Our Process:

Through observation and analysis we have developed a unique scoring system to simplify investing. Our approach has been effective. We follow a set of time tested rules and disciplines that help us to eliminate emotional trading decisions and execute well timed, profitable equity trades. An example of some of these guidelines are outlined below.

1) We believe all major macro market trends will not end until an extreme is reached in the direction traveled. Once that extreme is met, like a pendulum swinging, the new trend will start and will not end until the extreme is met in the other direction.

2) We evaluate and determine the major long term trend in the markets. We do this through the use of our long term monthly charts as described below.

3) We eliminate the distractions of day to day "noise" and media hype. In our opinion, daily newscasts and justification for a particular markets movement is just "noise" that complicates thinking and is generally irrelevant to the long term trend.

4) Once we have identified a long term bull market, we take positions in related securities such as equities, mutual funds, indexes etc. at low risk entry points. We have a portion of our holdings for long term investments which we buy and hold. Another portion of our investment we trade in and out of the bull market for potentially greater returns.

5) When entering or exiting a position we average our positions over a series of trades towards the signals extremes. We do not try to pick exact tops or bottoms based on our signals. Instead, we reduce our risk by adding to positions in stages at low risk entry points and sell positions in stages towards extreme highs.

So how does one limit the human emotions of "fear" and "greed" from the decision making process when buying in and out of a particular investment? In our opinion investors must be disciplined and have a predictive, reliable system. Let us briefly show you our system. We will display a series of charts and explain our process for investing.

1) Long Term Macro Market Trend

The monthly chart below illustrates the long term movement of a current major macro market trend. We are currently focused on precious metals. Using multiple different market indexes combined into one gauge, we measure the progress of the long term Precious Metals (PM) bull market against these various markets. The Blue line is our custom scoring system which measures the long term trend of major markets. When the blue line is trending down, commodities and precious metals are considered to be in a major bear market. When the blue line is trending up, commodities and precious metals are considered to be in a bull market. The black line in the background is the price of Silver.

You will notice the custom blue line score peaks at ten at the top of the commodities bull market in 1980 relative to the other markets. It then bottoms in 2000 against the same markets before heading higher again. You will also notice the recent breakout from the long term downtrend. In our opinion this suggests that the new bull market will likely not end until the gauge reaches the upper portions of the chart. This is an example of one major trend not ending until the next extreme is reached in the opposite direction. As a general rule, we add to investment positions once the trend turns up from its low and it is still in the lower portion or green sections of the chart. As the precious metals bull market matures, which we believe will be when the blue line scoring system nears the upper portion of the chart, we will lighten up significantly on our invested positions. This approach helps us ignore the "noise" and disregard the media hype of the exciting nature of a maturing bull market spike.

As illustrated above we believe the long term trend in precious metals is in the very early stages of a bull market. Based on historical bull market patterns, we expect the largest price advances to occur in the later stages of the commodities bull. According to our strategy, this is when to purchase precious metal investments.

2) Ignore the "Noise" And Take Positions

We then created a timing system for entering and exiting investments that benefit from the Precious Metals bull market. How?

1) We analyze the Monthly Intermediate Trend Custom Scored Charts to determine if the silver market trend is at a relatively low risk or high risk buy point.

2) We review our Weekly Custom Scored Charts to help clarify if we are in a low risk entry point.

3) We review our daily charts in a top down methodology. We analyze the Daily Silver Bullion Custom Scored Chart, Daily Custom Silver Index Custom Scored Chart, Daily XAU Custom Scored Chart, Daily Precious Metals Mutual Funds Custom Scored Chart, etc. to determine if we are in what we think is a relatively low risk entry point into the silver market.

4) We pick an appropriate security within our selection of custom scored charts such as an equity, mutual fund, index, bullion etc. We currently focus mainly on silver and some gold investments that should increase in value if precious metals prices rise.

5) Basically we add to positions when the score is near or at the bottom of the charts and lighten up or hold onto positions at the top of the charts.

6) We will not exit positions entirely until the major trend is nearing the end of its bull market. As illustrated in our first chart above, we think this bull market has a very long way to run yet.

In the following charts please take note at how profitable a trade would have been if an investor had taken positions when the gauge was in the green area and lightened up on those positions when the gauge was in the red area.

So What's The Catch?

Every trading system requires some degree of human discretion and common sense. We are "straight shooters" and admit there are times where less than ideal signals may be given. However, as a general rule we believe that our timing system can enhance an individual's probability of outperforming the market. But our performance speaks for itself. Take a close look at the charts above and note just how accurate and profitable our trading system has been. Our strategy is not to buy or sell an investment position all at once. Instead we buy in stages and average into our investment when the timing score is in the green area and sell in stages as we near the top of the scoring system. Using our customized scoring system we have increased our odds of consistently buying low and selling high. We have found this strategy profitable. Simply look at Our Charts and ask yourself, 'could my investment decisions benefit from the insight of these custom built charts both from a long term and short term perspective?'

The above explanation generally illustrates our investing system. A more detailed plan is outlined for our subscribers in the Member's Full Access, Investment Scoring and Timing section of our website.

Please note: All charts and statements on these pages are applicable only on January 1, 2007. Markets are continually moving and as a result these charts may not reflect the same investment opportunity as they did when they were created. However, we believe markets are cyclical and therefore think there is always a bull market just starting or maturing somewhere. In our opinion when the precious metals bull market is nearing an end, a new bull market with a new low risk, high reward opportunity will be just getting started. At that time our charts will be used to direct us to the next investment opportunity. Based on our analysis, our current investment of choice is silver. This will change when the markets and Our Charts signal that a potential major change is coming. Our Privacy Policy and a Full Disclaimer is available through a link at the bottom of the page.

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