Our number one rule is to protect principal. Our timing strategies look for turning points in the market based on predictable Elliot wave patterns, using Fibonacci support and resistance ratios (see chart below). We only reinvest these funds when acceptable major turning points are again achieved, and we use stops to protect against loss. If we do not see a pattern with predictable results, we wait on the sidelines until we do.
Our timing analysis always alerts subscribers "ahead of time" of potential turning points in the markets, and "always" sets stops and projected profit points.


What are Fibonacci Ratios? Leonardo Fibonacci was a 13th century accountant who worked for the royal families of Italy. In 1242 he published a paper entitled "liber abaci." The basis of the work came from a two-year study of the pyramids at Gizeh. Fibonacci found that the dimensions of the pyramid were almost exactly the same as the golden mean or (.618). Fibonacci is most famous for his Fibonacci Summation Series which enabled the Old World in the 13th century to switch from Arabic numbering (XXIV=24), to the arithmetic numbering (24), that we use today. For his work in mathematics, Fibonacci was awarded the equivalent of today's Nobel Prize.

The Fibonacci Summation Series takes 0 and adds 1. Succeeding numbers in the series adds the previous two numbers and thus we have 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 to infinity. At the eighth series, by dividing 55 by 89, you have the golden mean: .618. If you divide 89 by 55 you have 1.618.
These ratios, and several others derived from them, appear in nature everywhere, and in the financial markets they often indicate levels at which strong resistance and support will be found. Combined with our extensive technical analysis tools and over twenty years of real-time experience, these ratios have become a mainstay of our timing analysis.
Elliot Wave Patterns, in short, are usually a three or five wave series of advances, or declines, that define a trend. They are the result of crowd psychology, and thus are usually more reliable when found in broader based indices, such as the S&P 500 Index, Nasdaq Composite Index, etc.
Typically, if the S&P 500 Index moves higher in a 5 wave pattern, and then falls below the top of wave 3, it signals the start of a retrenchment that normally consists of 3 waves. It works the other way too with a five wave pattern defining a bear trend, which is then reversed by a 3 wave rally, which eventually reverses and another five wave pattern begins to the downside. Finding a wave pattern that completes at a strong Fibonacci support or resistance level, can be a very reliable indicator of a change in trend.