Sunday, August 16, 2015

212 Week and 40 Week Time Cycles

Aug 17

Analysis

Recently two powerful bullish market cycles of note have begun to overlap -- the six month bullish 212 week cycle and the bullish half of the 40 week cycle.

These two cycles started earlier in Aug and both became active on Aug 7 2015 (SPX closing 2077), ten calendar days ago.

There are several overlapping end of month (6d), mid month (4d) and presidential cycles that are also overlapping or will be overlapping by the end of December.

The 20 week bullish phase ends on Dec 25 2015 and 212 week six month phase ends on Jan 27 2016.

Trade

To participate in an expected bullish move in these two time cycles, I am going to purchase a deep ITM call of 75+ delta (replicate stock) on the DIA or SPY with an expiration at either end of December or beginning of January to coincide with the end of this cycle. There is a high probability that the market will be higher by this date.

The benchmark will be the start of the 20 week bullish phase on the SPY


+2c Dec 31' 2015 SPY 196 Call @ 16.00  (corresponding to SPY @ 209.23)

-End

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