I haven’t talked recently about RSI’s “Way Ahead Portfolio” that I started at the fourth quarter of last year. As you may or may not remember I established this portfolio on October 1 st with a hypothetical $100,000, allocated it to ten RSI fund selections of $10,000 each. All went well until November 2007 when many of the ETF/CEFs hit their 8% stop loss levels. These positions were sold and replaced with other funds. And so on. Now recently this January and March several funds hit their stops too. With the continued market turmoil I didn’t feel in a rush to establish new ETF replacement positions. Now the portfolio stands with only one position, ASA, plus cash, all totaling $90,420.23 for a loss of -9.58%. In the same timeframe the S&P 500 has lost -13%. Okay then, what is the next step? It all depends on our belief system. If I think this market correction lasts for several weeks or months more, I sit tight on the cash reserves. If and when I believe the correction has ended, I will deploy the cash reserves into nine positions based on RSI’s selections. I have the choice of some conservative picks at first and then throw in some falling knife picks for higher risk/reward choices if the bull takes off. Again, it all depends on whether I believe the market is making a convincing move. With today’s strong showing I believe that this market will run for a while longer…maybe through the next couple of quarters. Therefore I have decided to add seven new positions to the existing lone fund position ASA. Six are from RSI’s most recent ETF/CEF picks and one Catch a Falling Knife (CFK) speculation. The additions are: BCF - BlackRock Real Asset Equity Trust BGR - Blackrock Global Energy and Resources Trust ILF - Latin America 40 Index iShares IYM - Basic Matls iShares SLX - Market Vectors Steel XOP - SPDR S&P Oil & Gas Exploration & Production Index IHF - iShares Dow Jones US Healthcare Provider (the CFK pick) Since we want to maintain a portfolio of ten funds, I will divide up the portfolio's cash reserve into nine equal parts of $8,842 and place buy at the open orders for shares of each fund. I'll report the transaction results after tomorrow's close. I'll let RSI come up with the remaining two fund choices in the ensuing days.