Stock Trading: Stocks Resuming Uptrends; Reinforcing Outlook for Overall Rally into late-April/early-May ’19. What Then?
Stock Trading: Stocks Resuming Uptrends; Reinforcing Outlook for Overall Rally into late-April/early-May ’19. What Then?
03/29/19 INSIIDE Track – “Stock indexes remain strong, on a 2 – 3 month basis, and have nearly extended their advances into early-April – one of the two key cycle peaks in 2Q 2019. While many indexes continue to project an overall advance into May 2019, the first phase was a rally into late-Feb./early-March and the second was a larger advance into late-March/early-April ‘19… That could be setting the stage for slightly wider swings in April & May, with a final spike high still possible in May ’19.
The extent of this 1Q 2019 surge has powerfully validated the ~3.25-Year Cycle that projected a multi-quarter bottom for late-2018. That cycle has consistently spanned multi-quarter and/or multi-year lows throughout this century (3Q 2002, 4Q 2005, 1Q 2009, 2Q 2012, 3Q 2015 and now 4Q 2018) and now projects a similar low in 1Q 2022 – aligning with 40-Year Cycle lows from 1942 & 1982…
China’s Shanghai Composite remains in an overall downtrend (from the mid-2015 peak) but is neutral on a 6 – 12 month and 1 – 2 year basis. It has rallied sharply from its early-Jan. low, regaining about .618 of what it lost during its 2018 decline. In the process, the Shanghai Composite twice neutralized its monthly downtrend – reinforcing the potential for a rebound peak in April/May 2019.”
Stocks continue to fulfill the 6 – 12 month outlook for a decisive bottom in late-2018 (~3.25-Year Cycle) followed by a strong, multi-month rally into April/May 2019 (weekly cycles pinpoint late-April – early-May ‘19 as ideal period for a peak). Interestingly, China’s Shanghai Composite is poised to peak in April and could be revealing something about what might prompt renewed selling in global equities.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.