The Global Market Watch is designed to provide an objective computer analysis of all leading world markets based upon technical price movement manifested through pattern recognition. This is not an interconnected global correlation, but each market is analyzed using the same tools and in this manner, the tables provided give you a quick bird’s-eye view of the world without having to read books of analysis just to ascertain that nothing need be done or some action should be taken.
This table is completely generated by our computer model monitoring the world financial markets each day. This is NOT intended to provide a fundamental comment in any way whatsoever nor trading recommendations. In any given market, there might be intervention, supply/demand issues or even market manipulators that could be affecting the trend of that market for a brief period arising from banks or governments. This computer analysis is purely designed to provide an unbiased view of the trend not dependent upon human input or interpretation. This enables it to be consistent.
In analysis, the NUMBER ONE reason for failed forecasts always comes down to human opinion. One cannot forecast something they have no personally experienced. The only way to approach the global economy is to see it from the bird’s-eye view and approach it with an essential unbiased perspective. If you have a preconceived expectation, you are more-likely-than-not to fail in your trading and investment.
DAILY – WEEKLY – MONTHLY
The Global Market Watch provides analysis based upon three levels of price activity. All three of these levels might agree at times or they may even be in opposite positions simultaneously reflecting counter-trend moves or even the start of a change in trend long-term. Our computer analyzes each level in a separate and independent manner. The purpose of differentiating all three levels is to provide an indication of the overall market condition. Short-term changes in trend are common. You get a rally in a bear market and the bulls come out and declare the low is in place. Likewise, a market will be on its way to breakout out long-term to enter a Phase Transition while the majority is bearish proclaiming the market will crash any day now. The Global Market Watch is designed to differential these types of differing trends to slice through the confusion while identifying the markets that agree on all levels illustrating the trend is still intact. The primary objective is to ELIMINATE personal opinion as much as possible.
The Daily trend of any market may swing from bullish to bearish and back again as many as 35 times during the course of a full year. Any market naturally oscillates back and forth regardless if it is in a broader bull or bear market mode. Nothing moves straight up or down forever without making reactions along the way. Therefore, this indicator is intended for those interested in extremely short-term trading patterns.
The Weekly level of a market is where most portfolio analysis begins. Large investment portfolios cannot move big positions back and forth for a minor reaction over the course of a few days. For this reason, the daily trend might turn bearish while the weekly trend could remain bullish or neutral. Disagreements between levels merely suggests that a change in the broader trend has not become possible until some change from bullish to bearish or vice versa takes place on the weekly level. It is common to see the weekly level swing back and forth between bullish and bearish perhaps as many as 4 to 12 times per year. This often indicates a shift in near-term trend where perhaps a reaction might last for 3 to 13 weeks. This is when you should refer to the Reversals in that given market. Turning bullish to bearish on the daily and weekly level is NOT a confirmation of a change in long-term trend just yet.
The Monthly level of a market is where the long-term trend actually is defined. The Monthly level distinguishes the dividing line between what we would call a bull and bear market. Swings from bullish to bearish are far less common and may take place perhaps once or twice over a several year period. Look to the Monthly level to determine if a long-term trend is still in motion or if there is some danger of making a significant change in the overall tone of a market.
From time to time, the comments offered by the computer on a yellow background are intended to highlight a possible important event in trend. Comments such as “POSSIBLE IMPORTANT HIGH” or LOW are determined by the computer’s ability to test that market against historical patterns of how ALL markets reach major highs or lows. This is not limited to the pattern of just that given market. When the text is BOLD, the current pattern in a market has matched some other major historical event. The time-period against which this is tested spans hundreds of years using all markets globally.
CRASH MODE/BREAKOUT MODE
From time to time, the computer will provide a comment “CRASH MODE” or “BREAKOUT MODE”. These comments are based upon the internal momentum of a given market be it to the downside or upside respectively. This is not determined by historical pattern recognition, but rather by quantitative models including stochastics in combination with a variety of other methods. Again, such comments are intended to be a cautionary note rather than a buy or sell signal.
The background color on computer comments is also a function of the computer’s determination of trend. For example, the word BULLISH on a light green background is less than one on a dark green background. The same is true for pink and red. Gray is used for neutral positions where the trend can go either way. Of course, turning neutral after being bullish may have a higher degree of turning bearish in the aftermath if other levels are shifting into that direction as well.
The Global Market Watch is not a trading system by itself. Its purpose is to provide a guide to the entire world financial markets analyzed objectively so you need not read countless reports. Once you become familiar with the systems, using the same identical model allows you to transfer your experience from one market to the next. In this way, the interdependent global economy can be monitored quickly, efficiently, and objectively avoiding the pitfalls of personal opinion.
Do keep in mind that this Global Market Watch does NOT replace individual market analysis be it system, technical or fundamental. We will provide the individual market reports with turning points, Reversals, and technical analysis for each market on a global perspective. These will be available entirely written by the computer for all such markets and individual shares worldwide. The intent of the Global Market Watch is to draw your attention to what is unfolding on a global basis. In this manner, portfolios can be managed far more efficiently.
We will be providing a tool for customizing a Global Market Watch where you can select what you want to monitor including individual shares.