Our good friend and trading partner Chris Vermeulen has put together an article detailing his classic economic theory that dissects the economic cycle into four distinct stages..... expansion, trough, decline and recovery. And he explains in detail why a stock is no different, and proceeds through these cycles.
Knowing this information is crucial to survival as this cycle happens on all time
frames (1 minute chart all the way up to yearly charts). Harnessing this information for trade selection and timing greatly reduces the amount of trades you take, while focusing only on new leaders which have massive upside potential.
So take a few minutes and click here to read Markets are Cyclical in Nature....Make sure you know these "Four Stages of Stocks"