MARKET MASTER(tm) USER'S GUIDE

You are free to copy and distribute the original or archived copy of 
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MarketMaster(tm) Ver. MMT453 is distributed as "as is" and for trial use.
Trial use does not extend to later or other Series or Versions, nor 
accessories, unless expressly so declared in writing by the publisher, 
R.M.C.  

THE RELEASE OF A LATER VERSION NUMBER IS AUTOMATIC NOTICE THAT ALL 
PRIOR VERSIONS ARE NO LONGER TO BE CIRCULATED AND ARE WITHDRAWN FROM
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MARKETMASTER MAY NO LONGER BE USED OR CIRCULATED.  THE ONLY VERSION THAT
MAY CIRCULATE AND BE USED IS THIS VERSION, DENOTED IN COMPRESSED FILE
AS MMT453.EXE, OR MMT453.ZIP OR MMT453.LZH.

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MarketMaster(tm) Version/Release number follows this pattern:

                  Version Number                                  
                              |     
     Shareware Version -- MMT 4 5 3  
                               /   \
                  Release Level     Correction Level

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are serious about investing, you would be wise to order the commercial
version of MarketMaster(tm).  Commercial version provides you with the
very latest price forecasts.

To order a commercial version, please use the Order Form in the
accompanying file ORDER_FM.TXT, or call R.M.C. at 408-773-8715 
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MarketMaster is copyrighted. Copyright(c) 1989-93 by R.M.C. You may 
not decompile, disassemble or reverse engineer any version of 
MarketMaster, nor modify MarketMaster itself without prior written 
consent from R.M.C., or act in any way that impairs the proprietary 
and intellectual property rights of R.M.C. or its successors and 
assigns.

R.M.C. retains the title and ownership of the MarketMaster programs 
and support files but grants you a lease and license for their use, 
provided that you abide by the terms herein.

The author, manufacturer and publisher retain all rights to the 
program and support files and can make changes to them, or withdraw 
them from public use altogether, at their sole discretion and without 
notice.

Your use of MarketMaster constitutes representation that you are fully 
aware of the inherently uncertain nature of forecasting, and in 
particular financial forecasting, as well as the risks inherent in 
buying and selling in the financial markets, and that the output of 
MarketMaster does not constitute "advice" or "recommendations", and 
that past performance is no guarantee of future results.


DEAR INVESTOR/TRADER:
Thank you for trying Market Master, the world's most 
accurate and versatile price forecasting software.  Even 
though you are eager to start running Market Master right 
away, you will gain the most, if you take the next twenty 
minutes to carefully read through this user's guide.  
Refer to it again to refresh your memory or understanding 
if anything remains unclear.  Please note that the 
shareware version is aged 5 days when compared with the 
commercial version, i.e. you'll see the forecasts 
displayed but with the last five days removed. Other than 
this, the shareware version is identical to the commercial 
version in other respects.  Naturally, it is far more 
profitable to use the commercial version, although much 
benefit can be derived from the shareware version.  

Whether you use Market Master to predict the prices of 
stocks, futures or market indices, you can feel confident 
that Market Master will help make your trading much more 
profitable.

Your use of Market Master constitutes representation that 
you are fully aware of the inherently uncertain nature of 
forecasting, and in particular, financial forecasting, as 
well as the risks inherent in buying and selling in the 
financial markets, and that the output of Market Master 
does not constitute "advice" or "recommendations", and 
that past performance is no guarantee of future results.

Copyright Information
Market Master is copyrighted. Copyright(c) 1989-93 by RMC. 
You may not decompile, disassemble or reverse engineer any 
version of Market Master, nor modify Market Master itself 
without prior written consent from RMC, or act in any way 
that impairs the proprietary and intellectual property 
rights of RMC and the like interests of the publisher or 
distributors of Market Master, and their successors and 
assigns.

RMC retains the title and ownership of the Market Master 
programs and support files but grants you a lease and 
license for their use, provided that you are the original 
owner of the program and abide by the terms herein.

Except for the aforementioned lease and license, the 
author, manufacturer and publisher retain all rights to 
the Market Master program and support files and can make 
changes to them, or withdraw them from public use 
altogether, at their sole discretion and without notice.

HARDWARE REQUIREMENTS
IBM PC or compatible with 512K RAM, DOS 2.0 or later, and 
a minimum hard disk space of 950K (less than 1 Mb).
While a VGA monitor would be best, any monitor will do.  
Note that for CGA monitors, the program picks the highest 
resolution which usually results in a two-color black and 
white display.

DATA REQUIREMENTS
For the one- or two-indicator Market Master, you only need 
the daily high, low, and close prices for each security, 
futures contract or market index you are tracking.  The 
four-indicator version will also utilize, but does not 
require, volume data. 

You'll need a minimum of 18 days of data to begin a 
forecast.  The maximum number of days of data the program 
will use is 62 days.  The first 12 days of data are used 
as the initial foundation for Market Master 's analysis 
and are not displayed on the graphs that Market Master 
produces.  Simply enter the data for at least the 
preceding 18 days from publications such as Investor's 
Business Daily or Wall Street Journal, or use the data 
files from a data bank source.

Market Master assumes that the data are real historic 
observations and processes them with that assumption. 
Certainly if the numbers are false or inaccurate, the 
processing will be meaningless and computational failure 
may result. To avoid problems, always use real historic 
data. For best results, pick only actively traded issues 
for your analysis. Not only will the forecasts be more 
accurate, these are also the types of investment/trading 
vehicles that you'll want to use since they tend to offer 
the most opportunities for profit and the least slippage.  
Please note that volume information is not needed or used 
in the analysis by Indicator 1 or Indicator 2, but are 
used in analysis by Indicators 3 and 4. If you use the 1- 
or 2-indicator version, there is no harm in entering 
volume data if you wish to simply note it for the record 
and make your files ready for use with a more advanced 
version of Market Master at a later time.

How to convert on-line data to work with Market Master
Market Master uses dBASE file format for its data files 
and records. Market Master will not accept real-time data, 
or data in DIF format. It can use data files that have 
been converted to specific ASCII format, or CSI or 
MetaStock format, and it also allows manual entry of data 
via the keyboard. If you wish to do data/file conversion, 
two optional file converters are available from us:

1) ASCII File Converter (C1) converts certain ASCII data 
files (such as Future Link, Future Source, AIQ and PRN 
text files) to work with Market Master's dBASE format. The 
ASCII data must be comma delimited and in the following 
format: YYMMDD for date, plus price data (High, Low, 
Close) and volume in any order. All fields in each record 
must be separated by a comma, although extraneous fields 
are okay, e.g. symbol field, open interest field, etc. 
Additionally, each record must reside on just one line 
(i.e. end with <CR> <LF>). For example," 920118, 20, 17, 
18.5, 3579 <CR> <LF>" is fine, so is "XYZ, 920118, 20, 17, 
18.5, 3579 <CR> <LF>". The ASCII file converter does not 
work for ASCII data separated by blank spaces. Typically 
you have five fields: Date, High, Low, Close, Volume, 
although more fields are permissible and the fields can be 
in any order. You will need to check with your data source 
whether data provided is in the above format.

2) Metastock/CSI Converter(C2) converts data files from 
CSI, Metastock, and Computrac data formats to dBASE 
format.

HOW TO INSTALL MARKET MASTER
Create a directory on your hard disk using whatever 
directory name you like (e.g., MM or MMASTER) and copy all 
the Market Master files from the floppy disk over to this 
newly created directory.  

Next, go to the newly created directory containing the 
files you just copied.  Type "GO" and press the 
<Return/Enter> key to extract the compressed files that 
are now on your hard disk.  That's all there is to the 
installation!

If you have upgraded to a higher or newer version of 
Market Master and wish to continue to use your data files, 
you should first install the newer version in a new 
directory.  Then copy all your old data files into this 
new directory.

HOW TO USE MARKET MASTER
After installing Market Master as described above,  you 
should temporarily insert the original disk (the "key 
disk") in the floppy drive when Market Master checks for 
its presence.  Otherwise, the program will not run. You 
can remove the disk after the check.

To run the program, go to the directory containing Market 
Master.  Type "GO" and press the <Return/Enter> key to 
begin.

After the introductory screens, the main menu will be 
displayed.  From this menu, you can choose to:
1) View a demonstration file
2) Create a new file or retrieve an existing file, or
3) Exit the program

ABOUT DEMONSTRATION FILES:
Demo files all end with a hyphen so that they are easily 
identifiable. These demonstration files are also working 
files whose data can be updated, edited, deleted, etc.

TO CREATE OR RETRIEVE A FILE
If you want to do your own analysis, enter the name of the 
file you wish to create or want to use. If that file has 
not been previously created, Market Master will 
automatically create it for you so that you can begin data 
entry for that file.  Market Master automatically adds the 
file extension, "DBF" (data base file), to all data files.

For example, if you want to track IBM stock and name your 
file "IBM", simply type "IBM" when Market Master asks what 
file you want, then press the <Enter> key. If a file named 
"IBM.DBF" already exists on the disk, it will be 
automatically fetched and opened. If the file does not 
exist, it will be created.

To view the list of all the existing files, type "?" and 
press the <Enter> key.  Press the first letter of the file 
name and/or use the up and down arrow keys to scroll 
through the list and select the file you want to open. 
Then press the <Enter> key to open that file.

THE COMMAND MENU
Once your data file is chosen (or created, if not found on 
the disk), you will be presented with a command menu 
similar to those found in spread sheet programs such as 
Lotus 1-2-3. You will see a line at the top of the screen 
with "Record #" (that tells you which record you are 
viewing. A new file will say 0 of 0.), "File:" (the name 
of the file you are viewing), and "Last Update" (today's 
date).

You move (i.e., cycle) from one command to the next by 
pressing the space bar or the arrow keys. As you move from 
command to command, a description of the function of the 
high-lighted command will be displayed on the last line of 
the screen. Use the space bar to move to the different 
commands and familiarize yourself with the functions of 
each command. Note that the DELETE command is a toggle in 
that it will alternate between the functions of DELETE and 
UNDELETE.

The following is a listing of the commands, and their 
respective function and purpose:
(We first present the command, followed by its function, 
then followed by its purpose.)

COMMAND: 1st
FUNCTION: Use first indicator to forecast
PURPOSE: Displays price forecast and graph using first 
indicator.

COMMAND: 2nd
FUNCTION: Use second indicator to forecast.
PURPOSE: Displays price forecast and graph using second 
indicator.

COMMAND: 3rd
FUNCTION: Use third indicator to forecast.
PURPOSE: Displays price forecast and graph using third 
indicator.

COMMAND: 4th
FUNCTION: Use fourth indicator to forecast.
PURPOSE: Displays price forecast and graph using fourth 
indicator.

COMMAND: CrOvr
FUNCTION: Crossover analysis of 5-day and 11-day moving 
averages.
PURPOSE: Displays a graph of 5- and 11-day moving 
averages.

COMMAND: View
FUNCTION: Browse file in table format.
PURPOSE: Line by line display of data in file with new 
commands.

COMMAND: Next
FUNCTION: Display next record.
PURPOSE: Displays the next record in the file.

COMMAND: Prev.
FUNCTION: Display previous record.
PURPOSE: Displays the previous record in the file.

COMMAND: Top
FUNCTION: Display first record in file.
PURPOSE: Displays the first record in the file.

COMMAND: Bottom
FUNCTION: Display last record in file.
PURPOSE: Displays the last record in the file.

COMMAND: Edit
FUNCTION: Edit currently displayed record.
PURPOSE: Allows you to edit the record on the screen.

COMMAND: Add
FUNCTION: Append new record to file.
PURPOSE: Allows you to add a new record to the file.

COMMAND: Del
FUNCTION: Mark current record for future deletion.
PURPOSE: Marks the record on the screen for deletion. This 
is a toggle function. Strike once to delete. Strike again 
to undelete.

COMMAND: File
FUNCTION: Select another database file.
PURPOSE: Returns you to the main menu and allows you to 
select another file.

COMMAND: Quit
FUNCTION: Quit to DOS.
PURPOSE: Exits Market Master and returns you to the DOS 
function.

TO SELECT A COMMAND FROM THE COMMAND MENU
1. Press the space bar to select the command, then press 
the <Enter> key, or
2. Use the arrow keys to select the command, then press 
the <Enter> key, or
3. Press the first letter of the command (e.g. N for 
Next,) or the number of the indicators (e.g. 1 for 1st).
To display the desired record
Use the following commands:
"Next" to display the next record in the file.
"Prev." to display the previous record in the file.
"Top" to display the first record in the file.
"Bottom" to display the last record in the file.

TO ADD NEW DATA
Select the "ADD" command. The program is designed to take 
in Date, High, Low, Close and Volume data. The cursor will 
first be positioned in the DATE field. Enter the date as 
YYMMDD. The cursor will then move down to the next field. 
Enter the high, low, close and volume respectively. The 1- 
and 2-indicator Market Master do not use the volume data 
and it is not necessary to enter the volume data. You may 
wish to key in the volume data if you plan to upgrade soon 
to a 4-indicator version which will use volume data. Once 
the last field has been keyed in, press the <Enter> key 
and the system will process and save the information. To 
add data for another date, just select the "ADD" command 
again and proceed to enter more data.

TO EDIT EXISTING DATA
Select the "EDIT" command after you have displayed the 
record you wish to edit. The cursor will be positioned in 
the DATE field. Move between the fields using the arrow 
keys. Key over the data you want to edit/change. When you 
are finished with editing the data for a particular date, 
press the <Enter> key to save the information. To edit 
another set of data, select the "EDIT" command again and 
proceed to edit more data.

TO DELETE DATA
Note: The DELETE command is a toggle in that it will 
alternate between the functions of DELETE and UNDELETE. 
Select the "DEL" command after you have displayed the 
record you wish to delete. The word "DELETED" will now 
replace "RECORD" on the left upper corner indicating that 
the record has been marked for future deletion. To undo 
the DELETE command (to UNDELETE), select the "DEL" command 
again. You can UNDELETE any record marked for future 
deletion at any time prior to viewing a forecast graph or 
exiting the file. Once you have used an indicator to 
forecast or have exited the file, all the records marked 
for future deletion are permanently deleted. Records 
marked for deletion are not used in the forecasts.

TO SELECT ANOTHER FILE
Selecting the "FILE" command will return you to the main 
menu and allow you to select and open another file.

THE VIEW / BROWSE MODE
The use of the View command immediately provides you with 
a line-by-line display of data records in table format 
(also known as the "Browse Mode"). Once you are in View or 
Browse mode, the Lotus-style menu will no longer be 
operative. Instead, use the new commands as described on 
the top of the screen to navigate or manipulate data. You 
can use the arrow keys to move from record to record, and 
from field to field.

You might find the View mode more convenient for adding 
(i.e. Appending), updating (i.e. Editing) or deleting 
records, but this is largely a matter of personal choice.

The following are the commands found in the VIEW mode:

^U = DELETE (WHILE HOLDING DOWN THE <CTRL> KEY, PRESS THE 
<U> KEY).
It is the same as the Delete/Undelete toggle in the 
aforementioned Lotus-style command menu. You can mark each 
line of record as Deleted or Undeleted using the Control-U 
key combination. Use the arrow keys to move and select the 
record you wish to delete. Then press ^U. The record will 
then be marked for future deletion. To UNDELETE, press ^U 
again. The records marked for future deletion will remain 
on the screen until a forecast is made using one of the 
indicators or until the file is closed. You can UNDELETE 
any of these marked records any time before you use an 
indicator to make a forecast or before you exit the file.

F2 = EDIT
Use the arrow keys to select the data you wish to edit. 
Press the <F2> key to mark the data and then key over the 
data you want to change.

F3 = APPEND / ADD
Press the <F3> key and a message will be displayed on the 
bottom of the screen: "Proceed to append record? N". If 
the answer is yes, key in a "Y". The cursor will be 
positioned at the top of the screen where a new line has 
been created for the new data entry. Key in the data for 
the record you wish to add and press the <Enter> key when 
you are done. To add another record, Press the <F3> key 
again.

F5 = GO TO
To go to a specific numbered record, press the <F5> key. A 
message will be displayed at the bottom of the screen: "Go 
to record __". Key in the number of the record you wish to 
view and the system will display that record as the first 
record on the screen.

F6 = FIND
To find the record for a specific date, press the <F6> 
key. A message will be displayed at the bottom of the 
screen: "Find YY.MM.DD" with the default date being the 
date of the record on which the cursor was resting. Key 
over the default date with the date of the record you wish 
to view. Be sure to key in the periods between YY, MM and 
DD. The system will display that record as the first 
record on the screen.

ENTER / ESC
Press the <Enter> or <Esc> key to exit the View mode and 
return to the main data screen and the Command menu.

HOW TO INTERPRET THE MARKET MASTER FORECAST GRAPHS
The Difference Between The Indicators
The indicators differ in their different methods of 
analysis and forecasting of the market and in their 
leading characteristics: Statistically, Indicators 3 and 4 
predict earlier than Indicators 1 and 2, although this may 
vary depending on the situation. Each indicator also 
provides a different perspective of the market. Viewed 
together, the battery of indicators provides a 
comprehensive overview of different impending market 
forces acting to bring about the predicted price change. 
By way of illustration, if one wishes to know what the 
interior of a car looks like, he gets a lot of information 
by looking through the front and rear windshields. 
However, if he is further able to look through each of the 
side windows, he will get the best assessment of the car's 
interior. There will be instances when some of the 
forecasting indicators do not agree. To be most 
conservative, choose only those opportunities where all 
the forecasting indicators agree and the forecasted price 
change is large.  

Interpreting The Graphs
The analysis and forecast graphs generated by Market 
Master use data from the last 62 days. The first 12 days 
of data serve as the initial foundation for analysis and 
are not displayed ( nor are the daily highs, lows and 
volume, even though they are used in the analysis). Thus 
up to 50 days of closing prices and analysis are 
displayed. The latest data and forecast are displayed on 
the rightmost end of the graph.

For each analysis and forecast, a graph display with 3 
lines will be presented:
The blue (or dotted) line is the closing price line 
showing the actual closing prices for up to the last 50 
days.
The yellow (or solid) line is the forecasting indicator 
line which forecasts the probable future price direction 
and target.
The green (or dashed) confirming indicator line confirms 
what has been forecasted and serves to justify a planned 
position-it will help keep you from entering or exiting 
the market prematurely.

The confirming indicator confirms whether the actual price 
has topped or bottomed. This is useful because of the 
substantial lead time that forecasts can sometimes precede 
a price turning point. It is not unusual for a market to 
be bearish as indicated by the forecasting indicator line, 
and yet the prices do not decline right away, and vice 
versa.

After knowing the market will be bullish or bearish from 
the forecasting indicators, whether to establish or to 
keep a position can then be determined by referencing the 
confirming indicator. A bullish position is well justified 
if the forecasting indicator is bullish (i.e. 
substantially above the closing price) and the closing 
price remains above (and NOT equal to) the confirming 
indicator. The case for a bearish position is well 
justified so long as the forecasting indicator is bearish 
(i.e. substantially below the closing price) and the 
closing price remains below (and NOT equal to) the 
confirming indicator.

By comparing the forecasting indicator line with the 
closing price line and the confirming indicator line, you 
can immediately determine the near-term price outlook. In 
general, if the forecasting indicator line is above the 
closing price line, and the closing price line is above 
the confirming indicator line, a bullish position is 
justified. This is so because the forecasting indicator is 
telling you that the future price/direction will be above 
the current price and this is further confirmed by the 
closing price line being above the confirming indicator 
line.

Conversely if the forecasting indicator is below the 
closing price line, and the closing price line drops below 
the confirming line, a bearish position is justified.

Moreover, the degree of bullishness or bearishness can be 
gauged by the amount that the forecasting indicator line 
is above or below the closing price line. A deteriorating 
bullish situation (i.e. one less bullish) is indicated 
where the forecasting indicator line, although above the 
closing price line, is rapidly dropping or moving towards 
said closing price line. Conversely, a decreasingly 
bearish situation (i.e. less bearish) is one where the 
forecasting indicator line, although below the closing 
price line, is moving up relative to said closing line and 
approaching it from below. 

Theoretical buy signals are triggered where the 
forecasting indicator line is above the closing price line 
which in turn crossed above the confirming indicator line. 
Theoretical sell signals are triggered where the 
forecasting indicator line is below the closing price line 
which in turn crossed below the confirming indicator line. 
In practice, you would want to pay attention to the 
magnitude of future price movement by comparing the target 
price (as indicated by the forecasting indicator line) 
with the current price (as indicated by the closing price 
line) to see if it is of sufficient magnitude to justify a 
trade, after taking into consideration commission, 
slippage, frequency of trading and other personal 
preferences, etc.

For a bullish forecast, buy when the closing price is 
above the confirming indicator and the magnitude of upside 
movement, as shown by the forecasting indicator, is 
sufficiently large.
For a bearish forecast, sell when the closing price is 
below the confirming indicator and a sufficiently large 
downward movement, as shown by the forecasting indicator, 
is evident.

The amount of lead in each forecast is highly data 
dependent. The nature of the underlying stock, future, 
index or mutual fund, does affect the amount of lead time. 
If you do not want to rely on confirming indicators (which 
tend to be conservative), it is advisable to adjust for 
the amount of lead time by referencing recent forecast 
history. For example, if for a certain stock, the buy 
signals from the forecasting indicator tend to come a day 
before the true price bottom, then you would want to take 
that into account in planning your entry or exit, 
particularly if you do not want to wait for the confirming 
indicator to confirm. Likewise, if the sell signal for 
this same stock tends to come 3 days ahead of the true 
top, you would want to consider waiting for about 3 days 
after a bearish forecast, or until the signal is confirmed 
by the confirming indicator, before selling or going 
short.

Each stock, futures contract or security has its own 
peculiar lead time for the buy and sell signals and an 
examination of the graphic display given by Market Master 
will usually provide the clue as to how much time 
adjustment to make. Or you can wait for the confirmation 
from the confirming indicator. Please note that as 
situations warrant, Market Master rescales the forecasting 
and confirming indicator lines before predicting the next 
period in order to provide more useful forecast displays 
for better decision-making.

For bullish or long positions, it is advisable to arrange 
the price targets or price changes in ascending order for 
planning purposes.  It is important and desirable to open 
a position only at or near a price turning point.  This is 
so because at a price turning point, your risk is least 
and your profit potential is maximized.  For example, if 
the price of a stock is currently at a turning point and 
selling for $50 and the forecasts are as follows:

Indicator               #1              #2              #3              #4      
Target                  $52             $51             $54             $53             

You would rearrange the various targets in ascending order 
as follows:

Indicator               #2              #1              #4              #3
Target                  $51             $52             $53             $54     

Your expectation then is that the price will first move to 
$51, then $52, then $53, and finally $54 under ideal 
conditions.  However, since circumstances are rarely 
ideal, you may expect some corrections on the way up.  Let 
us assume that subsequently the price moved to $53.25 and 
then drops, you will learn that the lowest 3 targets are 
met for the earlier turning point at $50.  This will serve 
as a guide to utilize the lowest 3 targets as realistic 
short-term goals at the next price low (i.e. bullish price 
turning point), that way, you will not hold for 
unrealistic moves in the short-term.

Strategies can be highly important in the success of your 
trading.  This is an area that is outside the scope of  
Market Master, which deals only with forecasting.  
Generally, it is highly advisable to trade in stocks and 
instruments that are optionable.  There are, for example, 
more than 800 stocks that have options. 

As an example of a bearish or short position, let us 
assume that the stock is trading at $100 and is at a price 
top (i.e. bearish price turning point) and the following 
forecasts are obtained:

Indicator               #1              #2              #3              #4      
Target                  $96             $97             $94             $95     

You would rearrange the various targets in descending 
order as follows:

Indicator               #2              #1              #4              #3      
Target                  $97             $96             $95             $94     

Assuming that you are satisfied that you are at or close 
to a price peak and want to go short, you may wish to free 
yourself from the risk of unexpected upside swings.  You 
may, for example, choose to buy a short-term, at- or out-
of-the-money call for each 100 shares that you go short at 
$100.  Alternatively, you can buy a straddle with strike 
price of $100 and then go short 100 shares for each 
straddle, which is an even more bearish strategy.  The 
advantage of such approaches are that you largely 
eliminate the anxiety that unexpected upside movement may 
bring.  Additionally, the need to be very accurate and 
precise about the true price top is somewhat reduced.   
Let us assume that prices then drop to $94.5 before 
rebounding.  From  this experience, one may tentatively 
conclude that the lowest four magnitudes of price 
movements are realistically achievable in the short term 
when first obtained at a price top (i.e. bearish price 
turning point).   This is helpful to know because in a 
bear market, increasing number of downside targets from a 
price peak will be quickly reached in the short-term and 
decreasing number of upside targets will be achieved from 
a price bottom.  Such experience and observations help to 
assess the overall condition of the market (i.e. bullish 
or bearish).  If you find upside targets are hard to meet 
and downside targets are readily met, it is an indication 
that short positions are to be favored, and vice versa.  
Typically, you would adopt a strategy wherein you would be 
prepared to close out if a certain number (based on prior 
experience) of nearest price targets (originally 
forecasted from a price turning point) are met.  Even if 
the forecasts indicate a very substantial additional 
movement remaining, it would be prudent to take some 
profits.

It is also important to stay out of situations that are 
not clear cut or not rewarding.  In trading, there should 
be no egotism, only pragmatism.

Interpretation Of Crossover Analysis
In addition to the 4 forecasting indicators, a cross-over 
analysis of the 5-day and the 11-day moving averages is 
also available. At the Main Menu, press 'C' or choose 
'CrOvr' command to activate this analysis. In this 
analysis, the yellow (solid) line would represent the 5-
day moving average, while the green (dashed) line would 
represent the 11-day moving average. The interpretation is 
classic; i.e., when the faster indicator (i.e. the 5-day 
moving average) is above the slower indicator (i.e. the 
11-day moving average), it is bullish. Conversely when the 
faster indicator (i.e. the 5-day moving average) is below 
the slower indicator (i.e. the 11-day moving average), it 
is bearish.
Printing the graph on the screen
If you wish to print the graph displayed on the screen, 
you should turn on you printer, make sure it has paper and 
then select your printer type. In a few seconds to a 
minute or more (depending on your printer), the graph will 
be transferred from your screen to your printer.

After the printer is finished with printing, the program 
presents you with the Main Menu for further instructions. 
Currently, for hard copy graphic output, we support all 
printers that are compatible with Epson-FX, HP-Laserjet, 
Epson-MX or IBM Proprinter. Be sure to set your printer to 
the proper emulation mode if it is other than the above 
named.

TRADING TIPS
Mutual Funds
Since these don't have daily high, low and close prices, 
the best approach is to forecast the index itself, if the 
mutual fund is an indexed fund. For example, if your 
mutual fund consists of OTC stocks, then it should closely 
follow the OTC (NASDAQ) Index. Simply enter the high, low 
and close for the Index and use the NASDAQ volume. 
Likewise, if your mutual fund is indexed to the S&P 500 
Index, you may then use the daily NYSE volume as the 
volume, and the daily high, low and close of the S&P 500 
Index.

Alternatively, you may use the high, low and close of the 
Dow Jones Industrial Average. In other words, always look 
for the Index that closely follow the fund. For example, 
use transportation index for transportation funds and 
utility index for utility funds. A note on volume data: It 
is not necessary to be exact on volume data; you can use 
the first three significant digits, which will be accurate 
enough.  The accuracy of price data is more important, and 
should be exact, if possible.

Sector funds may require special treatment. For example, 
to track a gold fund, first determine what is the major 
stock or stocks comprising that fund. A simplified 
approach is then to forecast the predominant stock within 
said sector fund. A more refined approach is to synthesize 
an index based on the top stocks comprising that fund, 
e.g., by taking the mean or average of their daily highs, 
lows, closes and volumes. A still more refined approach is 
to further weight the component stocks according to their 
share of the total fund value.  The ultimate position is 
to weight every stock comprising the fund to generate the 
synthetic index, in arriving at the synthetic high, low, 
close, and volume. However, don't get carried away with 
this, as a point of diminishing returns is quickly 
reached.

FUTURES
You can use Market Master to trade all futures including 
index futures, S&P 500, all agricultural futures (corn, 
pork belly, wheat, etc.), currency futures (Yen, Deutsch 
Mark, Swiss Franc, British Pound), energy futures (crude 
oil, gasoline), precious metals (gold silver, tin), 
interest rate futures (treasury bonds, GNMA), and overseas 
futures such as rubber, freight, etc..

Because volume data are not reported at the end of each 
day for futures contracts, one must enter an approximate 
or estimated volume, unless you decide not to use volume 
data at all.  You cannot just leave the volume figure as 
"0" when you have volume figures for previous records.  
Any reasonable volume figure will do (e.g., just enter 
previous day's volume as today's, and a day or two later, 
when the actual figures come out, edit the old numbers to 
reflect the true figures now available).  If you leave the 
last day's volume as "0" when the preceding figures are 
not "0", the forecasts will become inaccurate for 
Indicators 3 through 4.  You must either provide volume 
data for all the records in a file or for none of the 
records, unless you use Indicators 1 and 2 only, in which 
case volume data are not used and therefore irrelevant.

Because futures contracts expire, you should follow the 
different expiration months simultaneously so that if the 
nearest expiration expires, you have the next nearest to 
follow.  It is advisable to follow at least two of the 
nearest expiration futures (i.e., two that are about to 
expire) so that if one expires, pick the next nearest one 
and add the second nearest to expiration contract (so that 
you again have 2 contracts to follow).

STOCK OPTIONS
If you wish to use Market Master for stock options, we 
suggest that you forecast the underlying stocks instead of 
the options themselves. If you wish to trade stock index 
futures, we suggest that you analyze the underlying index 
itself.  For example, for the S&P 500 futures, it would be 
much better and more accurate to forecast the S&P 500 cash 
index by using the daily High, Low and Close of the cash 
index itself and by using the total New York Stock 
Exchange volume as a proxy for the volume of the 500 S&P 
stocks. Likewise, for OEX options trading or stock index 
futures options trading, the underlying cash index should 
be analyzed instead. Not only will the results be more 
accurate, the data is readily available and not delayed. 
Moreover, you avoid the problem associated with 
expirations as would exist if you were to analyze the 
futures or options directly. In the case of non-market-
index futures such as agricultural commodities, you may 
have no choice but to use the data relating to the 
particular commodities.

Besides stocks and futures contracts, areas where Market 
Master can be useful include the forecasting of the Dow 
Jones Industrial Average, a market index that has a High, 
Low, Close for each day. As for volume data, simply use 
the New York Stock Exchange Volume in lieu of the volume 
for the 30 industrials. This is preferable to no volume at 
all. You can use the signals for the broad market averages 
to switch between stock and money market funds without 
commission if you switch between no-load mutual funds.


STREET SHENANIGANS
It is taboo to talk about what goes on behind the scenes 
on Wall Street and that's why you don't hear about it.  
However, we believe the public deserve to know at least 
a little.  What we reveal here is just the tip of the 
iceberg, sufficient to pique your interest so that you 
will no longer have any excuse for being the innocent and 
naive investor/trader.  It is not our intention to provide 
you an education on Wall Street chicanery, as time and space 
do not permit this.  However, any sufficiently motivated 
investor/trader will embark on the rewarding path of 
discovery once shown a glimpse of the machinations of 
Wall Street, and that's what we intend to do here -- 
show you a glimpse.  We'll even give you some examples 
of profitable applications.  But the rest is up to you.  
You can go as far as you want to as there is no limit to 
your discoveries and financial rewards.  If you enjoy 
detective work and making money along the way; you may 
yet find your calling.

First, be assured that it is extremely easy to 
manipulate the stock market, and there are many ways to 
do it.  And because it is so extremely profitable and 
easy to do, it is done every day. For example, an 
influential Wall Street firm may "downgrade" a stock to 
flush out the sellers just before covering their short 
position in the firm's own trading account.  Or the firm 
may "upgrade" its recommendation on a stock after 
covering short and going long.  Such sure sources of 
"fast cash" routinely enable many Wall Streeters to rake 
in multi-millions in annual personal income.  Not a bad 
living at all when one can leisurely pick up in a month 
what most hard-working American families cannot hope to 
accumulate in a life time.  And it doesn't take brains 
or special ability, much less hard work or scruples.  

As always, Wall Street's game plan is much more 
effective and the profits much larger if it is carried 
out in a coordinated way, as it usually is.  You, John Q 
Public, however, would not be the perpetrator, but the 
keen observer.  Your goal is to try to ride on the 
coattails of these financial Goliaths to your own 
financial independence while avoiding being financially 
trampled like the rest of the public.  Don't ever expect 
to be invited to Wall Street's feast.  You simply go 
incognito and uninvited.  Be content with 
inconspicuously nibbling away at the crumbs near the 
edge of their table.  Stay invisible and make no noises, 
or you'll be bounced out from the Street party in a 
flash.  With the right attitude, you'll be able to 
consistently squirrel away from Wall Street what is 
rightfully your due.

To profit from such Street shenanigans, you do need to 
do some home work in order to buy (or cover) near price 
bottoms and sell (or short) near price tops.  Most of 
the time, all it requires is daily analysis with 
MarketMaster, close observation, and patience.  Lets 
first discuss the issue of when to buy. Ideally, you 
want a stock that has declined sharply and that has been 
touted by Wall Street (even as they unload it) on its 
way down.  After it has dropped very substantially a red 
flag is flashed if this downtrodden stock is somehow 
suddenly and belatedly "downgraded" by Wall Street at 
what is already rock-bottom prices.  The publics 
emotion at this point, having faithfully held on to the 
stock and ridden with the losses all the way down, is 
one of despair and fear, and their inclination is to 
either sell long (throw in the towel) or go short (in a 
vain hope to recoup) the stock when the media is full of 
planted "reasons" for why it must be sold "at once".  To 
succeed in this business, you need to keep any "herd 
instinct" in check and control your natural and 
emotional reaction to news plants and disinformation, 
and be ready to go against the crowd.  Follow 
MarketMaster particularly closely, as almost invariably 
it will soon point to unusual bullishness and prevent 
you from becoming a perfect contrary indicator.

In fact, while the crowd is selling long and selling 
short at rock bottom prices thanks to Wall Street's 
"advice", it is early warning to you that it is time to 
get ready, at least psychologically, to cover short and, 
somewhat later, go long.  However, to determine if the 
nearby important price support level for this 
downtrodden stock will hold or if record lows will be 
made, you must analyze it closely with MarketMaster.  
Typically, when Wall Street vigorously "downgrade" a 
stock, it may be days to several weeks before all the 
public's long positions are flushed out.  This is 
particularly true if such "downgrading" is coordinated 
and sustained.  One firm's "downgrading" may be followed 
by another firm's "downgrading".  The key here is to 
closely monitor the pronouncements of major investment 
firms on the subject stock by listening to their "news" 
dissemination while double-checking with MarketMaster.  
Be aware that such sustained "downgrading" may lead to 
prolonged price depression in the subject stock.  Both 
the public and the institutional investors need time to 
digest and obligingly carry out the sell 
"recommendations" of Wall Street.  Obligingly, Wall 
Street is surprisingly "patient" and "understanding" at 
this critical juncture with their repeat "warnings" so 
that the public may at last sell or go short at price 
bottoms with utmost confidence and courage.  

While this can be fascinating as you look ahead to the 
bullish opportunity that is unfolding, be sure to use 
the confirming indicator of MarketMaster to help keep 
you from buying too soon.  Remember, "a penny less paid 
is a penny earned", and a lot of times you are making 
money simply because the stock you'll ultimately 
purchase is getting cheaper each day.  Your goal is to 
pick up the depressed shares from the "clients" of Wall 
Street firms at the lowest possible price above $0.  
Your reward/risk ratio is much improved as the stock 
sinks to important price support levels, or even new 
lows. Our description here is necessarily limiting in 
that the whole process is a bit like bicycle riding.  
You learn and profit most by actively participating, 
experiencing and doing, initially with paper trades if 
necessary, but ultimately with real cash.  When you 
finally place your order to buy, do it in steps and ease 
yourself in with multiple trades over multiple days.  

In general, the more belated, severe and sustained the 
"downgrading" of a stock by Wall Street, the greater the 
need for patience and the greater the percentage of 
subsequent price recovery from price bottoms.  After 
getting in at price bottoms, follow the stock closely 
with MarketMaster and be prepared to take some quick and 
early profits.  Just remember that while you were 
nibbling to build your very modest long position, Wall 
Street was hauling in public shares by the truckloads to 
"maintain an orderly market".   Used to "fast cash" and 
instant gratification, Wall Street will always lighten 
up a bit on its massive inventory as the prices rise 
from their rock bottoms.  Likewise, you should reward 
yourself with some profit.  As often happens, Wall 
Street Goliaths loathe successful bottom fishers who 
cling to their coattails and will engineer a "retest of 
the low" to shake you out.  Having taken some profits, 
you now have extra profits and cash and therefore stand 
ready to replenish at the artificial price dip for 
another fast and profitable trade.  To gain insight into 
Wall Streets game plan, pay particularly close 
attention to what MarketMaster has to say.

Conversely, when a stock is "upgraded", there is often a 
waiting period during which buyers are exhausted of 
their cash by Wall Street's short sales before the stock 
price will decline.  The more firms there are 
"upgrading" a stock at price highs, the more sustained 
will be public buying and the more patience is called 
for before going short.  Ideally, you want a situation 
where a stock had a meteoric rise to a lofty peak as a 
result of heavy "upgrading" by Wall Street, then 
declined, and now once again being pumped up by Wall 
Street hype to re-approach its earlier lofty perch.   
Ideally, you want the maximum number of investment firms 
touting the stock in this second wave of induced public 
buying prior to establishing your short position.  This 
ensures that all potential buyers will have been hyped 
out of their reluctance and ignorance into buying.  Once 
this heavy public buying is exhausted by Wall Streets 
corresponding heavy short sale, a decline is inevitable, 
with a severity proportional to the earlier-manufactured 
public euphoria (or compulsion).  As stated earlier, 
gradually build up your short position and protect all 
short positions with calls, straddles, warrants and like 
instruments as you open them.  Again, be prepared to 
take some profits after a significant decline has 
occurred.  Follow the situation closely with 
MarketMaster.

There are times when a stock is at or near its highs, 
and suddenly, it drops as a result of "downgrading" by 
some Wall Street firms.  This is an indication that the 
firms are net short the stock.  Of course, if you are 
not yet short the stock, it may mean that you missed the 
top.  Nonetheless, Wall Street firms are extremely 
trading-oriented, because thats the way to optimize 
rate of return, and their transaction costs are 
virtually zero.  Therefore, there is some chance that 
upon short-covering, the stock price may rebound 
(although usually not to the level of the recent top).  
At this rebound, you may want to set up your bearish 
position(s).  Again, it is important to ease yourself 
into the position(s) in steps rather than in one single 
trade.  Again, always protect your short position(s) 
with calls, LEAPS, warrants, convertibles and other 
appropriate strategies.

MORE STREET SHENANIGANS
There are certain times during the day when one may gain 
a glimpse of the intentions and agendas of Wall Street.  
Lunch hour is a good time for the Street to try to make 
prices "look good" or "look bad".  The only disadvantage 
to the Street is that such cosmetics may not last if the 
bait is not taken, since there are two to three hours 
to go before the market closes.  Therefore, the last 
half hour of the trading day can be important.  It is 
much easier to drive up or down prices during the last 
half-hour or so to create the required cosmetic look 
during prime time news.  

To drive prices up and to help generate public 
bullishness, Wall Street will tend to concentrate its 
buying in the last half hour of trading, particularly if 
earlier lunch-hour makeup did not quite do the job.  
Likewise, to generate public bearishness, Wall Street 
may concentrate selling during the last half hour of the 
trading day.  Such "bullishness" or "bearishness" tend 
to carry over to the next days opening.  If you are a 
keen observer, you'll usually figure out what Wall 
Street's short-term agenda is likely to be and profit 
from this insight.  Of course, you will gain further 
insight by checking your assessments against the 
forecasts provided by MarketMaster.  For analysis of 
very short-term activity, you will need the magnifying 
power of the intra-day version of MarketMaster, which 
will permit hourly or half-hourly studies, in addition 
to end-of-day analyses.

Other than IPOs, there are times when Wall Street firms 
will offer to sell you stock without commission.  
Beware.  There is no free lunch on Wall Street.  Check 
with MarketMaster and you'll often find that the stock 
is ripe for short sale.  Years ago, before the existence 
of MarketMaster, we were able to compile very profitable 
short-sale lists from the stocks regularly offered "net" 
(i.e. without commission charges) to the public by a 
leading brokerage firm.  The firm routinely used this 
method to unload its "slow-moving" inventory to the 
public, who typically keep the stock (i.e. remove from 
circulation) after purchase rather than trade them (i.e. 
return to circulation).  

Were the leading brokerage firm to dump its stale 
inventory on the floor of the exchange, it would have 
lead to sharp price breaks and cost many times the 
waived commission charges.  Typically, the account 
executive who sells the stock will be given extra 
commission and/or payout by the brokerage firm directly 
but the public buyer is not supposed to know this.  
There are times when the stock is so bearish that the 
account executive is offered double commission by the 
brokerage firm while the public is charged none.  This 
is a potent indication that the stock is extraordinarily 
bearish.  In all cases that we studied, the stocks 
involved tumbled badly within a few weeks, resulting in 
severe losses to the public customers who thought they
were saving commissions on good, timely stocks as touted
by the firm.

TECHNICAL SUPPORT
If you have a technical question about or need technical 
assistance with Market Master, please call 408-773-8715.  
If your call cannot be answered right away, we'll try to 
return your call, collect, at the preferred time you 
indicate.

If you desire to upgrade to a newer or more advanced 
version of Market Master, please call 408-773-8715 for 
more instructions.

RMC, P.O. Box 60842, Sunnyvale, CA 94088-0842, USA
Acknowledgment:  IBM, Investor's Business Daily, Wall 
Street Journal, dBase, MetaStock, CSI, S&P 500 and Lotus 
1-2-3, Future Link, Future Source, AIQ, PRN, Computrac, 
and Warner are trademarks of their respective owners.

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