V. 22:1 (32-36): The 40-Week Cycle In The Stock Market by Jay Kaeppel
Product Description
The 40-Week Cycle In The Stock Market by Jay Kaeppel
Is the market truly random? Some phenomena related to the stock market would not be expected to exist if the market truly were random.
There has been much debate in the investment community regarding the existence of cycles in the markets. Some claim that cosmic forces (a full moon, for instance, or other celestial events) can cause the overall mood of investors to swing from high to low, often on a predictable and repetitive basis. On the other end of the spectrum are those who dismiss such notions as hogwash. Most investor opinions fall somewhere in between — not entirely sold on the idea, but still willing to keep an open mind.
DO CYCLES EXIST?
In this article we will discuss the 40-week cycle in the stock market. This information is not presented as proof positive that cycles exist, but simply to make the point that there are phenomena related to the stock market that would not be expected to exist if the market were truly random.
Our analysis of the 40-week cycle starts on May 15, 1970, and makes the assumption that a new 40-week cycle starts on this date and a new 40-week cycle starts every 280 calendar days after that. The hypothesis is that the first 20 weeks of a new cycle represent the bullish phase of the cycle and that the last 20 weeks of each cycle represent the bearish phase of the cycle.
Is the market truly random? Some phenomena related to the stock market would not be expected to exist if the market truly were random.
There has been much debate in the investment community regarding the existence of cycles in the markets. Some claim that cosmic forces (a full moon, for instance, or other celestial events) can cause the overall mood of investors to swing from high to low, often on a predictable and repetitive basis. On the other end of the spectrum are those who dismiss such notions as hogwash. Most investor opinions fall somewhere in between — not entirely sold on the idea, but still willing to keep an open mind.
DO CYCLES EXIST?
In this article we will discuss the 40-week cycle in the stock market. This information is not presented as proof positive that cycles exist, but simply to make the point that there are phenomena related to the stock market that would not be expected to exist if the market were truly random.
Our analysis of the 40-week cycle starts on May 15, 1970, and makes the assumption that a new 40-week cycle starts on this date and a new 40-week cycle starts every 280 calendar days after that. The hypothesis is that the first 20 weeks of a new cycle represent the bullish phase of the cycle and that the last 20 weeks of each cycle represent the bearish phase of the cycle.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |