.

SELF-ADVERTISEMENT BLURB: Chris Angle is the author of:

The Nature of Aesthetics - 978-0-9661126-4-1Defining Ethics Good & Evil - 978-0-9661126-5-8Truth and the Nature of Decisions - 978-0-9661126-6-5The Philosophical Equations of Economics - 978-0-9661126-3-4

These books may be viewed at: www.philosophypublishing.com

DISCLAIMERS/CAVEATS:

1) Past performance is not indicative of future results.

2) Trading futures and options involves substantial risk of loss and is not suitable for all investors. Carefully consider the suitability based upon your experience, objectives, financial resources and other relevant circumstances. Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment performance can be volatile and are not suitable for all investors. An investor could lose all or a substantial amount of his or her investment.

3) This communication does not constitute an offer to sell, or a solicitation of an offer to buy or sell, any products named herein, commodities interests, futures contracts, or securities, and is intended for informational purposes only. Any offer for any investment product will be made solely by the appropriate disclosure document or private placement memorandum.

4) The RITE Report has been prepared either from publicly available information or reflects the opinions of the author. Information contained in this report is believed to be reliable but may not have been independently verified. The RITE Report does not guaranty, represent or warrant, or accept any responsibility or liability as to, the accuracy, completeness or appropriateness of the information contained herein. At no time will the RITE Report make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Information contained herein may not be current due to, among other things, changes in the financial markets or economic environment. Opinions reflected in the materials are subject to change without notice. Forecasts represent estimates. Information provided by the RITE Report is expressed in good faith, but it is not guaranteed. Long-term success, trading or investing in the markets, demands recognition of the fact that error and uncertainty are part of any forecasting effort. Investing carries risk of losses. Information provided by the RITE Report does not constitute, and should not be used as a substitute for tax, legal, or investment advice. Please ask your broker or your advisor to explain all risks before making any trading and investing decisions.