Friday, March 5, 2010

When can we expect a High ...?

Let's start with a single name TimeCluster for the the XLF (BANKS). When we cluster for different timeframes we get the chart below. We now look for overlapping periods as kind of confirmations. If we operate in a harmonic parameter set up then we should find overlapping time zone (but doesn't have to be that way all the time !!)
Finding: Mar 10-15 look like the next opportunity for a High

If we now do this for a market portfolio of key large cap stocks and highly liquid ETF's , cluster an entire week and plot it into a scatter chart you get the following chart.

Finding: We find a clear defined Zone from now (Mar3 to Mar 15). Given that we have already "missed" some days out of the zone this week the probability for the remaining rise....
Important Note:
Each zone has to be interpreted as a high probability crossroads and Mr. Market can follow or decide to ignore, which in itsself has a very strong meaning and says a lot about the state of the market.

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