LT wave for October 2020
Posted by Danny on October 5, 2020
The LT wave had a good month in September.
Expected weakness in the first half of the month was right on target. I warned to be careful because not all weak periods produce gentle sideways. Indeed, the market dropped a few hundred points very quickly. The 3rd week was projected to be stronger, but all we got was a few dead cat bounce days. The low of the month was reached on the 24th, exactly on a bottom day in the blue line. Here is the wave for October:
The pattern is very similar to September. Weakness until around the 10th, followed by a stronger week. There is a high peak value on the 16th. And the final week of the month looks weaker again.
Good luck.
Rajat said
Can you please explain how to read the yellow and blue lines? Thanks!
Danny said
See the articles linked here: https://lunatictrader.com/lt-wave-chart/
nietgek said
I am VERY curious what method you use to make these LT wave charts. Do you use all moves from the past and combine these ? Like all october 6 data from the SP500 from the past 20 years or so and compare that to all october 5 data to make the blue line go up or down on the 6th compared to the 5th ? Or does is also have moon cycles in its formula. ? Can you say a little something about this ? It really seems to work more often than not…
Danny said
Hi, Some basic info on the LT wave is in the articles linked here: https://lunatictrader.com/lt-wave-chart/