At the First Yellow Vertical Bar... What's next?

The following, below, was posted on 2/22/2019.  
BUT, we are now at the first yellow vertical bar.  This is where the first real, but shallow, corrections occurred in 2003,2009 & 2016.  It should be watched carefully as our Picasso Composite Cycle (PCC) date is almost here.  In the last PCC update posted on 3/4/2019 stated, the PCC date suggests a high in late March.  We are now in the beginning of that window.  So charts should be watched to see if indicators are breaking down and or showing any negative divergence.

Above are the charts from the 2003 low, 2009 low & 2016 low.  In each of these three lows there was a Breadth Thrust similar to the Breadth Thrust that we saw off of the Dec 2018 low.  So these charts were interesting to review for any similarities.  If any were found, then maybe we exposed some insight into how this rally may unfold as well.

There are 5 vertical yellow highlights.  The first one shows where highs were noticed in each of the three years.  It is interesting that they were all at about the three month mark!  The second, third, fourth & fifth yellow highlights show where some small lows occurred after the high at the first yellow highlight.

In 2003 lows were made in and around the second, third & fourth yellow highlights before the market continued higher.
In 2009 lows were made in and around the second & third yellow highlights before the market continued higher.
In 2003 lows were made in and around the second, third, fourth and before the fifth yellow highlights before the market continued higher.

In summary, "if" history is any indication how the 2019 rally will play out, then we may expect a high around late March +/- and then a low to develop in the next 2-8 weeks before the market continues higher.

“History doesn't repeat itself but it often rhymes,” - Mark Twain

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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.

Weekend Update & Picasso Cycle

Picasso Composite Cycle (PCC) has been very good in 2018.
It suggested:
- January 2018 high,
- June/July 2018 low
- Early October 2018 high
- Late December 2018 low

Once we are in the window of a Picasso Composite Cycle date, we then look for a change in trend on our charts for confirmation.  When we did that in 2018 the swing trades were very good with nice double digit gains instead of a loss as in the indexes.

Summary of 2018 PCC Performance -  https://bit.ly/2Giz648

Compare the Bottoms 2018, 2003, 2009, 2016 -  https://bit.ly/2Eph7XB
2003, 2009 & 2016 had a breadth thrust after their respective bottoms similar to Dec 2018
Note the patterns.  Some chop develops after 2 months and into a 3 month high.  Then some volatility before a move higher.

If you follow @JustSignals on Twitter, you would have seen this post on Feb 22,2019

If you follow @JustSignals on Twitter, you would have seen a post on Dec 23,2018 about going long on the next up day.

If you went long the SPY on Dec 26,2018 at the average price of 239.97, then as of Friday March 1,2019 close at 280.42, the gain was 16.8%.

What is Picasso suggesting now?
The Cycle is shifting from a high around early April +/-  to now a high around late March +/-.  Always note the "+/-" as there are no guarantees!

This is only a suggested area for a change in trend, so we keep watching our charts for confirmation even when approaching this time period.

Watch for the next Picasso Cycle Composite Date and any further comments on the Picasso Cycle.


This year, 2019, maybe the last year that the Picasso Composite Cycle Dates will be posted and discussed on this Blog.  In lieu of posting this information here, this information may be posted on a subscription site.

*For those interested in joining a subscription site for the Picasso Composite Cycle dates, please leave a comment at the bottom of this post.  Thank you! 


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.