On a daily scale US Treasuries are at the beginning of several-week long trend. For European Bunds this trend is alredy emerging and is bullish (on price). Short-term strength for equities and commodities is possible in the meantime.
Fixed income
There is an important daily scale compression signal on US Treasuries. A strong directional move is expected from this point that should last several weeks.
A similar daily compression signal appeared for Bunds and was followed by a rally. It is likely that the original direction of the new trend will persist. A short-term setback in price is possible, and it is prudent to wait for several days for the direction to get established.
You can see how ChaosMonitor signals performed last year on the dataset below.
Equities
Last Monday's compression signal on a number of European and US equity indices did not result in a significant price move, instead the signal appeared again late in the week. The longer-term direction that equities should take is uncertain, the short-term rally may last one-two weeks.
Last month ChaosMonitor model has accurately identified overextension of Chinese stock market leading to a correction see Shanghai Stock Exchange (SSE) index below. Our forecast was similar to one made by Didier Sornette at the Swiss Federal Institute of Technology in Zurich which has received some media coverage. The result should not be surprising. S Kris Kaufman, the author of ChaosMonitor model, and Prof. Sornette have both independently discovered log-periodic scaling precursors to system phase transition points in the early 1990s.
Commodities
Natural gas futures have reached a point of short-term over-extension during their decline, which may be followed by a period of price strength. Longer term trend for Natural gas remains down.
Fixed income
There is an important daily scale compression signal on US Treasuries. A strong directional move is expected from this point that should last several weeks.
A similar daily compression signal appeared for Bunds and was followed by a rally. It is likely that the original direction of the new trend will persist. A short-term setback in price is possible, and it is prudent to wait for several days for the direction to get established.
You can see how ChaosMonitor signals performed last year on the dataset below.
Equities
Last Monday's compression signal on a number of European and US equity indices did not result in a significant price move, instead the signal appeared again late in the week. The longer-term direction that equities should take is uncertain, the short-term rally may last one-two weeks.
Last month ChaosMonitor model has accurately identified overextension of Chinese stock market leading to a correction see Shanghai Stock Exchange (SSE) index below. Our forecast was similar to one made by Didier Sornette at the Swiss Federal Institute of Technology in Zurich which has received some media coverage. The result should not be surprising. S Kris Kaufman, the author of ChaosMonitor model, and Prof. Sornette have both independently discovered log-periodic scaling precursors to system phase transition points in the early 1990s.
Commodities
Natural gas futures have reached a point of short-term over-extension during their decline, which may be followed by a period of price strength. Longer term trend for Natural gas remains down.
= large price move next
or 
= this price move ends