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Greetings, fellow Pro-fundity team members -
9-24-99 Page

    This week's Editorial Guidepost:

  1. To illustrate the strategy that makes the most of stocks that tend to roll, we have chosen two examples from the report above with selections made on June 4th. We will examine in detail the buys and sells on two of the picks; the best and the worst.

  2. CRK - The best performer of the group: Carefully observe the chart of the price pattern (this chart shows only the closing prices), where arrows are placed at each buy and sell position. When the signal is a buy, the arrow comes down from the top. Sell positions are noted by arrows coming up. The thing you must understand about this picture is that the arrows point to where the transaction takes place. However, the price obtained for the transaction is the previous price point. That is what placing buy-limit and sell-limit orders does for us. Remember, we get one up-tick, then place a buy-limit order for the next day that will execute only if the price goes up (two up-ticks in a row) at the price set by the first up-tick.

    3. CRK had four buy-sell combinations, two positive and two negative. Each buy and sell transaction eats $20 in this example. If we had invested $10,000 with $5 commissions, the return would increase from 37% to 59% (a whopping 205% APR).

  3. PDQ - The worst performer. PDQ was in a definite down-turn. Look carefully for the buy and sell signals (two up-ticks in a row for a buy, two down-ticks in a row for a sell.

    One reason the return was low on this example is the number of transactions, six pairs or 12 times the commission of $20, a total of $240 right off the top. If we had taken a higher road, with $10,000 and $5 commission, we would have actually returned a positive 2%.

  4. This illustrates the potential using our up-tick/down-tick strategy. Each week we will show more examples of the performance of picks made 16 weeks earlier. Stay tuned.

    5. Understanding:

  5. It is our intent to help our subscribers understand market strategies well enough to make informed decisions and understand the risks.

    6. We provide TC-2000 tutorials to members. See the Member Login page.

    Be diligent...

    Take action!






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