Booyah Breakdown: Profiting From Cycles

And after looking at 50 completed 40-week cycles, Profit Strategies documented a 78% advance in the Dow during the bullish cycle, but only a 50% advancement of the Dow during the bearish cycle.

So their suggestion is to trade in line with the market during bullish cycles. Again, they recommend products that correlate with the market, like the indices and index funds, as well as stocks that highly correlate to the Dow and S&P 500.

When the market moves into the so-called bearish phase, ProfitStrategies suggests moving your money into less risky investments, like money market funds or bonds.

And where are we in this five-month cycle? "We hit the high on Oct. 13," says Gentile. So he thinks the market will pull back over the next five months and has moved his money into less risky investments.

The next up cycle starts on May 26, and he'll jump back into the market then.

Please keep in mind that these market cycles are just theories. There are loopholes everywhere. (And I'm sure my email inbox will be flooded with them!) We all know that there are no sure things in life. If it was that easy to predict the market, I certainly wouldn't be sitting at my computer at 5 a.m. trying to make my deadline.

So don't let these market cycles dictate your investment decisions -- just use them as more ammo in making good choices.

Remember, life moves in ebbs and flows, so you just gotta go with it.

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