Nice Dow backtest chart from Sqwii trader.I agree with the comments and think it likely we are putting in a major top.See my OEX chart with time cycles,look at the extreme bullish sentiment numbers last week and the complacency indicated by the Vix.
At any rate risk/reward looks incredibly unattractive for bulls and good for bears,who are a demoralised and faithlesss bunch at the moment. Sqwii has a nice chart of the Vix too.See link on blog list.
Prechter has also called a top again,which might disturb some bears though !!
Here is a quote from Gann
Everything moves in cycles as a result of the natural law of action and reaction. By a study of the past, I have discovered what cycles repeat in the future. In order to be accurate in forecasting the future, you must know the major cycles…I have experimented and compared past markets in order to locate the major and minor cycles and determine in what years the cycles repeat in the future." "The winter quarter begins December 22nd, and 15 days from this date is January 5th and 6th, which are always important dates to watch at the beginning of each year, as stocks often make extreme high or extreme low around these dates and a change of trend takes place" Gann teaches us to look back 10 years to see the most relevant price action for todays markets...check out the 2002 chart and the corrective zigzag in Jan 2002
(my thanks to Klout,on Daneric's board for pointing out the 10 year cycle )
At any rate risk/reward looks incredibly unattractive for bulls and good for bears,who are a demoralised and faithlesss bunch at the moment. Sqwii has a nice chart of the Vix too.See link on blog list.
Prechter has also called a top again,which might disturb some bears though !!
Here is a quote from Gann
Everything moves in cycles as a result of the natural law of action and reaction. By a study of the past, I have discovered what cycles repeat in the future. In order to be accurate in forecasting the future, you must know the major cycles…I have experimented and compared past markets in order to locate the major and minor cycles and determine in what years the cycles repeat in the future." "The winter quarter begins December 22nd, and 15 days from this date is January 5th and 6th, which are always important dates to watch at the beginning of each year, as stocks often make extreme high or extreme low around these dates and a change of trend takes place" Gann teaches us to look back 10 years to see the most relevant price action for todays markets...check out the 2002 chart and the corrective zigzag in Jan 2002
(my thanks to Klout,on Daneric's board for pointing out the 10 year cycle )
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