HD is set up to rally: seasonal pattern is at its rally time, the money flow index shows buying at a seasonal low, and advisors are bearish while professionals buy. Cycles show HD rallied 76% of the time from now into March next year, though a rally need not start now; he wants a trend change before buying.

here's another stock I like Home Depot oh my gosh look at this seasonal pattern we see that in se in the stock charts to go up

I should point out my seasonal pattern in stockcharts.com does not look like anybody else's seasonal pattern because I made a mistake when I wrote the first book ever on seasonal patterns in the commodity market way back in the 1970s because we use the same seasonal pattern using now all the data going back in time we use that to make the seasonal pattern for now and for 30 years ago and that's a big error so my seasonal pattern uses data just up to now so if we went back to say 10 years ago, we would only use data from 10 years back.

Everybody else's, and I mean everybody's right now in the seasonal patterns use all the data here to show the seasonal pattern 10 years ago. It's really using out of sample data.

In my true seasonal, that's why we call it true seasonal, right? There's no out of sample data.

But we see in generally we followed the seasonal pattern this year and we're getting to the rally time for Home Depot and we want to see what's the money flow index. Oh, look what happens when the money flow index shows they've been buying the market.

Yeah, especially at a seasonal low. Seasonal low. They've been buying the market and we tend to rally. Hm. Nice.

We look at the advisors. They've been very bearish on Home Depot while the professionals been buying the market. So, oh, we have the conditions here. It doesn't mean the market will rally instantly today, this hour, but we have the conditions in our favor to get this market to rally.

Then we can start to look at cycles. What does cycle suggest in this market? Well, cycle suggest that from now into March of next year, we rallied 76% of the time. You can see that even going into 2000.

But I think we have a great tendency for this market to rally because we have the cycle forecast and we have the conditions set up for Home Depot to rally. So again, we're using like a combination of things here to put together what should be a profitable trade.

The only thing you need left now is some type of a trend change in this market. So I don't want to buy just because it's been down. I would like to see getting above a moving average, getting above a trend line, the formation of higher short-term lows, or whatever entry techniques you have. But is it set up? Yeah, it's set up.