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Using the Market Commentaries to Place Long-term Trades:

We recommend the following method for those among you, who consider themselves conservative long-term traders and wish to place no more than 5-10 trades per year. This method does not require you to do any quantitative analysis!

If you wish to trade according to this method, you would simply read the Market Stage section of the daily Market Outlook to get an indication of the projected long-term outlook for the major US indexes:

• If our analysts conclude that the market is in a long-term uptrend, conservative traders could act on that determination by buying stocks or index shares/funds and holding them until the market reaches a resistance corridor. Once the market starts trading in a resistance corridor, it is time to take your profits. You then wait until a new trend has asserted itself to place further trades. The time requirement for this trading approach is minimal - all you need do is check the Market Stage section of our commentaries from time to time (but at least once a week) to see whether any important changes have occurred;
   
• Traders with a higher risk tolerance may wish to short during long-term downtrends and then cover when Market Stage announces a support corridor. This method is not suggested for highly conservative traders; it also requires more frequent monitoring of the situation than the approach described above;
   
• We recommend that you convert all your open positions to cash or bonds when the market trades in a resistance or support corridor.
   

Recommendations:

• Read the daily Market Commentary in order to see what the current long-term trend is;
   

• If the market is currently in a long-term uptrend and we announce in Market Stage that it has entered a resistance corridor, yet you feel it could go higher, you may wish to use a trailing stop in order to protect your profits.

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