Ideal timing for flips

[Isa G.]

I was listening to the Bigger Pockets Podcast show 306 and at around the 14-minute mark, they start talking about the importance of flipping in the right part of the market cycle. Brandon mentions it is ideal to flip "on the incline". I assume by "incline" he means when sale costs are starting to rise but before finding deals becomes really difficult. 

My question is two-fold: 

1) Is my understanding of this correct? What else factors into the ideal "market timing" for flipping? 

2) What other local market conditions should I look for to determine if an area is ideal for flipping? 

Thanks!