In the first installment of this series )http://www.thebullbear.com/profiles/blogs/the-ewi-argument-a-critica), I examined Robert Prechter and Elliott Wave International's current wave analysis and proposed some alternate views. In this segment I will examine EWI's market timing record. First, I'll run down the history of EWI's market calls from March 2009 to present.

After forty years of investing, a few things become clear: you need to focus on quality securities, diversify properly, and develop a lifetime supply of income. Income portfolio management is a puzzle in its own right, and the major problem is focus --- income is king. Losing market value and losing money are two totally different things.

The Market Cycle Investment Management model has outperformed the popular investment indices since it was first developed in 1970. It features an approach that embraces market volatility; selects securities using strict quality, diversification, and income standards; and operates under strict disciplines for asset allocation, buying securities, and profit taking.

After early session pressure, the December Treasury Bonds posted a daily closing price reversal bottom which may be an indication that it has run out of sellers.

Thursday’s action suggests that traders may have begun the process of squaring up short positions ahead of next week’s Federal Open Market Committee meeting.