 |
|
|
| Days of the Week Cycles |
|
Monday |
Tends to be negative |
Tuesday |
Tends to be positive |
| Wednesday |
Tends to be positive |
| Thursday |
Tends to be positive |
| Friday |
Tends to be positive – The best |
| It is best not buy at the closing of Friday but rather at the end of Tuesday. |
| Monthly Cycles |
|
The Best
|
| Favorable Season: |
November, December (the best)
January, and March |
|
| Non Favorable Season: |
July and August |
|
| The Worst |
| Favorable Season: |
February |
| Non Favorable Season: |
September (the worst) |
|
| Month End Cycles - (String of Days – 5 days tendency to rise) |
|
 |
pre-July 4th holiday, |
|
pre-New Year’s holiday, and |
|
pre- Labor Day trading day |
|
| It is best to buy before the last trading day of the month and sell after the fourth trading day of the following month. |
| The Classic 40 Month Cycle |
|
It tends to give a long term indication of future market activity.
It showed a bottom around April of 2001. |
| Yearly Cycles |
|
| The 4 year cycle: |
1974, 1978, 1982, 1990, 1994, 1998, 2002. |
| |
The best gains come in the first year with a selective decline in the second, another decline in the third and a greater decline in the fourth. |
|
The 16 year cycle
|
The 32 year cycle |
The 50 year cycle (Kondratieff cycle) |
| Presidential Cycles |
|
|
First Year |
Poor returns |
|
Second Year |
Poor Returns |
|
Third Year |
Better returns |
|
Fourth Year |
Best Return (the election year) |
|
| Tax Cycle |
|
This cycle, also known as year end selling, shows investors tend to dump their loosing stocks during the first weeks of December to claim a tax loss from the government.
|
| Come April, when investors must file their taxes, they will use these losses to offset the capital gains in their portfolios.
|
| The stocks which caused the early December sell off tend to bounce later on.
|
|
|
