Michael Clark

signals based on fixed overbought and oversold levels. The system is also designed to be used in all markets, both long and short. We believe that there is no market from which we cannot profit. Each buy signal has as its inverse a short-sell signal; each sell signal has as its inverse a cover signal. Our intention is to be in the market at all times (or nearly at all times), and to use the natural rhythms of the markets to our own advantage -- and to the advantage of our subscribers. Our view is that one must be courageous enough to short the markets when they are bearish; and that one also must be courageous enough to sell into a rally; otherwise profits will slip away under the guise of self-delusive fantasies of outrageous gains. The key to beating the markets is being willing to sell stocks even against your own (better) judgment. Rule #1: Never go against the trend. The majority is often wrong; but the minority is often wrong also. Rule #2: You don’t need a broker who makes his living off of your money. Most brokerage firms buy a position in a stock quietly and slowly. When the stock has appreciated significantly they add the stock to their buy recommendations. Then they begin selling their position while they are encouraging their clients to buy the stock. Most firms never issue sell recommendations. If they do, beware: they are probably trying to buy your stock after a huge sell-off. Rule #3: When fear turns to greed and visions of unlimited wealth, we are probably near a top in a trade and we should get ready to sell. Rule #4: When hope and denial turns to fear and visions of an unlimited loss, we are probably approaching a bottom in a trade. (See Rule #1 however.) Rule #5: Trade with a system however, to complement your gut reactions. Follow the system no matter what, even if it means taking a loss. Don’t get lazy with your money and sink into denial. Use a system.