Although not as exact as the last, it was pretty obvious where to look to place trades during this day by using this one tool alone. Although we have only shown two charts at this point, it should be clear that this new forecasting technology has the ability to generate very accurate cycle forecasts. However, the important thing about this example is that this forecast is actually the inverse of our original. No forecasting technology is perfect, and this applies to ours as well. Although the times of the turns remain extremely accurate, the direction of the turns is not fixed in stone.
Markets are chaotic systems, and chaotic systems always have more than one solution.
As a trader, it is our task to decide which forecast is the correct one for the time. The advantage of being able to study a forecast the night before the market opens is that general strategy can be formulated for the next day. We didn't have to know whether the market would follow the inverted or normal forecast, only that it would be a one-sided day. As it turned out the market followed the inverted forecast and dropped 30 points for the day. There has been a lot of prodding and coaxing on the part of the few traders we have shown this technology to, and we have decided to release it on a limited scale.