Overview
When we first started the "Wall Street Money Letter" in 1978, it was a monthly newsletter service which consisted of a brief comment on various investment markets. We still have market commentary but now we publish on a weekly basis and have added specific stock recommendations and our unique cycle analysis covering various time cycles and trading targets. Each time we introduced a new feature, we explain how we believed you should utilize the feature to your best advantage.
Investment Strategy and Market Timing Update
Each investment strategy and market timing update is based on the concept of protecting trading capital and controlling stock market trading risk. This is based on our original cycle research market strategy that covers the overall stock market and individual sector risk.
Our best trading results have been generated when the stock market, the market sectors covered in this newsletter and our current cycle analysis using proprietary short term cycles are moving Up. These cycle forecasts offer short term overview of key support and resistance levels in the market indices we track which help guide the short term trading decision making process. When the overall stock market, sectors and individual stocks are in directional movement cyclic down, we try to control risk by observing and waiting for low risk trading opportunities from the sidelines.
Market Indicies Cyclic Update
The Three Market Sectors which tend to lead the overall stock market directional movement includes the stock market (as measured by the Dow Jones Industrial average), the Bond Market, and Precious Metals. Support levels are price level areas where it is expected that buyers will come in to support that trading level. A convincing break below support levels "Sell Signal" would have that index trading within a new lower trading channel. Conversely, resistance levels are price level areas where it is expected that sellers will come in resistance of that trading level. A convincing break above that resistance level area "Buy Signal" would have that index trading within a new higher trading channel.
Bruno Oscillator: Overbought/Oversold
In major market up and down swings, investments tend to move higher and lower than anyone would ever expect prices to achieve. At times, all of our 'Price and Time' cycles fall into extended overbought or oversold price levels. This condition often suggests that prices should invert shortly if the known fundamentals remain in tact. Selling overbought oscillator conditions are not as risky as buying oversold conditions in that prices can always move lower causing loss of trading capital should it be revealed that fundamentals have changed.
Recommended Strategy
The 'Recommended Strategy' column of each issue consists of your Editor's comments and suggested strategy. These comments should be used as a guide based on the previous studies that the creator of this cycle analysis has experienced. It should also be noted that subscribers could make their decisions based on the Timing Model which consist of the cycles themselves and that the Editor's comments involve the personal element of emotion and tend to be more conservative than the actual Timing Model. We look forward to a long and mutually profitable relationship with you.
