War Cycles Reinforce Bonds’ & Stock Sell Signals.
Outlook 2022/2023 – War Cycles Validated
02-26-22 – For the past 6 – 7 years, INSIIDE Track has warned about the impending onset of War Cycles in 2021 – 2025… more specifically in late-2021 until late-2025. This has been based on a powerful synergy of cycles – including multi-decade and multi-century cycles ranging from 360 & 720-year cycles to 40 & 80-year cycles and even 7, 8 & 11-year cycles.
All of them collide in this brief period of time beginning in late-2021. In the second half of 2021 (and also in the Jan & Feb ’22 issues), INSIIDE Track intensified this focus, preparing readers for what might unfold…
War Cycles… in Europe
In May & June 2016, INSIIDE Track was discussing the likelihood of Brexit occurring and explaining why the British Pound was destined to suffer a sharp drop from June ‘16 into early-’17. Part of that analysis surrounded an 8-Year Cycle that is a key component of the larger-magnitude 80-Year Cycle of War.
Both of those cycles are important factors in the ongoing outlook for late-2021/early-2022 to usher in a time of war in/for Europe, Asia and America. Here is a small excerpt of related analysis:
“From a cyclic perspective, the startling aspect of this 8-Year Cycle – and its unfolding 7th phase (‘7’ also representing ‘completion’) – is that it is on a collision course with a larger and farther-reaching cycle… the bigger 80-Year War Cycles that converge in 2021… particularly in America. In each case, there was a 5–6 year period of contributing events that fed into those wars… that recurs in 2016–2021.”
That analysis went on to list the sequence of 80-year war events that were reprinted in last month’s issue. Brexit did take hold and the Pound did plunge – into early-2017 – at the same time INSIIDE Track was detailing an uncanny 40-Year Cycle that impacts Russia and was projected to usher in a dramatic shift in her tactics, beginning in 2016/17 – 2021 and leading into War Cycles in late-2021 – late-2025.
Is it any surprise (cyclically-speaking) that Russia would trigger this latest invasion 7 – 8 years after her invasion of Crimea in 2014?
War Cycles… in Eastern Europe
There have been many reasons why the focus has remained steadfast on this time frame – late-’21 into late-’25 – for the recurrence of War Cycles. A couple of them are much larger than the 80-Year Cycle.
They are the 360-Year and overlapping 720-Year Cycles that have been discussed numerous times before and which have had a steady influence on Europe and the Middle East.
One of the intriguing aspects of this cycle is that it precisely timed the culmination or extreme of major military campaigns or empires in Europe – extremes that would remain intact for centuries to follow and time the beginning of major shifts in power.
The Rus’ – Byzantine War of 941 – 945 is a key place to begin this discussion since it has an intriguing ethnic relationship to what is currently occurring.
[Rus’ people were of Norse descent and encompassed Belarus, Russia and Ukraine; there are records of great atrocities perpetrated by Rus’ on their victims during this conflict].
At the same time (942), the Hungarians were on a military campaign, attacking Italy, France and ultimately Spain – the western extreme of their attacks and conquests. Centuries later, in an odd twist of fate, Hungary would mark the western extreme of Ottoman conquests. Both of these future empires saw major conquests in this narrow window of 941 – 945.
360 years later, Ottoman – Byzantine attacks began in 1301 – 1302 (first wars of infant Ottoman Empire, which would ultimately rule eastern Europe into the Transcaucus and Middle East for ~600 years).
These attacks and the ultimate Ottoman defeat of the Eastern Roman Empire marked the first major victory of what would be a ~600-year empire controlling Eastern Europe… a momentous shift in Europe. [The Byzantine and Hungarian Empires suffered momentous defeats at the hands of the Ottomans.]
360 years later, in 1662 – 1664, another extreme would be reached. The 80-Year Cycle described the Siege of Buda in 1541 as the start of an Ottoman campaign against Hungary (see Feb ’22 INSIIDE Track) – the farthest west the Ottoman Empire would expand. 1541 was just the beginning…
That campaign lasted for over a century and reached its pinnacle in 1662 – 1664, when the western portion of the Hungarian Empire was placed under Ottoman rule and a subsequent Ottoman defeat in Austria halted that westward progress.
In 1663 – 1664, a military campaign was waged against Austria and the Turks were defeated – marking the terminus of their westward expansion. This also marked a turning point in the ~200 year war between the Habsburg and Ottoman Empires.
[The precise dates for the Ottoman-Hungarian Wars are listed as 1366 – 1526 – a precise 160-year period of war (2xs 80-Year Cycle of War).]
The Kingdom of Hungary – which would last for almost 1,000 years – plays in intriguing role in all of this (considering it previously included portions of modern-day Ukraine, Austria, Slovakia, Romania, etc.).
2021 – 2025 is the next phase of this 360-Year Cycle and coincides with the 80-Year Cycle of War and several other related cycles.
War Cycles… in Russia/Ukraine
In 1999 – 2001, INSIIDE Track described a convergence of similar war cycles that pinpointed Aug – Oct 2001 as the time for a major attack involving the US. In April 2000, the question was posed as to whether the US could be hit by another surprise attack on our shores – related to late-1941.
[More of these INSIIDE Track quotes from 1999 – 2001 can be found at https://www.insiidetracktrading. com/wp-content/uploads/2018/07/2001-war-market-cycles.pdf See page 4 for other excerpts.]
Two of the prevailing cycles that led to those conclusions were a 7-related cycle (7, 14, 21, 28 & 84-year cycles) and the ~11-year Sunspot Cycle that often times the onset of wars. That ~11-Year Cycle comes back into play in 2023 whereas the 7-Year Cycle recurs in 2022… reinforcing the outlook for a resurgence of War Cycles in late-2021 – late-2025.
More succinctly, there is a 21-Year Cycle that has timed major multi-national conflicts dating back to at least 1812 (War of 1812). 42 years later was the Crimean War in 1854 – a war that has an intriguing parallel to current events. Since the beginning of the last century, that 21-Year Cycle has timed:
1917 – World War I
1938 – World War II/Holocaust
1959 – Viet Nam (North commits to war in South)
1980 – Soviet invasion of Afghanistan (sound familiar?); Iran/Iraq War
2001 – 9/11; Trigger for US involvement in Iraq & Afghanistan
2022 – ?? Next Phase of 21-Year War Cycle
2022 is no longer a mystery and can be filled in with ‘Russian invasion of Ukraine’… and whatever else might unfold in the next 10 months.
80-Year War Cycle… to the Day
A quick review of the Ukraine timeline reveals some intriguing War Cycle fulfillment as well. On Nov 10, the US reported on Russian troops massing on Ukraine’s border. On Nov 28, Ukraine concurred and reported 92,000 troops on their border. Shortly after, the gauntlet was thrown down…
On Dec 7, 2021 – 80 years to the day from when the US was drawn into World War II – President Biden threatened Putin against invading Ukraine, timing the day the US was drawn into this conflict.
Are cycles that precise? If so, what do ALL of these cycles mean for 2022 – 2025? Stay tuned…
Stock Indices sold off into Feb 23/24, perpetuating a ~1-month/~30 degree cycle that has timed the lows in 75% of recent 8 months. That marks the 6th time in the last 8 months when they bottomed on the 19th – 24th of the month…
This 2 – 3 month sell-off has powerfully fulfilled the 2-Year Cycle and repeated the pattern witnessed in 1Q 2010, 2014, 2016 & 2018 (with similarities to 1Q ’20) – when substantial declines occurred in Jan/Feb of those years. However, the wave structure and weekly trend patterns are now the most significant.
The DJIA finally turned its weekly trend down on Feb 18 – a lagging/confirming indicator that usually augurs an intermediate low in the ensuing week and the onset of a reactive 1 – 3 week bounce…
At the same time, the NQ-100 completed a 5-wave decline (from its Nov ’21 peak) as the Russell 2000 and S+P Midcap 400 held their late-Jan lows and set double bottoms. All of these argue for an intermediate low and the onset of a multi-week bounce.
That should trigger a larger-magnitude recovery or consolidation even if another intermediate (divergent) low is seen around March 23/24. Price action must validate this scenario so the coming days are crucial if stocks are going to confirm a bottom.
Looking out a little farther, the DJIA has a consistent 14 – 15 week low-low-low-high Cycle Progression, dating back to March ’21, that portends a future peak on April 11 – 22. Other indexes have intermediate cycles peaking in early-April (as well as in early-March when initial highs could be seen).
2-Year Cycle
Throughout the second half of 2021, one of the primary foci was on the 2-Year Cycle that had spurred January sell-offs (10 – 15% declines in most cases) in 5 of the past 6 phases (2010, 2014, 2016, 2018 & 2020). Jan ‘22 was next in that sequence and stocks were forecast to peak in early-Jan. ’22 – perpetuating corroborating 2-month, 4-month & 8-month cycles – and then see a similar sell-off.
The 2-Year Cycle perfectly dovetailed with the ~8-month cycle (midpoint and 1/2 cycle of ~16-Month Cycle) that had been projecting an early-Jan. ‘22 peak since early-May ‘21 (later reinforced with midpoint peaks in early-Sept and then early-Nov ‘21).
The DJTA and other indexes had set multi-month peaks in the first half of Sept ’18, May ‘19, Jan ’20, Sept ’20 & May ’21. That 8-month sequence forecast another peak to take hold in early-Jan ’22. That cycle then broke down into successive ~4-month cycles that also projected an early-Jan ‘22 peak (early-May ‘21 – early-Sept ‘21 – early-Jan ‘22).
In the midst of that, it also broke down into successive ~2-month cycles that also projected an early-Jan ‘22 peak (early-July ‘21 high – early-Sept ‘21 high – early-Nov ’21 high – early-Jan ‘22 high and which could produce an initial high in early-March ‘22).
All of that reinforced expectations for an early-Jan ‘22 peak and subsequent sell-off…
Bonds & Notes are showing signs of an intermediate bottom after declining into mid-Feb and then rebounding. Both are poised to turn their 2 – 4 week trends up on today’s close even though neither is likely to close higher on the month…
The Bond peak in July ’20 perpetuated an uncanny 4-Year Cycle that timed multi-year highs in July ‘12 & July ‘16 and preceding lows in mid-2004 and mid-2008. That cycle projected that interest rates would slowly rise (and Bonds fall) in 3Q ‘20 – 3Q 2022, possibly extending into 2023. Since that time, a ~1-year/ ~360-degree cycle formed a secondary peak in July ‘21 and could time a lower peak in July ‘22.
Longer-term investors and hedgers could have been liquidating long positions in Bonds & Notes and selling on intermediate rallies in 3Q/4Q ‘20… and should have added to short positions in Aug ‘21.” TRADING INVOLVES SUBSTANTIAL RISK!
Bonds & Notes remain on track for a convincing decline into ~3Q ’22 (1/2 of 4-Year Cycle; with Oct ’22 representing a 4-year low-low cycle)… and ultimately into at least 1Q ’23. Equity markets are validating analysis for a multi-week, multi-month (possibly multi-year) peak in early-Jan ’22 followed by a major decline… reinforced with several indexes fulfilling multi-year upside price targets (‘5th of 5th of 5th wave’ peaks) in Nov ‘21. That projects significant declines back to multiple levels of ‘4th wave of lesser degree’ support.
‘Crash Cycles’ also kick in in 2022/23 (a ~7-Year Cycle that last timed sell-offs and lows in 2001/02, 2008/09 & 2015/16). Inflation has been forecast to see a second surge into 2022 with Bonds, Notes and Stock Indexes poised to drop in reaction to that.
2021/2022 was expected to usher in a dramatic shift in multi-decade cycles (40-Year & 80-Year Cycles) – timing everything from now-validated War Cycles (late-2021 into late-2025), Drought Cycles peak in 2021/22 and shift to Deluge Cycles in 2022/23, Agriculture Cycles (80-Year Cycle shifts in 2022/23), Currency Wars (2021)… and Interest Rates.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.