New look at Time Cycles

The graph below need some explanation, see underneath the chart for that, in the meantime just take 5 minutes to look and think about what you see on the chart:

1

DOWN                               UP                                        DOWN

The first thing that you should see is that ALL coloured lines occur at key turning points in the market.

Let me tell you what i “see”:

The BLUE lines are the MAIN Time Cycle that drives the market, so for example you can see in 1966 this Time Cycle started until 1981 – this time cycle determines Inflationary/Deflationary times and in 1966-1981 it was Deflationary so you HAVE to expect a depressed stock market, which is exactly what happened.

1981-1998 was INFLATIONARY hence the massively rising stock market – again as expected – this MAIN time Cycle alternates between Inflationary and Deflationary and from 1998-2016 guess what? It’s been DEFLATIONARY as expected and the stock market HAS complied accordingly!

Have a wild stab in the dark of what type of Time Cycle to expect from 2016 until 2034?  INFLATIONARY? Correct and with Inflationary cycles what should you expect from the stock market? Rising that’s right.

Now, look at the RED line:

This is a DIFFERENT Time Cycle to the blue line, but what you do is project the RED time cycle from the preceding BLUE line, so for example, to get the RED Time Cycle for 1982, I’ve projected it off the 1966 BLUE Time Cycle date – just look at how ACCURATE these are in key turning points in the market:

The 1968 TOP came in right on time! projected from 1950, 1982 came bang on projected from 1966 and 2000 came in a month or two early but still very accurate, projected from 1982, now projected from 1998 = August 2015!!!!!

Have to wait and see what happens around that date, but it should be a turning point when looking back at it in a few years time.

Right the BLACK lines – these are a variation of the BLUE Time Cycle but projected from decades early, so to get the 1973 date that was projected from, wait for it………1932!!!! and the 2007 BLACK line was projected from the 1966 BLUE line – now STOP and think – look how accurate they are and guess what – that projection tells you WHEN to expect a PLUNGE or major proportion – think what 2007 did to the world economy and then think if you knew what I know you could have projected a stock market plunge of major degree back in 1966 or even early you could do this way back to 1800’s!!

Now the GREEN line – well this one backs up the black line, because the green line is calculated exactly as the BLACK line but from the START of the previous UP cycle – this is to find the mid point of the NEXT UP cycle, this mid point is the point where prices subdue into and then continue UPWARDS.

In the BLACK lines it’s the point where prices FALL – So you project from the START of either the Inflationary or Deflationary cycles to work out the UP or DOWN turning points of the NEXT cycle, so as 1966 cycle was expected and was in fact a DOWN (Deflationary) cycle you KNOW the 2007 date should be a major crash and it was the same for the 1973 date.

The 1994 GREEN line was projected from the 1950 Blue (not shown) cycle start date as that was in fact INFLATIONARY and UPWARDS – and it came in bang on target.

On the chart above I’ve not explained 1974, 1987, 2003 or 2009 – I’ll do that in another post as the way you calculate them is slightly different to these shown, very similar but varying other Time Cycles.

The one thing to note – the RED lines typically follow the BLUE lines and cause the double tops, well this time the RED cycle arrives in 2015 and BEFORE the BLUE cycle of Dec 2016 – the last time this happened was in 1949 and 1950 and the RED cycle turned the markets UPWARDS from its date followed by a slight crash into the BLUE cycle date and then bang the UP cycle continued to 1966 BLUE cycle line.  Be Interesting what happens this time around.

ANOTHER thing to note – the price LOWS in between the BLUE cycle lines of the DEFLATIONARY cycles (1966-1981 and 1998-2016) the LOW points are NEVER exceeded, the cycle ends higher than that low point – look at 1982, prices FELL from 1981 BLUE cycle into the RED cycle, the RED cycle forced prices down – why DOWN? because the RED cycle arrived AFTER the BLUE cycle – look at 1968!

This time around the RED cycle arrives BEFORE the BLUE cycle date.

Until you see these cycles for yourself and you plot them on a long-term chart you don’t really believe they work, but they clearly DO.  Now not all, but a LOT of these cycles can be

I will of course in time document expectations for the next UP cycle that occurs in 2016.

This is NOT my own work, it’s what I have learnt from studying the works of my preferred GANN course provider – all the credit has to go to him for discovering all of this and there’s a few more cycles I’ve not shown to keep the charts clutter free, but to aid in such analysis those cycles should be added

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1 Comment

  1. One common factor is that usually during these types of cycles the ending price level is LOWER than at the start of the cycle – lets see if that happens this time around

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