Saturday, September 3, 2016

Weekly outlook Sep 5, 2016

Definitely not the week I was expecting in the week ended.  Most major averages closed higher.  Not a lot higher, but higher whereas, I was calling for a pullback.

This week the 4.5 month cycle turns down.  I have been asked how do you determine what cycle is dominant.  One way is analyzing the Detrended Price Oscillator (DPO) for different cycle lengths.  I hope my effort to show this helps.

This week the 4.5 month cycle turns down after topping the past week, but all the shorter cycles turn up.  So I suspect a sideways move.  The 4.5 month and 9 month cycles should start gaining down side momentum so a slight downside drift is possible.

GL traders

Update: new chart to further illustrate price based on DPO:


 Hope this helps....


  1. Hi Inlet
    First, big big big thanks for sharing your thoughts and ideas at this blog. I visit almost everyday hoping you post more and new ideas haha.

    Second, yes I am a bit new to this cycle things. But in this post you write about DPO and about how to figure out what cycle determine the market. But, do you mind share how more specific you calculate price action for the week/5 days. I dont get it really. How can I find/count price action for coming weeks with DPO?

    Thanks again and really appreciate your blog.

    //David - Sweden

    1. David - added another chart, hope notes answers your question.....

  2. This is wonderful and quite informative blog I have learnt so many things from here.

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