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Saturday, May 4, 2024

The Power of the Dow Jones Cycle

Courtesy of Read the Ticker.

the-power-of-the-dow-jones-cycleOnce again the data confirms cycles exists in the market. Value and other fundamental investors must concede cycles are in the stock market. [You can learn more about our Hurst Cycle tools here].



Previous Post Kitchin Cycle warned of market volatility



In the past this blog has posted the chart below, the Kitchin cycle or 900 periods, and you can see its success.



The cycle source:



..”Joseph Kitchin (1861–1932) was a British businessman and statistician. Analyzing American and English interest rates and other data, Kitchin found evidence for a short business cycle of about 40 months.[1] His publications led to other business cycle theories by later economists such as Nikolai  Kondratieff, Simon Kuznets, and Joseph Schumpeter”..






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Cycle Mid




Now to prove this cycle is very important the Dow Jones cycle (880 periods is close to 900 within margin of error) also posted below.



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Dow Cycle






The cycle says the time is to be aware of a down turn. Investors should keep an eye on Wyckoff price patterns for distribution. The massive rally from 2009 may be ending. Watching and waiting.



By request, Bitcoin cycle, low expected 2018Q4, 2019Q1





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BTC cycle







Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination
of Gann Angles,
Cycles,
Wyckoff and
Ney logic
is the best way to secure better timing than most, after all these methods have been used successfully for 70+ years. To help you applying Richard Wyckoff and Richard Ney logic
a wealth of knowledge is available via our RTT Plus membership.





NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net



Investing Quote…



..”The market is like a slowly revolving wheel: Whether the wheel will continue to revolve in the same direction, stand still or reverse depends upon the forces which come in contact with it hub and tread”…



Richard D Wyckoff





..”Money can’t buy you happiness but it does bring you a more pleasant form of misery”..



Spike Milligan





..”The first rule is not to lose. The second rule is not to forget the first rule”



Warren Buffett





..”Markets are designed to allow individuals to look after their private needs and to pursue profit. It’s really a great invention and I wouldn’t under-estimate the value of that, but they’re not designed to take care of social needs”..



George Soros







My experience has been that in successful businesses and fund management companies, which performed well over the long-term, some courageous decisions were taken. Courageous fund managers reduce their positions when markets become frothy and accumulate equities when economic and social conditions are dire. They avoid the most popular sectors, which are therefore over-valued, and invest in neglected sectors because being neglected by investors they are by definition inexpensive. The point is that it is very hard and that it takes a lot of courage for a fund manager to avoid the most popular sectors and stocks and to invest in unloved assets. Finally, every investor understands the principle ‘buy low and sell high’, but when prices are low nobody wants to buy.



Marc Faber











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