BRIEF MARKET UPDATE—OCT 17, 2005

We are in a much-needed market correction. After all, it is October (almost all BULL MARKETS started from a bottom made in October). Our work indicates that we needed this current correction to set up what we believe will be the greatest Bull Market since 1994-1995 and results will be almost the same.

Expect this month to be consumed by daily up/down moves of extreme. We are currently rallying, however I believe we need one more hard down draft, of a day or two, to scare the majority and complete the “blow-off” down draft. I don’t always get what I want, but do often get what is needed. Once we have gotten this out of the way (should be around the end of October or 1st week of November), a very sincere rally should begin that lasts for the next 3 to 4 years and will take the Dow Jones to approximately 18,000.

I am fully aware that some of you will think I am totally “NUTS” with this projection. Please be aware that we have spent countless hours of work in order to arrive at this projection. What will move in such an up move?? It is my position that the following will prove to be greatest beneficiaries of such a move:

1. Large pharmaceuticals

2. Heavy equipment manufacturers

3. Construction companies (Highway Bill)

4. Coal

5. Consumer durables

6. Large, well known names with large dividends

7. Technology companies

8. Sectors yet to reveal themselves—we will be ever vigilant for this

That’s all for today. Look for more frequent notes from Brad and myself.

It’s a beautiful day in Montana!

Jack