Tango5 Members Update                               032909

TangoETF Inverse (Long Short) Option Progress 

Just a quick report on our progress in coding the Inverse Option for the Tango Aggressive, Moderate, and Conservative to run on the server. We have the trading system working and validated and are working on the output reports. I hope to have the trading system and output running on the server and my computer next week, then some more checking and validating and go live before the next TabgoETF sell signal (hoping the sell signal is several months away), then we will go live. We will definitely have it ready before the next time for a shorting decision.

This chart below is a comparison of the Tango Aggressive without the Inverse Option (green) and with the option (red) and the S&P500 (light blue) for reference. It makes a substantial improvement in the other two trading systems as well.

John Mauldin's current e-letter discusses the long term profitability of stocks vs. bonds, some very interesting stats and another nail in the "Buy and Hope (Hold)" coffin. The flavor of the report is such that he thinks we have more financial problems to overcome before we see the next Bull Market, I tend to agree with him. I have said before only a fool forecasts the stock market but I have a chart to demonstrate what the bottom might look like. This is just for fun, but you see the bottom of the 2001-2002 bear market shown at the dotted pole bellow. You see a violent up move off the bottom, then more gradual move up, a roll over and down for a low above the previous low. The once again a violent move up, a quick retracement then a really big bull market for the next year. This is the likely process from here, the bottom is probably in and one or more moves up a sell off with a higher bottom and then the real bull market. Time will tell. 

There has been a number of Tango5 subscribers that emailed me to say they would subscribe to the TangoETF trading system if I would put in a shorting strategy for these bear markets. We will be using the Inverse Option at the next shorting opportunity, so now is a good time to subscribe to TangoETF to take advantage of this next shorting opportunity. 

Some thoughts from John Mauldin on the Stock vs Bond market  Why Bother with Bonds
John Mauldin http://www.frontlinethoughts.com

Making money, Don

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