Charles Nenner of the Charles Nenner Research Center uses some unorthodox methods to predict the markets. In a nutshell, he ignores what most people think of as fundamental news and uses a variety of cycle indicators to forecast market movements, often to a specific date.
Nenner’s view is that market cycles repeat, and the key is finding points in time when long- and short-term cycles sync up to give a major buy or sell signal.
Sounds crazy, right?
Well, there must be some method to the madness because the former market-timing consultant at Goldman Sachs has made some stellar calls, including:
Forecasting a Dow peak of 14,500 in the summer of 2006.
Calling the market top in October 2007.
Forecasting in late 2007 a “deflation scare” would occur in 2008, something he says isn’t over yet.
In February 2009, predicted a major rally would start “in a few weeks” and could take the S&P as high as 1000.
So what is Nenner saying now?
After some short-term gains to coincide with month-end window dressing, Nenner predicts the stock market will turn south, possibly sharply.
“I’m still worried we could test the lows,” he says, suggesting a break of S&P 850 would make that grim outcome a near certainty.
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