In this post I would like to discuss the TripsTrading Cycle Model and the Bradley Model Dates.
Let’s start with the Bradley Model (click here for an overview of dates). The latest Bradley Dates are August 15 and August 27/28, but according to the rules of the Bradley model, a Turning point can deviate +- 4 days from the mentioned date. August 15 marked a High in the 2100 area.
What’s more relevant in this story is that August 27 has a score of 100%, not very often seen.
I quote: “August 27-28 – On these two days there is a turn in the Long Terms (100/100 Power) and the Middle Terms (14/100 Power), which could combine to produce a stronger turn.” The next Bradley Dates are scheduled for September 17 & 23.
Now, if I combine this with my model (The TTCM) it shows some interesting results that we need to use more in my view. I developed this Cyclical Model myself and it shows that the S&P500 trends in cycles of a multiple of 7 calendar days (or roughly 5 trading days, Thanks Gerry!).
The last TTCM Date was August 24, a day were several cycles lined up: 7, 35, 49, 63, 119. So far, it has produced a Low @ 1833. The next TTCM date is August 31, a date where the 7, 35, 42, 119 and 126 cycle are lining up.
So in my view, the Low has been set @ 1833 and I would like to see a Higher High or Higher Low around August 31. What this means for my strategy is that I will keep my long position as long as the SPX trades above the Low of August 24 @ 1833 and I will adjust my position (if necessary) around August 31, the next TTCM Date.
Feel free to ask questions if you have any. I’m always willing to explain if something is not clear yet.