Potential high Dec6, from superpositioning of cycles. Basic theory after this explanation: the bottom occurred on October 29, and the cycle set of 72 36, 18, 9 etc is assumed to have reset at that point. A likely high would occur approx 27 mkt days after the low, or Dec6. I have previously commented on Dec7 just from the 36day cycle. Assuming the downtrend from the 216day cycle, the first peak of the 36day would probably be the rally high.
Theory follows:
Assume you have two sine waves, one of period L and the other with period L/2, and they begin at the same low point. At the time L/2, the longer cycle is at its theoretical high and the shorter cycle is at its low. The combination of the two is just the addition of the two waves. If the amplitudes are the same, the combination will peak at two points, L/4 on either side of the peak of the longer individual cycle.
When analyzing the harmonic set of equity cycles, you have a repetitive occurrence of one peaking while the next shorter cycle is bottoming, and one must shift the expected high in an iterative fashion. Thankfully, as the wavelength shortens, the amplitude shrinks and 3 or four cycles is as much confusion as you need endure.
An example would be the current market. All cycles started together at the 6th week of 2016, and with a primary wavelength of 6.6yrs, the high of main cycle would be at 3.3yrs, or late May 2019. The 3.3yr cycle low should also be at that point. The combination should result in a high at 1.65yrs from the beginning or approx Nov2017, or 1.65 yrs after May 2019.
This high point is also a low for the L/4 cycle, meaning the high could be 10 months on either side of Nov2017. It was obviously Not Feb2017, but might be Aug2018.
And this continues ad nauseam but the point is that the acceptable theoretical points for the high are Now or shortly to come, or are in mid 2020. As this is the longest running bull market in history, and the most overvalued, the odds favor Now instead of 2020.
Oddlot
Stay on the right side of the cycle!
