Gann Master Cycle - Dec 1 2022
End-of-year rally in the $DJIA, $SPX and $COMPX ?
Will we have an end-of-year rally in the US Indices? I have analyzed the DJIA since 1885 and YES! there is a positive correlation with an end-of-year ‘Santa Claus’ rally using only the last quarter of each year. Below is a general pattern of the last quarter of the years since 1885.
There is a positive forecast ability as you can see in above chart. Doing a walk forward test it revealed a good 66% over the last 50 years have been profitable as can see in below statistics:
Last year was very good, but some other years like in 1992, or 1972 were not that good. The risk is still 34% for the not so positive end-of-year rallies. Remember as W.D. Gann said “Time is more important than Price”.
So, take care. No advice that the current rally will continue. There may be dips on the way or the rally may end sooner than expected. Anomalies can occur, cycles can contract, extend and invert. So, always watch the chart in front of you.
I also see a pattern developing in the US Indices that my premium subscribers have been alerted too and is updated in below post.
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