Happy New Year!
The risk window system has been behaving relatively well recently, so I thought that I would share what it is saying for the coming week of January 6th. The system predicts increased risk early in the week which probably reaches from the night session early the morning of Monday the 6th right up to the night session before the open on Tuesday and late in the week during trading Friday the 10th.
According to my system there is a greater than normal risk of a sharp move either up or down during these windows reversing the current trend or a somewhat lessor chance of a sharp acceleration of the current trend. The key word is "sharp". If the DJIA languishes or only moves modestly in one direction or the other, the signal will be labelled a dud. This system does not predict direction, only risk of "sharp" action.
My longer term weekly trading system is quite negative predicting at least a temporary reversal of the current up trend in the next few weeks. This longer term system is completely unrelated to the risk window system discussed above, but would appear to indicate that the sharpest risks in the near future are to the downside. I am somewhat hesitant to mention this system since in recent times it has often been beaten bloody when negative by out of the blue POTUS tweets and the FED QE money pump.
Regards,
Douglas
