LT wave chart for September
Posted by Danny on August 28, 2013
August is slowly coming to an end.
Today we take a look at the LT wave for September (click for larger image):
The LT wave did fairly well again in August. US stocks reached a new high on August 5th, but the market failed to build on those gains as was expected on the basis of the LT wave.
The subsequent drop into August 16th was followed by a rebound until August 24th, nicely in line with the wave chart. And the weakness we see this week is also coming right on the mark.
Looking at September, our LT wave shows some strength in the first week of the month. This could become a rebound after the current sell-off. Then around September 11th we see the start of a rather prolonged period of weakness. Around September 16th we could get a few stronger days, but the generally the last three weeks of September show a negative bias.
So, if we get a rebound high on September 6th or 9th, then I would use it as an opportunity to sell.
One reader asked whether seasonal tendencies, sunspot cycle or geomagnetic storms are used as an ingredient to calculate this LT wave. The answer is no. Lunar cycles are the main ingredient, and together with some other factors and filters this LT wave chart is generated. I can calculate this LT wave for the next centuries already, and it will be included in the next version of the LunaticTrader program, which will give them up to the year 2100.
This means that methods like seasonal tendencies or technical considerations can be used in addition to what this LT wave suggests. When more different methods are lining up in the same direction, it is usually more significant.