Fresh on the heels of our successful decisions from the SROs, I have received a substantial increase in inquiries. The majority of the calls and emails have been regarding the CMT designation, its history and how one can enroll in the program. Further, at least 50% of the calls have been from Europe and a few from Asia. Despite the fact that we have not yet done any PR on our success, word is spreading. I can only interpret this as a very good thing for not only the CMT, but the MTA and technical analysis in general. Clearly, the trend towards accreditation, specifically, an accredited program that is also psycho-metrically valid (like the CMT), is growing both in acceptance and global scope. I will keep everyone in the loop going forward about further developments but I take this to be a very positive sign. We also want to welcome Barry

NASDAQ Composite The important story to us is volume on the NASDAQ and its pattern on the monthly chart compared to the index in 2004 as well as 2003. In 2003, as the index moved higher volume increased consistently. In October, November and December of 2004, as the index moved higher, volume again increased consistently. Its On Balance Volume (OBV) on the chart hit an all time high in 2001. In 2004, it did not exceed that high but it was approaching it. In December the NASDAQ made a new high for 2004. Its OBV also made a new high for all of 2004 – an early indicator that higher moves could occur. On the last trading day of 2004, the NASDAQ closed well above its 20-period moving average. Momentum as measured by RSI on the monthly chart is strong and there has been buying since September. The next weekly chart indicates a challenge for

The article below is extracted from “Inflation is Always and Everywhere a Monetary Phenomenon” by Myles Zyblock, CFA – Chief Institutional Strategist & Director of Capital Markets Research at the Royal Bank of Canada. It is reproduced as reprinted in the February 7, 2005 issue of “John Mauldin’s Outside the Box” Additional information may be obtained by emailing JohnMauldin@InvestorsInsight.com The title of this week’s report is based on a famous quote by the Nobel Prize winning monetary economist Milton Friedman. His view, anchored in the quantity theory of money, is that excessive money creation spawns inflation. Our research suggests that there is value in adopting a monetary framework to assess the long-term inflation outlook. We have examined data from a cross-section of countries, as well as nearly a century of US data, to find that inflation usually accelerates when money supply growth exceeds the growth rate in the economy for an