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Turbo Model




Signal Update
Current Signal Performance as of 12/12/2003
Signal Type
Trade Date
Return since issued
Buy
04/03/2003
+32.28%

Cumulative Returns since First TimingCube Live Signal (06/18/2001) as of 12/12/2003
Long Only
Long Only with Margin
Long & Short
Long & Short with Margin
Buy & Hold
+83.76%
+199.22%
+239.70%
+808.39%
-17.35%

Note: Performance and Returns above are obtained by using QQQ as the investment vehicle.

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Market Update
It has been quite a ride this week! After plunging 40 points on Tuesday, the Nasdaq Composite rallied back on Thursday to regain all the lost ground and finish the week higher by 0.58%, while QQQ gained 0.80%. Fueled by good economic news, the Dow Jones Industrial Average closed the week above the psychologically important 10,000 level for the first time in 18 months. Hopefully, the Nasdaq Composite will follow suit shortly by closing above 2,000!

This week's volatility did not affect our Model and our Buy signal remains in effect.

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Trend Timing School
The importance of readiness

For a Trend Timing wealth building program to succeed, investment and trading executions must be reliable and timely.
The most common source of investor frustration is to not be "in sync" with the Model, for being a new subscriber or having somehow missed the previous trend change and failed to act on the corresponding Buy or Sell signal. It is not entirely catastrophic if you have missed the initial trade day - a good recommendation on can be found in the "FAQ of the Week" of the "October 10, 2003 Weekly Update" - but in general we maximize our returns by following the trades rigorously.

Signals indicating a trend change can be unnerving, and more than ever do you need to have clarity and knowledge to calmly execute the plan.
After the close of the market, at around 7:00 pm ET, if market action causes a signal to be generated, signal change e-mail notifications will be sent. We recommend you place your Sell/Buy orders that same evening or at least prior to the next morning's open. We find that if you postpone the trade, life often tends to get in the way and you find a week or a month went by and you missed-out on a big move. We believe that to pull the trigger on such short notice requires readiness. Now, being at the long end of what has already been a profitable trade, is a good time to review exactly what we're going to do and how we're going to do it when a signal does come.

In an attempt to keep you prepared in every way possible, we recommend a few simple steps to insure that the next trade executions are as smooth and painless as they should be:
  1. Decide how much of my serious money I earmark to be managed for the long term according to the TimingCube Model and signals. The subject of diversification and portfolio allocation deserves a dedicated future Trend Timing School editorial.

  2. Know where the money is and how to get to it. Many people do not readily have access to their account information such as Web address and phone number, account number, user ID, password, or have not yet set-up online access and trading. Also, if my money is spread across too many financial institutions and accounts, now may be a good time to do some consolidation.

  3. Decide which of the four strategies - described in detail on the "Our Service" page - or combination of strategies I will implement to fit my specific risk/reward taste. For example, a fairly popular blend we use with our own investments is to allocate 80% to the consistently high performing "Long & Short" strategy and 20% to the most aggressive "Long & Short with Margin" strategy.

  4. Make sure that my account is properly set up to let me trade what I want to trade, when and how I want to trade it. Does my brokerage firm offer the combination of investment vehicles I select to use (stocks, mutual funds, ETFs, etc.)? Do I know the ticker symbols for each I intend to trade? If need be, is it a margin account and can I short stocks? Do I know the costs, fees, margin requirements, risks, etc.

  5. Know exactly what and how to trade. Can I place a trade online? It is a good practice, initially and as a periodical refresher, to rehearse the log in process for each of our accounts and maybe even go through some mock trades. I may need to speak to a brokerage customer service person to complete a transaction or deal with a problem. Do I know the number to call?

  6. Make sure that I am set up to receive the TimingCube signal. My subscription standing remains active as long as I keep the payment information in my "My Profile" page accurate to enable automatic renewals.
    I can make sure I properly receive TimingCube e-mail messages such as the Weekly Update e-mail notification - unless I opted-out in the "Preferences" section of the "My Profile" page on the Web site. If I have set-up both primary and alternate e-mail addresses I should receive the messages on both. Make sure you read your e-mail messages at least daily.

  7. Act immediately when the signal comes. It takes just a few minutes to complete my orders as soon as I get the signal change e-mail notification. If I put it off until later, I am likely to delay some more and eventually forget.
You cannot underestimate the importance of readiness.

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FAQ of the Week

Question: How much money do I invest for the TimingCube subscription to pay for itself?

We don't like to think in terms of break-even but rather of Return On Investment (ROI), and in our case we venture that a return of at least 10 to 1 would justify the value you get from the service. This comes in addition to all the great knowledge and peace-of-mind!

From this perspective a $3,600 return should more than cover the annual fees of $359.40 (or only $299.95 for the astute ones who are on a yearly subscription plan). While history is no guarantee, a yearly return of 30% should seem conservative compared to the 60% and 100% per year some of the strategies have returned in recent years. In order to get a $3,600 return, at 30% you would have to invest at least $12,000 according to the Model. Then again, some subscribers frequently write to us about having made over $150,000 on the previous trade or similar experiences which lead us to believe that many are seeing ROIs in the thousands not the tens!

Warm wishes and until next week.

The TimingCube Staff

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