Introducing a radical new way to invest
in ASX 200 stocks. We're calling it...


Operation: 'Slipstream'

It's an investor's dream-come-true:

Small cap-sized gains from large cap stocks.

Discover how 'Slipstream Signals' could make
you 'bonus returns' like 33%, 55% and 78%...
from the biggest stocks on the ASX!

Dear Reader,

12.03am, New Years Day 2010, Sydney...

Two friends enjoy the fireworks over the Harbour.

They're drinking beer and talking investing.

Both own stocks - but prefer big companies rather than risky small caps.

Their portfolios are almost identical. Household names, with a few large cap miners and energy companies. And both look at their stock holdings as "keepers". Long-term wealth-builders to either cash out of in retirement or pass onto their kids.

When it comes to investing, they are very much alike.

Fast-forward six months...

Over a barbecue, they compare notes on the year so far.

The first investor has had a pretty good one, thanks to the market rally. But the smile is wiped off his face when he learns his friend has done better... much better... FROM THE SAME STOCKS!

A scribble on a napkin shows the second investor's almost identical stock portfolio has more than doubled his friends' performance.

What made the difference?

Read on and I'll show you...

How you could more than DOUBLE
your large cap stock returns

"Legacy stocks" are those you believe in - income generators and slow-growers you want to own forever.

And there's no harm in holding onto good blue chip shares...

But there's no harm in maximising the returns they give you, either.

Just think for a second...

What if you could double your overall returns from large-cap stocks - without using options, CFDs or other risky investment tools?

Today I'm going to show you how you could do exactly that.

In this letter you'll learn how to profit from what I call 'Slipstream' moves in ASX 200 stocks: creating small cap-sized returns from large-caps.

Here are just some of the 'Slipstream' moves in large cap stocks we've identified so far:




Remember: these gains aren't from small cap growth stocks.

Each return was proceded by one simple 'Slipstream' signal in the price chart of a large, ASX 200-listed company.

If you'd got advance warning of these signals via email, seconds after reading you could have bought the stock, and moved into the 'wake' generated by the buying surge.

Again, this has nothing to do with buying risky derivatives like options of CFDs - where you can lose more than you stake.

These returns could be made simply by buying and then - a few weeks or months later - selling stock in Australia's largest, most stable companies.

Nothing like this, to my knowledge, has been tried before - anywhere in Australia.

Let me explain how it works, by way of a quick analogy...

Place yourself in the 'Profit Pocket'

If you watched the Tour de France in July, you'll have seen how important tactics are in a cycling race.

What many casual observers may not realise is that your position in the field (the French call it the peloton) greatly determines your overall results.

The reason is simple.

Where you ride in the pack directly affects how hard you have to work.

Studies show that if you ride behind the racer in front of you, you will end up working 30% less hard for the same results. The rider in front of you encounters all the wind. He must plough through it. But if you get into his 'slipstream' you avoid the wind.

Maximising your returns from large cap stocks is based on this same principle.

See, most investors don't actively pursue big gains from large caps - because they don't expect to make them.

Private 'day traders' steer clear of the big stocks on the market. It's much easier to turn a quick profit by opening and closing positions on smaller stocks that are perceived to move faster than their larger counterparts.

Professional investors can't just trade in and out of large cap stocks willy nilly. They have to operate within the confines of the styles prescribed by their employers.

The result?

No one really looks to ASX 200 stocks for consistent and quick profits.

That's a mistake. Because,

Holding large cap stocks
DOESN'T mean you have to be
content with average returns

My name is Kris Sayce. You may know me as the editor of the MoneyMorning e-letter. What you may not know is that I'm also the Investment Director here at Port Phillip Publishing in Melbourne. Over four years, we've developed the best independent investment research department in Australia.

Our aim is simple: to give you profitable investment intelligence the mainstream media either ignores or overlooks.

How do we do it?

By capitalizing on our years of experience "in the trenches" as professional traders, analysts and researchers. Our goal is to use our knowledge and experience to outsmart and out-perform the competition.

Over the last six months we've undertaken our most ambitious project to date...

For most of this year, we've built, improved and beta-tested a trading platform that shows - conclusively - that it IS possible to see 30%, 50%, even 100% gains from the largest capitalized stocks on the market.

Imagine if these kinds of gains hit your bank account regularly, without you having to 'bet the farm' on risky small caps or options?

We've found if you can identify imminent 'Slipstream' price moves in big name stocks, you can nip in and out, banking regular gains - without losing ground on your long position.

How?

Well, just think for a second what a price is. Simply put, the price of a stock is the result of the intense struggle between buyers and sellers. Buyers push prices higher. Sellers pull it lower.

You can watch this struggle unfold in real-time - and even anticipate a winner - through chart and technical analysis.

I'm talking about resistance and support levels... chart patterns and trend indicators... oscillators and moving averages...

To the casual observer, these terms are meaningless.

To the experienced technician, they are precision tools that show who is winning any given price war.

Now here's the thing:

Interpret these indicators correctly, and you can place yourself in the 'profit pocket' of a price action.

It's just like a cycle race.

Essentially, you're...

"Cheating the Market"

Introducing our 'rogue team' of forecasters, traders, market-watchers and equity analysts...

Kristin Sayce
Investment Director
Kris Sayce began his financial career in the City of London as a broker specializing in small cap stocks listed on London's Alternative Investment Market (AIM). At one of Australia's leading wealth management firms, Kris was a fully accredited adviser in Shares, Options and Warrants, and Foreign Exchange. Kris was instrumental in helping to establish the Australian version of the Daily Reckoning e-newsletter in 2005. He now writes for 37,000 investors each day in the MoneyMorning e-letter, and heads up the Australian Small Cap Investigator newsletter.

Dan Denning
Publisher
Dan Denning founded and edited the financial newsletter Penny Stock Fortunes in 1998 and edited Strategic Investment, from 2000 to 2006. In 2004 Dan spent six months travelling the globe in search of investment opportunities. This trek resulted in the New York Times bestseller, The Bull Hunter (John Wiley & Sons). Via his high-level, macro-economic and stock-market forecasts in these newsletters, he led over 35,000 subscribers in 70 countries to profits. Dan's analysis for The Daily Reckoning is read by more than 500,000 people regularly. Dan also publishes the Diggers and Drillers newsletter, and is a regular columnist for MoneyWeek, a London financial publication.

Murray Dawes
Lead Technical Analyst
Murray has over 14 years experience using technical analysis to trade stocks and futures on Australian and US markets. He started his career on the Sydney Futures Exchange with Swiss Banking Corporation and then moved on to Bankers Trust Australia. As senior advisor for Axis Financial Group, his clients included Australian hedge funds with over $100 million under management. Murray also spent time as a hedge fund manager for a large private hedge fund, where he achieved 15% outperformance of the All Ordinaries Index. Murray's passion is in developing and back-testing technical trading platforms to suit the unique conditions of the current market.

Dr. Alex Cowie
Chief Analyst
Alex holds a Graduate Degree in Finance and Investment from the Financial Services Institute of Australia. Trained in Industrial Equity Analysis and Applied Portfolio Management, Alex is the editor and chief analyst for Diggers and Drillers and the editor of the Daily Reckoning Week in Review.
When it comes to large cap stocks, most analysts focus on things like earnings statements, balance sheets or rumours of insider buying.

And for investors, this is a good tactic.

It is what I myself do in my investment newsletters Australian Small Cap Investigator and Australian Wealth Gameplan.

But trading is a different ballgame. It requires a different set of tools... indeed, a whole new way of thinking.

My trading team focuses on the technical data used to generate trading signals.

Here the focus is on what other investors are buying and selling... and on how to position yourself to profit from their actions.

If you understand and anticipate a price action... you can decide when to wait (hold) and when you have to attack (ride the stock price as it goes up).

Professional cyclists call it "cheating the wind".

Murray Dawes, our Lead Technical Analyst calls it "cheating the market".

See, today more and more investors are warming to the fact that psychology moves markets... that a trader's mindset - combined with the right technical tools - can actually produce great profits from blue chip stocks.

It was this premise that got us thinking at the beginning of the year...

What if - in these perilous, unpredictable times - you threw mainstream thinking out the window?

What if you ignored the newspapers, analysts and economists and read only what I call "the language of the market" - the numbers that show how, not why, stocks are moving?

What if you followed the charts, and ONLY the charts?

From there, we set about developing a system that monitors price action and investor sentiment readings - employing trend lines and other powerful technical indicators - to turn crisis into opportunity and volatility into profit.

The system went 'live' in September 2009.

So let me show you how it works... what kind of results we're getting... and reveal how you can use this technique to create small cap-sized gains from large cap stocks...

A tale of two investors

Let's return to the two similar investors I told you about earlier.

We'll assume their brokers told them to buy BHP Billiton stock in 2004 for $12.

From 2004 to 2007, it was an easy, quiet and profitable investment as the stock rose from $12 to $47. However, the last two years have been stressful and bearish.

The first investor, however, is steadfastly "long" on BHP.

He loves the stock and doesn't plan on selling for years, whatever the changes in the market.

The second guy also likes BHP long-term. But he decides to take advantage of 'Slipstream' moves to maximize his returns.

In other words:

He wants to profit from the ups and downs of his BHP stock.

There are three big benefits to this strategy...

  • He can see when a 'Slipstream' movement is ending and avoid buying the share just before it corrects from a high.
  • He can use the "Slipstream End Signal" to sell and take a profit on an existing position, thereby locking in his paper gains.
  • He can use the "Slipstream Start Signal" to BUY BACK into the share (or enter for the first time) profiting from the next rally.
Avoid big losses... transform paper gains to profits... time your moves into a stock...

Let me show you how effective this can be...

Here's 'Slipstreaming' in action

In May, 2008, a "Slipstream End Signal" on BHP Billiton is triggered.


In technical terms there was a clear bearish divergence which suggested a sharp and immediate correction. In laymen's terms, it simply meant a downward movement in price was about to happen. (I'll show you the technical indicators we use to detect these movements in advance shortly.)

This signal was triggered the week the stock traded between $46 and $49.

How do our two investors react?

The 'buy-and-holder' does nothing... and watches his stock fall under $25.

The 'Slipstream' trader, seeing the move is about to end, sells BHP at $47. He avoids the 55% fall in the share price and takes a profit instead.

Now let's fast forward to October '08, when another Slipstream Start Signal was triggered. A rally was on the cards. I'll show you how to read these signals later. But for now, let's see where our two investors are...

The 'buy-and-holder' still owns the stock.

He's done nothing at all since 2004.

The 'Slipstream' Trader - having previously sold his shares for a profit - now buys back BHP shares. He joins the move which takes their price from $25 to the present price of $32.

The result?

291% and then another 26%
owning the same stock

Remember, both investors got into BHP in 2004 at $12.

The buy-and-hold investor currently has an unrealized gain of 167%.

He's up $20 per share (using a recent share of $32 minus the entry price of $12).

That's a good gain.

But the second investor already took profits.

Let's say he sold BHP at $47 in May 2008 when the "sell" signal was triggered. That left him with a 291% PROFIT from his first position in the stock.

But he bought back in at $26 when the Slipstream Start Signal was triggered in October 2008.

And let's say he bought back at $26 in October 2008 when the "buy" signal was again triggered.

He's now up 26% on his second trade in BHP.

They are both again "long" BHP as they were back in 2004.

But which strategy was more profitable?

Investor one hasn't done poorly. He's sitting on an unrealized gain of 167%. Had he started with $10,000 in BHP, he'd now have $16,700 - a gain of $6,700.

Not bad on a $10,000 investment.

What about the second investor?

Still long on the stock - but
with $30k in the bank!

He's the one who acted on 'Slipstream' moves of the underlying price and obeyed the signals.

He sold at $47 and realized a gross profit of 291% on the first trade. On a $10,000 investment, he has a profit of $29,100.

He's got nearly thirty grand in his pocket while his counterpart has $22k still tied up with the stock.

But there's more.

Just as a new 'Slipstream' move formed, investor two bought BHP back at $26.

So he has just under $30k in the in the bank - PLUS a second unrealized gain of 26%. Let's say he puts another $10,000 into BHP this time (keeping his original profit of $10k to himself). He now has another $2,600 in paper profits.

He's long on the stock again but he's already made real money.

In summary:

  • Both investors still own the stock.
  • But compared to investor one, investor two has just under $30,000 in profits and another $2,600 in paper gains PLUS his original $10,000 investment.
  • All up, he's up 315% from his original stake - more than DOUBLE investor one! Some of that money is in the bank and no longer at risk (or perhaps he used it to make a buy into another large cap stock, make a down payment on a new investment property, or took a trip to Bali for some sun and cocktails!)
Sure, the first investor is doing fine with a 228% gain.

But he's taken no profits yet.

He's made a paper gain, but doesn't have a lot to show for his risk-taking.

Of course if you're investor number two and you're sitting on the beach in Bali recounting your strategy, you'll realise that taxes and trading costs eat into your profit. And of course there is always the risk that the signals are wrong, and you make a mistake. You will not always win money. And you sure are to lose on a trade from time to time.

But you have to ask yourself: isn't the upside worth it?

And the upside potential for an active blue-chip trader - compared to the inactive one - is this:

$10,000 into $32,800
VS.
$10,000 into $45,000

Isn't that difference worth investigating?

And maybe applying to every large cap stock you decide to own?

This is the immensely powerful idea behind a brand new large cap timing service.

Based solely on ASX 200 stocks. It's called Slipstream Trader.

Whether you're a green-around-the-gills investment novice...

A stock investor who'd like to gain more control over your overall returns...

Or a chart enthusiast wanting to add a new string to your bow...

...This is your chance to capitalize on the volatility you see coursing through the market right now.

How to make 'Slipstream' gains
from mainstream stocks

ASX 200 stocks are usually companies that have traded for a long time and have a history of returning solid profits - steady capital gains and, often, regular dividends.

The majority - but not all - of investors buy these kinds of companies and forget about them.

If that's you, your returns are suffering for it.

What we've realised through the course of four year's research is that there is much more money to be made from Telstra, Rio Tinto, Coles Myer and Woolworths than you might realise...

For the rest of this letter, I'll show you how to squeeze large caps stocks for returns that would make even an aggressive speculator go green with envy.

You'll see how using a certain array of technical indicators to identify 'Slipstream' moves in large stocks could more than double your overall returns.

I'll introduce you to a simple email alert service that will tell you when these 'Slipstream' moves are forming, and how to profit from them.

And, if you're interested, I'll also 'lift the bonnet' on the technical method that reveals these moves.

Look, the goal here is not to turn you into a proficient analyst in your own right (although that would be a happy by-product!).

You don't to need to be able to tell your 'Relative Strength Index' from your 'moving average convergence divergence' - the system we've devised will take care of that. You don't even need to be an experienced investor.

What you do need is a willingness to take a more active trading approach to large cap investing.

Once you see just how powerful this kind of trading can be, I'm absolutely positive you'll never look at blue chip stocks in quite the same way again!

Turn your core portfolio
into a cash machine

Any professional technical analyst will tell you that timing stock moves depends on identifying 'chartist inflection points'.

Don't worry, I won't send you to sleep with the details.

But you can consider inflection points your invitation to join the 'Slipstream'.

They appear through technical formations such as "trend completions", "overbought/oversold configurations", and "support and resistance levels".

You see, technical indicators remove the cloudy, bias-driven assumptions from your analysis and focus on the one thing that moves markets: investor psychology.

That's VITALLY important when investor emotions are high and nerves are frayed.

But I won't fool you.

Identifying these formations is not easy.

Erasing emotions during the investment/trading process is vital.

To do this, the best answer is to track the charts, and only that.

See, the information necessary to identify winning trades is already contained and available in the price action of the market. A share's current price reflects everything: the data, the fundamentals, the expectations, the emotions, the risk appetite.

In fact, an experienced technical analyst would make this claim: everything you need to know about a share you can find in its price and in its chart.

This is why trading in the 'Slipstream' is so important.

If you know what to look for in both the price and volume actions you can "launch" your market attacks at the right moment.

But is it really that easy?

What the BETA testers told us about Slipstream Trader

Slipstream Trader BETA Tester Ben Bouwman:

"Regarding your first recommendation the description and recommendation is very clear and easy to understand."

Slipstream Trader BETA Tester Fran McDade:

"What an exciting day. I've been analysing my own small cap stocks after reading your document...and loving every minute of it. The instruction was really clear. I only needed to read it once to understand exactly what you were talking about. The explanation was clear."

Slipstream Trader BETA Tester Fran McDade:

"The charting explanations are great - they completely make sense and what you have written to accompany the charting is very clear. The trading instructions are great - inclusion of stop loss is critical - it makes the trade easier to stomach. The instruction and information provided for the trade is really detailed and definitely seems tradable - the level of analysis really helps. These trading ideas are definitely helping me to become a more knowledgeable trader."

Slipstream Trader BETA Tester Patrick Lim:

"It looks like you are SPOT ON about ALS, with today being the second day in a row the price is down this week. If most of your recommendations (don't have to be all, as no analyst is perfect!) to come can be as close as this first one, then you're on the way to a winner. Your explanations are clear, not complex, and I can understand that, especially the trade summary part -- which is, of course, the most crucial part of the whole exercise for each stock in question."

Slipstream Trader BETA Tester Patrick Lim:

"Keep it up. Your second alert is just as clear and simple. It's important to keep it that way, clear and simple and easily understandable by the average person! Also, straight to the point instead of long-winded explanations that are the characteristic of many analysts -- which often led to more confusion in the mind of the reader who is already struggling to digest various viewpoints and diversified news and analyses."

Slipstream Trader BETA Tester Patrick Lim:

"The first trading idea is impressive. I think most subscribers to any such advisory service would be keen to understand to the point that's being explained so as to be able to make a decision there and then whether to follow what's being recommended or to ignore it. The subscriber would need some convincing about going into a trade, and I think many such services fail to deliver in that area."

For you, it could be...

We developed our 'Slipstream' trading platform in-house using two powerful pieces of trading software.

The first part of the 'Slipstream' identification process begins at 7am. A scan is run, updating data and creating charts based on the previous day's market closing prices.

From there, a 10-15 minute filtration process is initiated. This creates a 'Slipstream Shortlist' of stocks that need closer attention from an analyst. The list will usually be no larger than 15 stocks, sometimes as small as 3.

From there, the real work begins.

Each chart on this shortlist is then 'taken to pieces' and put back together again. The software tests or overlaps a range of indicators that might show a 'Slipstream' move is imminent: 'false break-outs' due to widening price distribution... 'Bollinger bands' that sing when a price deviates too far...

It would take a month to fill you in completely.

(In any case, you don't need to know any of this to profit from the recommendations the system is designed to uncover.)

What you DO need to know is this: once we were sure we'd built a "black box" system that could be used effectively on ASX 200 stocks, we enlisted the help of 36 'beta testers'.

Feedback was so positive I decided to green-light Slipstream Trader for launch.

(You can see some of this feedback in the box to the right. And below, although it's early days, I'll show you how the system has fared to date.)

Simply put: we're now certain this technical method of mathematically predicting 'Slipstream' moves in Australia's largest stocks could significantly increase your returns in the year ahead.

We've incorporated this method into a brand new email alert service. It's very simple: you'll receive trading signals via email as soon as they're generated, and you can choose whether or not you act on them.

There's evidence you could AT LEAST DOUBLE the return you get from large-cap stocks - without using derivatives, options, futures, or any kind of leverage whatsoever.

Small cap gains from large cap stocks.

That would be something pretty special, right?

Ask yourself, what would you rather have?

33% and 26% gains  or an 11% loss?

If you're nodding at the former I have three words for you:

Medium term oscillators...

To the uninitiated, these might sound like something from the engine room of Star Trek's Enterprise.

In technical terms, these are among my most valuable tools in identifying impending 'Slipstream' moves in big stocks.

"Oscillators" can be used to discover overbought or oversold conditions.

Put simply: as the value of the oscillator approaches the upper extreme value of the asset, a 'Slipstream' move is ending. As it approaches the lower extreme, one is beginning.

There are a variety of oscillators in my toolbox. But I don't expect you to be interested in them. You don't need to understand them to benefit from how they actually work.

Let me show you one in action with stock in oil explorer Australian Worldwide Exploration (ASX:AWE)...


The oscillator used here is the "Commodity Channel Index" (CCI). The CCI helps you identify 'Slipstream' moves, not just in commodities, but in equities and currencies.

More BETA tester feedback

Slipstream Trader BETA Tester Matthew Rushton:

"Content was clear, well thought-out and well written... charting was good (nice idea to include separate link)... I like the idea of having an 'action / recommendation summary' - this makes things clear to the reader..."

Slipstream Trader BETA Tester Gary Westaway:

I like how it's presented, clear simple reasoning and doesn't take to long to read. As soon as I looked at your chart I saw a classic cup and handle, it's just coming back to test the break out (your C) and has a target of about 34. If it gets there it'll probably go all the way to the highs. Enjoying your alerts."

Slipstream Trader BETA Tester Bernard Lee:

"Information provided is extremely useful. I would actually be able to trade in the manner described, confidently. Your recommendation is simply great. I shall be able to proceed to trade in this uncertain and volatile market, using the information you have provided."

Slipstream Trader BETA Tester Bernard Lee:

"Pin point accuracy in the trade opportunity and analysis. Your information is again very useful and I would act on your recommendation, primarily because the downside is limited. Top marks to your analysis and the accuracy of the trade opportunity."

Slipstream Trader BETA Tester Chris Leathart:

"This set of recommendations are very clear. I will follow the stock price with interest! Cheers."

Slipstream Trader BETA Tester Mac Hoban:

"I don't have a gambling bone in my body, never bought a Tatts ticket in my life, but I love pitting my wits against the market and I'm prepared to stake my future on my judgment."

Slipstream Trader BETA Tester Rudy Kooper:

"I found your email good, learned something from it and will keep an eye on the movement of the share and see what it does."

Slipstream Trader BETA Tester Chris Galanis:

"This is a selection that has kept me interested. The chart and key points give me confidence to enter a trade."

The trigger lines in here were set for overbought (SELL) at 230 and oversold (BUY) at -230.

Say you bought AWE shares at $3 in January 2008.

You've decided this is a stock you want to hold long term.

But you're also ready to take advantage of medium-term 'in-and-outs'.

Let's assume Slipstream Trader had been "live" last year, you were a member, and this trade was being tracked.

A Slipstream End Signal would have been triggered on May 29.

I would have shot you an email instructing you to SELL at $4.

(The indicator that triggered this, if you're interested, was the CCI breaching 230 and crossing into the overbought area.)

But that's not the
end of your profits

A few months later, in October 2008, a Slipstream Start Signal was triggered, as the CCI jumped above its oversold limit of -230.

Another email alert would have instructed you to BUY.

So you avoided the fall, banked a profit, and bought back in again!

Result:

You bought at $3 and sold at $4. That means you now have an in-the- bank profit of 33%.

Then you could have bought back the stock at $2.11.

AWE stock then traded at $2.66.

So you could also have had an unrealised profit of 26%.

That's 33% in the bank and 26% on paper.

If you'd just bought-and-held, you'd be sitting on an unrealised LOSS of 11%.

Are you starting to see the potential here?

Look, as any trader will tell you, you can 'back-test' your methods in past markets and come up with any results you want.

What I'm trying to illustrate with these examples is:

How we plan to use this tactic to attack the ASX 200 index through this year and next. And,

How detecting and acting on 'Slipstream' moves in large cap stocks for the rest of this year and next could - literally - double, maybe even triple the overall returns you achieve.

This is a medium-term trading service. As we've only been operating less than a month, little can be taken from our live track record to date.

For what it's worth, at the time of writing six trades have been recommended. Three are open and three are closed. Of the closed trades, we had two small losses and one winner. Of the three open positions, two are up (19% and 6%) and one is down (-4.9%).

Things have just begun and the service is designed to work over weeks and months, not days.

So far the average holding period is just under two weeks. This is faster than we anticipated. But you get that in a volatile market.

The true test will be in the coming twelve months. And we're certain there will be plenty of chances to prove whether or not you really can make triple digit gains this way.

If you want to wait until then to see how we've done, that's fine. I can respect that.

But if you want in on the action now - I urge you to read the rest of this letter.

Because here's the REAL advantage to joining this new service...

We're entering a market tailor-made
for 'Slipstream' trading

As October began, the markets got the jitters. The ASX 200 fell over 150 points in a week. The VIX index, which tracks volatility, has edged up to 30. This is still a far cry from its highs of almost 90 last October.

Could we see another cataclysmic collapse?

Maybe. Certainly private investors remain cautious.

But someone has been pushing up stock prices... be it retail traders, hedge funds or institutional speculators. The All Ords are again marching towards 5,000.

But just as the pros jump like lemmings into equities... they could all scramble out fast. Give them a fright... and this rally is over and volatility is back to record levels.

So what should you do?

My best answer - if you want to add a massive power punch to your portfolio - is to trade in the 'Slipstream' of big price moves in this volatile market.

You can do this by simply receiving our Slipstream Trade Alerts via email, as soon as a signal is generated.

I don't think there's been a better time in market history to launch a service like Slipstream Trader.

And the great thing about this type of trading, as I said earlier, is it makes you money in three different ways...

By using the "Slipstream End" signal to avoid buying a stock that's about to correct...

By TURNING PAPER GAINS INTO REAL ONES on a stock you still intend to own for a long time...

And by BUYING a stock when a new 'Slipstream' move starts - putting yourself into position to profit from the next rally...

To show you just how much more money you can make using this technique, here are two more quick examples...

Sell and avoid a 17% loss

Right now, our screens are producing all sorts of warning signals on the banks.

The banks dragged the market down a hole last October. They could do so again.

Of course, this is not necessarily bad news... if you can predict price falls in stocks you own before they occur.

There are two benefits to predicting a price drop in an ASX 200 stock...

Most important, if you get advance warning of a stock correction you can sell a stock you already own and avoid the loss if you wish to.

Or, if you're a more aggressive investor, you can use this advance knowledge to 'short' the stock and profit when it falls.

'Short-selling' is where you sell the stock first, and buy it later. You borrow the stock from your broker (who borrows it from institutional shareholders) to sell it. If the price falls, you profit, because your selling price is more than your buying price.

Should you join Slipstream Trader today, I'll include a complimentary report that explains - in plain English - how to do this.

But even if you put 'shorting' to one side, knowing when a down move is imminent can be very useful.

Take this example:


On July 21, scans detected a "Fibonacci retracement" line in the price of Perpetual stock.

Fibonacci lines may be a mystery to you. In short, they are based on numerical sequences established by the brilliant 13th century mathematician Leonardo Fibonacci.

Prices find support and resistance levels on key ratios. These ratios are 23.6%, 38.2%, 50%, 61.8% and 100%.

As you can see in the chart above, one such level was reached in Perpetual stock in January. Had Slipstream Trader been up-and-running, this would have triggered a Slipstream End Signal.

Had we been sending out alerts at the time, you would have been notified that a correction was imminent.

Just a week later, shares had slumped to $31.

Result:

An avoided loss of 17%

Or a big gain, if you decided to "short" Perpetual.

A falling stock price can be a burden for the investor. But to a trader, it's an opportunity to make money - by being on the 'short' side.

At the very least, hearing about 'Slipstream' moves that are coming to an end is useful if you're wondering about the right time to cash in an ASX 200 holding.

One final way to integrate 'Slipstreaming' into your investment strategy...

Buy in - make 181%

You can use 'Slipstream' investing to pick optimal entry points into stocks you've never owned but want to buy into.

Say you're looking at Paladin Energy.

One glance at the charts can tell an experienced trader everything they need to know about the direction a price may be heading in.

Take 'double bottoms'. So you see the one I'm talking about below?


These technical indicators show a drop in price, a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.

In our analysis for Money Morning earlier this year, we detected such a 'W'-shaped pattern in Paladin Energy shares.

This triggered a Slipstream Start Signal. If we were sending out email alerts, you would have received one telling you that now was the optimal time to open a position in Paladin at $1.68.

Result:

Eight months later, the stock traded for $4.73

You'd be sitting on a paper gain of 181%.

Not bad from a supposedly 'boring' large cap, right?

In fact many penny stock investors rarely make gains like this!

Please remember: you don't need to have an interest in the arcane workings of technical analysis to benefit from Slipstream Trader. You will be provided with a brief technical explanation for how each trade is generated. But to be honest, I don't care if you skip it.

What you DO need to pay close attention to is the BUY and SELL signals our 'Slipstream' methodology creates.

To restate, the aim of Slipstream Trader is actually very simple:

Double and even triple digit gains - without
resorting to leverage - from ASX 200 stocks

If you're interested in the 'story' behind the stock, you won't get it here.

Don't get me wrong, fundamentals like debt, earnings, cash and price-to-book ratio, news, buyout rumours, third quarter results... they have their place.

But not in trading.

"Most of this "noise" is indecipherable to the so-called professionals, let alone the average investor," says my Lead Technical Analyst Murray Dawes.

"What little information that is useful has already been factored into the price of a stock. That's just how the market works," he adds.

"What I'm interested in - riveted by - is the intense struggle going on between buyers and sellers in the stock market each day..."

This is where 'Slipstream' moves form

If, like me, you think that a tool that helps you massively ramp up your returns - on large cap stocks - is something worth adding to your investment playbook, here's how our new service will work...

Membership, you'll be pleased to hear, demands very little on your part.

When a 'Slipstream' move is identified, you'll receive a simple email.

It will be brief. As I've said, fundamental analysis has no part in this strategy. Instead,

Your Slipstream Alert will contain
the following 3 critical elements:

  • A chart of the share in question, with the relevant technical indicators that point to the forming 'Slipstream' move.
  • A very brief summation of how data was interpreted and why a decision was made to enter the trade. (Technical buffs and those who wish to learn more about chart analysis will appreciate this part.)
  • Action to take, including the four critical pieces of information for every trade: a buy price, a suggested timeframe of the trade, a target price and a stop loss.
Hardly rocket science, right?

It's up to you whether you incorporate the trades in your portfolio.

From there, all I ask is that you check your emails at least once every day of the working week. That way you'll know if any trades are closed out, and hear about any new trades as they arise.

Remember: these are the most liquid stocks on the market.

I'm confident you will be able to execute 99% of the trades we send you without seeing the stock skyrocket or plummet before you can send instructions to your broker.

Of course if something changes, we'll email you directly about the change and what to do about it.

In a nutshell, I believe we will be able to generate regular trading ideas for you (long and short).

These will be ASX 200 stocks that trade millions of shares every day.

And, yet, the gains on the table here are double and triple digit...

And all of this will be undertaken with clearly defined risk control measures explained in each alert.

If you're interested in ramping up your large cap gains - without having to resort to leveraged investment tools - you should take advantage of the 60-day trial period and test this for yourself.

You're probably wondering...

What kind of returns can you expect?

Our mission is to provide you with a disciplined market timing service that will significantly outperform the returns of typical "buy-and-hold" investors of the ASX 200 universe.

This service will be MARKET NEUTRAL. It doesn't matter if stocks plunge or skyrocket in 2010. We plan to make you money regardless.

Trade duration can go from several days to a few months.

Our goal is to add at least 20% higher returns to the "normal" performance of your underlying stocks.

We don't know where the ASX 200 index or each of the index component shares will stand five years ahead, no one can tell you that.

However if our beta test and initial 'live' results are any indication, I believe we can definitely deliver returns much higher returns than a traditional "buy-and- hold" approach.

And that's whether the market is up or down.

If you want to wait a year to see how our track record develops, that's fine.

But if you're curious - and keen on exploiting CURRENT volatility to make small-cap-sized from larger stocks - then let me extend to you:

An open invitation

You often see people in the stock advisory game claiming that enrolment is 'strictly limited'.

Sometimes there is a genuine reason to put a cap on membership - like if you're trading small, illiquid, extremely sensitive equities. If large numbers pile in all at once the share price can shoot up and some members miss the buy price. A limit makes sense.

In most cases, though, when you see a limit, it's usually just an imaginary number used to hurry you up.

There is no member limit to Slipstream Trader.

I don't need to "hurry you up".

If this service isn't for you, I would prefer you didn't subscribe.

Fact is we don't need to put a cap on membership.

As I've said, we're targeting the biggest 200 companies in Australia. You could have 500, 1,000 or even 5,000 fellow members receive a Slipstream Alert and this would still have little or no impact on the stock price in question.

But I don't think we'll get near that kind of interest.

There are two reasons for this...

Firstly, as I've mentioned, this is not for everyone. I'd prefer only a certain type of investor, to be honest. And if that's not you, that's fine.

Opportunistic speculators and 'risk addicts' looking for 200%+ gains will be disappointed. 'Buy-and-holders' who fall in love with their stocks will be uncomfortable taking profits when a target price is reached.

This is for investors who are looking to optimise the returns they get on the large cap stocks they already own, or would like to own.

The second reason I don't expect massive interest is the price of this service.

As you'll see, the dues we're asking for are incredibly reasonable compared to almost every other form of investment advice out there.

But these are tough times. I realise not everyone has spare cash available, even if you could make it back and then some from your very first Slipstream trade.

Look...

No one in Australia - or the world -
is offering this kind of service

There are stock research houses that issue weekly reports containing "recommendations across the industrial sector and also select financial stocks" and "regular market and macroeconomic commentary" as well as weekly "trading reports".

You'll pay between $790 and $1,000 per year for this analysis. And yet you'd probably gain just as much valuable information from a good read of the Australian Financial Review.

Financial planners will charge you $2,000 to $5,000 as a one off fee.

As far as I'm aware, what they provide does not include technically-driven buy and sell signals.

Brokers charge annual 'management' fees of 1%-3% of the value of your assets held with them. Again, you don't get specific, time-sensitive trading tips.

You have ZERO control over where your money is and where it's going.

Remember:

What I'm proposing is
nothing like the above

There's no 'macro-economic' or sector analysis... no biased advice, hidden agenda or extortionate commission... YOU have complete control over whether you trade or not. And we don't make a single cent in commission on the trades recommended.

What you're getting are simple buy and sell tips generated by an experienced technical analyst using a mathematically precise trade generating methodology.

But, really, why should you bother with this?

Wouldn't it just be a lot less hassle to stay invested in the stocks you like and let the market do the work?

Any trader or trading system that promises precise results is not being straight with you.

I don't have a crystal ball, but I CAN tell you - from initial beta testing and professional trading experience - what my realistic aim is for Slipstream Trader...

Slipstream Trader
Mission Statement:

By following our 'Slipstream' trades over a five year period, I believe you'll outperform the ASX 200 index on average by a MINIMUM of 20%.

That is a highly conservative estimate.

But what we'll be REALLY looking for are the 'outliers' – trades like the BHP example you saw earlier... where you more than DOUBLE the money you would have made by just hanging onto the same stock.

Remember, this trading system is "market neutral". There is no bullish or bearish bias. It can perform whatever the conditions.

So you can expect to come out 20% ahead of the index - AT LEAST - with some triple-digit 'zingers' thrown in the mix.

With that in mind...
What will membership cost?

Praise for our other
service, Swarm Trader

"The original investment of $1,250 has returned about $34,000, which is hot by any standards. It would have been a lot more if I'd traded more aggressively." Jock McLaren

"Thank you for the alert to buy GPT. I was lucky to enter at .27c and sold at .45 and all I can say is I wish I had put more money on it. Thanks once again because from now on my Swarm Trader is free, it has paid for itself and more!" Linda O'Sullivan

"Nice call. That trade has more than paid for my subscription. - Thanks" Mike

"That was a good one, nice and easy. If you can get one like that once a week life would be good." - Andy

"We have just sold GPT for $0.46, having bought it at $0.32 five days ago on 11.3.09 and thus giving us a gross profit of 14 cents, i.e. 43.75% less brokerage. This was our first swarm trade, and we are very happy with the result. Well done and thank you very much." - Dorothy

"Thank you for giving us membership & I just wanted you to know our very first trade GPT netted us $1272.10 profit which nearly pays for our yearly membership already. We are impressed. Thanks heaps." - Kent & Jenny Mansbridge

Membership of Slipstream Trader costs $1,495.

I believe my buy and sell tips will be worth every penny (and probably a whole lot more).

You've seen how trading using this tactic could more than double the returns of another investor who owns the same stock... and the wealth-building power of applying this technique to your WHOLE large cap portfolio.

If you cannot comfortably afford to pay this membership fee, then you probably shouldn't be trading stocks, full-stop.

In any case:

Slipstream Trader's success will depend on YOUR success. If the analysis makes you money you'll continue to subscribe. If not, you won't.

Your membership is 100% refundable

Because of the medium-term nature of the trades, I want to give you plenty of time to evaluate the service and to make sure it's right for you.

For this reason, you'll have 60 days to test-run Slipstream Trader.

This should give you enough breathing space to watch the trades evolve. If for whatever reason you want to cancel your subscription in the first 60 days, just let me know.

Your money will be refunded promptly and in full (no "10% refund fee" like the one I saw recently for an American options trading service).

That is a pretty fair offer.

But be clear:

If you're in, I want you to seriously give this a go.

You don't have to invest real money - you can paper trade for as long as you like.

What I mean is I don't want "tyre-kickers" - the folks who sign up without any intention of paying. This costs us a small fortune in overhead expenses. And, frankly, it's not very nice.

The deal is simple: if the service doesn't deliver as promised, within two months, ask for a refund.

I would.

But 60-day 'free-riders' needn't apply.


So what's it going to be?

If you've read this far my guess is you'd like to test Slipstream Trader out.

You can do that for the next 60-days, risk free.

If you like what you've read, you should accept this invitation now - before the price goes up.

If you do, here are the only two things you'll receive:

Slipstream Trading Primer: This members-only report outlines our manifesto for making small cap-sized gains from large cap stocks in the coming months. You'll get a full run-down on the process we go through to produce Slipstream Trades including a beginner's guide to charting and financial analysis. Read it right away, before you review anything else.

Slipstream Email Alerts: You already know what these will contain. I can't say when these trades will come, or how many there will be. Technical analysis doesn't work that way. From beta-testing, though, I predict you'll be given at least one actionable trade a fortnight. Again, you'll be told what to do, why, what you stand to make and how to control your risk.

The decision is yours.

Remember: this doesn't involve risky spread betting, options or derivatives. The 'Slipstream' alerts will allow you to nip in and out of your favourite stocks, and bank regular gains...

...without losing any ground on your long position!

If you'd like to watch your large cap returns explode over the next 12 months, now is the time to light the fuse.

To receive our Slipstream Trader email
alerts on a risk-free, 60-day trial basis, click here.


Kind regards,



Kris Sayce
Investment Director

P.S.

As I said above, it's early days for the Slipstream Trader service. But a fair question is how the service is actually performing now that it's up and running. You may like the idea of small-cap profits from blue-chip stocks as much as I do. But is it actually working?

Here are the early:

A total of six trades have been recommended so far. Three trades are open and three are closed

Of the closed trades, we had two small losses and one winner.

The losses were -6.3% on a Fortescue Metals (ASX:FMG) long and -8.1% on a Bank of Queensland short (ASX:BOQ)

The winner was 8.7% profit in ten days on an AXA (ASX:AXA) long.

Of the three open positions, two are up (19% and 6%) and one is down (-4.9%)

Two of the open trades are energy trades (one long and one short) and the third is a short financial (via a major financial stock that looked weak technically)

Obviously I can't tell you the name of the stocks in the three open trades. That's for paid subscribers only. But I can tell you that it looks like that Slipstream's main analyst, Murray Dawes, is in the perfect spot to profit no matter which way the market goes.

That's the whole point of being market neutral and watching the indicators. You don't have to have an opinion. You just watch the charts and make the trades that look the best. Sometimes they're long. Sometimes they're short. Sometimes they're both.

The last point I'll make is that the losses are small, and that's the idea. Murray calculates exactly how much of your capital is going to be at risk in each trade. Sticking to your stop losses is absolutely crucial to your overall performance over time.

If you do subscribe and fail to observe those stop-loss levels, don't say we didn't warn you! The strict risk control is one of the main benefits of Murray's style of trading.

The main benefit, though, will be making big gains. As I said, it's early days, so it's too soon to say what you can regularly expect from live-action Slipstreaming.



All content is © 2005 - 2009 Port Phillip Publishing Pty Ltd All Rights Reserved

Port Phillip Publishing Pty Ltd holds an Australian Financial Services License: 323 988.

ACN: 117 765 009 ABN: 33 117 765 009

Port Phillip Publishing
Attn: Slipstream Trader
PO Box 899
Braeside
VIC 3195

Tel: 1300 667 481
Fax: (03) 9558 2219

Calculating Your Future Returns

It's important to remember that investing in shares can lose you some or all of your investment money. Never invest more than you can afford to lose. Please seek independent financial advice regarding your particular situation.

While useful for detecting patterns, the past is not a guide to future performance. The value of any investment, and the income derived from it, can go down as well as up. All Slipstream Trader examples in this promotion are based on back testing. All prices quoted are correct at 09/09/09.