Cycles Made Simple, Part 2 , 1 From: "Martin D. Weiss, Ph.D."

In Part One of their excellent tutorial on using cyclical research, Richard and Larry showed you how buying a stock or ETF at its cyclical lows and selling at its cyclical highs could have helped you multiply your money up to nine times over in less than a decade.
In today’s installment, they dig deeper, with three case histories that demonstrate how this easy-to-follow strategy could help simplify your investment decisions ... lead you to more winners and fewer losers ... and deliver substantial profits.
— Martin
Cycles Made SimplePart Two
The ONE QUESTION you must answer before you buy or sell any stock — and how getting the correct answer can help simplify your investment decisions, maximize your profit potential and minimize your risk of loss.
by Richard Mogey and Larry Edelson
Dear Subscriber,
In the first installment of this series, we considered six crucial facts that the Foundation has established:
1. Stocks and ETFs tend to move in regular, rhythmic, predictable cycles.
2. The time duration of these cycles varies widely from one stock or ETF to another.
3. Simply buying an investment at its cyclical lows using a 2% closing stop-loss and selling at cycle highs can produce substantial profits — up to 936% in the examples we presented in Part One.
4. Buying long ETFs at their cyclical lows, then switching into inverse ETFs at cycle highs can produce even more impressive gains — up to 86% greater profits than using only long ETFs.
5. Following either of these strategies with stocks and ETFs will NOT guarantee that you will always have winning trades. You WILL still lose money on some of your trades. But in the examples cited in Part One, between 58% and 60% of the trades would have been profitable and the 2% closing stop recommended for this strategy would have kept those losses small.
6. While cycles tell you when each investment is in a “buy” phase or “sell” phase, fundamental and technical analysis should be used to confirm the cyclical trading signal, while also giving you important clues to how far the stock or ETF is likely to move.
Today, we’re going to take a closer look at what our cyclical research is saying about three stocks that are all in a single sector of the market: Technology. We will review the cyclical patterns in Google, Semtech and Tellabs to see another big advantage using cyclical research gives you ...
You don’t have to knowwhich way the overall marketis headed to make money.
Let’s begin with Tellabs — the networking company. As you can see from its chart, the stock tends to run in a regular 11-week cycle. The cyclical bottoms or “buy” phases and the cyclical tops or “sell” phases are 77 calendar days apart.
Right now, Tellabs’ cycle is clearly nearing a bottom — the signal that the time to buy is only days away.
And the stock’s history confirms the profitability of this cycle: If, since 1998, you had bought Tellabs’ stock with a 2% closing stop-loss each time its cycle hit bottom and then sold it when its cycle peaked, your $10,000 investment could have grown to $44,762.
Now, take a look at Google. Notice that although, like Tellabs, Google is a tech stock, the two stocks are at VERY different places in their cycles.
While Tellabs has a very long cycle — 77 days, Google’s cycle is far shorter — just 26 days; less than one month.
And while Tellabs is approaching a cyclical “buy” phase, Google is approaching a cyclical “sell” phase.
But waiting for Google's next bottom could pay off nicely: When we look at the historical results we could have achieved — buying Google with a 2% stop loss at its cyclical lows and selling at its cyclical highs — an initial $10,000 investment could have grown to $97,026 since 2004.
Third, take a look at Semtech, an electronics components company.
As you can see, Semtech’s cycle is six weeks long — much shorter than Tellabs, yet longer than Google’s. And right now, the stock is approaching the “buy” phase of its cycle.
Sure enough, if you had bought Semtech at its cyclical lows and sold at each cyclical high since 1998, your original $10,000 investment could now be worth $67,729.
THE MORAL OF THE STORY: Using our cyclical trading signals to time your “buy” and “sell” decisions can vastly improve your investment timing.
You never have to try to predict which way the overall market or any individual sector is headed.
The key question you need to answer before you consider buying or selling any investment is, “Where are we in the stock’s cyclical pattern right now?”
And as we’ve seen, simply answering that question correctly could have turned a $10,000 investment into $44,762, $67,729 or $97,026 in these three case studies.
If you would like more information on putting our cyclical research to work for you, just click this link to visit our website.
Sincerely,
Richard Mogey and Larry EdelsonThe Foundation Alliance