Rules of Engagement
(for the long haul)

Joseph Russo
email: joe.russo@elliottwavetechnology.com
ElliottWaveTechnology.com
Apr 2, 2007

snippet

In this, our last article in the public series, we will focus our attention on long-term broad market strategies for self-directed index investors. The Traders' Series is in development, and will be available on our website soon.

In addition to inviting index investors' to realize the power and convenience of Elliott Wave Technology's Interim Monthly Forecast, this article will present:

• The premise and composition for three types of long-term investment strategies
• Simple guidelines to which one must adhere in effectively deploying each
• Pitfalls and risks if strategy disciplines are not implemented
• Long-Term Charts of the Japanese Nikkei and the NASDAQ Composite Index from 1982 through present
• An opening graphical summary of charts illustrating the results of Elliott Wave Technology's Pro-Active Long-Term Investment Strategy for the NASDAQ 100 from 1994 to present
• The easiest and most effective way for self-directed index investors to monitor, and automatically track EWT's ongoing Pro-Active investment strategies

ELLIOTT WAVE TECHNOLOGY'S PRO-ACTIVE/LONG TERM INVESTMENT RESULTS:

This series began with a Grand Strategy overview of the NASDAQ 100, as such; we shall conclude with it. Although the NASDAQ 100 is not a large broad based market, it will serve as a prime example in illustrating the profit capturing strategy of Elliott Wave Technology's long-haul investment discipline.

Below is a performance summary illustrating the difference between practicing a modest level of strategic control, a purely passive (always long) strategy, and adhering to Elliott Wave Technology's "easy to follow" Pro-Active Strategy.

In the table above, the Modestly Controlled, or (mostly passive strategy) has banked $212,771 dollars in realized profit, and is positioned long the market with open profits of 7.14% from its last 90 share purchase, re-entering a full position back in September of 2006.

In contrast, a Purely Passive (always long) Strategy has booked zero in profits, and remains long the original 90 shares purchased at 397.90 back in August of 1994. The purely passive strategy has unrealized open paper profits of $123,701 per the market close on March 30, 2007 - $89,070 dollars less than the Modestly Controlled Strategy has already taken to the bank!

Elliott Wave Technology's Pro-Active Strategy has banked $271,835 dollars in realized profit, and is positioned long the market with open profits of 34.06% from its current 60-share exposure as of September of 2006.

In contrast, a Purely Passive (always long) Strategy has booked zero in profits, and remains long the original 90 shares purchased at 397.90 back in August of 1994. The purely passive strategy has unrealized open paper profits of $123,701 per the market close on March 30, 2007 - $148,134 dollars less than the Pro-Active Strategy has already taken to the bank!

In further contrast, our Pro-Active Strategy has outperformed the Modestly Controlled Strategy by $59,063 dollars or 27%, has less current market exposure, and open profit of 34% vs 7% on shares held.

Below are the charts that drive Elliott Wave Technology's long-term approach:

Typical Broad Market / Long-Term Investment Analysis Included with EWT's Interim Monthly Forecast

Chart Highlights:

• Here we see all three strategies long the market in August of 1994
• Note the long six-year span prior to any actionable signals
• We also keep tabs on currency values, inflation, and the gold price in the upper panel
• The indicators in the lower panel of our chart track early warning signals and monitors the integrity of the Primary trend in force
• We define Wave Labels identifying the maturity of trend as price action evolves

Typical Broad Market / Long-Term Investment Analysis Included with EWT's Interim Monthly Forecast

Chart highlights:

• Note how our Pro-Active Strategy begins taking profits at higher price levels
• The Modestly Controlled Strategy waits for a FULL EXIT ALERT to go to cash
• After more than six-years without a signal, how many investors maintained the discipline, and patience in monitoring such events, and actually went to a full cash position in November of 2000?
• Note how our Pro-Active Strategy begins fishing for a bottom in October of 2002
• Properly interpreting Elliott Wave structures, in combination with directional and early alert indicators, sets our Pro-Active long-term Investment Strategy far ahead of all other methods in managing exposure to broad based market indices

###
end of snippet

Joseph Russo
Publisher & Chief Market Analyst
ELLIOTT WAVE TECHNOLOGY
website: www.elliottwavetechnology.com
email: joe.russo@elliottwavetechnology.com

321gold Ltd