Focalequity Premium Services Presentation

FocalEquity

Alerts & Analytics

Leveraged ETF PRO

ONE FocalEquity

Premium Subscription Services offered by focalequity.comCopyright 2010

About Us

We are a Premier

Investment

and Trading Site

We provide expert trading

and investment services for

stocks, leveraged ETFs

(particular focus on

Proshares and Direxion

shares) and equity options

based on proprietary

technical and fundamental

investment models.

Active Traders and Day Traders

Stock Options Traders

People who closely follow the

stock market and look for medium

to long term investment ideas

People who seek to benefit from

medium to long term global macro

trends

Who Should Subscribe?

We provide subscribers with a hedge fund-

like exposure by offering carefully researched

long and short stock positions.

We provide subscribers with macro-

investment and macroeconomic analysis.

We offer unique trading expertise on

leveraged and non-leveraged ETFs

and their underlying options

Our Value

We disclose our closed

and open trades on a daily

basis.

We provide a precise

breakdown of our portfolio

and its performance

frequently.

We offer professional

technical analysis/Elliot

Wave based charts on

major leveraged and non-

leveraged ETFs as well as

the general market

Transparency

What you will get from the

FocalEquity Alerts & Analytics

and FocalEquity Leveraged ETF

PRO Subscriptions

Daily trading alerts

Meticulous fundamental

and technical research

Detailed instructions and

targets behind each trade

Frequent unbiased and

independent macro-

investment research

articles

FE Alerts & Analytics

Rapid Access

to Information

Long/short stock

recommendations and

stock options strategies

Day trades, short-term,

medium-term, and long-

term trades

Subscriber-only

discussion forum

Effective

Trading Vehicles

And Tools


Macroeconomic and

macro-investment

analysis

Financial instruments that

can successfully

implement certain macro

views

Investment ideas with a

time horizon of at least

two months

Services for

understanding the

broader Economic and

Investment Landscapes


Your questions

personally answered

by the FocalEquity

Investment Team

Round-the-clock

accessibility to

archived trades,

figures, graphs, data,

and analysis

Support and

Convenience


Our 4-Step Investment Process

for


A vast all-cap stock

database with

comprehensive

fundamental and technical

data for 4500 stocks

including US stocks and

Foreign ADRs

Data Cleaning

Engine:

Removing

wrong data

outliers and

apply Accurate

SIC Industry

Code

classifications

to all stocks

Using

existing

fundamental

and

technical

data to

calculate

customized

and

proprietary

factors

Processed

Data

FocalEquity Long Short Equity Investment Process

Part 1 – Investment Universe and Data Preparation

Identify Industry

Relatives (Long

the stronger and

short the weaker

companies within

the same industry)

Processed

Data

Industry

Based Long

Short Pair

Trading

Universe

Level Long

Short Stock

Selection

Using the factor

based long short

model to select long

and short positions

of all cap sizes

within our

investment universe

Fundamental

and Technical

Specific Factors

Driving the Long

Short Equity

Model

FocalEquity Long Short Equity Investment Process

Part 2 – Long and Short Stock Selection

Identify Broad Negative and Positive Global Macro Trends

Global Sector/Industry/

Commodity/ Currency Trends

Stock Market Sentiment

Macro Investment Process Part 1- Trend Identification

-VIX- Put/Call Ratio

-Technical Analysis-- AAII Investor

Sentiment Index

- Dividend Yield- P/E

-Sector Specific Global Trends/ Developments

- Global Pockets of Growth

Global Economic Reports and News Items

- Employment Reports

-Manufacturing Reports

-Industrial Production

- US Treasury Auction

Macro-Investment Process Part 2- Investment Decision

Long Short

Negative Trending Global

Sectors, Countries,

Commodities and Currencies

Positive Trending Global Sectors,

Countries, Commodities

and Currencies

Investment Universe:

-Leveraged Long/

Short Sector ETFs

-Leveraged Long/Short

International and Emerging

Market ETFs

-Leveraged Long/

Short US index ETFs

-Leveraged Long/

Short Commodity

Related ETFs

Leveraged Long/Short

Fixed-Income and

Currency ETFs

Example of Daily Investment Recommendations

Short Position Recommendation:

PCAR - PCAR INC (This is a motor

vehicles/passenger company)

This is a clearly overvalued company. With a

12-month fwd PE of over 20, the company is

trading over 4 times its growth rate. 16 brokers

on Wall Street has an approximate similar

consensus that the stock should be trading at

$38. The stock is currently trading at nearly

$44. The company has a qtrly (yoy) earnings

growth of -59% and a similarly terrible revenue

growth rate (yoy) of -22.7%. In addition, the

company only has less than 1% of its

marketcap in levered free cash flow.

we are placing a $39.00 target on this stock.

We should short it at market between $44 to

$43.80 and then do a Good till Cancel (GTC)

buy to cover order with a stop limit of 10%.

Brief Comparison of US and Chinese Stimulus Plans/Troubles, Mon Jul 20, 2009

“The key difference between the Chinese $4 trillion Yuan (586 USD) stimulus plan and the US $787 billion

American Recovery and Reinvestment Act is that the American version is more of a fiscal relief program

as oppose to a stimulus plan.

The data below clearly illustrates this fact. More than half of the $787 billion goes to state, local and

federal level fiscal and tax relief. Only about 27% is actually relevant to any stimulus activities including

5.5% for energy, 6.7% for education and training and 14.1% goes to infrastructure and science. “

Excerpts from Macroeconomic Analysis

Why the Government cannot Reinflate the Stock Market Now, Sun Aug 02, 2009

“The primary driver of the stock market is corporate earnings. This is the fundamental factor that causes

stock prices to move. Everything else is the "noise" factor. During normal economic times and business

environment, corporate earnings rise steadily providing a sustainable uptrend in stock prices.

Government and business spending are not factors that directly drive the stock market. Their role is to

further encourage consumer spending, which is the primary driver for corporate earnings. The diagram

below illustrates the relationship between all of the factors mentioned above.”

Example of Portfolio Breakdown and Performance

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Invest NOW with


Hedge Fund Strategy for Retail Investors


Leveraged and non-

leveraged ETFs

Sector and Index based

ETFs

Day trades, short-term,

medium-term, and long-

term trades

Subscriber-only

discussion forum

Expert Technical Analysis

and

Elliot Wave Charts

FE Leveraged ETF PRO

Various forms of

technical analysis

Elliot Wave Theory

Investment ideas with

multiple time horizon

Disciplined trading

approach and accurate

identification of key levels

Trading Style


Your questions

personally answered

by the FocalEquity

Investment Team

Round-the-clock

accessibility to

archived trades,

figures, graphs, data,

and analysis

Support and

Convenience


FE Leveraged ETF PRO –

Charting Illustration

Example of a Daily FE Leveraged ETF PRO Chart

and Analysis (Direxionshare’ FAS)

Tomorrow we could dip for some profit

taking, but I would almost be surprised

if that 95 area didn't hit longer term. I

would say to not look for an exact 95,

but look for at least high 94s. If this

dips south, I am going to consider a

long FAS position with a stop around

97. We may have hit a retrace of a rise,

and may see some more rising to

come.

Watch the open though....the trend line

is now sitting at 95. We could retest

that line, and there's a good amount of

support there. I will take that long

position there if I get that opportunity

with stops under that trend line.

Affordable Price

Affordable Price

For Round-the-clock

Services$29.99 per month

FocalEquity Leveraged ETF PRO

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FocalEquity Leveraged ETF PRO

Path to Successful Leveraged ETF Trading


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ETF PRO+

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Focalequity Premium Services Presentation