The question that most traders ask with cycles is this: "how can I know when a cyclic low is in place?". There is an answer to this question, which comes in the form of the 'Cyclic Trendicator', which is our long-term indicator of trend direction and was discovered and first published in our advisory in 2003. When the Trendicator turns up or down after a long-term cycle is expected to peak or trough, the trend has changed and the cycle turn is in place. This single indicator has given us solid signals for the direction of the markets since it was introduced, and also with the backtesting that was done with this indicator prior to it's actual introduction. Not only did it correctly call the downturn into the summer of 2004 - but it also went long after the bottom and caught the subsequent ride back up as well. On the chart below you can see most of the more recent signals; note that it turned up just in time for the big rally off the Summer of 2006 low, and then turned down to catch the decline into the March 2007 low - at which time it then turned back up on 3/14/07 - which was the exact day of the market bottom! It also turned back down prior to the decline following the July, 2007 top. |