The flash crash cycle is due in May 2020

I have written extensively about my discovery of the Flash Crash (FC) cycle in past posts, including the more recent December 2018 Flash Crash Lows.

I first mentioned the Flash Crash cycle back in May 2010, when the Flash Crash happened and I discovered then there was a regular Flash Crash cycle, which is a Gann 360 TD/525 Calendar day/75 week crash cycle.

In September 2011 for example, the FC cycle was predicting an October 2011 FC Low

Actual: We saw an 10/4/11 major Low

The Flash Crash 360 TD/ 525CD/ 75 week cycle

04/14/00L – 09/21/01L = 01 X 358.00 TD = 01 X 525 CD = 01 X 75.00 weeks

04/14/00L – 03/12/03L = 02 X 363.50 TD = 02 X 531 CD = 02 X 75.86 weeks

04/14/00L – 08/13/04L = 03 X 362.00 TD = 03 X 527 CD = 03 X 73.33 weeks

04/14/00L – 11/21/08L = 06 X 360.67 TD = 06 X 524 CD = 06 X 74.83 weeks

04/14/00L – 05/06/10L = 07 X 361.14 TD = 07 X 525 CD = 07 X 74.98 weeks

04/14/00L – 10/04/11L = 08 X 360.63 TD = 08 X 524 CD = 08 X 74.82 weeks

04/14/00L – 01/20/16L = 11 X 360.36 TD = 11 X 524 CD = 11 X 74.79 weeks

04/14/00L – 12/26/18L = 13 X 361.46 TD = 13 X 525 CD = 13 X 75.05 weeks

9 out of 14 FC Cycles saw 7%-26% (avg 12-16%) declines, 5 in 2-3 wks, 4 in 7-14 wks
03/24/00H - 04/14/00L was a 14% decline in 3 weeks
08/31/01H - 09/21/01L was a 20% decline in 3 weeks
01/31/13H - 03/12/03L was a 16% decline in 8 weeks
06/24/04H - 08/13/04L was a 7% decline in 7 weeks
11/04/08H - 11/21/08L was a 26% decline in 3 weeks
04/26/10H - 05/06/10L was a 12% decline in 3 weeks
09/16/11H - 10/04/11L was a 12% decline in 2 weeks

11/03/15H - 01/20/16L was a 14% decline in 11 weeks

09/21/18H –12/26/18L was a 20% decline in 14 weeks

The 360 TD Cycle is about 75 weeks, which has been in the markets ever since the April 14 2000 mini Crash Low and has since pinpointed 9 major crash Lows in the past 19 years, including the 4/14/00 mini crash Low, 9/21/01 crash Low, 3/12/03L, 8/13/04L, 11/21/08 crash Low, 5/6/10 Flash Crash, 10/04/11 Low, 1/20/15 Crash Low and more recently the 12/26/18 crash Low. It is next due in May 2020.

Many of the 360 TD/75 week flash crash cycle Lows were major Panic Lows, like the 4/14/00 Low, 9/21/01 Panic Low and the 11/21/08 Banking crisis Low. A few, like the 3/12/03 Low and 8/13/04 Low were not Panic Lows, but still major Lows.  At times the FC Cycle skips a beat, out of the last 14, 9 (64%) were direct hits and 5 (36%) were misses.

Conclusion: The 360 TD Flash Crash Cycle predicted many crashes and major Lows in the past, including the 4/14/00 crash Low, 9/21/01 crash Low,  3/12/13 Low, 8/13/04 Low, 11/21/08 crash Low, 5/6/10 FC, 10/04/11 crash Low, 1/20/16 Crash Low and the  December 26 2018 crash Lows. It is next due late May 2020.  Some were misses, but in general, it is a regular cycle to be reckoned with. The Flash crash (FC) cycle, once active sees an average 12-16% decline. As the Flash Crash (FC) Cycle is a 1 1/2 year fixed cycle, it will have a +/- variance of a few weeks, so timing the exact Low will be Key as once the Flash Crash cycle bottoms, we will see a sharp rally afterwards.

Trading in Stocks, ETF, Options and Futures involve risks. Trade at your own Risk. Do your own homework. The contents of this blog are for general information and educational purposes only and should not be construed as an investment advice strategy. Past performance is no guarantee of future results.

USD/JPY tanks over 3% amid intense risk aversion, BoJ-Fed divergence

USD/JPY keeps falling, losing over 3% in the European session on Monday. Mounting US recession fears and escalating Middle East conflict dent risk appetite, adding extra legs to the safe-haven Japanese Yen, already boosted by the BoJ-Fed policy divergence.

USD/JPY News

EUR/USD reverses to 1.0900 as risk-off mood intensifies

EUR/USD succumbs to broad risk-aversion early Monday, as US Dollar pauses decline amid the dour mood, weighing on the pair. The Greenback suffered earlier from the USD/JPY sell-off and increased bets for aggressive Fed rate cuts. ISM Services PMI and geopolitical updates in focus.

EUR/USD News

Gold price extends its decline despite risk-off mood, US PMI data looms

Gold price (XAU/USD) loses traction on Monday despite the softer Greenback. Markets are still digesting the FOMC’s dovish hold and softer US employment report.

Gold News

Bitcoin sets for decline following close below \$52,000 mark

Bitcoin and Ethereum retested their major support levels on Monday; a break below these levels could signal a bearish trend ahead, while Ripple closed below its key support level, indicating a likely bearish outlook in the coming days.