Sunday, December 03, 2006

397 and 403 Month Cycle

There is a theory. It is called the 397 and 403 month cycle.

August 1896, a new bull market that finished in September 1929, it lasted 397 months.

July 1932, a new bull market that finished in Febuary 1966, it lasted 403 month.

December 1974, a new bull market that finshed in ?

January 2008 is 397 months, July 2008 is 403 months.

Be very careful if we still have a bull market ragin going inot 2008.

West


Both of the past cycle collapses wiped out over 50% of the markets value, that did not occur when we topped out in 2000.

Two old timers that follow the market and use different models have the market topping:
1) in the high 14,000s
2) in the 17,000s

Before this cycle ends, could 2007 be the blowoff year with just a massive upward spike like in 1998 and 1999.

We shall see.

West

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