STRATEGY:

Our approach to market analysis is eclectic, drawing from various methodologies which are combined to arrive at a complete and final perspective

The back bone is cycle analysis. We have identified a number of cycles which show dominant characteristics and predictable, repetitive patterns. These range from just a few hours to decades in length.

Cycles progress structurally from their inception to their final phase. The interaction of cycles of various time periods causes a larger structure in which Fibonacci ratios also play a part. The total effect is a discernable fractal wave pattern which is fairly predictable.

Fibonacci relationships are used in conjunction with Point and Figure analysis in order to arrive at probable price projections.

We monitor the high and low points of cycles through momentum studies so that we can pinpoint as accurately as possible the turning point of every dominant cycle. These momentum studies consist of identifying divergences which always precede a trend reversal, as well as overbought and oversold conditions which indicate that a consolidation might be necessary before the trend continues.

We also place a great deal of emphasis on breadth indicators such as the McClellan and the New Highs/New Lows index, and we take into consideration the reading of sentiment indicators with the understanding that they are not time-specific tools.

Finally, we pin-point trend reversals with a judicious use of conventional trend lines, unconventional trend lines, and channeling.

Since the stock market moves in fractal patterns, all trends, from very short to very long are analyzed in exactly the same manner.

Our detailed analysis is confined to some of the market indexes. These are more reliable and predictable than individual stocks, and with the array of Exchange Traded Funds and options available today, there are enough choices for all types of strategies.