2004 was quite a year for TimingCube and its subscribers, and while the investment results did not measure up to the lofty standards established in previous years, there is a lot to be thankful for. Next week's Part 2 will review the 2004 performance in details but at first glance we can see that the results are positive. With only two signals this year (our historical average being closer to three per year), markets frequently felt slow, even boring, with a sense of going nowhere, yet nerve-wracking every time it appeared a new trend had started only to fold and head the other way.

Here are the TimingCube highlights of 2004.

A winning year. By our humble definition, any winning year is a good year. Yearly results for the strategies and indices we track are all in the green, with gains ranging from a meager 4.75% for the Long and Short strategy using the Nasdaq 100, to a very respectable 27.68% for Long Only with Margin applied to the Russell 2000. About half of the strategies/indices permutations beat Buy and Hold, not bad in a trendless market during which many timing and trading systems have been whipsawed into substantial losses.

Expanded service. It is hard to believe that a year has passed since we expanded our service and Web site to the Nasdaq 100, Russell 2000 and S&P 500 indices and correspondingly expanded investment and diversification choices. Other significant enhancements delivered during 2004 include the trailing-stop Cash signal for risk management, and the popular "Signal by Phone" service and SmartPhone support. The Results presentation has been greatly augmented with Quarterly U.S. and international Performance Reports, Yearly Returns, and the recent addition of the TimingCube Chart. Numerous enhancements to the Web site such as the "pretty print" feature and more subscriber information and controls have all now been overshadowed by the new "ticker tool" on the New Results page preview. Many of you tell us you find it extremely useful. During 2004, in cooperation with MARKETTREND ADVISORS ^SM, we also introduced a Managed Accounts service specializing in implementing the TimingCube strategies for those who cannot or do not have the time.

Subscriber growth. Thank you for spreading the word about the TimingCube service because much of our subscriber growth comes from word of mouth and good things being said about us. From less than three thousand subscribers when 2004 started, the Trend Timer community now stands at nearly five thousand strong.

Industry recognition. During 2004, TimingCube and its founders, as well as Trend Timing as an emerging investment discipline, have received increased public recognition and media coverage with a dozen articles in publications ranging from the Austin American Statesman to The Wall Street Journal.

For all of us at TimingCube it has been a very busy and exciting year, and we are grateful for all the encouragement you are giving us. Your many suggestions have driven many of the enhancements we have delivered this year. We look forward to helping you "go with the trend" on your way to wealth in 2005!

Two of December's Trend Timing School editorials were dedicated to comparing the relative performance of ETFs and bull/bear mutual funds and in the process we have stirred-up a lot of interest in this topic. Many of you have since been dreaming up scenarios, combinations of funds and strategies, with no easy way to calculate what the actual results would have been. If you have not yet previewed the New Results page, the Performance by Bull/Bear mutual funds section should be your next stop. It lets you try pretty much any combination of ProFunds and Rydex mutual funds for our three indices and instantly see the corresponding historical results.

Warm wishes and until next Year.

The TimingCube Staff