Mechanical Market Timing System

Our trading system is very unique. We would like you to join because we:

  • continue to achieve profitability year after year.

    • MechanicalMarketTiming.com is one of the first profitable timing systems on the Internet. We have a proven track record that is available to the public. Many timing services do not provide a track record that is viewable to non-members.

    • Beware of the numerous market timing services out there, which practically guarantee that you will make tons of money. We have found that many of these services show results that are totally unrealistic, unproven, have compounded returns (hyped results), do not perform proper back-testing, do not have real-time trading results, do not have a live track record, and some sites are even manipulative and change their tables to reflect positive signals.

    • We encourage any interested investors to thoroughly research web sites that claim to have produced exuberant results. A worthy phrase to remember "if it's too good to be true, then it probably is". We stress caution with other systems, especially on the Internet.

  • relieve the investor of having to depend on financial analysts' recommendations and on company information, that may or may not be truthful;

  • eliminate the emotional turmoil and confusion that all day traders constantly experience

  • provide a lower risk method of investing, since you are investing in a broad market (meaning you are well diversified either long or short) as opposed to a single stock that is subject to higher risk, volatility, and many uncontrollable factors that can impact stock price

  • consistently beat the long-term buy-and-hold strategy, even in bearish markets. When our timing system gives a bullish signal we are buyers and profit from the rising market. When the stock market turns sour for most, we short sell the market and profit from the decline; and

  • provide a service that is very affordable for the amount of valuable information you will receive!


Why Trade — Reasons why it is imperative to trade the stock market using our proven mechanical impulse system as opposed to the buy-and-hold strategy can be understood in a few charts:

  1. The trading history of the Dow Jones Industrial Average shows numerous secular bull and bear markets lasting 10-20 years each.
  2. The current secular bear market of the S&P 500 Index has two major bull cycles and two major bear cycles.
  3. Secular markets explained by trends in the price/earnings ratios (P/E) of the S&P 500 Index.
  4. Using a simple price and moving average crossover technique (our method is more complex and proprietary) applied to the S&P 500 Index will 'greatly' outperform the buy-and-hold strategy of investing.


Mechanical Market Timing System vs Buy & Hold

Investors are told that their best strategy in stock investing is a simple “buy-and-hold” strategy: buy a diversified stock market index and hold it. Yet most investment literature assumes that investors will hold a security if and only if its expected return at the market price provides an adequate tradeoff with the risk exposure the security brings. In other words, investors are assumed to make their own judgment on whether a security is worth holding. Saying that investors should not “time the market” is equivalent to saying that consumers should not maximize utility when making consumption decisions. The standard reply to this criticism is that because the stock market is fairly efficient, accurate market timing is very difficult. In fact, it is said to be so difficult that investors are better off not trying.

Today's most widely recommended investment strategy is buy-and-hold. This is, buy some good stocks or mutual funds, sit back, and "let it ride". Wouldn't it be great if it were that easy! Unfortunately, the exaggerated potential of buy and hold investing is more myth than reality.

History of the stock market

The more you study the history of the stock market, the more you begin to understand the real dangers of buy-and-hold investing. A single bear market can destroy a large portion of your accumulated assets. Unfortunately, mutual fund companies, the popular financial press, and even some professional investment advisors, have convinced the majority of investors to accept the "let it ride" philosophy. Do they need to be reminded that, on average, bear markets come along every four or five years?

Nobel Laureate Paul A. Samuelson states, "The longer you own stocks, the greater risk of a devastating loss". Most investors have forgotten, or were too young to recall, the pain of the last big decline. Bear markets have slashed portfolio values an average of 37%. However, there have been declines of -86%, -54%, and -48% during this century!

In terms of real dollars, had you invested $100,000 in the stock market in January of 1973, your investment would have shrunk to $51,800 in just 21 months - a loss of -48%. Assuming you were able to continue your buy-and-hold strategy, you would have waited another seven and a half years just to break even! Sick over their losses, most buy-and-hold investors eventually give up and bail out. And who can blame them?

Successful investing in the stock market takes more than a single decision to buy a mutual fund or stock. It requires many important adjustments as market conditions change. Optimistic predictions from the so-called experts of Wall Street make interesting commentary, but do little to protect your assets when the stock market falls.

We do not pretend to know the future. But we know that buy-and-hold investing will not preserve your assets in the next market decline. The performance of our market timing system through the use of our signals is gaining popularity across the Internet. Our system is designed to help members continually beat the buy-and-hold strategy. At Mechanical Market Timing, we are committed in helping our members profit no matter what the future of the market has in store for us, whether bullish or bearish times.

Take for example another leading index in the United States, the broad market and popular S&P 500 Index. Just using a simple cross-over technique of the 50-day moving average and stock price gives much better returns then the buy-and-hold strategy. For this example, the buy-and-hold strategy lost 10% in about 4 1/2 years, whereas a technical analyst profited +120% in the same period. This isn't the strategy we are using, because our trading methodology is proprietary.


"Timing is everything." - Ray Dalio, Principles: Life and Work