SYMMETRY IN THE MARKET – PART 1

We are often asked about our Calnan Flack Forecasting Conference – Can you really accurately forecast markets? Is it really possible?
Our answer is irrevocably YES!

The problem is when most forecasts are made they are not made with repeatable logic or a process that can be duplicated. You see this is where we differ – and we show you how!

Now I’m not trying to say or imply that this is easy or even perfect, but our public forecasting record is there for all to see. Our public record shows that using a repeatable process it can be done.
Still unsure? Come to our Forecasting Conference and check us out!

We will again be doing this on November 19th & 20th recording in Print and Audio the dates that we believe have the highest probability of seeing market reversals.

But our Forecasting Conference has grown to more than just the dates in the highly prized Calnan Flack Forecasting Book. Its important to us that students learn how to incorporate these key dates into their investing strategy, hence our Forecast Updates.

So over the next few blogs we are going to reproduce a series of Forecast Updates that were sent to  Forecasting Service Members titled “Symmetry in the Market”. These will be reproduced word for word, unaltered in any way, for you to get a sense of what can be done.

The first of these dated the 12th March 2016 is below.

Symmetry in the Market – Part 1 

The last few times I have written I have tried to express our belief that the markets are offering a fantastic opportunity – in fact on the 20th of January I said that OPPORTUNITY IS UPON US!

The low of the 10th of February exhibits many characteristics of a very important low in our local equity markets. Typically major market reversals show high levels of “Symmetry” in either Time and/or Price. My father, Alan, explained at our Calnan Flack Forecasting Weekend the importance of squared numbers and the low that occurred on the 10th of last month is an excellent example of how this symmetry can manifest in market reality.

On the 10th of February 2016, the XAO traded at a low of 4762, from where it has reversed strongly to the upside.

The square root of this low 4762 is 69, or expressed another way 69×69=4761

So here we have the market moving in exact PRICE squares.

Another square into this date can be found in TIME. The XAO made its all-time high on the 1st November 2007 at 6873. If we move on 3024 days from this top we come to the latest low on the XAO, on the 10th February 2016.

The square root of 3024 days is amazingly 55 – or expressed another way 55×55= 3025! (Note 55 is also a Fibonacci number)

So here we have the market moving in squares of both TIME and PRICE.

Another interesting point of symmetry is that the current low of 4762 is the mid-point or 50% of the 2003-2007 range- a major balance point as Ian has shown in Supply & Demand Market Update videos.

Details of the November Forecasting Conference

The next chart is the current XAO with the forecasted date of the 26th of February 2016 marked. Gann often referred to the importance of the 1st higher bottom and I have often found that when forecasting the date I produce is the 1st higher bottom.

The next forecasted date was the 10th of March and the market action is indicating some congestion in the market as highlighted on the chart.

When a major trend starts often the market will have too much strength and the forecasted dates are only able to slow or cause the market to pause momentarily and not actually reverse it. In fact, as we have spoken about previously often when a date fails it will become a midpoint.

On the daily time frame the 3 day swing chart is making higher tops and higher bottoms for the first time since August 2015 and a move above 5245 by 3-5 points would further support the change in trend.

The market symmetry (balancing) provides the timing to look for the higher probability trading opportunities. Sector analysis and your trading plan will provide the stocks to add to your portfolio.

Exercise:-

  • I urge you to spend some time analysing this and follow the market closely into our next turning date. You can use the XAO or XJO for this (whichever you are used to).
  • Mark the 26th Feb Low on your chart.
  • Mark the area highlighted in green on the chart above on your chart as a potential midpoint.
  • Watch the daily market action up to the 20th March.

It is now time to be actively investing in this market.

Jeremy Calnan 12th March 2016

Details of the November Forecasting Conference

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