What's new this week?

Announcing new Referral Program

Many enthusiastic subscribers spread the word about TimingCube with friends, relatives and colleagues, and we are forever thankful for that. To show our gratitude, our new Referral Program rewards you with 1 free month of subscription for each new subscriber that you refer to us. Make sure to read the FAQ of the Week below for all the details.

TimingCube is "disaster safe"
With Hurricane Rita bearing down on Texas, many subscribers have expressed alarm about our wellbeing here in Austin, and our ability to provide uninterrupted service should we be hit seriously. We thank you all for your concern and want to reassure you that we should be quite safe. As far as TimingCube's continued operations are concerned, our computers and communications are not located in Texas, and we have made provisions for all critical functions such as running the Model daily, issuing signals as required, etc. to continue without our Texas head offices and personnel. You can rest assured that your continued service and support is secure.

Signal Update Current Signal Performance as of Signal Type Trade Date Index Return since issued Nasdaq 100 Russell 2000 S&P 500 QQQQ Cumulative Returns since First TimingCube Live Signal () as of Index Long Only Long Only with Margin Long & Short Long & Short with Margin Buy & Hold Nasdaq 100 Russell 2000 S&P 500 QQQQ Note: QQQQ returns are included for continuity sake. Market Update Notwithstanding a mild improvement on Thursday and Friday, the week was dominated by the expected hit of yet another major Hurricane, and the resulting effect on oil and gas prices, causing the stock market to retreat. Early in the week many investors got disappointed that Hurricane Katrina's impact did not prompt the Fed to halt its streak of rate increases, and sold off on increased volume after they raised by another quarter-point to 3.75%. On Wednesday, as Hurricane Rita grew to a Category 5, 175-mph monster aiming straight at the Texas oil installations, oil prices took center stage again and rose sharply, pushing the market indices further down. Despite a slight late-week recovery, on signs of Rita weakening and shifting path, the week's negative news and events caused some technical damage by, for example, breaking below the intermediate low achieved on August 26, and all three indices now being under their respective 50-day moving averages. The Russell 200 which recently has been leading has taken the sharpest hit for the week with a 2.46% loss as compared to drops of 1.73% and 1.83% for the Nasdaq 100 and S&P 500. Even with the week's declines our Model remains with the uptrend that began early May 2005, and a Buy signal. Trend Timing School Climbing the wall of worry Wall Street lingo is full of expressions and sayings we hear all the time, but seldom pay attention to. Frequently we miss out, because more often then not such maxims are imbued with the truth and wisdom that only comes with long collective experience. One such expression, which is as applicable and timely today as it was in the past, is "climbing the wall of worry". As the saying goes, all significant up moves and bull markets need the proverbial wall of worry to climb in order to keep going higher. Listening to the news we should be in a solid rally! After all, the fact is that market tops occur when the outlook is at its brightest, the economy is promising, and all investors are convinced that the market has to keep going up, not when times are bleak and everyone is convinced markets must fall. Currently the worry is about one of the worst natural disasters in U.S. history (and maybe a second one in the making as we publish this), surging oil prices, higher interest rates, renewed inflation, maybe a recession. It almost makes you forget terrorism, the war in Iraq, exploding deficits, and the fate of the dollar. If anyone is stubborn enough to remain optimistic about the stock market future, there's always the threat of a U.S. real-estate bubble, an Asian bird flu pandemic, global warming, and rogue "wannabe-nuclear" states! How is that for a wall? High enough to mandate a big dose of courage, not to mention some pretty fancy climbing gear (let TimingCube provide the compass, the rope and the safety net ). In this predominantly catastrophic and pessimistic environment many investors get worried and seek reassurance. We even get requests to provide daily updates so we can make sense of what markets are doing. We are sorry to disappoint you, but we do not feel qualified to explain why the markets do what they do, or what they should do (and to be perfectly clear, we are not about to start a daily update). Actually we believe that seeking such explanations is quite pointless and rather counterproductive. Not only are such rationalizations highly error prone, they will certainly not help you anticipate what the markets will do next. Never forget that no one can predict the markets reliably and consistently. And the by-product of getting inundated with news, opinions and theories, as you would be when listening to financial news too much, is that you become increasingly confused, fearful, stressed and predisposed to make bad decisions. This is why at TimingCube we have always sided with quality of life over stress, and the way we do it is that instead of trying to figure out what the market is doing or should be doing, we simply look at what it actually does. As the market shows us the trend, we don't need to worry so much about all the bad news and problems, and certainly not let them drive us up the wall! Yet, when you get down to it, with the raft of bad news and problems, the markets have been surprisingly resilient. Of course investor memories tend to be short and many have been getting spooked by recent losses. Looking at the actual decline so far, and placing it in historical perspective, reveals this pullback to be extremely mild, and certainly nothing to get worked-up about. For example, the Nasdaq Composite Index is down only 4.57% from the most recent top on August 2, 2005. We don't know if this will go down as a pullback (0-10% drop), a correction (10% to 20% drop), or the beginning of a new down trend. We will just let the market and our Model indicate the predominant trend. As we like to repeat at every opportunity, Trend Timing follows the longer-term deep market trends and does not attempt to catch every pullback or even every correction. FAQ of the Week Question: Do you have a Referral Program? Yes, we do! You can refer any friend, relative or colleague and we reward you for each new subscriber with 1 month free subscription. You can refer as many people as you like, and will keep receiving a free subscription month for every one that subscribes and remains a subscriber for at least 30 days. Some creative subscribers even post their referral URL in online chat rooms, forums, newsgroups, etc. to get credit. For all the details on our Referral Program visit the "Referrals" page after you log in. Warm wishes and until next week. The TimingCube Staff