Model Portfolio wildmap:GRQ/M

The primary cycles for 2009 called for a sell-off in a late February low, a rally into mid to late July, followed by a new bear plunge August and September, before a recovery bounce lands to end the year.

So four major swings - four major profit opportunity - expected in 2009.

The fist one worked like a charm - with a major swoon and new bear market lows for the major stock indexes (while GrQ made money) - and the rebound off the March lows through July delivered sweet gains too in-line with cycle expectations, and now we are set up for third of those cycle swings, as we get set to enter a potentially very bearish period August and September.

The AlphaKing trading system (which I use for my flag-ship GrQ Bull/Bear Small Cap fund) uses a targeted trend following approach as its primary trading weapon, using cycles and other technical variables to help define how aggressive trades should be at any given time. The portfolio currently has a net long position that is hedged with some inverse ETFs, and ready to make the profit taking switch from long to net short my trend indicators say it is time.

2009 continues to offer great opportunities to profit, but only for those riding the ups and downs in what should continue to be a very volatile year.