Nat gas futures have continued to compress each day since Wednesday’s edition and have yet to break. We are only thinking about buying this market on an upward break, not selling it short if the break turns out to be downward, so we wait. US equity futures made new daily-scale compressions yesterday that appear to be breaking upward today and this upmove has already triggered our protective buy stop on the half short positions advised in the Monday 16th edition. Here is a nat gas signal update and the new Dow compression, as an example:
This move up through a daily-scale compression in the Dow (and in two other indices) might warn of a new upmove but we cannot recommend reversing into long positions until the weekly compressions in the New York stock Exchange Composite index break upward. This has been compressing since late January and we are still waiting for a clear move out of this condition in either direction. Until that happens, US equity indices are just in a trading range and so our main concern is avoiding too much whipsaw. We wait and will warn as soon as a break occurs:
