Kamis, 31 Maret 2011

What the cycle analysts are saying - part 4

Tonight I am going to bring you Daniel T. Ferrera. He does not post articles on the net that I can find. He publishes a lengthy outlook every year which is available (at a price). But I found one of his works on a site ending in  >.su<.  That is the Soviet Union I believe. Reasonably sure it is not supposed to be on the net and it is somewhat dated (a couple of years old). Still I think it is relevant.

Here is the site:  http://gann.su/book/eng/Daniel_Ferrera_Outlook_2010.pdf

It is rather lengthy, but worth the read IMO.
 
He says in this document: "10-Yr, 41-Month & 24-Month Cycles as discussed on pages 17-18 of the 2009 outlook, we cannot overlook the importance of the 10-year, 41-month and 24-month cycles when it comes to forecasting the general trend and direction of the stock market. The influence of these 3-cycles often predominates the entire trend when looking at 5-year sections of the market. There are of course other cyclic influences, but these 3 can never be ignored."

Now Mr. Ferrera supposedly tracks something like 16 different cycles, but he says these are 3 you should not overlook. Now you will notice he mentions the 41 month (Kitchin) cycle as did David Knox Barker. He mentions the 24 month (2 year) and 10 year which Drokes claims is 2 of 4 cycles from which all the other yearly Kress cycles are derived.

So lets summarize:

  • There is the 10 year cycle (120 months)
  • The Kitchin cycle (1/3 the 10 year - 3 x 41 = 123 months)
  • The 2 year (1/5 of the 10 year cycle = 2 x 5 = 10)
Now he shows these 3 cycles bottoming concurrently in 2002 and doing so again in 2012.

Here is a visual:

GL traders.  We will try to summarize all 4 analysts later. I am sure there are others - if you have 1 you admire then post a link in comments.

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