We would like to clear up what we see as some misperceptions some VoSI members have with respect to Pocket Pivot Review and Follow the Stock reports. The first is that we do not necessariliy take a position ourselves in every stock we discuss in these reports - do not assume that this is the case. We both manage our own personal accounts, as well as a private fund that holds our retirement funds and which we manage jointly. Because of definite differences in style, we do not always buy and sell stocks in the same manner, or hold stocks for the same period. Trying to figure out what we are doing with a stock will not help you, it will only serve to confuse you, and disclosing our trades and positions in real-time is not within the scope of this website as it is a violation of our fiduciary duties as private fund managers.

Follow the Stock is intended to give members a rules-based narrative on a particular stock we pick in real-time. It does not imply that we are trading the stock ourselves, unless we specifically say so. Follow the Stock is also not necessarily intended for members to follow along by taking a position themselves - that is their own choice and one that must be made in accordance with proper risk-controls specific to one's own psychology and position sizing relative to their portfolio value. This section of the website uses Dr. K's mechanical rules for handling positions on the long side, while the short side is generally handled by Gil who specializes in this sort of thing, as you have seen in the recent FTS piece on Salesforce.com (CRM) as a tactical short-sale. We do intend, however, to move such short-sale ideas to a new section we will be initiating in the next few days titled, "Short-Sale Set-Ups."

Pocket Pivot Review is intended to identify stocks that are showing or may be about to show a pocket pivot buy point. When we issue a Pocket Pivot Review report, we clearly delineate the reference points, including price levels and/or moving averages that we would consider using as guides for downside stops. We will not issue "sell" recommendations when a stock discussed in a particular Pocket Pivot Review email violates the sell levels we have already indicated in the original email. Please pay attention to the discussion in each PPR email and the various levels that can be used for a stop. Once you have decided on taking a position, decide which reference level you will use for your selling guide per our discussion. Please do not email us when such a stop has been triggered asking us whether we think a stock will bounce and whether you should give it more time - we do not have any crystal balls and cannot predict the future in the stock market. We simply let our rules and methods guide us in real-time.

Finally, it is well beyond the scope of this website to provide individual stock and portfolio advice. We cannot tell you how much of a stock to buy and exactly where. Once an email is sent out, you must determine whether it is still within buying range, based on the definition of the buy point as we describe it in each report. and take a position based on your own psychology, risk-orientation, and position sizing. Your stops should be set according to the general levels we describe in each report. We will not tell you when to sell a specific stock. Members who constantly email us with their own running stock commentary, questions about stocks we don't discuss, or questions regarding how much of a stock they should buy when we have no idea of their risk-orientation, portfolio size, or what they consider a "full" position are taking up our time which we prefer to use to help answer questions of an educational or explanatory nature.

Yes, we can teach you to fish, or we can hand you a fish, and we strive to do both with VoSI. But regardless of how the fish is obtained, you must still strive to understand on your own how to "fry it up." If you are not willing to put in the time and effort to learn how to handle stocks, then we highly recommend that you stick to ETFs and use the Market Direction Model to manage your portfolio. Using the Market Direction Model, which does in fact give specific buy, sell, and neutral signals, you can also "dial up" or "dial down" the volatility and risk in your own portfolio depending on whether you select a 1-times, 2-times, or 3-times leveraged ETFs, thus providing a more easily measured way to approach the market that can be very effective when a valid trend is in place.

Gil Morales & Chris Kacher.