Saturday, November 2, 2013

Market Topped as Expected. Now What?

So the market topped once again within the IPM Model turn window. Now the question is that whether this Top will be a temporary top, followed by another rally to new highs? Or will it be the start of a major correction?

As far as the current IPM model update is concerned, it was stated in the last post that there were two IPM model turn dates namely at 11/1/13 and 11/11/13 (+/- 4 days). 1st Turn window (11/1/2013 (+/- 4 days)) was scheduled to be a market top. And so far, it has turned out to be an accurate prediction.

Market action following current turn date will be governed by the market trajectory library. IPM Model's next turn date, after 11/11/13, is scheduled to be a market Top and is a significant turn date because it coincides with the Weekly IPM Model turn date (both of these dates will be emailed to subscribers). Therefore, it is likely that current correction will be short-lived and we will soon see new highs.

In other words, 11/11/13 turn date should mark a market bottom. Bottom picking will take place in conjunction with proprietary indicators.

At this point in time, I would like to mention that IPM model has accurately predicted multiple market turns for years now. In fact, IPM model is being used by Understand, Survive and Thrive for almost 3 years, and its accuracy in market timing can be regarded as second to none based on my personal experience of 5 years of trading the markets (since 2008). As a result, a white paper will be published on the effectiveness of the IPM Model over the coming week, and several trading models will be introduced based on the IPM model.

As you might already know, market analysis is a probabilistic art and requires persistence with edge. IPM model provides the type of edge that an investor needs in order to perform well in the markets. IPM model's prominence significantly increases as it has three feature, which other market timing models do not have:

  1. It provides investors with the exact date that a turn will happen
  2. It provides us the nature of the turn before hand (Top or Bottom), which allows an investor or trader to position their trades accordingly
  3. It tells the next IPM model turn date and nature. This would allow the market participant to understand the market trajectory over the next few weeks.

Understand, Survive and Thrive team has developed a market trajectory library to encompass all possible market trajectories between the two turn dates so that it is easier for subscribers to understand the up-coming market action. Furthermore, UST team has also developed a market trading matrix based on the IPM model turn dates. IPM trade matrix will be used to layout trade plan for November.

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