www.toddmarketforecast.com

 Todd Market Forecast for Tuesday August 31, 2010

 Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific.

 DOW                          	+ 5 on 350 net advances

 NASDAQ COMP                   	- 6 on 100 net advances

 SHORT TERM TREND             	Bullish

 INTERMEDIATE TERM TREND        Bullish

 EDITOR'S NOTE. WE SENT OUT THE SEPTEMBER NEWSLETTER YESTERDAY. LET US KNOW
 IF YOU DID NOT RECEIVE IT.

 Take a look at the chart below. We closed the month of August 10.75% above
 the low for the month. We have found that when we close in the bottom 20%
 of the range for the month, the next two months have a tendency to be up.
 We go into this indicator in some detail in the August newsletter. If you
 don't have it, we'll get it out to you upon request. For the period shown
 in the chart, we had 11 prior signals going back to June 30th of 2005 and
 10 of them were profitable. If you had bought the S&P 500 on each signal
 and held for two months, you would have made 490 S&P points. During this
 time the buy and hold would have lost 142 points. A lot of people are
 talking about a bad September and October, but that would be just like the
 market to screw them up. Today the market tried to rally, but when the
 minutes from the last FOMC meeting were released, it showed some pessimism
 about the economy and caused some knee jerk selling. Still, we did close
 marginally higher. Tomorrow is the first day of the month. This day has a
 tendency to be higher. Seven of the last 9 first days have been higher.
 The dollar was a bit higher. Gold and silver surged. Crude oil got
 hammered and copper was lower. Bonds managed a decent gain.

 BOTTOM LINE: Our intermediate term systems are on a buy signal. System 2
 traders, we bought the E-mini at 1044.25 and the SSO at 33.10. Sell at the
 close on Wednesday. We need to correct something in the September
 newsletter. We said that we lost one e-mini point in August. We actually
 lost 12. System 7 traders are in cash. Stay there for now.

 NEWS AND FUNDAMENTALS:

 Chicago PMI came in at 56.7, greater than the expected 56.0. Consumer
 confidence was 53.5, more than the expected 51.0. The Case Shiller Home
 Price Index rose 1.0, less that last month's 1.2%. On Wednesday we get the
 ADP employment report, auto sales, the ISM manufacturing index,
 construction spending and crude oil inventories.

 OTHER MARKETS

 We're on a buy signal for bonds as of August 27.

 We're on a buy for the dollar and a sell for the euro as of August 11.

 We're on a buy for gold as of August 4.

 We're on a buy for silver as of August 25.

 We're on a sell for copper as of August 11.

 We're on a buy for crude oil as of August 27.

 We are long term bullish for all major world markets, including those of
 the U.S., Britain, Canada, Germany, France and Japan.

 STEPHEN TODD

 A SHORT BIOGRAPHY

 Editor and publisher of the Todd Market Forecast, a monthly stock market
 newsletter with an included nightly hotline.

 Steve has published articles on the stock market in the following
 publications: Barron's, Stock Market Magazine, Futures Magazine, The
 National Educator, and others.

 His stock market commentary is heard on the following stations: CNBC,
 Bloomberg, CNNfn, Associated Press Radio, Business Radio Network, CKNW in
 Vancouver, British Columbia, KFWB, Los Angeles and ROBTV in Toronto,
 Ontario.

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 TODD MARKET FORECAST P.O. Box 4131 Crestline, CA 92325-4131

 www.toddmarketforecast.com

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