Spooky, I think we saddle up into this coming (lucrative) fourth quarter of the 2nd
year presidential cycle to get a running start on the 3rd year, which has not closed
down since 1939.
The Bull should have a merry, merry Xmas 2010.
(How's that off a 30 minute chart.?)
Actually Stock Trader's Almanac agrees saying to buy the market and hold it 2 1/2 years when the MACD buy signal is given after September in the 2nd Presidential year.
But they are not taking into consideration a 40 year and an 80 year cycle low potential.
March 13th post:
This fall could be a K-Cycle doosey, Go away in May & TRIPLE YOUR RETURNS!
"Best Six Months + Timing + Four-Year Cycle = Triple Returns"
Last weekend I read something in Trader's Almanac which got me to thinking about Laundry's late August ending of his 13th T.
Could the two be pointing to a steep decline which might be a surprising buy?
Review the Almanac's system below and you will see that they combine the Best Six Months (Nov through April) with Timing (MACD cross down after May's top) plus the 4 year presidential cycle.
However on the "mid-term" year 2010, you would Buy and Hold 2 1/2 years.
Buying after the October 1st 2010 MACD buy signal and Sell during the post-election MACD seasonal sell signal sometime after April 1 2014.
Will Terry's 80 year K-Cycle trump the Almanac system?
Will the post August T sell-off be so dramatic that it will be a 2 1/2 year buy?
Will Don W. buy the low within 2 points? laugh.gif
(See Trader's Almanac 2010 P. 60: "Best Six Months + Timing + Four-Year Cycle = Triple Returns") LINK
PS. On P 58 the Almanac shows Nasdaq's best 8 months: November through June.
Using the MACD signal cross doubles returns on $10,000 into $718,420 over 38 years, since Nasdaq's inception.
Edited by Rogerdodger, 22 August 2010 - 03:31 PM.