Everyone is Timing the Market
#172 An update on the US Indices: DJIA, S&P500, Nasdaq
Introduction
Whether you are a long-term investor, a medium term trader or you are scalping the markets everyone is timing the markets. Whatever your analysis methods are to decide to buy or sell equities, you are essentially timing the markets based on your own analysis and risk/reward objectives.
So, I agree with Marian McClellan (1934-2003) the co-creator of the McClellan Oscillator and Summation Index
"Everyone times the market. Some people buy when they have money and sell when they need money, while others use methods that are more sophisticated." Marian McClellan
The McClellan Oscillator and Summation Index can be a valuable tool from time to time to determine the state of the market, but like any tool, it should not be used in sole isolation.
In principle, all techniques used fundamentally, technically, or cyclically are to model the future based on past behavior, but past performance is no guarantee for future results.
Many times I use the methods of Gann to determine the state of the various markets. W.D. Gann used different analysis techniques that can complement each other, ranging from time cycles, pattern analysis, astronomical techniques, and many others, to determine where the markets were heading. I do not believe he used them in sole isolation and nor should we.
In last week’s post, I mentioned a few Gann time cycles, like 60-year and 15-year cycles, that may be active in today's markets. In today’s post, I am showing some additional methods using price and time that may give some clues about where the US markets are heading.
This analysis is intended for general informational & educational purposes only. Hypothetical or simulated performance based on past cycles has many limitations. Cycles can contract, extend, and invert. Anomalies can occur. Hence, past performance is no guarantee for the future. No advice. Please take a look at our full disclaimer.
Disclosure: No positions at the time of writing.