VCM Daily Trading Lessons

Are there cyclical patterns?

Today's Quote: “Success is the sum of small efforts, repeated day in and day out.” - Robert Collier.

Let’s deal with a topic that is often debated in the markets. Do stocks or markets in general have patterns? Are the patterns such that money can be made from them? You can probably imagine the answer. Anyone who has lived the markets every second of every day for any length of time has the only answer, ‘OF COURSE THEY DO’. Money could not be made on a technical basis if they did not. Perhaps you would like a more ‘objective’ response though. How about this one? If you have not seen this one, sit down because it will knock your socks off.

The most bullish six months versus the most bearish six months. What is the value of knowing that one simple fact?

Are you aware of some of the basic statistics of the market? The most likely day for stocks to reverse is within one day of the 15th of every month. The most bullish days of the month are the 5 days that encompass the end of one month and the beginning of the next. October is the month most likely to end bear markets. And you just learned the most bullish and bearish six months of the year. How well has this played out over the years? Take a look at your charts for the answer….