Tuesday, August 26, 2008

Intermediate Corrective Cycles

A little primer on stock market cycles

As measured from trough to trough the short daily trader cycle spans about 22 days and is used for timing entry and exit points

As measured from trough to trough the intermediate weekly cycle spans about 26 weeks and is used for sector rotation strategies

As measured from trough to trough the longer monthly cycle spans about 42 + - months and is used for long term investment strategies

Below is the intermediate cycle of the S&P500 - a three cycle bear is typical and the third and final cycle is now almost concluded

Bill Carrigan

1 comment:

Anonymous said...

Do you believe perhaps you have misread the A-B-C type corrections? A similar picture was painted for the gold stocks which you suspected were going to rally. However, it appears this was grossly miscalculated both in July and now.