Cycles coming full circle

September 22, 2015 10:41 AM

In the July launch of Modern Trader magazine we reintroduced you to the Cycle Projection Oscillator (CPO) and the work of its co-founder John Rawlins. The CPO has had remarkable success over the years in predicting future market turning points as often illustrated in the pages of Futures magazine.

In the July issue, we took a look at the Dow Jones in our “Cycles” department; the CPO indicated that the market was close to topping in late spring/early summer and faced a significant downtrend going into the fall. In the August issue of Modern Trader, a look at the S&P 500 showed similar results. The only question was whether a high had already been established.

We all know what happened next, so the question is, what is the CPO showing now? A look at a weekly CPO chart (above) for S&P 500 and the Nasdaq Composite indicates that the current move may have a ways to go but will likely bottom out in mid to late October. At that point there could be a strong buying opportunity.

Perhaps the folks at the Fed are subscribers. 

About the Author

Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange.