financialsense.com / FS Staff / 02/14/2017
The stock market should see positive gains this year followed by a possible crash in the second half, technical market analyst Clif Droke says in his latest interview with FS Insider.
“In the seventh year of most decades, we tend to see surprising strengths in equities, particularly in the period from March through July – that’s when the upside potential is best for stocks,” Droke said.
However, he warns, what goes up must come down, and Droke expects a decline around October following a midsummer peak. In some Year 7 models, declining strength can sometimes result in a crash as well. He expects the market to “stick to the script” in 2017.
Droke said the following in a recent note:
Crashes, mini-crashes, and panics are quite common in the seventh year (e.g. September 1987, October 1997, February/August 2007). It will do us well to keep this in remembrance as we enter what promises to be a year filled with tremendous opportunity for making money in the stock market – in both directions.