Stock Cycles Converge; Early-Dec. Lows in US & China Stocks. What Now?
12/14/19 Weekly Re-Lay: “Stock Indices remain in intermediate uptrends after experiencing sharp pullbacks in early-Dec. – fulfilling a ~2-month cycle in which sharp sell-offs took hold in early-June, early-Aug. & early-Oct. during the first 2 – 3 trading days of the new month. Equities repeated the pattern and twice neutralized their daily uptrends while selling off into Dec. 3.
That triggered a low and projected a retest of the highs… It coincided with when the Shanghai Composite was projected to set a multi-week low in early-Dec. – a bottom that took hold on schedule, acting as a harbinger of US/China trade ‘progress’.”
Stock indexes repeated a ~2-month pattern that has timed sharp sell-offs (and multi-month lows) in the opening days of every other month since June ‘19. On a broader basis, they continue to closely adhere to the 40-Year Cycle – replicating the swings seen in 1978 – 1979 while providing important clues for 2020. Focus is shifting to late-Jan./early-Feb. ’20 – when an uncanny 2-Year Cycle will join the 40-Year Cycle (as well as the 8-Month & 16-Month Cycles).
What Does China Stock Cycle Low Portend?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.