Stock Market Forecast: Recovery Signals Based On Algorithms Part 3 (Latin America Indices)

Stock market forecast

By Lipa Roitman Ph.D

March 19 2013
First series of recovery signals
The Brazil and Mexico markets the up signals appeared in November, together with the rest of the world, in Argentina a month later. Also, unlike the rest of the world, at the end of the climb, in the beginning of February, there was no second set of up signals, and downward signals appeared.
About the charts below:
Each point on these charts was taken from the actual daily forecast published the morning before the next market open. Each forecast contains six different time horizon forecasts, from three days ahead to one year ahead. The charts show the actual price in thick blue. The positive or negative (Up or Down) signals of the forecast were added to the actual last known price at the time of forecast to result in signal lines. Thus, when the signal line is above the actual line, it means "buy," if below, it means "sell". The green and red arrows show what would be the best times to enter the market. The widely ranging signals are scaled relative to the previous average signal range to bring them into manageable scale to fit them all in one chart. The green and red arrows show what would be the best times to enter the market.
IBOVESPA has risen 14 percent in December from the November lows on strong up signals. But as it was rising, the signals turned negative, and in January the market turned sour, and lost all the gains. The signals are still mixed.
^MXX index showed up signals in November as it was climbing from mid-November lows. In the beginning of February the 30 and 90 days sell signal appeared, while the short term signals were still pointing up.
By March the market gave up most of its gains..
Buenos Aires MERVAL has finished in mid- November a downward trend since September, and in the second week of December has started an uptrend with gradually increasing up signals. At the beginning of February two 30 and 90 days sell signals appeared, after which it started sliding, while showing the up signals as the slide continued.
Stock market forecast  MERV


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