Forecast Into 2023

Forecast Into 2023

S&P 500 Index - Master Forecast Update (Data Sourced Fiorente2)
S&P 500 Index - Master Forecast Update (Data Sourced Fiorente2)

Good Evening:

  • The  Navigator Swing Strategy remains in its 12/5 sell signal, though we have enjoyed some Profitable round trips on the hourly charts. The last hourly buy signal is still in force from 12/22.
  • Tonight, prices gapped higher as we headed into the 2022 final trading week, which can be full of surprises. It is a good time to rest, except for the bravest traders among us. 
  • Further tax loss selling and portfolio managers shuffling the decks will have far more influence on price behavior than normal cyclical forces this coming week.
  • Price is pushing a Navigator Swing Buy signal on the daily chart, which could arrive with a close above 3995 tomorrow.
  • I will take some time off again this week, so this will be my only public commentary until 2023.
  • As always, premium subscribers will still find updates and Live charts in the Founder’s Room.
  • Though I am still deep into the 2023 Forecast and Details, I thought I would give you a sneak peek.
  • The Master Forecast is above, and I carved out the end of Year section below. The dotted black vertical lines are the turn dates for the master cycle, with the solid lines tracking some Fibonacci turn dates from the weekly chart.
Magnified Slice of Forecast into 2023 - S&P 500 Index (Data Sourced Fiorente2)
Magnified Slice of Forecast into 2023 - S&P 500 Index (Data Sourced Fiorente2)
  • The Blue Line is the Projected path for the cycle composite, which is seen rising slightly into year-end, then declining into early February before rallying into late march. Sometimes these cycles invert, so it is best to pay attention to the anticipated turn dates rather than what the price might do in terms of amplitude, positively or negatively.
  • The 18-month Hurst cycle also still weighs the price down into February 2023 before the price can rally into the spring. 
  • I will go out on a limb here – but my work indicates that 2023 will surprise the crowd to the upside and perhaps significantly.
  • And it gets more interesting when you track the 100-year cycle from 1920-1930. There are a lot of similarities between then and now. 
  • We have More Deficit Spending from the Uniparty, More Inflation, and war profiteering; the difference is that In this Analogy, President Orwell and the Globalists are Hitler, and the Collective west is the Weimar Republic. It took a Grocery basket of German Marks to buy a loaf of bread when hyperinflation hit germany. Shall I say, “Coming to a Theater Near You Soon?”
  • This political suicide won’t end well, but it takes longer than we usually think to achieve the final collapse.
  • We could see this Decade play out just like the 1920s, with the crash that the crowd has been expecting not arriving until 2029. And a stupifying rally could precede it.
  • Tracking The S&P 500 for the Decade from 1960 to 1970 is another accurate forecasting Track for the market at hand, as I have proposed since January last year. 
  • Our S&P 500 Master Forecast correlation for 2022, using 1962 as the primary component in the composite, is 87% at this writing. The correlation is phenomenal for a year with so much fed intervention.
Comparing S&P 500 Index 1962 and 2022
Comparing S&P 500 Index 1962 and 2022
  • The bottom line is that history repeats, and the 60-year cycle is arguably the most important in forecasting Future market behavior.
  • And what else do we know about the situation 60 years ago? Does the Cuban Missile crisis ring a bell? Aren’t the same players back at it again? Isn’t the risk of Nuclear War the highest since then?
  • How about the assassination of Japanese Prime Minister Abe this year? What President was assassinated 60 years ago, in 1962?
  • Remember that this kind of cycle forecasting differs from Hurst cycles, which helps us forecast troughs that occur more symmetrically over time. 
  • When we forecast from master cycle composites, we can predict every turn in the market ahead of us with about 85% to 90% accuracy. When we know to expect a turn, we use the algorithms and our other work to catch them. It is a harmonious, symbiotic relationship. Applying this methodology is how we achieve triple-digit returns year after year.
  • The timing of the turns is more important than the price. But we can predict price with reasonable accuracy as well.
  • This coming week, 2023 Forecasts for the Dow, S&P 500, Nasdaq, FTSE, AEX, DAX, NSEL, SSEC, HSI, N225, ASX AO, CRB-Index, Wheat, Crude Oil, Gold, Silver, Bitcoin, Ethereum, U.S. Treasuries, and the U.S. Dollar will be available to premium Subscribers.

I wish all of you a Happy and Prosperous New Year!

A.F. Thornton

AF Thornton

Website: https://tradingarchimedes.com

A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.

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