Markman Capital Insight

What is Markman Capital Insight LLC?

MCI is the publisher or editor of nine research services focused on helping independent investors systematically take smart risks to reach their financial goals. Three services focus on equities, two on equity or index options, and four on futures. All are delivered by email and published online.

Why do you have so many newsletters?

Each research service has a different focus that is appropriate for investors and traders seeking to take a different type of risk. Whether you want to leverage your funds by taking risks in options or futures, or prefer to stick with value equities, growth equities or leveraged ETFs, we have you covered. Many members have found the services diverse enough to merit taking all nine.

What is Magnitude?

Magnitude  is an algorithm created by an independent research firm and licensed for distribution by Markman Capital Insight. Magnitude is the brains behind our futures and options services. 

To accomplish its goals, the Magnitude algorithm applies a unique set of math, physics and behavioral finance principles without bias to minute-by-minute price action of its target markets.

When the system determines that the zeal of market participants pushing a security one way has reached an exhaustion point, it bets on a reversal. The system then estimates the amplitude of the new move and the amount it is willing to risk if it is wrong. These values are transmitted as target and stop.

The system does not attempt to be predictive. It is reactive, and as a result its signals may come abruptly, without warning, at any time during the trading session. 

The algorithm's developer  believes markets are explained well by the mathematician Edward Lorenz with his definition of chaos: "When the present determines the future, but the approximate present does not approximately determine the future."

What do I get in the Strategic Advantage newsletter?

This was our first service in 2002, and still the flagship. Every weekday evening, members receive a lively, well-informed, opinionated view of the corporate, economic, geopolitical and psychological events that influenced markets in that session. Members learn how to develop a variant opinion when appropriate, and how to use these insights to stay ahead of the crowd and profit. The letter builds and maintains three  buy lists: 1) MacroSwitch Mach 2, which is an off-on switch for risk-taking. The system may recommend members go double long, single long, in cash, single short or double short one or two index ETFS at any given time; 2) YieldSeeker,  two to five income-producing ETFs and mutual funds; 3) Persistent Value, a ten-to forty list of stocks whose intrinsic value is rising but under-appreciated by the market at present; 4) Strategic Value, comprised of three to ten  stocks that represent either extraordinary value or growth, and potential to double in three years.  

What do I get in the Trader's Advantage newsletter?

This was our second letter, started in 2005. It focuses on short-term swing trades of equities, sector funds, leveraged ETFs and options. Holding periods are typically a few days to a few weeks. Members get one buy list, and at least to four new equity or option picks per week. Members receive buy list updates every afternoon, plus longer reports Monday and Thursday describing major market themes and developments of interest to traders.  

This letter is written/edited by Markman Capital Insight but published at Investorplace Media.

What do I get in the Counterpoint Options newsletter?

Market participants tend to over-react to potential negative events with too much fear, and over-react to positive events with too much complacency. In this letter, members learn to take advantage of big changes in market volatility through the options market. In short, you will learn to welcome and profit from volatility rather than being scared of it or victimized.

Every afternoon, you will receive recommendations to buy calls or puts on one or more equity, credit or volatility indexes, such as the SPDR S&P 500 (SPY), the iShares Russell 2000 (IWM), the S&P 500 Volatility Index (VIX), the iPath Vix Short-Term Futures fund (VXX) or iShares 10-year Treasury Bond fund (IEF). You will learn how to scale into positions up to two times to lower the average cost, and how to exit with profits  at targets or stops. On Fridays, you will receive a summary of the active positions and timely, useful observations on volatility.

This letter is written/edited by Markman Capital Insight but published at Investorplace Media.

What do I get in the Tech Trend Trader newsletter?

Members learn to build a portfolio of up to 30 emerging technology stocks for potential long-term capital appreciation. Most  recommended stocks have come public within the past four years. Along the way, you will learn about the latest twists and turns in information and medical technology, and how to apply value investing approaches even to the shares of new, high-growth companies. Members also receive a version of MacroSwitch  Mach 2applied just to the Nasdaq 100 (QQQ). This letter is written/edited by Markman Capital Insight but published at Weiss Research.

What do I get in the Tactical Options newsletter?

Members learn to trade equity options for short-term profits of 40% to 100%-plus. You will receive one to four new recommendations per seek to buy puts or calls on major, high-volume stocks or sector ETF, as well as targets and stops. This is no-nonsense, right-to-the-point signals newsletter that is published almost every evening.

What do I get in the Magnitude ES newsletter?

Members learn to buy and short the S&P 500 E-mini futures and Tokyo Nikkei futures to build positions lasting from a few hours to a few days.  Instructions are provided in email and on the website daily. You can trade the system themselves at home, or ask for a referral to a professional broker in Chicago to trade it on an "auto-trading" basis. You will also receive a recap of the past week's action in a weekend email.

What do I get in the Magnitude TF newsletter?

Members learn to buy and short the Russell 2000 E-mini futures and Nasdaq 100 E-minis to build positions lasting from a few hours to a few days.  Instructions are provided in email and on the website daily. You can trade the system themselves at home, or ask for a referral to a professional broker in Chicago to trade it on an "auto-trading" basis. You will also receive a recap of the past week's action in a weekend email.

What do I get in the Magnitude VX newsletter?

Members learn to buy and short the S&P 500 Volatility Index futures, wheat futures, coffee futures, gold futures and silver futures to build positions lasting from a few hours to a few days. Instructions are provided in email and on the website daily. You can trade the system themselves at home, or ask for a referral to a professional broker in Chicago to trade it on an "auto-trading" basis. You will also receive a recap of the past week's action in a weekend email.

What do I get in the Magnitude TY newsletter?

Members learn to buy and short the 10 Year U.S. Treasury Note futures, 30 Year U.S. Bond futures  or U.S. dollar futures to build positions lasting from a few hours to a few days.   Instructions are provided in email and on the website daily. You can trade the system themselves at home, or ask for a referral to a professional broker in Chicago to handle it on an "auto-trading" basis. You will also receive a recap of the past week's action in a weekend  email.

Why do you have four financial futures newsletters?

Each of our financial futures newsletters share the Magnitude algorithm, but they behave quite differently depending on their underlying security. Very often the large-cap stocks in the S&P 500, traded by Magnitude ES, perform much better or worse than the small-cap stocks in the Russell 2000, traded by Magnitude TF for many months at a time. And even when they move in the same direction, the indexes move at very different paces. Meanwhile, the S&P 500 Volatility Index, traded by Magnitude VX, often moves in a different direction or pace than both the equity indexes, and the grain, metal and dollar futures offer still more diversification.

Because of these differences in pace and direction -- and in the ability of the Magnitude algorithm to determine the best path at any given time -- we recommend that members with the financial wherewithal subscribe to all four services. To be sure the initial fees are higher, but members discover that the cost is outweighed by the potential to have returns smoothed out over time.

The market always tanks right after I try a new letter. 

That's not really a question, but we'll go with it. Our letters are not dependent on any single market direction. The futures letters in particular have had as much success in the past at going short their underlying indexes as they have at going long. Mangitude VX bets on volatility only, and has found as much success in the past at betting on more vol (going long VIX futures) or less vol (going short).

Plus the systems will surprise and amuse you by finding success in unexpected ways. Very often a Magnitude program has made money by going long overnight when a market overall is falling, or making money by going short overnight when a market overall is rising. This can occur because the systems are largely, but not exclusively, counter-trend oriented.  When a market is falling, the systems often look for opportunities to go long reaction rallies, and vice-versa when a market is rising the systems often look for chances to go short reaction declines.


Explain gross and net results in Magnitude letters

"Gross" profit is the difference in percent or dollars between the average cost of a position and the average exit price.  "Net" profit further subtracts the pro-rata cost of the newsletter per month and commissions. We report gross results primarily because members' net profit for any given play will vary depending on the number of contracts in their position and the amount they pay for commissions.

How should I choose a broker to trade Magnitude? 

Call or email us to ask for a list of professional brokers in Chicago that can trade the system on your behalf using a "letter of direction." We don't have a favorite. If they are on our list of referrals, we consider them a capable broker. Call at least two brokers on our  list before choosing one. Commissions and services may vary, and you may prefer the personality of one broker over another.

Do you offer auto-trading in options?   

Not at this time, but check back as we are constantly adding services.

Where is Markman Capital Insight located?

We are located in downtown Seattle, Washington. We welcome visitors, but please call for an appointment first.

What if I need to talk to someone?

Call (206) 651-4566 between the hours of 9:00 am to 5:00 pm PT, or email us at service@markmancapital.net.