Hi friends,Does this stock CEO actually moves by cycles? Is it...

Hi friends,

Does this stock CEO actually moves by cycles? Is it absurd to try to trade short term in CEO using cycles?

To satisfy my curious mind, I isolated the various cycles that are present in the price movement of CEO, and tried to find whether the price movement of CEO at present is guided by any type of cycle. If the price did indeed follow the cycles, then it stands that there will be a good or at least reasonable correlation between the cycle turning points and the price turning points ( tops or bottoms) of the stock.

Among the various possibilities and wavelengths, here is a chart of CEO showing the price movements and correlated to a cycle of wavelength 12 periods.



Well, it seemed to me that there appears to be some reasonable correlation between the cycle and the price turning points, where I have drawn the various lines connecting the tops and bottoms of the price cycle of 12 wavelength to the tops and bottoms of the price. Do you find there to be a reasonable correlation too?

Now since we know that the cycle bears a wavelength of 12 periods, we can project forward that cycle...which I have done and shown as a red line - which then becomes a forecasted cycle, with a forecasted top and a forecasted bottom. I have marked these forecasted turning points down on the cycle chart.

There is of course a caveat - and that is we need the cycle to be STABLE. If the cycle remains stable ( no re-phasing ), then the forecasts can become reasonable expectations of turning points. Would high frequency trading with massive volume(there was an increase in total vol on Monday ) upset this cycle of 12 wavelength so that it is an absurdity and futility to trade it with cycles?

So it is going to be an absurdity or a possibility to use time as an indicator to trade CEO, particulary from the aspect of time by cycles?. Will this cycle continue as stable as it has been? I wish I knew, and so all we can do is to watch and see.

Just some food for thoughts for those trading CEO for the short term. May all the best prices be yours.

dascore

PS. 1. Note the dates are as read directly from the cycles. They are mere forecasts- so accept them with a healthy dose of skepticism. They may or may not occur. Dates are approximate, not exact.

2. I have purposely not shown the next projected cycle bottom date, because unless the projected cycle top is proven to be accurate( which we haven't) the projected next bottom will also inaccurate:)

3. Please note the disclaimer below my signature line:)