My monthly forecast goes ahead 24 months (2 full years) from the present, and shows what path is the market price following. Some of my readers ask to have an indication, an insight, a suggestion and today I want to share some of the valuable information produced from the monthly model.

First, there is no doubt that the market is heading higher.  Will it go straight and direct to its targets? Obviously not, so any correction must be considered as a buying opportunity, exactly as it is happening in these days.

Then, how much higher is the market going? Believe it or not (and I’m sure you will NOT believe me),  the model is projecting the market around 2700 in 12 months. It is more than a 23% rise from now and I can see your disgust and your incredulity, you that are trying to short it every time your stochastic is overbought and turning.

Is that the final target or the highest level that the model sees? No.

Is there a possibility that the model is wrong and that market crashes with violence? Yes, of course. The possibility of an exceptional event or some totally unexpected occurrences (flying donkeys, aliens invasions and similars) is always there and may condition deeply the market, but…

Also, do not forget that my forecasts are adaptive and responsive, meaning that they change digesting the market behavior and updating the experiences as market develops.

Why the market is going to move this way? The model does not explain why and does not even try to guess, it does not need to know WHY, when it can detect HOW the market will move, in advance. Having a model of how the market will move in advance, your behaviour as investors or traders in so much simpler!