{"id":78052,"date":"2015-09-10T04:18:53","date_gmt":"2015-09-10T08:18:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=78052"},"modified":"2015-09-10T07:55:54","modified_gmt":"2015-09-10T11:55:54","slug":"did-a-seven-year-cycle-cause-the-2015-flash-crash","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/09\/did-a-seven-year-cycle-cause-the-2015-flash-crash\/","title":{"rendered":"Did a Seven-Year Cycle Cause the 2015 Flash Crash?"},"content":{"rendered":"
September 10, 2015<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Did<\/p>\n

By Jonathan Rodriguez<\/a>, Senior Analyst<\/em><\/p>\n

The stock market flash crash<\/a> on August 24 was one for the record books. In fact, the last time the market fell so sharply in a single day was back in 2011.<\/p>\n

But the real question is: Has this impressive bull market finally reached its end?<\/p>\n

Despite the pundit\u2019s best guesses, no one truly knows. Some say the current market volatility is all China\u2019s fault. Others place the blame on large-scale algorithmic trading programs designed to buy and sell with minimal human intervention.<\/p>\n

And some have even tied the volatility to an obscure seven-year cycle with biblical connections\u2026<\/p>

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Unlucky Number Seven?<\/h2>\n

For nearly six decades, the stock market has contracted, in some way, every seven years. Some of the corrections have been small while others have been vicious \u2013 but either way, the pattern has persisted.<\/p>\n

Perhaps this makes sense. After all, the number seven is everywhere<\/em> in nature.<\/p>\n

There are seven seas, continents, and natural wonders in the world. There are also seven classical planets in the solar system.<\/p>\n

How about a deeper connection?<\/p>\n

According to scripture, the Jewish calendar moves in seven-year cycles from creation. The seventh year in the cycle is known as the sabbatical year, or \u201cShmita.\u201d The sabbatical year is one of rest, forgiveness, and reflection. In Israel, farms must go uncultivated. Personal debts are forgiven, and commitments to faith are renewed.<\/p>\n

But what does this have to do with the stock market? Well, in a Shmita year, the stock market takes a rest, too. Believe it or not, some of the biggest stock market pullbacks have synced up with sabbatical years.<\/p>\n

Now, I want to stress that correlation is<\/strong> not <\/strong>causation here. That said, the seven-year pattern is a connection worth exploring.<\/p>\n\n\n\n
Editor\u2019s Note:<\/strong> Speaking of patterns, you don\u2019t want to miss tonight\u2019s \u201cPattern Trading\u201d webcast. One of the world\u2019s top chartists will teach you how to identify a pattern hiding on every <\/em>stock chart. Once you know how to spot the pattern, total financial freedom could finally be within reach. The FREE<\/u> <\/strong>webcast begins tonight at 7 p.m. EST. Click here<\/a> for more details.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Since 1950, the average return on the S&P 500 during sabbatical years is 0.04%, excluding dividends. In fact, over the last four cycle years, returns have gotten progressively worse. This year \u2013 the latest sabbatical year \u2013 the S&P 500 is currently in the red.<\/p>\n

\"The<\/p>\n

But, as you can see above, it\u2019s not all bad. The S&P 500 has posted positive returns in half of the cycle years. So how can we use this information to guide our investing decisions?<\/p>\n

Next week, I\u2019ll reveal how these stock market \u201csabbatical\u201d years can provide some of the best plays for the opportunistic investor. And, more importantly, I\u2019ll show you when to pounce on them.<\/p>\n

On the hunt,<\/p>\n

Jonathan Rodriguez<\/p>\n

The post Did a Seven-Year Cycle Cause the 2015 Flash Crash?<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com By Jonathan Rodriguez, Senior Analyst The stock market flash crash on August 24 was one for the record books. In fact, the last time the market fell so sharply in a single day was back in 2011. But the real question is: Has this impressive bull market finally reached its end? Despite the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-78052","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=78052"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78052\/revisions"}],"predecessor-version":[{"id":78076,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78052\/revisions\/78076"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=78052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=78052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=78052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}