Today we expect the largest collection of market turns this month, as you can see from the current turn schedule on the front page. This usually means a change of direction, so it is a good chance to cover equity market shorts taken on our advice in the March 13th edition and try buying for a bounce. We still expect that equity markets will 'churn' for some weeks (or even months) to come and so these violent up-and-down movements can offer great trading opportunities for the nimble. Don't chase the market in these conditions - let it come to you.
Here is an update to the two Internet stock index charts we used in that March 13th edition, with arrows over that date and charts of the S&P and Nasdaq too. That day was the all time high of the Nasdaq:
Meanwhile we pointed out in the March 15th and March 16th editions that many different markets were compressing, which always indicates that pressure is building up for new moves. We usually advise 'following the break' when markets start to move after compressions have formed, but there is always the danger of a false break or a re-compression, so we try to wait until the situation is more clear before advising any action. It is not at all clear as these updates show. First, bonds and energy:
Next, Gold and the $ index:
We will monitor all of these compressed markets and report as soon as the mists clear a bit.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com