September 1, 2014

The RITE REPORT

The following RITE Report generates indices from the monthly compilation ofcorporate, business, economic, & political news snippets from the Wall StreetJournal.

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

CONTENTS

PART 1 - STOCKS1) Business News Compilation Index2) Political & Macro Economic Events Indices3) Indicators for Technical Analysis4) Overall Investment Strategy Index5) Summary

PART 2 - HEDGING1) 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

08/01- Clorox Profit Falls 7.1%- TDS, U.S. Cellular Swing to Losses- CBOE Earnings Slip on Lower Trading Volume08/05- Cablevision's Sales Rise, Users Decline- Bloomin' Brands Lowers its Outlook

- Crédit Agricole Hit By Portuguese Bank Woes- Coach Profit Declines on Weak North American Sales- Motorola Solutions Sales Decline- Office Depot's Loss Widens08/07- CBS Outdoor Profit Falls 38%- Costco Stifles July's Retail Sales Gains- Fannie Mae Profit Falls- Freddie Mac's Profit Falls- Adidas Promises Swift Action to Boost Growth: The news follows last week's 2014 profit warning, and a 16% fall in second-quarter net profit.- NRG Energy Swings to Loss- Fred's Projects Surprise Quarterly Loss- Lamar Advertising's Profit Falls08/08- McDonald's Sales Drop: McDonald's said its global sales fell 2.5% in July- Vehicle Sales Plummet in Russia- E.W. Scripps Swings to Loss- Sotheby's Profit Falls on Higher Expenses: Sotheby's said its second-quarter profit dropped 15%, with results falling short of market expectations as higher expenses and special charges offset a gain in revenue.- Mahindra Profit Falls 6%- News Corp Ad Revenue Slips- CBS Hurt by Lower Ad Revenue- Computer Sciences Profit Falls08/11- Darden Projects Earnings Below Expectations: Darden Restaurants projected fiscal first-quarter earnings below analysts' expectations and said it expects to complete its plans to retire $1 billion of its debt later this month.- Dean Foods Takes Hit on Milk Costs- Sysco Profit Falls 10% on Higher Costs- Petrobras Net Profit Falls 20%- Post Stung by Cereal Slump08/13- SingTel Profit Drops 17%- Farm Slowdown Weighs on Deere- Noodles Earnings Disappoint, Shares Drop08/14- Wal-Mart Cuts Outlook: slashed its earnings guidance for the year as the retail giant posted yet another decline in traffic and flat same-store sales.

Cisco Plans to Cut 6,000 Jobs- China Mobile Seeking Acquisitions: China Mobile is on the lookout for acquisitions to reverse slowing growth, its chairman said Thursday, after the world's largest wireless carrier by subscribers posted an 8.5% decline in first-half net profit.- Oriflame Pressured by Ukraine, Russia Crisis: Oriflame Cosmetics said the geopolitical crisis in Russia and Ukraine weighed on second-quarter profit- RWE Hit by Subsidized Energy- Swire Pacific Profit Falls on Weak Marine Operations08/15- Dillard's Net Drops As Margins Narrow: Dillard's said its fiscal second-quarter earnings fell about 5% as the department-store became the latest retailer to post weaker margins amid increased discounting.- Deere to Lay Off 600 Factory Workers- Red Robin Profit Drops 15%- SingTel Profit Drops 17%08/18- Newcrest Reports Loss After Write-Downs- Wayfair Plots IPO, Racks Up Loss- Bad Loans Rise at Bank of China- Dick's Sporting Goods Profit Falls 17%- Urban Outfitters Profit Falls 12%08/20- Target Lowers Earnings Outlook- Europe's Brewers Hurt by Russia- Staples Pushes Turnaround as Sales Fall- Geely Automobile Profit Falls- American Eagle Outfitters Profit Slides- J.M. Smucker Sales Fall 2%- Expenses Bite Into MSG Profit- Heineken First-Half Net Profit Falls 1.3%: Currency Moves and Divestments Weigh on Sales08/21- Sears Plans More Cost Cuts- Ahold Profit and Sales Pressured08/22- Great Wall's First-Half Net Profit Falls 3.3%- Hibbett Sports Profit Declines 21%- ABN Amro Profit Hit by Charges- Intuit Loss Widens on Higher Expenses

- Aeropostale Forecasts Another Quarterly Loss- Salesforce.com Swings to a Loss08/25- Weaker Renminbi Hits Baosteel08/26- Profit Growth Slows at China's AgBank: Agricultural Bank of China reported the slowest first-half profit growth since it went public in 2010, while its bad-loan level picked up as the country's economic growth slows- Air China Profit Down on Weak Yuan- Best Buy's Profit Tops Views: sales continued to decline with no immediate sign of a letup.08/27- Hypo Alpe-Adria-Bank's Loss Widens- Smith & Wesson Lowers Outlook- Chico's Profit Falls as Promotions Squeeze Margins- Express Profit Falls on Weaker Sales- Rusal First-Half Revenue Falls- Nonprofit Hospitals' Profits Drop- Profit Growth Slows at China's AgBank08/28- ICBC Profit Growth Slows- China's Shipping Operators Miss Out: China Cosco and China Shipping - Container Lines posted weak earnings, with soft freight rates and high costs continuing to plague the companies.- Coty's Sales Drop on Promotions- Qantas Carves Out Long-Haul Unit: Qantas Airways laid the groundwork for a deep-pocketed foreign investor to take a stake in its international business after booking a record loss.- Abercrombie's Sales Disappoint- Pernod Ricard Confirms Jobs Cuts- Guess Cuts Outlook As Fall Collection Disappoints08/29- Toys 'R' Us Loss Widens- Tesco Warns on Profit- Virgin Australia Posts Deep Loss- Luxury Shoe Firm Ferragamo Profit Declines

Negative Corporate Snippets Total = 85

Part B - Positive WSJ Corporate News Snippets

08/01- Berkshire Posts Record Profit- ArcelorMittal Returns to Profit, With U.S. Boost- Spirit AeroSystems Swings to Profit- Intesa Sanpaolo Profit Rises- Man Group Reports Rise in Assets- Lower Bad Debt Provision Boosts Société Générale- Chevron Posts Higher Earnings- Burger King Profit Rises as Expenses Decline- Enbridge Posts Higher Profit- Church & Dwight Profit Edges Up- Calpine Tops Profit, Revenue Views- Manufacturers Lead Japanese Earnings Higher08/05- Toyota Grows on U.S., European Strength- Archer Daniels Profit Doubles- AIG Posts Rise in Profit, Settles Suit- UniCredit Posts Profit Rise- Vulcan Materials Sees Profit Increase- MGM Resorts Swings to Profit- Walgreen Posts Higher July Sales- Och-Ziff Earnings Surge- Actavis Swings to Profit- Zoetis Profit Rises- Toyota Revs to $5.7 Billion First-Quarter Profit- CVS Boosts Outlook As Profit Rises- Vitamin Shoppe Profit Falls as Expenses Mask Higher Sales08/07- Nestlé Outpaces Europe Peers- Sempra Energy Profit Rises- Wendy's to Sell Canada Stores: Wendy's earnings more than doubled on sales growth- Air Canada Swings to Profit- AMC Networks' Revenue Lifted by Acquisition- Orbitz Profit Rises as Demand Improves- Canadian Natural Resources Profit Soars- Brinker Profit Falls as Costs Rise: Sales Improve Amid Deals for Cost-Conscious - Consumers, But Higher Food Prices Cut Into Profits- IntercontinentalExchange Results Beat Expectations

- Cooper Tire & Rubber Profit Rises 7.6%: Cooper to Buy Back $200 Million of Its Shares- Rio Tinto's First-Half Profit Surges- Huntington Ingalls Posts Profit, Revenue Increase- Scripps Networks Revenue Rises on Advertising, Fees- BCE Profit Climbs 6% on Stronger Revenue- Commerzbank Profit Soars08/08- SNC-Lavalin Misses Expectations: SNC-Lavalin Group reported weaker-than-expected second-quarter results on Friday but swung back to a profit as the company booked higher revenue and earnings from its infrastructure investments.- Magna Results Beat Expectations- India Car Sales Rise- State Bank of India Posts Profit Growth- Allianz Beats Expectations- Con Ed Profit Jumps 23%- Argentina's YPF Net Profit Up Almost 40%- CareFusion Profit Up, Outlook Strong- Nvidia Earnings Rise 33%08/11- Aramark Profit Soars on Higher Sales- Mattress Firm Raises Outlook on Strong Sales Growth- Priceline's second-quarter profit jumped 32%, driven by improved bookings- Smithfield Foods Profit Surges- Tata Motors Profit More Than Triples- Orient Overseas Swings to Profit- AngloGold Ashanti Loss Narrows- Allianz Beats Expectations- D.R. Horton Attracts Some Bulls- SNC-Lavalin Swings to Profit, but Misses Expectations: Canadian Engineering and Construction Firm Boosted by Infrastructure Investments08/13- Telstra Unveils Share Buyback: Australian Telecom Company Says Net Profit in Year Through June Rose to A$4.28 Billion- Crown Resorts Profit Surges on Macau Gamblers- NetApp Profit Rises 8%- Crescent Point Energy Profit Up 36%- Profit for India's ONGC Up 19%08/14- Kohl's Profit Improves Slightly

- Banco Do Brasil's Profit Rises 14%- ThyssenKrupp Swings to Profit: Company's Earnings Helped by Cost-Cuts and - Improved Demand08/15- Estée Lauder Gets Boost From Early Orders- Sina Forecasts Higher Revenue- Asia Growth Drives ANZ Profit Gain- Penney Rebound Gains Traction- Nordstrom's Revenue Grows 6.2%- Applied Materials' Profit Rises 79%- Hotel Industry Enjoys a Boom in Persian Gulf- Reliance Communications' Profit Rises 21%08/18- China Vanke Posts First-Half Profit Rise- IBM Server Sale to Lenovo Passes U.S. Test- Home Depot's Profit, Outlook Rise- Retailer TJX Profit Rises- Ping An Insurance Profit Rises- Maersk Raises Outlook- Brilliance China 1H Profit Rises- Oil Search First-Half Profit Rises- American Apparel Posts Narrower Loss08/19- Woodside Profit Rises on Oil Output: Resumption of Facility in Vincent Helped - - Bolster Revenue 24%- La-Z-Boy Posts Higher Profit08/20- Volvo Car Swings to Profit- Glencore Swings to Profit- Fortescue Profit Jumps- JA Solar Profit Rises- Lowe's Trims Guidance Even As Results Top Views: Lowe's scaled back its sales guidance for the year even as the home-improvement retailer's earnings and sales increased more than expected for its fiscal second quarter.08/21- Li & Fung First-Half Revenue Misses Estimates: company's net profit rose 16% during the first half, and operating profit slid 9% because of higher expenses from hiring employees and opening new offices.- Dollar Tree's Sales Top Expectations- Hormel Earnings Top Expectations

- Raiffeisen Posts Surprise Profit Gain- Nobel Biocare Profit Doubles On U.S. Sales- Soho China Profit Rises 29%- Hewlett-Packard Posts Revenue Increase After 11 Quarters of Decline08/22- Foot Locker Profit Rises 39%- RBC Beats Views, Raises Dividend- Co-op Bank Loss Narrows Sharply- GameStop Profit More Than Doubles- Ross Stores Posts Higher Profit- Marvell Technology Profit Surges08/25- China's BYD Posts Better Electric Car Sales in First Half of Year: Analysts say Jump Isn't Big Enough To Signal Serious Mass-Market Demand- Long Island Gains From Industrial Demand- Berkshire Sees Green With Geico08/26- Guangzhou Automobile Profit Rise: profit grew 42% in the first half, as its joint ventures with Japanese companies continued to rebound- Shoe Retailer DSW Profit Rises- Scotiabank Boosts Dividend as Profit Climbs- Sanderson Farms Profit Rises 12%- Volkswagen Group Sales Rise in July08/27- Williams-Sonoma Sales Improve- Alibaba's Results Jump Ahead of IPO: Alibaba reported a surge in revenue and earnings for its latest quarter- Brown-Forman's Profit Rises 5% on Jack Daniel's Brand- WPP's profit rises despite currency woes, and more.- Same-Store sales Rise For Shoe Retailer: DSW Inc. said fiscal second-quarter profit edged up 1.8%- Sanderson Farms Inc. said its fiscal third-quarter profit increased 12%- Brown Shoe Profit Rises on Wholesale Business- Michaels's Results, Outlook Top Expectations- Tiffany Profit Rises on Strong Sales- Donaldson Reports Strong Earnings- Air New Zealand's Profit Climbs- Chiquita, Fyffes See More Merger Savings- Canada Banks Ride Wave of Robust Capital-Markets Activity- TiVo Reports Higher Revenue

08/28- TD Bank's Profit Jumps 38%- Signet Jewelers Revenue Climbs 39%- CIBC Posts 4.7% Profit Increase, Plans Buyback- Maybank Gets Earnings Boost From Singapore and Indonesia- France's Bouygues Warns on Sales Growth- Essilor Profit Rise on Eyewear Acquisitions- DP World First-Half Profit Rises 26%08/29- Canada Mortgage Insurer CMHC's Profit Rises- Dongfeng Motor's Earnings Surge- Big Lots Profit Beats Views- Hermès Warns on Currencies: French luxury-goods company Hermès- International warned that currency shifts will continue to drag on its full-year profit margin, even though it recorded a rise in first-half profit and sales.- PacSun Swings to a Profit- Amira Nature Foods Posts Strong Profit, Revenue

Total of Positive Corporate News Snippets = 138

Index of Snippets

Month % Positive % Negativeof Snippets(Started 2009)

2012Jan 41% 59%February 46% 54%March 56% 45%April 77% 44%May 52% 48%June 54% 46%July 42% 58%August 53% 47%September 52% 48%October 38% 62%November 60% 40%December 49% 51%2013January 60% 40%

February 46% 54%March 63% 37%April 61% 39%May 59% 41%June 61% 39%July 62% 38%August 60% 40%September 48% 52%October 64% 36%November 62% 38%December 53% 47%2014January 64% 36%February 65% 35%March 63% 37%April 57% 43%May 58% 43%June 54% 46%July 67% 33%August 62% 38%

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

A) Negative WSJ Economic and General Business Data Snippets

08/01- Nonmanufacturing Index In China Slipped in July08/07- Trade Gap Narrows Sharply as Imports Tumble08/08- Junk-Bond Exodus Accelerates08/11- A Frosty Outlook for Japan's GDP- Fed Survey: A Third of Americans Say They're Worse Off Post-Recession08/13- Americans Have a Hard Time Covering Emergency Expenses: A recent Federal Reserve Board report aimed to paint a picture American household finance following the recession—and it's bleak, especially in situations that require cash.08/14- Euro-Zone Economy Stuck in Neutral: The euro-zone economy stalled last quarter after 12 months of weak growth, underscoring concerns that the region is

mired in a deep rut of high joblessness and weak consumer prices. German GDP shrank 0.2%, a bigger drop than economists had expected- U.S. Retail Sales Flat in July- Japan's GDP Shrinks 6.8%: Japan's economy contracted sharply in the second quarter as households and businesses cut spending after a sales-tax rise in April.08/13- Bundesbank Warns on German Growth08/14- U.S. Jobless Claims Rise08/18- Small-Business Lending Is Stuck in the Slow Lane- Euro Zone's Economy Fails to Grow: The euro-zone economy stalled in the second quarter, raising the ugly prospect that the region's recent weak recovery after its long debt crisis has already lost momentum as it faces fresh headwinds from Russia and Ukraine.- Lower Demand Sends Oil Prices Tumbling- China Economy Flashes Red Again08/26- U.S. Factories Keep Losing Ground to Global Rivals: After Paring Capacity, Moving Abroad, Steelmakers, Truck Manufacturers Find It Difficult to Switch Gears - The U.S. deficit on trade in goods swelled in the first half to $371.59 billion from $354.64 a year earlier. Imports rose 3.3%, while exports increased 2.6%. Manufactured exports, excluding petroleum and coal, rose just 0.8%—far below last year's modest 2.1% gain.- U.S. Home Price Growth Keeps Slowing Down- S&P/Case-Shiller: Buyers Not Clamoring for New Homes: New-home sales fell again in July, a sign that a major source of jobs continues to waver entering the second half of 2014.- China Faces Growth Concerns08/27- CBO Offers Mixed Forecast of U.S. Budget, Economy08/28- U.S. Consumer Spending Declines- Brazil Falls Into Recession- German Retail Sales Drop: German retail sales in July posted the biggest monthly decline in real terms since January 2012

Total of Negative General Business and Economic News Snippets = 23

B) Positive WSJ Economic and General Business News Snippets

08/01- Consumer Rebound Chugs Ahead: Personal spending, which measures what Americans pay for everything from groceries to electricity, rose a seasonally adjusted 0.4% in June, the Commerce Department said Friday.08/04- Hiring Settles Into Steady Gains- Big U.S. Companies Get a Lift as Customers Come Back: Recent Earnings Results Show Signs of Return to Basic Revenue Growth08/05- Earnings Season: There’s a Surprise Hidden Behind All Those Surprises: Many analysts didn’t revise estimates downward at all, and companies were still able to beat expectations.- Fed Survey: Mortgage Standards Ease for First Time Since Housing Bust- Services Sector Expands in July: Purchasing Managers Index Hits Highest Level Since Revised Survey Started in January 200808/07- U.S. Jobless Claims Fall to 289,000- U.S. Productivity Rises at 2.5% Pace in Second Quarter- Fresh Foreclosure Cases Fall to Lowest Level Since 200608/11- China Exports Surge- U.S. Productivity Rises at 2.5% Pace in Second Quarter- WSJ Survey: Economists See Second-Half GDP Growth of 3%- Fresh Foreclosure Cases Fall to Lowest Level Since 2006- U.S. Jobless Claims Fall to 289,00008/12- Job Openings Hit 13-Year High: More Workers Are Quitting, Too, Pointing to Gathering Strength in Labor Market08/15- U.S. July Industrial Production Rises 0.4%, Exceeding Consensus- Malaysian Economy Speeds Up08/18- Big Investors Snap Up Junk Bonds- U.S. Home-Builder Optimism Rises: Home builders grew more optimistic in August as an improving job market and falling mortgage rates boosted the outlook for home sales.- IPOs Get an Early Jump08/11- U.S. Housing Starts Surged in July

- China Stocks Rise 9% in a Month08/20- U.S. Construction Shifts to Second Tier: Construction projects in cities across the country that stalled during the economic downturn now are getting the green light, an indication that the real-estate recovery is spreading beyond a handful of urban areas.08/21- U.S. Jobless Claims Fall- Overlooked Data Shows Japan Wages Rising08/22- U.S. Existing-Home Sales Up 2.4%08/26- Durable Goods Orders Surge- U.S. Consumer Confidence Improves08/28- U.S. GDP Expanded at 4.2% Rate in Second Quarter: Economic Growth Revised Upward, U.S.-Based Corporations Posted Higher Profits- Nonbank Mortgage Lenders Bounce Back- U.S. Jobless Claims Fall Again- Existing-Home Sales Rose in July: National Association of Realtors - Pending-Home Sales Index Is 5.9% Above 2001 Benchmark Level08/29- Canada's Banks Report Sturdy Deposit Growth- Lending for Construction Grows 4% in 2nd Quarter- U.S. Banks Boosted Lending in Second Quarter: U.S. banks increased their loan balances in the second quarter of 2014 by an amount not seen since before the financial crisis, a government report said, offering evidence of a pickup in lending as the economy slowly recovers.

Total of Positive WSJ General Business and Economic News Snippets: 36

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

08/01- Evercore to Acquire ISI Group- Airbnb’s Official Funding Haul: $475 Million08/04- Content Recommendation Firm Taboola to Acquire Perfect Market- Airbnb’s Official Funding Haul: $475 Million08/07- Kiwi Raises $12 Million for Mobile Games With ‘Wow’ Factor

- China Rundong Raises $124 Million in IPO08/08- Gemalto Snaps Up SafeNet- Post to Acquire Peanut-Butter Firm- Facebook Is Acquiring PrivateCore, a Cybersecurity Company08/11- IronSource Closes Pre-IPO Investment Round of Up to $100 Million- Japan’s Rakuten Buys Startup as It Mulls U.S. Entry08/18- OCBC to Raise $2.7 Billion in Rights Issue08/19- BHP Plans Massive Restructuring- Imperial U.S. Brands Deal on Track- QBE to Sell U.S. Underwriting Business- Ingersoll-Rand to Acquire Cameron Compression Division- Zhongji Buys Major Assets from FunPlus for up to $960 Million08/22- Dynegy to Buy Power Plant Assets- LSE Plans Rights Issue- Google Capital Leads $100 Million Round for Services Marketplace Thumbtack08/25- Sonoco to Buy Germany's Weidenhammer08/27- Russian Firm DST Quietly Bet on Snapchat at $7 Billion Price

M & A Total: 22

Table of Positive v. Negative General Economic & Business News WithInvestment Banking (Available Since 2009)

Month % Neg % Pos M & A, & Public Offering Snippet Count2012January 53% 47% 11February 46% 54% 11March 47% 53% 26April 51% 49% 30May 57% 43% 20June 77% 23% 22July 71% 29% 37August 63% 37% 16

September 72% 28% 19October 57% 43% 27November 54% 46% 21December 68% 32% 382013January 52% 48% 15February 52% 48% 23March 42% 58% 19April 57% 43% 22May 53% 47% 29June 39% 61% 27July 46% 54% 31August 34% 66% 29September 26% 74% 33October 49% 51% 21November 39% 61% 19December 27% 73% 382014January 36% 64% 21February 65% 35% 20March 50% 50% 29April 57% 43% 25May 43% 47% 43June 50% 50% 40July 36% 64% 26August 39% 61% 22

3) Technical Analysis Summary

Indicator TREND/COMMENT

REAL GDP Uptick: 4.2%

UNEMPLOYMENT Level: NeutralUnemployment Rate (BLS): 6.2%Civilian Labor Force Participation Rate (BLS): 62.8% to 62.9%Employment-Population Ratio (BLS): 59% to 59%

INDUSTRIAL PRODUCTION INDEX (INDPRO) 103.9152 to 104.3882 Uptick: Positive

PURCHASING

MANAGERS INDEX Expanding: Positive

RETAIL SALES Level: Neutral

CONSUMER SPENDING (BEA) Decreased: Negative

PERSONAL INCOME (BEA) Increased: Positive

CONSUMER CONFIDENCE(Conference BoardTM) Uptick: Positive

HOUSING STARTS: Uptick: Positive

EXISTING HOME SALES Uptick: Positive

CONFERENCE BOARDLEADING ECONOMIC INDICATORS TM Increased: Positive

CONFERENCE BOARDCOINCIDENT ECONOMIC INDEX TM Increased: Positive

HIGH YIELD BONDS (HYG) Uptick: Positive (07/31 - 92.48; 08/29 - 94.24)

DJ SELECT DIVIDEND YIELD Positive (07/31 - 528.12; 08/29 - 547.42)

SUMMARY11 Positive2 Negative1 Neutral

4) RITE Investment Strategy Index

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

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

1) Domestic Political Risk + 3 Good: Total Gridlock.

2) Tax Risk + 3 Further taxes very unlikely

3) Individual Incentive (Freedom) - 2 Regulations are increasing but major shifts in policy will not pass the House.

4) Production of Knowledge + 4 Economy clearly improving, R & D OK

5) Technical Analysis + 5 Uptrend in placeof the U.S. Stock Markets

6) Corporate Snippets + 5 Good at 62% Positive

7) General Business& Economic Snippets + 4 Positive Snippets at a strong 61%

8) Economic Indicators + 7 Excellent: Pos 11; Neg 1; Neu. 2

9) Merger/Acquisition Activity + 3 Level OK at 24

Sum of Total + 32Average of Total + 13.56RITE Strategy Index: 67.8%

History of Strategy Index (Started 2009)

Month/Yr Index % DJIA Gold Oil USD Index

2012Jan 31 54.4% 12,632.91 1,742.1 98.67 79.465Feb 29 57.2% 12,952.07 1,709.9 107.07 78.794March 31 56.7% 13,212.04 1,671.9 103.02 79.186April 30 59.4% 13,213.63 1,665.3 104.95 78.77May 31 52.2% 12,393.45 1,556.0 86.18 83.28June 30 50.6% 12,880.09 1,598.6 84.96 81.59July 31 48.3% 13,007.47 1,614.6 88.06 82.78August 31 50.6% 13,090.84 1,684.6 96.47 81.216Sept 30 52.8% 13,437.13 1,764.5 91.39 80.096Oct 31 56.7% 13,096.46 1,717.50 86.24 79.99Nov 30 57.2% 13,025.58 1,716.6 88.94 80.23Dec 31 56.7% 13,104.14 1,675.6 91.79 79.6152013Jan 31 56.7% 13,860.58 1,660.60 94.36 79.23Feb 28 60.6% 14,054.49 1,571.40 90.64 82.47Mar 31 65.0% 14,578.54 1,596.9 97.28 83.175April 30 60.6% 14,839.80 1,474.4 93.05 81.77

May 31 57.8% 15,115.57 1,388.0 91.61 83.30June 30 61.7% 14,909.60 1,234.8 96.49 83.376July 31 63.3% 15,499.54 1,325.00 105.42 81.915August 30 63.9% 14,810.31 1,396.20 107.78 82.10Sept 30 65.0% 15,129.67 1,328.20 102.34 82.24Oct 31 66.1% 15,545.75 1,349.00 96.38 80.26Nov 30 65.6% 16,086.41 1,251.4 92.78 80.657Dec 31 71.1% 16,576.66 1,204.8 98.70 80.1892014Jan 31 64.9% 15,698.85 1,245.6 97.46 81.25Feb 28 57.2% 16,321.71 1,328.60 102.76 79.815March 31 62.2% 16,457.66 1,281.5 101.45 80.27April 30 63.3% 16,580.84 1295.90 99.74 79.532May 30 66.1% 16,717.17 1,251.40 102.93 80.435June 30 66.7% 16,826.60 1,327.80 105.51 79.82July 31 66.1% 16,563.30 1,284.8 97.65 81.47Aug 29 67.8% 17,098.45 1,288.0 95.84 82.74

5) Summary

EQUITY MARKET CONCLUSION:

Stocks: Stay Long

1) Positive corporate news stayed high at 62%, and the Percentage ofPositive WSJ Economic and General Business Data Snippets at 61%.

2) The RITE Index advanced to 67.8%.

3) The Rite Report recommends to stay long and add to your stock portfolio.

PART 2: HEDGING

1) HEDGING/INFLATION SNIPPETS FROM THE WSJ

Deflation

08/14U.S. Import Prices Fall 0.2%, Dragged Down By Petroleum08/15U.S. Producer Prices Rise 0.1%: A gauge of U.S. prices rose slightly in July, a sign that inflationary pressures remain modest across the U.S. economyU.S. Consumer Prices Rose 0.1% in July

Inflationary Snippets

None this month

DEFLATION SNIPPETS 2/100%INFLATION SNIPPETS 0/0%

INFLATION TABLE

(RITE Report Issue Date is the first of the month; Statistical Data is the latest closing price which is noted in the WSJ on the last day of the month, but the RITE Report does not represent that these data are accurate.)

Month Consumer Producer Inflation Infl Defl CRB

Prices Prices data.com Snpts Snpts Annual Rate Annual Rate

2014 Reports

Jan +0.3% + 0.4% + 1.50% 2/25/5;6/75% 126.121Feb +0.1% + 0.2% + 1.58% 5/71%;2/29% 133.978Mar + 0.1% - 0.1% + 1.13% 5/83%;1/17% 134.52April + 0.2% + 0.5% + 1.51% 3/100%;0/0% 137.80May + 0.3% + 0.6% + 1.95% 1/20%;5/80% 133.83June + 0.49% - 0.2% + 2.13% 4/57%;3/43% 134.63July +0.3% +0.4% + 2.07% 3/100%;0/0% 293.68 CRBAug +0.1% +0.1% +1.99% 0/0%;3/100% 292.75 CRB

2) HEDGING SUMMARY

Gold: Hold and stay long.

Gold has bottomed, let’s continue to stay long.

Oil: No trend: stay neutral.

The U.S. Dollar: No trend: stay neutral.

For your reference we include a directory of:

The RITE Report Major Trade Advise Summary

Date Approx. Mrkt Level Market Advise20092009/05/01 8,212 Stocks Go long.2009/05/01 895 Gold Go long.2009/05/01 USD Go short2009/06/01 51.12 Oil Go long20102010/02/01 USD Stop going short; Take profits. get out. 20112011/04/01 12,376 Stocks Market to go sideways; end of bull. 2011/05/01 12,763 Stocks Take profits 55.4% Gain2011/06/01 102.7 Oil Go Neutral 100.9% Gain 2011/06/01 12,441 Stocks Take profits (re-confirmation)2011/07/01 USD Go short2011/08/01 USD Cover the short; no direction2011/08/01 12,240 Stocks Trading Range20122012/03/01 107 Oil Go long2012/05/01 104 Oil Take profits; Go neutral 2.8% Loss2012/06/01 12,772 Stocks Take profits; a downtrend started2012/06/01 1,564 Gold Sell: Take profits 74.7% Gain2012/07/01 1,604 Gold Buy: Go long2012/08/01 13,090 Stocks Advised not to be in the Stock Market at all2012/09/01 80.025 USD Go short2012/11/01 13,096 Stocks Confirmation: Not to be in Stock Market20132013/01/02 13,104.30 Stocks Go Long2013/03/01 82.47 USD Index Take loss; go neutral2013/06/01 15,115.57 (05/31 Close) Stocks - Take profits 15.3% Profit2013/08/01 15,499.54 Stocks Go Long2013/12/01 92.78 Oil Go Short20142014/01/02 98.70 Oil Take off short: Go Neutral 6.38% Loss2014/02/28 16,321.71 Stocks Take profit; go to cash 5.0% Increase2014/03/01 16,532.61 Stocks Go long (Unrealized gain potential)

PRESENTLY

2014/08/29 17,098.45 Stocks Stay Long (Unrealized gain potential)Gold Stay Long (1,288.0 - 08/29); (Unrealized loss potential)USDollar Index Stay Neutral; No Call; No TrendOil Stay Neutral; No Call; No Trend

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

1) Past performance is not indicative of future results.2) Trading stocks, futures, and options involves substantial risk of loss and is not suitable for all investors.

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 variablesinherent in all economic transactions; Risk, Information/Knowledge, Time, andEffort. Of course, this would be for a service, and if the product were a materialgood, there would be an additional factor of Material - or Land as the economistwould say. See The Philosophical Equations of Economics atwww.philosophypublishing.com for further info on this subject.)

FOR YOUR REFERENCE

1) 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 - 978-0-9661126-3-4These books may be viewed at: www.philosophypublishing.com

2) Chris Angle is the host of The Philosophical Angle, a TV and Podcast Program,

which discusses concepts in current media.http://www.youtube.com/user/philosophypublishing

DISCLAIMERS/CAVEATS:

1) Past performance is not indicative of future results.2) Trading stocks, 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 anoffer to buy or sell, any products named herein, commodities interests, futurescontracts, or securities, and is intended for informational purposes only. Any offerfor any investment product will be made solely by the appropriate disclosuredocument or private placement memorandum.4) The RITE Report has been prepared either from publicly available informationor reflects the opinions of the author. Information contained in this report isbelieved to be reliable but may not have been independently verified. The RITEReport does not guaranty, represent or warrant, or accept any responsibility orliability as to, the accuracy, completeness or appropriateness of the informationcontained herein. At no time will the RITE Report make specificrecommendations for any specific person, and at no time may a reader, caller orviewer be justified in inferring that any such advice is intended. Informationcontained herein may not be current due to, among other things, changes in thefinancial markets or economic environment. Opinions reflected in the materialsare subject to change without notice. Forecasts represent estimates. Informationprovided 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 thefact that error and uncertainty are part of any forecasting effort. Investing carriesrisk of losses. Information provided by the RITE Report does not constitute, andshould not be used as a substitute for tax, legal, or investment advice. Please askyour broker or your advisor to explain all risks before making any trading andinvesting decisions.5) Commodity Futures Trading Commission: Futures, Options and foreign currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No

representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.