History of Our Service: Our service began in real-time mode in July 2001. From inception to September 2012, our results were 100% based on interpretation of technical analysis. During April to September 2012, our interpretive methods were not in sync with the market and our results trailed the market indices. Prior to April 2012, our interpretive results were consistently outperforming the market. Site visitors can view the 'real-time results' in our individual tables for DIA, SPY, and QQQ. However, from September 2012 and onward we have made a very strong comeback and are back to profitability. The reason for the decline and astonishing comeback is further explained:

Reason for the decline -- from April through September 2012, we were under a new business partnership with two financial advisors that involved AUM (assets under management), which had a part in the decision making process of the trading signals. In addition, they lured SMT into this pie-in-the-sky dream of making a lot of money and tried to literally cut off the small investor in subscribing to our services. Details will be explained upon request. This venture negatively impacted our 2012 results. SMT terminated this partnership with the two advisors in September '12. Since then, we have been generating excellent returns once again for our members. A win-win situation for SMT and its members!

Reason for the comeback -- during September 2012, we developed a mechanical impulse system. Back-testing of the system to 2005 produced very favorable results. The mechanical system combines 'trend-following' and 'momentum' to identify tradable impulses. This method uses what we call 'reactive technical analysis'. Instead of trying to 100% forecast or predict the market's direction based on past market data as in interpretive technical analysis, reactive technical analysis is geared to reacting to the market's movements as soon as possible after they occur. We are now using a combination of interpretive (technical analysis) and mechanical methods. The combination of these methods maintain a tight control on losses and maximize gains.

There are downfalls to each method. First of all, 'interpretive technical analysis' involves interpreting past market data. Elements that are interpreted can include trend analysis, pattern recognition, Elliott wave analysis, Fibonacci retracement levels, support and resistant levels, technical indicators, moving averages, volume analysis, etc.. Problems with this method is that the analysis can become subjective and judgemental, in addition to the limitations of interpretive analysis. As we all know humans are imperfect and emotions may influence decisions.

Reactive technical analysis as in a mechnical system has its problems as well. There is always a certain degree of volatility in the market. Results of a mechnical system will normally have many small losses, due to the whipsawing nature of the stock market. However, once the market trades in a trend (up or down), the returns of the gains are capable of far exceeding the losses. The reason for the small losses is because the system is trying to get on the right side of the market prior to a large move (either up or down). Once trending with the market, the system will capture that return. With this system there are only buy long and sell short positions. There are no cash positions.

Site visitors can view the 'hypothetical results' of the mechnical impulse system for 2012. Our future analysis will attempt at combining interpretive and mechanical methodologies. We may still give cash positions.