by Gary Glover

October is a very important month for the broader indices including U.S. and Australian share markets.  Historically alot of major lows and highs have marked important turning points in time.  The 2002 low to 2007 high marked a 5 year bull market cycle and also coincided with the 1997 low which was another 5 year cycle point from Oct 1992. 

Prior to 2007 high October was always a low point which was part of the larger bull market period which ran for many years.  The October 2007 high marked an end to the bull market cycle and now strongly suggests that a 5 year bear market is still in play.  October 2012 will be a very important inflection point in the future. 

In the current context we need to be wary of October 2010 being an inflection point similar to 2004 and 2005 lows and in this case it could mark an important peak in the market. 
Some warning bells here if cycle theory can be relied on because it certainly has a strong record of success over the past two decades.


Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.

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