Here is an update to the turn schedule. It leaves a gap between the end of the last one in the December 23rd edition and the start of this one as there were no significant turns due in that period. We have just passed the first cluster of this new schedule which was an equity, bond and general commodity and currency turn due either late last week or yesterday. As ever, the way to use these turns is to expect a new high or low for a current price movement on or very near the due date of the turn and if that occurs pay close attention looking for the high or low point to be made then and there. If this coincides with an extension signal (either top or bottom) or a return to a compression signal then the direction should be clear and a trade may be taken immediately – this is what we do when we recommend trades.
If the turn is due when prices are drifting sideways or making compressions, this has the effect of setting up an extension of the present range and possibly a new trend. We cannot tell which direction such a new trend will take, so this is very like a normal compression signal. Compressions and turns together often result in an explosive new move as one reinforces the other. This is covered in greater depth in our userguides.
This table shows quite a busy period coming up with fairly tightly-spaced turns, some of which are large in scale. We grade the equity turns 1 through 3 but don’t grade turns in other markets as there is not enough data for meaningful rankings. When related markets have coincident turns we see this as making that turn event more significant. The blue asterisks deserve mention – these mark turns that come from the much longer-term price series of the Dow industrials and the Dow bond index. These are calculated slightly differently and tend to pick up the bigger turns.
