My 2016 forecast: new highs in Dow, then a deflationary collapse

Spread betting expert John C Burford applies his trading methods to the charts to see what the new year holds for the markets.

This is my last postbefore the New Year and although there has been little snow this season, I will veer a little off-piste today.

I have just returned from a holiday in the Canary Islands and naturally, my thoughts turned to the Spanish stock index and how it might compare with my main trading vehicle, the Dow. Not that I would wish to trade the lesser index, but I wanted to see how the global economic forces impacted both indexes. Are there any points of comparison I could draw? Or are they two separate indexes that go their separate ways?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.