Philosophies That Create Market Cycles

Here is an interesting article primarily about Martin Armstrong that also branches out into the many different ways investors & traders analyze market cycles. I’ve included below some of the quotes that resonated with me. In this article they reference a rather obscure movie called “Pi” by Darren Aronofsky that happens to be one of my favorite movies – one of the few that I actually own.

“And yet patterns exist, and we slowly discover them. Seasons, migrations, moons: the template is there. Consciously or unconsciously, most people accept certain components of cycle theory. We seek and see patterns in things. It is the way our minds work, presumably for the purpose of survival. Few would deny that there is a business cycle, a ?uctuation in the economic fortunes of a nation, or even a political cycle, an ebb and ?ow between mass conservative and liberal sentiment that reverberates in the markets.

And it’s common for us to think that some things are overdue—a change in the weather, a Masters championship, a comeuppance, or a lucky break. But most of us balk at the notion that any of these may be governed by some kind of deeper universal math.”  ~Martin Armstrong

“The way I think about cycles in general is that they provide a great approach to o?setting human biases,”  ~Laeeth Isharc

Arch Crawford, a well-known forecaster, has made a series of startlingly accurate predictions over the years, on the basis of plan- etary and astrological alignments. He says that he was up a hundred and six per cent last year.

“The summer of 2010 will be devastating” (Indeed, at the end of July, Mars and Saturn will be conjunct and in opposition to Uranus, and all three will be squared to Pluto.) ~Arch Crawford  (has made a series of accurate predictions on the basis of planetary and astrological alignments.

Accurate prediction 8-9 months beforehand

 

“Millionaires don’t have astrologers, but billionaires do.” ~J. P. Morgan

“The Fibonacci work is not, in conception, anyway, pure numerology. The theory is that, if the markets are distillations of herd psychology, mass con?dence, or what Prechter calls “the social mood,” and if the markets ?uctuate in discernible patterns, then the underlying moods must follow predictable patterns as well. Most economists believe that we react, whether rationally or irrationally, to incidents and information.”

“At its core, a cycle is the mechanism by which energy is transmitted. Think of standing in the water at the beach, as a wave washes in. You can feel the wave, but the water isn’t moving. The energy passes through the water. Society is the same way. Sometimes there’s a rogue wave-a big event, a major turn, a depression.” ~Martin Armstrong

Read more here