Thursday, May 19, 2016

Combining the "W" pattern and the last year of a 2 term President

Courtesy of McClellan Financial Publications
After staring at all of these charts, hidden in the chart of Two Term Presidents, above, was a "W" pattern, highlighted in yellow, that was discussed by John P. Hussman, Ph.D., in the February 15, 2016 article, Warning with a Capital "W".

This article can be found at   http://www.hussmanfunds.com/wmc/wmc160215.htm

As you can see below, in the weekly SPY chart, is also a "W" pattern at the end of a long 7 year bull market that started March 2009.
In the John P. Hussman article were two other charts with a "W" pattern, 1987 & 1929, shown at the bottom of this post.

Courtesy of eSignal
JustSignals posts the turn dates for short term and intermediate/long term cycles.  The short term cycles have been recently posted as Picasso Dates.  Let's discuss the intermediate/long term cycles for a moment.  The two periods that are likely for some kind of a high, lower or higher than where we are now, is May/June 2016 & Nov/Dec 2016.  This is solely based on intermediate & long term cycles.  
Other hints come from the Escape Velocity, Strong Summation Index by McClellan Financial Publication and the AAII sentiment numbers, all of which have been posted here as well. 
One thing is true and that is, what ever the market does, the caution light is on.  Be careful and use stops!

Article information:
Link    http://www.hussmanfunds.com/wmc/wmc160215.htm
February 15, 2016 Warning with a Capital "W"
By John P. Hussman, Ph.D.

The following two charts are from the above mentioned article which is highly worth reading!
 

Courtesy of HussmanFunds.com

Courtesy of HussmanFunds.com
Another interesting observation is that a potential 29+/- year cycle "may" be operative.  
1929(crash)+29=1958(Eisenhower recession)+29=1987(crash)+29=2016(???)

In order to calculate the correct ending date you must start with the correct beginning date !


Keep following JustSignals using Twitter, @StockTwits or Follow By Email. 
Just submit your email address in the box on the Blog homepage
This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.