• 312 days Will The ECB Continue To Hike Rates?
  • 313 days Forbes: Aramco Remains Largest Company In The Middle East
  • 314 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 714 days Could Crypto Overtake Traditional Investment?
  • 719 days Americans Still Quitting Jobs At Record Pace
  • 721 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 724 days Is The Dollar Too Strong?
  • 724 days Big Tech Disappoints Investors on Earnings Calls
  • 725 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 727 days China Is Quietly Trying To Distance Itself From Russia
  • 727 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 731 days Crypto Investors Won Big In 2021
  • 731 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 732 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 734 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 735 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 738 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 739 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 739 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 741 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

Market Update - 08/07/2017

It’s Showtime!

The July 10, Market Update laid out our case for a tradable high in equities to commence sometime by August. We now have a host of reasons (laid out in this report) for thinking that high is now upon us. It’s Showtime!

As explained in the July 10 Market Update, a 15yr interval points to a tradable top (within the ongoing bull market) in the period September 2016 to August 2017 and we have come to the end of the forecast period.

A popular approach of Lindsay’s was his low-low-high interval. Lindsay showed that counting the number of trading days between two important lows often leads to a high the same number of days into the future. The distance between the lows on 2/11/16 and 11/4/16 was 186 days. Counting forward another 186 days targets a top near August 3, 2017. 

Seasonally, a top in August makes total sense as August and September are the two weakest months of the year for equities.

The Decennial pattern warns of a nasty sell-off in equities during years ending in the number 7 (i.e. 2017).  Since 1907 each of these years (with the exception of 1947 which suffered a mere 6.2% drop) has seen a double-digit decline beginning somewhere between June and October.

By Ed Carlson 

Back to homepage

Leave a comment

Leave a comment