Q: When is the Forecast updated?
A: Prior to the opening of the next trading day and frequently following the close of the same trading day.
Q: How is the Forecast computed?
A: The Market Forecast uses proprietary methodolgy analyzing several sets of data for each market. It's precise formulation is copyrighted and protected.
Q: What about a Forecast for the S&P?
A: The Forecast shows no difference between the Dow and the S&P, and since the Dow is the most widely followed and reported we use it instead.
Q: What other indicators would be useful to follow along with the Market Forecast?
A: Typically, other indicators will be discussed in the Commentary portion of the Forecast, but certainly volatility such as the VIX or VXN and moving averages of varying time frames.
Q: How long has the Forecast been around and what kind of track record does it have?
A: In its current form, it has been published since 1999 but its original work dates back to 1980 when its author was developing cyclical analysis software used in speech analysis. Its accuracy can easily be seen by pulling up the historical charts and associated dates. You will be able to see the noteworthy signals it provided with each major and minor advance or correction.
Q: Is the Forecast better suited for short term traders or longer term investors?
A: Actually, both. By following a different time frame on the Market Forecast, you'll be able to tune into the 'cycle' that best suits your trading style. For example, if your trading horizon is in days or at most weeks, the short term cycles will be key. If your trades typically last weeks to a few months, the intermediate signal line would be key. The Long term signal line would be used for any time frame of greater length. Certainly with all trading styles, the intermediate and long term lines will affect the strength and duration of the shorter term signals and their direction should always be factored.
Q: What does it mean when I see lines conflicting as they move in different directions?
A: That is typical of the shorter term signals moving in response to overbought or oversold conditions and correcting that condition. The longer signal lines identify more of the powerful trends at work while the shorter term lines help us see the oscillations around that trend. If the trend is down you'll often see the short term signals moving back up after heavy selling, but the move will generally fall short of reversing the trend at least until the Intermediate signal line nears bottom. We'll usually see rising tops and/or bottoms on the shorter term signals ahead of that turn.
Q: Can I share my connection or password?
A: Don't do it. Password use is automatically monitored, and giving it to others would constitute a violation of the user agreement and possible copyright infringement. At the minimum, service could be terminated .
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