THE $UPERTRADER'S
BOOK OF
LINEAR TIME CYCLES
. . . cycle trading advice continuously published since 1985!
by Frank Taucher
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CYCLE TRADING
AND CYCLICALITY. CYCLE TRADERS CAN GET THE BEST OF CYCLICALITY AND CYCLE TRADING IN OUR
CYCLIC CHARTS FOR UNDER $100 - MAKES CYCLE FORECASTING A SNAP. AND TRUER WORDS ABOUT
LINEAR TIME CYCLES AND THE CYCLICAL NATURE OF MARKETS HAVE NEVER BEEN SPOKEN. TIMING
CYCLES ONE OF THE BEST TOOLS CYCLE TRADERS CAN USE TO TIME THE MARKETS. THE REASON FOR
THIS STATEMENT IS BECAUSE CYCLE CHARTS ALLOW FOR CYCLE FOCASTING AND, THROUGH THE CYCLE
PROJECTION, THE ANTICIPATION OF HIGHS AND LOWS. THERE'S NO BETTER PLACE TO OBTAIN SUCH
CYCLE INFORMATION AND CYCLE ANALYSIS THAN FROM THE BEST BOOK OF CYCLES, DIRECTORY OF
CYCLES, CATALOGUE OF CYCLES, CYCLES BOOK, CYCLES MANUAL, CYCLES DIRECTORY, CYCLES GUIDE,
COMPENDIUM OF CYCLES, CYCLES CATALOGUE, OR WHATEVER YOU WANT TO CALL IT, "THE
$UPERTRADER'S BOOK OF LINEAR TIME CYCLES" WHICH IS WHERE THE CYCLES INDEX MAY BE
FOUND. THE CYCLE CHARTING OF HARMONIC MARKET RELATIONSHIPS EVINCED THROUGH THE PRINCIPLES
OF VIBATION AND PERIODICITY HELP THE CYCLES TRADER INTERESTED IN CYCLICALITY AND CYCLE
TRADING TO DEFINE THE FREQUENCY AND AMPLITUDE OF REPETITIVE PRICE AND VOLUME CYCLES IN THE
MARKETS.
The following charts show approximately two years of
daily US Treasury Bond spot futures prices
through December, 1996.
How could cycle traders have known, weeks in advance, that this major downtrend was likely to continue until November 11, 1994 ("Up Arrow #1") and then sharply reverse to the upside???

The reason is because this point in TIME (see "up arrow #1" in the chart) ALIGNED WITH a weekly bond market "Inversion Cycle" peak ! ! !
These "Inversion Cycle" peaks look like huge mountain tops in the charts at the back of the "Cycles Book" where they are presented !
The 1994 cycle trading peak, for instance (point #1 in the previous chart), was the highest cyclical trading peak of the year and went straight up for the 3 months preceding the trading cycle peak and straight down for three months after the trading cycle peak.
THE TRADING CYCLE PEAK WAS UNMISTAKABLE (besides being "SPOT ON") ! ! !
Next year's 1995 "Inversion Cycle" trading cycle peak occurred at "point #2" in the chart (and, as you can see, was also quite TIMELY)!
Then, as we entered 1996 and released our trading cycle's advertisement highlighting the importance of these very trading cycle signals, the "Cycles Book" listed the two small "Inversion Cycle" peaks (point #s 3 and 4 in the chart).
You might recall how CNBC and other media sources were repeatedly battering us with their "important news" that the budget "showdown" was bullish for bond prices (seems the US Treasury was running out of bonds to sell or something).
Perhaps they should have focused instead on the "Inversion Cycle" cyclical lineups, for while they were touting their stories of fantasy . . .
. . . bonds were peaking for
the year at price levels that weren't been seen again for another two years!!!
(see point #3 in the following chart)

Meanwhile, the "Inversion
Cycle" continued to build for the year into a momentous trading cycle
peak in early September, 1996. That cyclic peak is marked by point #5 in the
following chart of daily US Treasury Bond spot futures prices.
At this "Inversion Cycle" peak and trading cycle price low, the headlines screamed "Bonds Slide as Investors Brace for Jobs Report, While Comments by Fed Officials Fuel Worries" ("The Wall Street Journal", September 6, 1996, "Credit Markets" section).
Which information served investors better . . .
. . . knowledge of the "Inversion Cycle" trading cycle peak at point # 5 which signaled a major market turn. . .
. . . or knowledge of the comments
by Federal Reserve Officials???
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HOT TRADING TIP # 1
LOOK FOR TREND CHANGE DURING
PERIODS OF "INVERSION CYCLE" PEAKS
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So far in "The 1997-98 Book of Linear Time Cycles" there have been two weekly "Inversion Cycles" listed (see points 6 and 7 in the following chart of weekly US
Treasury Bond Prices) (data through Friday, June 20, 1997).

As you can see in the chart, these two
projections continue "The
Cycles Book's" long-running tradition of
having accurately anticipated market turns.
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How much should a reasonable investor be
prepared to pay for just a PEEK at the next "Inversion Cycle
Index"
projection in the bond market???
Hundreds of dollars?
Thousands of dollars??
Tens of thousands of dollars???
Well, we're about to break the standard . . .
. . . in the tradition of FREEBEES on the Internet and TONS of stuff in "The Cycles Book" . . .
. . . THE NEXT "INVERSION CYCLE" PEAK IN THE US TREASURY BOND MARKET OCCURS
DURING THE 33RD WEEK OF THE YEAR !!!
(Note : The 33rd week of the year ends
Friday, August 15, 1997)
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HOT TRADING TIP # 2
LOOK FOR TREND CHANGE IN THE
BOND MARKET DURING THIS WEEK
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Just remember, however . . .
As VALUABLE as this SINGLE PROJECTION is likely to be, "The Cycles Book" lists about 10 of these weekly "Inversion cycle" projections for EACH of 44 markets through March 31 of the following year.
IDENTIFYING these "Inversion Cycle" projections in the book couldn't be EASIER, either.
All you have to do to follow these "Inversion Cycle" alignments is to simply turn to the appropriate week of the year and view the information listed therein to find out what's timely!
In the 1996 book, for instance, the information pertaining to the week ending Friday, September 6, 1996 (point # 5 in the second preceding chart and Week #36 in the book) was listed on pages 202 to 205.
During this week, a small section on page 205 titled "Inversion Lineups" listed the following (where "WIC" is an abbreviation for "Weekly Inversion Cycle"):
| WIC | AD | BD | JY | LH | TB |
This information suggested that the investor pay
particular attention to these markets (AD = Australian Dollar, BD
= US Treasury Bonds, JY = Japanese Yen, LH = Live Hogs,
& TB = US Treasury Bills) as a turn was suggested by the weekly
"Inversion Cycles".
The following shows the results:
| MKT | Accuracy | Preceding | Following |
| AD | 0 | 12 | 10 |
| BD | 0 | 8 | - |
| JY | -1 | 135 | 2 |
| LH | -1 | 20 | - |
| TB | -1 | 63 | - |
As can be seen in the "Accuracy" column, ALL
of these markets made a major low (with the exception of the major high
in the AD) within 1 week of the projected week of September 6, 1996.
The AD and BD were exact hits (Accuracy = "0").
The significance of these turns (as shown in the "Preceding" column) was an average of 47.6 weeks or just short of one year.
In other words, if the turn produced a major low, the low, on average, was lower than all price lows made over the preceding 47.6 weeks.
The "Following" column shows the significance of the turn after the turn was established.
As an example, the price high produced by the turn during the projected week for the AD was not exceeded for another 10 weeks.
For the BD, LH, and TB, price was not exceeded for the remainder of the year and, further, has still not been exceeded as of this writing (soon approaching 1/2 year).
AS YOU CAN SEE, THESE ARE
EXTRAORDINARILY SIGNIFICANT TURNS!!!
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HOT TRADING TIP # 3
TURN TO THE APPROPRIATE WEEK
OF THE YEAR TO IDENTIFY
THE "INVERSION CYCLES".
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For instance, if today were September 4, 1996, you would turn in the 1996 book to the week ending Friday, September 6, 1996 (page 205) and go to the box labeled "Inversion Lineups" where the weekly "Inversion Cycles" reviewed in the preceding table were listed.
Similarly, if you were to turn to the 33rd week in the 1997 book, you would find the "WIC" for the "BD" market listed in "HOT TRADING TIP #2" of this letter.
IT'S THAT EASY !!!
For thoroughness, you might also want to review the "Inversion Cycles" for the preceding and following weeks. In our example, these would be the weeks ending Friday, August 30, 1996 and Friday, September 13, 1996. (Note : In rare occasions, a major turn might be off by two periods)
If you want to further enhance the accuracy of the "Inversion Cycle" projections, then align MONTHLY "Inversion Cycle" projections with WEEKLY "Inversion Cycle" projections.
This filtering process will reduce the number of choices to about one market per week . . .
. . . certainly a manageable number for even the smallest of market participants . . .
. . . AND WILL PUT YOU AT THE PROBABLE VERY HEART OF SOME OF THE BIGGEST MARKET TURNS OF THE YEAR !!!
As an example, the September, 1996 turn in the US Treasury Bond market shown in the preceding chart at Point # 5 was such a turn.
"THE CYCLES BOOK" MAKES THESE MONTHLY-WEEKLY "INVERSION CYCLE" ALIGNMENTS A SNAP TO IDENTIFY !
During Week # 36 in the 1996 book, for example, the "Inversion Lineups" listing on page 205 showed the following (where "MIC" = "Monthly Inversion Cycle" and "WIC" = "Weekly Inversion Cycle"):
| MIC | BD |
| WIC | BD |
The listing of the BD (US Treasury Bond) market for both the MONTHLY "MIC" AND WEEKLY "WIC" listings during the week ending Friday, September 6, 1996 signaled that the slower-moving monthly "Inversion Cycle" for the month of September was ALIGNED WITH the faster-moving weekly "Inversion Cycle" for the week ending September 6, 1996.
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HOT TRADING TIP # 4
TURN TO THE WEEK OF THE YEAR
TO IDENTIFY THE MORE POWERFUL MONTHLY AND WEEKLY "INVERSION CYCLE" LINEUPS.
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When you order YOUR copy of "The 1997-98 $upertrader's Book of Linear Time Cycles", one of the first things you will thus want to do will be to turn to Week #33 to see if the WEEKLY BD "Inversion Cycle" is also ALIGNED WITH a MONTHLY BD "Inversion Cycle".
And lest you think that the examples used herein were but "lucky choices", here is how the first 24 MONTHLY/WEEKLY "Inversion Cycle" alignments listed in the CURRENT "The 1997-98 $upertrader's Book of Linear Time Cycles" have performed to date (data through Friday, June 20, 1997):
Nine of the 24 projections were
"spot on" while 20
of the 24 projections were either "spot
on" or experienced a major market turn within
1 period of the projection!
(Note : Of the 4 misses, two were within 2 periods, one
missed by three, and one missed by four - point #7 in the preceding chart, for instance,
was one of these "misses").
The average size of the market turn identified by the projection marked a price extreme over the previous 42 weeks (i.e., MAJOR turns) ! ! !
Four of the projections have marked the price extreme for the year to date ! ! !
As of this writing, 12 of the 24 turns have not been exceeded and each week adds
one more period to the magnanimity of each of these 12 turns.
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ARE YOU BEGINNING TO SEE THE SPECIAL VALUE OF "INVERSION CYCLE" PROJECTIONS?
They are NOT regular cyclic projections (such as Fourier, spectral, etc.).
They are UNIQUE TO THIS BOOK and are UNAVAILABLE FROM ANY OTHER SOURCE!
The "Inversion Cycle" information only occupies about 20 of the 500 or so pages of each year's edition.
Now, if you can glean so much valuable and unique information from just 20 pages . . .
. . . IMAGINE HOW MUCH MORE AWAITS YOU IN THE OTHER 480 OR SO PAGES OF
"THE $UPERTRADER'S BOOK OF LINEAR TIME CYCLES" ! ! !
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The following chart shows daily prices for the Dow Jones Industrial Average through the
first eight months or so of 1996.

Point # 1 in the chart marked the "peak of the mountain" for the weekly "Inversion Cycle" for the stock market in 1996. It was the first "Inversion Cycle" peak of the year.
Point # 2 marked the second "Inversion Cycle" peak in 1996 (it was smaller than the first peak).
The drop in price from the May 23rd high (point # 1 in the chart) to the July 16th low (point # 2), or from the first "Inversion Cycle" peak to the second, marked the beginning and end of the largest stock market correction since October, 1990 !
Points # 3 and # 4 marked the last weekly "Inversion Cycle" peaks of the year.
As exciting as this information is, however . . .
. . . LOOK WHAT HAPPENED when the "Inversion Cycles" were COMBINED WITH the "Linear Time Cycles" ! ! !
When the "Linear Cycle Index" (the solid line in the preceding chart) turned down in mid-June, price proceeded to collapse to the "Linear Time Cycle" projected low in mid-July and "Inversion Cycle" projected market turn at point # 2.
Five trading days after this low (point #2 in the chart), CNBC repeatedly announced Elaine Ganzarelli's "sell" signal and "Business Week" plastered this "important information" over an entire page. Most other financial media "pigeons" dutifully followed.
But which was more timely, CNBC's repetitious barking of this "important" July SELL SIGNAL "news" near the very bottom of the market or the "Linear Time Cycle - Inversion Cycle" ALIGNMENT which correctly projected a MAJOR market low and HIGHER prices? ? ?
Note how price not only collapsed INTO the PROJECTED LOW but then EXPLODED UP FROM the low projection.
At point # 3, the "Linear Time Cycle" projected low again was ALIGNED with an "Inversion Cycle" projected turn.
The opposite occurred at point # 4.
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HOT TRADING TIP # 5
ENHANCED
ACCURACY OCCURS WHEN THE LINEAR TIME CYCLES ALIGN WITH
THE INVERSION CYCLES !!!
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The reason is that the "Linear Time Cycles" suggest not only a turn, but also project whether the turn should produce a low or a high.
Price action AT THE TIME OF THE
PROJECTIONS becomes the final arbiter ! ! !
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HOT TRADING TIP # 6
THE MOST POWERFUL
ALIGNMENT OCCURS WHEN THE MONTHLY AND WEEKLY "LINEAR TIME CYCLES" ALIGN
WITH MONTHLY AND WEEKLY "INVERSION CYCLES" AND PRICE ITSELF TRENDS EITHER UP INTO A PROJECTED
HIGH OR DOWN INTO A PROJECTED LOW!!!
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Hence, when you turn to the 33rd week of "The 1997-98 $upertrader's Book of Linear Time Cycles", make sure and observe whether the weekly BD "Inversion Cycles" projected for week #33 in HOT TRADING TIP #2 of this letter aligns with a projected "Linear Time Cycle" high or low.
If it does, then during the 33rd week (+ or - one week), price should be moving DOWN if a low is projected or UP if a high is projected.
IF IT IS . . .
GET YOUR POWDER READY ! ! !
IT'S THAT EASY ! ! !
You now have six uniquely powerful HOT TRADING TIPS under your belt that can help you successfully surf the markets this year!
All you need do now is to place your order
for the ONLY SOURCE that contains the "Inversion Cycle" and "Linear
Time Cycle" indexes for the
forthcoming year . . .
"The
$upertrader's Book of Linear Time Cycles"
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