Hidden Cycles

 

 

The theory of dominant cycles exists in stock prices is always a big question to investor.

1. Does it exist ?

2. If exist, is the cycle length always remains the same ?

3. If the shape of the cycle is not symmetric and changes from time to time ?

 

The following chart shows the mid-term cycle dominate cycle of HSI with first two harmonics:

 

The dominate cycle of HSI with first harmonics:

 

The dominate cycle of HSI without harmonics:

 

 

In fact the dominate cycle of HSI has been stable for the last 12 months. If the cycle remains not changed, the next peak of HSI will be seen around mid to end of October this year.

 

 

The dominate cycle of SHCOMP with first two harmonics, seems less predictable using the recent data:

 

 

 

The dominate cycle of 02618 with first two harmonics:

 

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