Stocks’ Forecast for the Last Two Weeks of October 2010

The chart below shows S&P-500 index forecast for October 18-29, 2010. It has been calculated using pattern recognition forecasting and indicates some move down and then up.

This time most technical indicators do not signal any significant move – neither up, nor down. However, a big fluctuation can be expected due to the third quoter reporting season. Statistically, in most cases, it is a “bumpy road” from one to another day. At this an unbalanced stage, any particular overly good or bad news may drive stocks in any direction significantly. And it can be an opportunity for skilled traders.

S&P-500 Forecast for the First Two Weeks of August on the Basis of Technical Indicators Signals

There are many technical indicators. And there are many interpretations of each indicator’s signal. Some stock investors and traders use particular favorite indicators and insist on own interpretation. Who is right? What if to allow a computer program to decide using back-testing which indicator should be trusted more and another less for particular market conditions and a specific stock?

One of computer programs that enables to compose the forecast with weights accordingly to predictive ability of each technical indicator is Investment Analyzer InvAn-4. It performs a short-term (10 trading days) forecast using Neural Network. The chart below shows an example of such forecast. It is S&P-500 forecast for the first two weeks of August, 2010.

Nothing in this piece or blog should be construed as investment advice in any way. Always do our own research or/and consult a qualified investment advisor. It is wise to analyze data from multiple sources and draw your own conclusions based on the soundest principles. Be aware of the risks involved in stock investments