Sunday, 14 October 2012

Cycles - Do They Repeat Or Rhyme?

Cycles have been repeating from the beginning of time. The use of our clock is a cycle. There exists sixty seconds in a minute, sixty periods in an hour, 3 twelve hour cycles or twenty 4 hours in a day. The ancients used the moon cycle that is a twenty nine day cycle. The 4 seasons are a cycle of roughly ninety days for each cycle or season.



Cycles are endless and the ancients seem to have been most fascinated with time and cycles of time. The ancient Egyptians, Mayans, Greeks and countless other civilizations based everything that they did on cycles to hold track of time. They used the cycles for the planting of food, harvesting, and even reproduction. Since we have knowledge of cycles repeat, do they effect the markets, or even sports? Perhaps they do. Lets first examine the 17 year cycle cicada cycle.



In 1991, the United States of America was in a recession. The recession occurred subsequent to an extended bull market sprint that started in 1982 and lasted 7 years until 1989. The president at the time was George H. The United States had just entered a Gulf War which was against Iraq. The NFL New York Giants soccer team won the Super container against the Buffalo Bills that were located within the north east component regarding the United States.



17 years later in 2008 the President is George W. Bush, the United States is fighting another war within the Gulf against Iraq. The NFL New York Giants win the Super Container against the New England Patriots NE Patriots are located within the north east regarding the United States. Perhaps this is just a coincidence or maybe there is something more to the cycles. In 1907 the stock market had a one year crash that was very similar to what we are seeing today.



Please note that this is 100 years. The stock market peaked in October of 2007. We have now approached the one year anniversary from that 2007 high. In 1907 and 1908 the Chicago Cubs baseball team created the playoffs in consecutive years. The Chicago Cubs repeated that feat in 2007 and 2008 by creating the playoffs in consecutive years, exactly 100 years later.



The irony regarding the story is that a cub is is a baby bear. This market is a bear market. In 1907 it was JP Morgan who came to the rescue and in 2008, exactly 100 years later it is JP Morgan Chase who is repeatedly coming to the rescue. The Mayan civilization used a very advanced calender and cycle system. As most of us now have knowledge of the 2012 cycle is when all the Mayan cycles converge.



This function signals the end of an age and a beginning regarding the next age. However, there is one cycle that stands out to me. It is called the 'Mayan long count'. This is a 52 year cycle that ends naturally in December 2012 with the rest regarding the Mayan cycles. If we subtract 52 years from 2012 we get 1960.



This was a pivotal time within the USA If we subtract 104 3 52 from 2012 we get 1908. As we all have knowledge of this bear market is very similar to the 1907 stock market crash which ended in 1908. You can draw that you own conclusions. The final cycle that I shall examine is the 10 year cycle. Ten is known like a thorough number, hence thorough 10.



Therefore, I personally watch the 10 year cycle and multiples of ten. Within the year 2000, primary stock indexes began an special bear market. 2010 shall be the 10 year anniversary from the 2000 bear market. The market also sold off in 1910. This shall also be 100 years from 2010.



Many times market tops are formed within the ninth, and zero, years of decades. For example 1929, 1910, 1920, 1980, 1990, and 2000 just to name a few. Realizing how important the 10 year cycle is I decided to multiply it to the Mayan 52 year cycle 10 52=520 and we get 520 years. The next Mayan 52 year cycle is completed in 2012. Therefore, if we subtract 520 from 2012 2012-520=1492 we get the year 1492.



This is certainly a pivotal time in the past as this was when Columbus discovered America. Whats the conclusion? This is a severe bear market without question. Brief term traders appear to be the only people benefiting from the volatile market. This kind of environment should final for multiple years to come. Whether you can be going to invest or trade it is imperative to have knowledge of and understand the mechanics regarding the market and not the Wall Street Hype.



Cycles are apparently one regarding the more important ways to understand when the primary trends are about to change. Perhaps cycles can even predict who is going to win the next Super Bowl. Source: Nicholas Santiago -- The Leader In Market Technical Guidance.

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