Securities tracked and recommended within this newsletter are designed for subscribers who are value investors and wish to use the combination of good company fundamentals along with the unique cycle timing created by your Editors The fundamental analysis provided in this advisory are those meeting the fundamental, research analysis and value investment criteria as determined by the Graham & Dodd book on Securities Analysis which is followed by many Portfolio and Mutual Fund Investment Managers including the famed Warren Buffet.
The Cycle Valued Newsletter will use a "Dollar Cost Averaging" strategy in all recommended purchase positions. Since the portfolio represents issues with high consistent earnings, markets moving down should represent an opportunity to add to existing positions at discounted prices. On a weekly basis, we comment on the various columns assigned to each issue and evaluate the entry or exit points based on the cyclic confirmation buy, sell or hold recommendation of the investment model. The Investment Cycle represents our longer term cycle, whereas our Primary Cycle is a faster cycle which could anticipate changes within the longer term cycle. Our Early Warning Cycle usually anticipates changes in the Primary Cycle. Example: The best time to buy any stock that has been moving down is when it stops moving down. The first evidence that a stock has stopped moving down would be our Early Warning Cycle turning up, followed by an upturn in the Primary Cycle and the Investment Cycle. The first evidence of a stock, which has been moving up, and is about to move down would have the Early Warning Cycle moving down first followed by its Primary Cycle, then its Investment Cycle.
One key concept to understand in short term trading is that our Short Term Early Warning Cycle can last for as little as three days and can move up or down regardless of the directional movement of our longer term cycles. This "Early Warning Cycle is ideal for day trading or establishing or ending a position.
Another key concept is that this unique and original analysis is based on Price and Time. This means that on occasion, we can offer Price target projections which are only valid if achieved within a specific period of Time. Once Time runs out of the specific cycle, the price projection will no longer be valid. Sometimes Price is achieved quickly before the Time of a cycle runs out. This condition can generate an overbought or oversold "Bruno Oscillator" condition which can generate a countertrend directional movement for just a few days which are shown within the Early Warning Cycle column in all our investment newsletters.