A Bit of History

Market Timing is one of the most important facets of investing and will enhance your investment results and protect your capital.

Knowing when to be in the market and when to be on the sidelines can improve your investment results by many times over the "Buy and Hold" strategy.

Being of a scientific mind, Jim decided to do some homework to determine if major market moves could be predicted. That homework went on for years until Jim had developed such a model. You can imagine his delight when the model successfully back tested (every major move, both up and down) over a 100-year period. It took him over 6 years to arrive at a point where he could start testing it in real time. During the early years in the eighties it gave him three signals. Since those three it has given eight more in 'real time' that have been used with our clients, for a total of eleven clear signals on market direction since the early eighties.

The first big success was when the model issued a sell signal 41 days prior to the 1987 Crash. One of the more recent signals got out clients back into the market on September 25th 1998. The market went on to gain over 40% in the next few months. This signal came at a very negative time in the market when most thought that the market was finally going to crash.

The following chart outlines the major market moves that the Model has signaled.


Sep. 8 1987 - SELL - Market crashed Oct 19th

May 1988 - BUY - Market gained almost 50% to July 1990

Aug. 1990 - SELL - Market dropped 20% over next 3 months.

Jan. 1991 - BUY - Market proceeded to rise 52% over next 3 years.

Mar. 1994 - SELL - Market dropped 10% over next 2 months.

Jan. 1995 - BUY - Market began its rise to present level from 3800 to 1905 - a gain of 140%.


Note: Our subscribers received our intention to be out of the market on May 30,1998, and a warning on July 10 '98 of a pending down move. Started down 18 July.

Sep. 1998 - Week of Sep 25th - BUY. A clear signal from the model during a very negative time. Market rose to recent highs - increase of over 40%.

Current Signal is known to our subscribers





Our subscribers are never surprised in any market