The right trading system

Pundits and traders all have their theories as to what drives the markets. But the only information worth listening to is what the charts tell you. John C Burford explains.

I have been tracking the Dow for signs of a top since my lastpost on 11 February: We're not far from a market turn. On Wednesday, I spotted the confirmation that the turn was in. I'll get to that later.

With the Dow down 200 pips from Wednesday's top at 14,060 I have to ask a tricky question. If the market has turned from up to down, what were the factors that changed the situation?

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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.