Thursday, June 30, 2011

Cyclic Commonality

There are five cycle principles - Summation – Commonality – Variation – Nominality and Proportionality. Commonality is rare, much like a lunar eclipse. The condition is setup when the cycles of the major stock sectors bunch together following periods of congestion or non-correlated splaying. In other words when the peaks and troughs of cyclic rhythms and the relative magnitudes are similar when over-laid in graphic form - we have a significant buy or sell opportunity

The innovators of this graphic placement of the intermediate cycles were the great Ian Notley and Don Stark back in the early (1982) Dominion Securities Trend & Cycle days.

Our weekly chart is displaying a pending rare cycle commonality trough in the top five weighted TSX sectors – financial, energy, materials, industrials and energy. The summation of these troughs and peaks precedes a major move – this is only the second time in the last 5-years we have had a pending significant trough – this is a setup for a pending powerful advance through the summer months - possibly the most significant advance opportunity of 2011!


Shawn Severin said...

Bill, this is a great post. You've called it.


RS said...

Hi Bill,

Societe Generale just came out with a report, 'When Demand Outstrips Supply", where they argue that this secular bear market actually started with financial crisis in 2007/8 and not with the crash in 2000. As a result, the secular bear has really just started.

Any thoughts?