Continuation of part 7

But what if the forecast above is incorrect?

As I have mention so many times before in this book, no analyst or investor should look at any forecast in absolutely certain terms.  Until the lattice structure of the market is fully understood, there is always a possibility of being wrong. Unfortunately, understanding the lattice structure of the market is outside the scope of this book.  It is too complex and dynamic to be explained in this relatively short book. Volumes of work must be published before clarity could be obtained. Yet, any analyst willing to put in the work, should be able to determine the underlying structure.

For those unwilling to do the work there are a number of available shortcuts. They are….

Shortcut One:  3 Dimensional Space Triangulation.

Earlier in this book I have mentioned that 3-DV exist on multiple time frames. From hourly to yearly to decades to centuries.  At any given time there are hundreds of various length 3-DV tracing out market points of force (turning points). What I have found in my research over the years is that major turning points in the stock market or individual stocks are never represented by only one 3-DV. In most cases, such points are represented by a number of different 3-DV coming together at a singular turning point. Once again, these multiple 3-DV can range from hourly to centuries long.

Let me give you an example.  As you know, when 3-DV of any length moves in 3-Dimensional space they tend to trace out the circumference of a circle. The radius of a circle represents maximum reach of any given 3-DV. In other words, it represents all possible points on the two dimensional chart where the 3-DV in question can terminate its move.

Further, let’s assume that we are studying five 3-DVs from various points on the stock market chart that have similar termination points. By drawing -OR – calculating their circumferences in either 3-Dimensional space or on 2-Dimensional stock market chart, we will be able to see where those circumferences intersected.  As a rule of thumb, if we have multiple intersection at a singular point of time and price, the probability is high that such point will be a major turning point.  The probability increases further if the market is heading towards such a point.

In simple terms, triangulation allows us to figure out high probability turning points by identifying at what points multiple 3-DVs come together.  By combining this type of analysis with 3-DV lattice structure above we are able to either confirm or increase probability of a turning point.

Let’s take a look at the real stock market example for clarification.  

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Stock Market And 3-Dimensional Analysis (Part 8)

Continuation of part 6

Step #2: Perform analysis of 3-DVs and its derivatives from each point.

For example, let’s take a look at point E.  At point E we can work with 4 different 3-DVs and their derivatives. They include  DE, BE, CE and AE.  Meaning, it is highly probable that EF will be equal to the four 3-DVs above and/or their derivatives.

As mentioned earlier, the 3-DV of EF today is 12,364. If we analyze the four 3-DVs above, we will soon find out that 3 different numbers closely resemble today’s value of 12,364. They are

• DE 14,094
• AE 13,542
• CE 13,873

All other 3-DVs and their derivatives either fall short or are outside the scope of our analysis. You will notice that the value AE is the closest one to our present value of 12,364. That basically means the market is not yet done moving up.  It also means that once the value AE 13,542 is reached, it is highly probable that it will mark the turning point in the stock market.

Further,  as of today the value EF consists of 2 input variables. Time Value of 7,742 trading hours and Price Value of 9,641 points.  Let’s further assume that based on our research we believe that March of 2014 will be the top of the bull market and/or the move EF.  This gives us an additional 80 trading days or 520 trading hours.  By adding 520 trading hours to 7,742 trading hours we get all necessary information to make an accurate estimate of the bull market top.

In addition,  we can estimate how much the market will move up between now and March of 2014. We simply adjust our 3-DV equation to look like this

SQRT (8,262^2 + X^2 ) = 13,542

When we solve the equation for X, the X = 10,730. This value represents the PRICE portion of the equation at the completion of the move.  With today’s PRICE value being at 9,641 this means the market is likely to go up another 1,089 points (10,730 – 9,641) between today and March of 2014.

Think about this for a second and how powerful this simple calculation is. If you got your lattice structure figured out and/or you know the next 3-DV move,  you can predict with 100% certainty exactly when the stock market will top out. Not only when, but exactly where. To the day and to the point. So, while everyone else is playing the guessing game of how long this bull market will continue, you know the answer well ahead of that turning point taking place.  You know that you must hold for another 4 months in order to realize the maximum gain and then simply reverse to short position to benefit from the upcoming bear market decline.  Amazing, isn’t it?

But what if the forecast above is incorrect?

To Be Continued…..

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Stock Market And 3-Dimensional Analysis (Part 7)

Continuation of part 5

7. The move AB was an exact square and continuation of another 3-DV prior to 1994 bottom. This move was a perfect square. The market moved exactly 8,296 points in exactly 8,437 trading hours. Giving us a 3-DV of 11,832.  This 3-DV was identical to the actual top set on January 14th, 2000 of 11,854. Proving, once again, how accurate this analysis can be.  

8.  Finally, the move BC was the derivative from the move AB. If you divide 11,832 by the square root of 3 you end up with a value of 6,831. With move BC having a 3-DV of 6,840, it gives us 0% variance.  As 2003 secondary bottom was approaching an analyst using 3-DV analysis would be very well aware that a turning point was coming up. Using the techniques above the analyst would be about 10 trading points away from the actual bottom.

This concludes the analysis and explanation of the 3-DV moves above.  The explanation above went over every single value and showed you how they can be used in order to predict the markets with great accuracy. Going further and by understanding the lattice structure within the market you would be able to know precise angles and directional moves of any upcoming market or individual stock moves.  For the first time attaining the ability to predict the markets in both time and price. On any time frame.  From daily resolution to decades from now.  

This section is written on November 29th,  2013 with the DOW at 16,097

If you follow my daily blog you are very well aware that my mathematical work is predicting a severe bear market between 2014 and 2017. This bear market will represent the final leg down of the bear market that started in early 2000. This brings us to point F on the chart above  and further explanation on how to predict exact turning points by using 3-DV analysis. Please keep in mind that point F represents the actual turning point in 2014 and the ushering in of the bear market leg. It hasn’t happened yet.  We are predicting the future here.  Let’s take a look.

Step #1:  Measure 3-DV from all major turning points (E, D, C, B and A)  to today’s DOW close.  They are..

• EF: 12,364
• DF: 10,610
• CF: 20,190/20,900
• BF: 24,100
• AF:  34,750

Step #2: Calculate all derivative values for the numbers above.

To Be Continued…..

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Stock Market And 3-Dimensional Analysis (Part 6)

 

Continuation of part 4. 

3.  We have already mentioned this earlier in the book, but AB + Bc  and CD + DE are equal. Let’s take another look. (11,832+6,483 =  18,315)  and  (10,156 + 8,137 = 18,293). Please note that we are using 2002 actual bottom for point c instead of 2003 secondary bottom. Also note, that the variance is just 22 points over the 15 year period of time. That constitutes a margin of variance equal to just 3 trading days or a few hundred points directional move.

Also, note that if you divide 18,300  by the square root of 5 you get a value of 8,184. Which was the value of the move between 2007 top and 2009 bottom. Further, if you multiply BD of 12,815 by square root of 2 you will get a value of 18,123 which is identical to the value above.  Once again, if you know the structure of this move and lattice structure associated with the market you have the ability to identify every single turning point in the market over the last 15 years.

All you have to do at those points is to rotate your portfolio position from long to short and from short to long in order to make a killing and outperform the market by a large margin. It is as simple as that.

4.  The move CE of 9,810 and the move CD is the continuation of the move AC represented by 14,100. If you divide 14,100 by the square root of 2 you get a value of 9,970. The actual move between CE ended up being 9,810 giving us the variance of only 1.6%.  The actual move between CD ended up being 10,156 giving the variance of only 1.8%. When you combine this knowledge with the previous 3-DV already discussed you get another confirmation that March of 2009 will be a solid bottom for the stock market and that the 2007 top has been reached.

As such, when everyone is freaking out about the 2007-2009 decline and predicting the end of the world as we know it, you would know that the market will turn around in March of 2009 and begin a multiyear rally.

5. When you multiple vale AB of 11,832 by the square root of 2 you end up with a  3-DV value of 16,733. The actual move between 2000 top and 2009 bottom or the move BE was exactly 16,613. That is a variance of just 0.7%.  Again, the move AB predicted the move BE and 2009 bottom 9 years in advance. Giving you another confirmation point that March of 2009 is an exact bottom and a major turning point.

6. The move BD of 12,815 was the derivative of the move AB + Bc of 18,315.  When you divide 18,315 by the square root of 2 you end up with a 3-DV value of 12,950. This gives us a variance of just 1%.

To Be Continued….

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