It may have been a coincidence, but two weeks ago I wrote an essay called, "Making a Quick Killing," and last week I wrote about two VectorVest users, Mr. David Price and Dr. Sarosh Quereshy, who did very well, indeed, in the recent CNBC Million Dollar Portfolio Challenge. Both gentlemen got off to a good start; then made huge profits during the last week of trading. That was no coincidence.

Actually, both gentlemen were in sync with VectorVest's guidance, and both managed their portfolios in a similar fashion. They started out very well by using the "Stalwarts" strategy, faltered a bit; then made huge killings when the market exploded off of the July 15th bottom. David made $1,000,000 in the last two days of trading and Sarosh gained 38% in the last week. They did exactly what I hope you will do: they learned how to use our guidance and act on their own. What do I mean by that?

I firmly believe that market direction is the single most important thing you need to know in order to consistently make money in the stock market. You must let the trend be your friend. So we work very diligently on indentifying the market's trend. We want you to buy long in an up market and go into cash and/or sell short in a down market. Therefore, market direction is the headline story on our Home Page. The Market Barometer and the Color Guard at the top of the home page give immediate, visual representations of what the market is doing. Read them like you would a traffic light. Green is go, (up), yellow is caution, (transition), and red is stop, (down). That's the easy part.

The hard part comes in knowing what to do with this information. Since different investors respond differently to the same information, we provide guidance to three types of investors: Prudent, Aggressive/Traders and those who are "Riding-the-Wave." Implicit in this guidance is the belief that the market will follow a path suggested by our indicators. For example, if we have three red lights and a DnDn situation like we had after yesterday's close, our guidance will be to play the market to the downside. This is all well and good, but you cannot commit your trades until you see what the market is actually doing at the time you trade. YOU MUST GO WITH THE FLOW.

Last night we said we "will go short tomorrow with one of the following strategies if the market moves to the downside." Well, the futures were pointing up this morning and the DJIA is up about 200 points as I write this essay. Consequently, we haven't gone short yet today and it doesn't look like we will. This should not surprise you. Please read my essays of 12/23/05 and 11/24/06. They explain in detail how we manage the Model Portfolio. Memorize what these essays say, and you will be on your way to doing what Dave and Sarosh did: use our guidance, act on your own and Become One of the Best.