Stock Market Tides Report - Week 52

Topping and Bottoming Cycles Scan | 23. Dec. 2024

What is the tides report?

The tides reports scans for

• dominant cycles which are in either topping or bottoming condition,

• profitable trading track-record of those dominant cycles, and

• cRSI technical condition below/above dynamic bands.

Finally building a total rating score for peaking and troughing assets with sorting a final table.

Good rating scores would require a value above 6, while values I consider for further analysis need a 7 or 8 rating. Additionally, I recommend closely monitoring the cRSI technical condition. For example, when cycles are topping while in a "bull exhaustion" status, this indicates the cycle is in the late stage of the bull market. While this could signal potential reversals, the "bull exhaustion" status also means there is still significant momentum in the market, which could lead to further extremes. Also known as right translation of a possible top. Therefore, it is crucial to wait until the "bull exhaustion" status transitions to "bull fatigue" and then "bulls exit" before taking action. Vice-versa for bottoming cycles.

Just to recap, the Dow jumped on our topping assets list right before the Dow Jones Industrial Average started a nine-day losing streak, the longest stretch of consecutive daily declines for the blue chip index since 1978. Today, the DAX is showing up on one of our lists…