Chapter 9. Temporal Patterns and Cycles

Chapter Objectives

By the end of this chapter, you should be familiar with

The long (50–60-year) Kondratieff wave cycle

The 34-year cycle

The decennial cycle

Four-year cycles, including the election year pattern

Seasonal tendencies in stock performance

The relationship between January stock market performance and the rest of the year

The relationship between events and stock market performance

In the previous two chapters, we looked at ways to measure the sentiment of market players and the internal strength of the stock market. In those chapters, we saw that the market alternates between periods of strength and weakness. A major market cycle appears when market players become more and more ...

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