Introducing the JK Seven-Year Cycle

Key points:

• The text below details a roughly 7-year cycle in the stock market that has been in play for over one hundred years
• Additionally, the full 7-year cycle is actually a 2,556 calendar day cycle (which equates to a 7.0027-year cycle); However, that doesn't quite roll off the tongue as easily as a "7-year cycle" does
• In the interest of full disclosure, this (almost) 7-year cycle is comprised of two (almost) 3.5-year cycles that both include a "Favorable" and an "Unfavorable" period
• The bottom line is that Favorable periods have been overwhelmingly positive for stocks (90% winners, 27% average return) while Unfavorable periods have been much more mixed
• As always, seasonal and cyclical work should be viewed as a secondary or tertiary tool for timing entries and/or exits in the market and not as an automated standalone trading system

The JK 7-Year Cycle

The JK 7-Year Cycle (SYC for short) is actually comprised of two recurring 3.5-year cycles that I stumbled upon a number of years ago.

• The first 3.5-year cycle lasts 1,248 calendar days (or technically 3.42 years), and includes a Favorable and Unfavorable period as detailed in a moment.
• The second 3.5-year cycle lasts 1,308 days (or 3.58 years) and also includes a Favorable and Unfavorable period.

Then we start over again with the 1,248 calendar day cycle. T