Tomorrow's newspaper today, with "C" variation for cycles using VLF signals: Part V, ChartsEdge Market Maps

ChartsEdge's "Market Maps" deserve a post all their own in this weekend's review of cycles analysis. They are based on something that would cause fundamentals analysts to rip out their hair, I suspect - VLF (very low frequency) radio signals! But hey, why not - since these maps work weirdly well?! I've posted several times about how these work and how to use them, including these posts at my "No Bull, No Bear, No Bias" [NB3] blogspot: How to use ChartsEdge's daily (intraday) Market Maps (1/13/09), My comments on using ChartsEdge's Market Maps and Cycle Charts (2/2/09), and More info on using the ChartsEdge daily maps (2/21/09). So far as I know, this method is totally unique. One might even argue that it isn't even a "cycle" method at all - but my thought is that radio waves by definition have cyclic frequencies, so it's just a different type of cycle. Rather than being based on measurement of cycle frequency and magnitude in the thing itself - the market itself - it looks at energetic cycles in our natural surroundings manifested as VLF signals. On the idea that these influence trader mood, they're used to generate forecasts of cycle highs and lows for the time period ahead. As explained at Chartsedge Daily Market Maps:

"The data for the charts is derived from detection of VLF radio signals which affect the mood of traders around the globe.A brief explanation of how to use the charts for intraday trading of the US indices such as the S&P 500 can be found at How to use the Market Maps [a page at ChartsEdge's site about this]."

Whether or not you think the premise makes sense - that VLF signals affect market price behavior - the proof is in the pudding, as they say. Believe me, I would not post these here if they didn't work more often than not! As I've said before, we cannot use them on a "set it and forget it" basis - that's why I wrote those posts at my NB3 blog (see above). But on many days, it's pretty amazingly close. And I know others find the same, as many of my readers have learned to incorporate and use them every day.

I am aware that some market analysts use other naturally-occuring methods, such as geomagnetic storms and sunspots, and have been able to demonstrate correlations to the markets. Well, we are products of the natural environment, so I'm good with that. Especially when the correlations have been documented as being statistically significant.

From time to time since these daily forecasts debuted in the fall of 2008, Mike Korell (the fellow behind the ChartsEdge "wizardry") has come up with fine-tuning and variations of his Market Maps. Now he's gone and done it again! He posted a "Multiple Day Market Map" meaning that it covers not just one day ahead, but a week ahead. If he continues it, this may become a good way to cross-check the weekly cycle charts based on the neural net crunching the more "conventional" cycles data. Since this is under the "Market Maps" part of his site, and published separately from his weekly forecasts, it's apparent that this multiple-day forecast is generated using the same VLF data basis he incorporates for the daily maps:

Multiple Day Market Map

Posted: May 17th, 2009
Author: Mike Korell
Filed under: One-Day Market Map Comments to ChartsEdge »