The Dow 7 Year Itch Review

Nothing goes is a straight line for ever! After a long period of time you know something scary is coming!

Stats from the 100 years trend of Dow Jones Industrials Index.

10 year cycle of years starting with a 7 on the end (1987, 1997, 2007) and years ending with a 8 on the end (1988, 1988, 2008).

During the 2years of 2017 and 2018 the odds are:

1) 20% chance the up trend will continue at the same pace with no correction greater than 12%.

2) If (1) occurs and a major correction is delayed the odds increase a 20% plus correct is very likely.

3) 80% chance the trend does not continue at same pace and will either fall or trend flat.

4) 40% chance price will trend higher or go flat, with no major corrections.

5) 60% chance some sort of correction greater than 12.5%.

6) 40% chance some sort of correction greater than 20%.

7) 40% chance some sort of correction greater than 30%.

8) 30% chance some sort of correction greater than 50%.

9) Two major bearish corrections in a row is unlikely [subject to (2) above].

Corrections come in many forms, fast or slow, no one knows what is in store this time. From above you can bet on (1) and (3).

(Click on image to enlarge)

Disclosure: We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to ...

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