Using a Maximum Entropy approach to
determining the cycles
in the DOW from 1920 till now indicates
that a 34.3 year and
an 8.3 year cycle are more
prominant than the 15.8 year.
With the indicated 3 cycles I use a
"strategy" which I wrote to
obtain the most profitable alignment of
the phases of these 3
cycles combined (see red/blue/red/...
curve). The "profit" (DOW points) going long when plot is blue
and short when plot
is red if almost 20,000 points seeming
to point out that trading
the cycles would be slightly better
than buy and hold.
Clyde
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= = = = = = = Clyde
Lee
SYTECH Corporation 7910
Westglen
Phone: 713.783.9540 Suite
105
Fax: 713.783.1092 Houston, TX 77063 www.theswingmachine.com = = = = = =
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----- Original Message -----
Sent: Sunday, November 09, 2008 3:34
PM
Subject: RE: [RT] Market status
To me the most dominant cycle in the market via the Dow is 16
years (see attached chart).
As to impulse dates, my analysis all
depends upon which index one chooses. For the Russell 2000 and NYSE I
get a 11/13 impulse date; for the Dow, a 11/14 impulse date; for the NASDAQ a
11/17 impulse date; and for the S&P I really get no outstanding
date. Since 11/14 is the middle date I would guess that either the 13th
or 14th to be a intermediate top or bottom and either the 14th or 17th to be
either the start of a leg up or down.
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