Tuesday 25 April 2023: A Preview of May 2023 from the Cycles

Apr 25, 2023

∙ Paid

Earlier this month we dove into the concepts of Time Counts and Transient/Dominant Cycles:

Tuesday 4 April 2023: Traders' Handbook of Economic Cycles - Chapter 8: Time Counts and the Transient Nature of Cycles

Lifespan of Cycles All cycles have a finite lifespan, meaning that they are born, they exist, and eventually they come to an end. Therefore, it is important to question the time span used to identify cycles in the stock market. It is a well-established scientific fact that there are no consistently profitable cycles in the market. Long-term cycles such as the Kitchin and Juglar cycles can be identified using mathematical procedures, but they are too lengthy for most traders traders…

2 years ago · Kudakwashe Chinhara

14 - 20 April was identified as a cluster of dates to watch for a potential “trend change or pause”. Also, it was suggested that “momentum peaks would likely be registered in mid- and late-April (11th to 25th)” by the short-term cycles. So far, so good…the DJI and SPX both registered peaks on the 18th of April, and RSI peaks between 13 and 18 April.

Does this mean we are now heading into a period of consolidation or correction? This is definitely possible and points worth considering are outlined below:

1. Annual Predictable Zones (APZs)

In the chart of the DJIA below, I have introduced GREEN and RED shading to mark the APZs discussed in previous reports. We are quickly coming upon the next such zone.

The Kairos Report

Tuesday 25 April 2023: A Preview of May 2023 from the Cycles

1. Annual Predictable Zones (APZs)

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