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
Coming
Soon from Elliott Wave Technology "Rules
of Engagement, Strategies for Traders"
Position
Traders :: Swing Traders :: Short-Term Traders
The traders'
series will soon be available FREE to all Near
Term Outlook
clients, or by special purchase at our website.
It is our hope
that this short series has provided prudent and actionable guidance
for self-directed index investors.
We trust that
with such guidance, many will now be able to navigate the markets
more confidently in applying some of the basic rules we have
outlined.
For those who
prefer the convenience and assurances derived from delegating
such duties, Elliott Wave Technology's Interim
Monthly Forecast
is now covering the following markets:
- The U.S Dollar
- Gold
- The CRB Index
- S&P 500
- Dow Jones Industrial
Average
- MSCI Emerging
Markets Index
- NYSE Composite
Index
In addition to
covering the indices above, the Interim Monthly Forecast also
weighs in on correlating, or inverse ETFs and funds, relative
to each of the specific indices under watch.
|
321gold Ltd
![](../../images/home2.gif)
|