The market roller coaster took a break on Friday as markets reconsidered the assumptions made over the last

week about
European bank and the US economy. While traders and investors are right to be questioning the sustainability of European
banks and the growth of the US economy they chose to ignore any possibility of reasonable resolution. Confidence in the
wisdom and capabilities of institutions and leaders vanished until today where investors and traders found themselves
feeling better about the near term and even hopeful that the future may resolve positively. Continued strong corporate
earnings and a lack of news flow contributed to the improved sentiment. We forecast the market to rebound from here
but how far we cannot say. For now a bottom is in place. The analysis is for educational purposes only and not a solicita-
tion to buy or sell any security at any time. The comments are made in the context of ETF position trading and Forex po-
sition trading. Visit my technical analysis blog for more information at http://www.sealionllc.com
The fear subsides but will it stay this way?
Chart #1SPY, SPDR S&P 500
Please support us by choosing services from our partners. The offers are free and help support this
chart book, our video analysis on YouTube, and other great services. Your support is greatly appreci-
ated. Visit our website www.sealionllc.com for more ETF technical analysis, Forex technical analysis
and thoughts on ETF position trading and Forex position trading. We maintain a technical analysis
blog and demonstrate ETF expertise and Forex expertise. You can get more information on our part-
ners there as well.
This chart book is for educational purposes only and not a solicitation to buy or sell any security.
08/12/2011 Volume 1, Issue 19
Sea Lion Capital Management LLC
Chart Book
Chart Notes
3. Possible lower high with shooting star
candle
4. Prices are now above the median line of the
bullish channel and have found short-term
resistance.
5. Prices rally through resistance and out of the
channel. A consolidation will be required
before the next move up.
6. No consolidation yet as prices are rising along
channel resistance.
7. Prices retreat to prior resistance now support
for consolidation
8. Prices testing lower channel support and need
to reverse quickly to maintain the rally
9. Prices could be back testing setting up a move
lower but more likely the channel needs to be
redrawn or this is a temporary noisy over-
shoot.
10. Prices have no violated the channel support
and are trying a back test. The back looks
weak in nature.
11. Prices have broken through the channel and
head lower gyrating around their median line.
12. Prices have exceeded their channel but
consolidated and stopped under prior channel
support. This bull trap will reverse shortly.
13. Prices under old support line from prior
channel and at resistance of redrawn channel.
14. With resistance tested and in place prices
have moved lower and begin their move to the
bottom of the channel.
15. Prices move aggressively half way across the
channel and are driving toward channel
bottom.
16. Prices reached channel bottom and have
bounced. The hammer bottom should hold
and prices should rise from here.
17. Prices are gyrating sideways and forming a
base from which they can bounce. The
bounce may be short lived.
18. Prices overshot channel and horizontal
support but another hammer should start
the rally back across the channel.
19. The bottom is in. The inverted head and
shoulders pattern is complete and prices have
taken out the highs of the consolidation.
Page 2
Sea Lion Capital Management LLC
Prices have bounced with an inverted head and shoulders bottom and moved higher. This will
serve as the near term low and prices should recapture positive momentum. The political concerns
have distorted the market in the short term moving prices beyond any rational trend. With atten-
tion on the sovereign debt issue diminishing attention will return to micro issues such as earnings
performance and an accommodative federal reserve.
Chart #2IWM, iShares Russell 2000
Chart Notes:
3. Possible change in trend needs confir-
mation with a new high.
4. Prices are now in the upper half of the
bullish channel and have more room to
run.
5. Prices have continued up and no extend
beyond the channel. Prices will need to
consolidate before the next leg higher.
6. Prices rising along resistance.
7. A return to former resistance now
turned support. A mild consolidation
has begun.
8. Testing the median line. Price often
finds support here.
9. Prices found support at the median line
and are poised to move higher.
10. Prices are holding their channel support
and a bounce may occur.
11. Prices have broken channel support and
are falling around the median line.
12. Price have stopped at channel resis-
tance but need to reverse to maintain
the downtrend channel.
13. Prices at the apex of old support now
resistance and the current channel
resistance. Prices will reverse soon.
14. Prices failed to hold their afternoon
rally and are now moving lower.
15. Prices gapped lower and may now
challenge the lower portion of the
channel.
16. Having found the bottom of the channel
and bounced with a hammer prices
should rise from here in the near term.
17. Prices are bouncing around support and
forming the base necessary to move
higher.
18. Prices put in another hammer ad tiis
one should stick and prices should move
higher from here
19. The bottom is in. An inverted head and
shoulders pattern is complete and the
highs of the consolidation have been
taken out.
Page 3
Volume 1, Issue 19
Prices are lower and now sit at the median line. A short term bounce is possible but prices will go
lower. Pessimism over the Euro zone will continue to weigh on the pair.
Chart# 3EUR/USD, Eurodollar
Chart Notes:
1. Markets bullish trend broken with
violation of prior swing low.
2. Markets bounces and reverses but puts
in a lower high.
3. Market retests $1.40 low and if it holds
a sideways channel is in place.
4. Prices reverse on support in an evening
star reversal in a show of strength and
the markets wiliness to be open to risk.
5. Prices have failed to advance the
reversal and are now below the reversal
high. A retest of lower channel support
looks likely.
6. Prices made a dead-cat bounce and
will head lower to range support.
7. Prices have edged higher but are still
below the median line and are poised to
reverse.
8. Prices rallied just short of the prior high
and have begun to possibly reverse. A
reversal would correlate with a down-
turn in equities.
9. The Euro strengthens against a weak
dollar and mild concern over the US
debt ceiling crisis. Prices will reverse
shortly.
10. Prices reversed hard today and a new
downtrend has begun.
11. Prices paused in their move down but
this is temporary as the next moves are
lower.
12. Prices finished lower but have not
closed lower than the lows of last
week. A break of the median line will
accelerate the selloff.
13. Watch for a short term bounce at the
median line before prices continue
lower.
14. Prices have returned to the media line
with the focus off the US debt ceiling
and squarely on Ital y and Spain. Lower
Euro will continue.
15. Price continues to dance along the
median line. As near term momentum
continues to slow it will setup the next
more dramatic move to the downside.
Why Sea Lion Capital Management?
Everyone needs help investing money. Whether for retirement or addi-
tional income everyone wants to benefit from our free market capitalist
system to increase their wealth. The problem is most individual investors
lose money. In every trade there is a winner and a loser and the global
marketplace moves so fast and is so complex the "Average Joe" investor
has no chance. Most individual investors end up losing money in misplaced
stocks and mutual funds. The psychological pain of watching hard earned
money be lost makes most individual investors "buy high and sell low".
More than half of all managed mutual funds cannot even keep up with the
market indexes. If you have invested in the past and are frustrated with
the lack of quality returns we can help.

The Difference
Sea Lion Capital is a unique approach to wealth management. While most
investment advisors require their clients to have hundreds of thousands of
dollars we can work with you with as little as $10,000. Most investment
advisors require you to use an expensive broker whereas Sea Lion Capital
is partners with one whose commission fees are some of the lowest in the
industry. We know everyone is concerned about wealth management but
few know what to do about it. The internet has revolutionized home mort-
gages, tax services, insurance, and other financial services - the time has
come for Investment Advisory services as well.
633 Normandy Vlg
Nanuet, NY 10954
Phone: 877-242-8880
Fax: 877-242-8880
E-mail: support@sealionllc.com
Sea Lion Capital
Management LLC
Coming Soon.
Video Introduction to Sea Lion Capital Management LLC
Uncommon Wisdom for All
VI SI T OUR WEB S I TE AND OUR BLOG
WWW. SEALI ONLLC. COM