Please make to following change for our new portfolio.

Buy BFB ($73.61) instead of BFA ($72.10)

The class A shares (BFA) have much lower volume than the class B shares (BFB). Make sure you buy the BFB shares.

Duncan Campbell

[email protected]

Today, just before the close, International Money Exp. (IMXI) broke through its upside stop and was sold +10%.

If you haven't already done so, you should sell IMXI ASAP.

Sell IMXI  $22.68  +10%

As you can see by our Yellow traffic signal, we are still in a cautionary market. If the market is likely to reclassify to Red, we will alert you at least one hour prior to the close.

As always, please don't hesitate to contact me with any questions.

Duncan Campbell

[email protected]

Its half time in the 2022 season, and while its been a very disappointing 1st half, there actually are a few bright spots on the horizon.

We've now been gripped by a bear market since last November. Here's how IES, the indexes and the funds performed through the first six months of 2022.

IES Performance

For IES the first half of 2022 was a disaster. We suffered the worst performance in our brief 6.5 year history.

• Q1 loss:  -0.4%
• Q2 loss:  -5.3%
• Total loss:  -5.7%

And as bad as those numbers look, to coin a famous golf commentator, they were actually "Better than most". As it turns out, we crushed the performance of the Indexes and virtually all of the Mutual Funds, all of whom posted some of the worst 1st half returns in 52 years!

Indexes

The S&P 500 had the worst half year since 1970!!!

Since January 3rd, the index is down 20% and now sits at levels originally scaled back in late 2020.

The Nasdaq actually faired worse, down 29% in the first six months.

Mutual...

As you can see by our traffic signal, our market is currently Yellow.

With the markets closed tomorrow (Monday) for the 4th of July holiday, let's look back on the week's market action.

Monday, Jun 27th - our Green market traded within a narrow band and ended the day down slightly (S&P: -0.3%)

Tuesday, Jun 28th - More bad news on the inflation front. The markets reacted with a large drop (S&P: -2.0%). The large drop was enough to reclassify the markets to Yellow after the close.

Wednesday, Jun 29th - . The Yellow market traded within a narrow band and by the close the S&P was down just -0.07%.

Thursday, Jun 30th - The markets dove early and were down almost 2% on the S&P. The good news was that they recovered and ended the day just down 0.88%. This strong recovery and finish likely saved the markets from reclassifying to Red.

Friday Jul 1st - After an early dip, the markets rallied strongly, with the S&P ending the day +1.1%.

Our...

Anatomy of a Market Crash - June 22, 22

Market Background

• Thursday Jun 9^th – S&P 500 index dives 2.35% in the afternoon as new inflation figures are released. Fears of higher interest rates to combat inflation grip the markets.
  • After the markets close, they are reclassified down to Yellow- Uptrend under Pressure.
• Friday Jun 10^th – S&P 500 drops another 2.9% as new consumer price index levels come in at highest points since December 1981 confirming inflation fears.
  • After the markets close, they are reclassified to Red – Market in Correction.
• Monday Jun 13^th – S&P 500 drops another 3.9%. Most of the damage is done at the open with the rest of the day trading nearly flat.

IES Trading

• Thursday’s market action happened while the markets were still Green. It wasn’t until 2 hours after the close that it was reclassified to Yellow.
  • IES trading rules don’t require a market exit on Yellow, merely caution.
  • ...

As you can see from our traffic signal, the 3% gains for our major indexes today qualified for an institutional buying follow-through day which propelled our markets to be reclassified to Green.

As a result look for two IES email alerts over the weekend:

1. A new portfolio alert with a re-entry buy in date of Monday noon.
2. An IES memo on market volatility and system changes to combat same.

Please be sure to read and understand this 2nd memo as it will explain some important trading changes that you'll need to be aware of.

Have a great weekend and stay tuned.

Duncan Campbell

duncan@islandequitysystems.com

We are considering very aggressive trading on AMPH stock. Beware - This may not suit everyone's risk tolerance.

AMPH stock price fell dramatically this morning with no apparent operational reason. One possible explanation is that this is the final shake-out of old position holders. This shakeout began April 14th when the stock reached it prior high of $44.46. The shakeout lasted 17 trading sessions ending with the stock hitting a low of $31.33. While others have exited since, today's major drop appears to a final gasp for this shakeout. If it is, this stock sits at an excellent price with very little downward price pressure.

AMPH is an excellent company and an excellent stock. Most analysts rate it as a buy to a strong buy.

Trading on the stock has now levelled out. If, approaching 3:30 pm this trading pattern is still level, we will be calling for AMPH to be bought back at 3:30.

Again. this is an aggressive move that may not fit everyone's risk tolerance.

Stay tuned.

Duncan...

This morning Amphastar Pharma (AMPH) broke through our downside stop and was sold -12.5%. If you haven't already done so, you should sell AMPH ASAP.

This was an unfortunate way to start our new portfolio. Let's hope the market cooperates for better results going forward.

As always, please contact me with any questions.

Duncan Campbell

[email protected]

This morning Eagle Bulk Shipping (EGLE) broke through its upside stop and was sold +10%. If you have not already done so, you should sell EGLE ASAP.

Since EGLE was our send 10% win, by rule, we also sell the balance of our portfolio. At present our portfolio is up 1.35% and we shall continue to liquidate it through the day.

Sell EGLE    $77.26  +10%

Sell Portfolio  +1.35%

We have begun the process of selecting a new portfolio and anticipate a 12:00 noon market re-entry tomorrow (Wed.).

As always, please contact me with any questions.

Please stay tuned.

Duncan Campbell

[email protected]