In large estates, with some exceptions, it is usually desirable to avoid joint tenancy with rights of survivorship. Owning property in joint tenancy prevents an individual from using a life estate plan or a marital deduction trust for such specific property. Thus, terminating joint tenancies is a part of the total estate plan for some people. As a result of the unlimited marital deduction, joint tenancies between husband and wife no longer have adverse tax consequences at the death of the first spouse.
A severance of joint tenancy can occur at the election of any co-owner by transferring the interest to another person. This can be done without the approval of the other co-owners; and if such transfer should be made, the transferee thereof becomes a tenant in common with the other co-owners who may remain joint tenants to each other. Survivorship rights would not then apply to the interest transferred but would continue to apply to interests remaining in joint tenancy.
The 56-day cycle was actually a bullish market cycle. I one thing, its second segment, or leg, B, carried above the level of the first leg, A. I another, the total length of the rising phase of the swing, seven weeks from m October to early December, occupied seven weeks of the 11-week cycle, clearly m than 50% of the total cyclical period. Neutral cycles generally involve rising a falling periods of equal length. Bearish cycles usually involve more of the cy being down than up in price movement.
However, by December 2, cyclical forces were beginning to line up on the be ish side. For one thing, the 56-day cycle had already been rising for seven wee for nearly two-thirds of its nominal cycle length. By December 9, Segment B v running out of time and moving into its second half, confirming in its own increasing weakness the building weakness of the entire 56-day cycle. The final 15-day period of Segment B could be divided into two smaller segments yet: eight days and seven days. Declines at the very end of December were supported by a confluence of declining short- and medium-term cycles. This confluence resulted in a fairly serious market correction during the final four weeks of the larger 56-day cycle.
Following the late 2003 market advance, the stock market resumed a more neutral track at the start of the following year. The stock market started 2004 well, but the price thrust weakened rapidly.
As matters turned out, the relative weakness of the RSI indicator during the cycle presaged the more severe market declme that took place in March 2004.
The cycle was very bullish in its development, with a small dip at the end of an early A segment followed by rising prices right into the end of the period. Sometimes cycles during very bullish market periods show patterns of price movement that make it very difficult to determine the completions of cycles that become more readily discernible in indicators that track the momentum of the price advance.
For example, the RSI dipped a few days before the end of the cycle, failing to confirm new highs made in the Standard & Poor’s 500 Index at the start of 2004.
Cycles that end as strongly as the cycle from November to early January are usually followed by very strong market action at the start of the following cycle, which is what took place in this instance. The RSI indicator, incidentally, clearly indicated the A, B sequence of the November-January cycle, which was not as apparent in the price pattern.
This was a slightly bullish cycle, with prices moving up gradually and more market time taking place in advance than in decline. The division into virtually equal A and B segments is very clear, as was the negative divergence between price movement and the patterns of RSI that closed the cycle with a classic negative divergence. The RSI indicator closed the cycle at its oversold zone, again with a double- bottom formation, confirming the start of the next cycle.