SEP-OCT RESULTS = GAIN OF 26%

The profitability of this analysis is so strong that I am losing interest FAST in giving it away - so I will be working on how to design and charge for this advice.

September and October produced gains beyond my expectations and given the very high volatility in the market averages, it is logical to assume that returns are higher than normal.

However, the gain of 27 pts in the DIA when the average DIA trade price is 101 implies a gain of 26% for those two months. The largest drawdown was 2%. The profits were 18 pts on BUYS and 9 pts on SELLS, which is even more interesting given that the DIA dropped over 25% over the time period of this analysis - from DIA level 114 to a low of 85.

This is perhaps the largest reward to drawdown that I have ever seen with the exception to the Equity Market Neutral Fund that I managed in 2003-2004 which had a 1% max drawdown on a 13% return over the time window of that fund.

The INTRA-DAY ONLY time frame of this strategy is also extremely interesting in that it removes the higher risk, although higher potential of the overnight movements of markets. Lately the measurement of first 30 minute movement in the market is EXTREMELY HIGH.

On average, this method is signalling approximately 2-3 times per day and I am doing the analysis starting at 10AM and then in 30 or 60 minute increments. It is challenging to build the blog on every hour to update any changes and there are certainly enough distractions, but the overall performance is still extremely strong given this reality = that all signals were not taken.

I chose to stop publishing last week due to my interest in building the plan to charge for this lucrative advice.

Tuesday, November 4th 2008 11:00AM



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