Long Position -
SPOT
Step numbers referenced below are referring to
Tutorial Steps.
If you need help with terminology refer back to that Step of the Tutorial or the
FAQs associated with that Step.
Action (1) - 6/1/03:
Step #1 - NASDAQ registers a Stage 3 - Bull Market
 Step #3 - SPOT flashes a Buy Configuration Signal
(click on Configuration
Chart, to the right). We execute the Buy. Initial Sell-Stop is established off the valley-bottom resistance points which
are below the 30wk moving average. Risk Corridor is a smidgeon beyond the
outer edge of our normal tolerance at 30.9% . . . but the charts are so pretty
(see below).
Observation 7/6/03:
Step #4 - A hilltop at
6/6/03 is confirmed as the third subsequent decrease in price occurs as of
market close on 7/4/03 (of course, the market actually closed for the week on
Thursday 7/3/03 since Friday 7/4 was a holiday). No Sell-stop adjustment
action required until confirmation of the next subsequent valley-bottom (see
Action History Chart, below).
Action (2) - 12/14/03:
Step #4 - One of those rare exceptions . . . in absence of the
formation of a new valley-bottom, we decided it is time to adjust the
Sell-stop. As the closing price has been sailing safely above the 30wk moving
average, we adjust to that level (30wk = $18.03, rounded down to $18 even). From this point forward, Sell-Stops
are adjusted upward in $1 increments in tandem with the 30wk (see Action
History Chart, below).
Actions (3) through (6):
Step #4 - Sell-Stop adjustments in tandem with the 30wk moving
average (see Action History Chart, below):
(3) 2/22/04: 30wk = $19.07 rounded down to $19
(4) 3/21/04: 30wk = $20.03 rounded down to $20
(5) 4/18/04: 30wk = $21.31 rounded down to $21
(6) 5/9/04: 30wk = $22.12 rounded down to $22
Action (7) - 6/20/04:
Step #1 - NASDAQ registers a Stage 5 - Bear Market
 Step
#2 - SPOT flashes a Sell Configuration Signal indicating it is too risky
to continue to hold (click on Configuration
Chart, to the right). We execute a Sell on our entire position. The
transaction provides for a 23% gain which is equivalent to a 21.8% Annualized
Rate of Return.
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