Secret Stock Market Structure That Is Truly Mind Blowing (Part 2).

This post continues to look into the mathematical work that I have been doing. Once again, indicating prefect structure in the financial markets.

The numbers derived above stem from my own unique way of looking at the stock market. They are 3 dimensional calculations that combine price and time into one number. The calculation itself is basic high school math, but I will let you figure it out if you want to pick it up from here.

I cannot overstate how amazing this chart is. Just a few points.

The move between 1994 bottom and 2000 top was 11,800 UNITS. The Dow topped at exactly 11,800 in January of 2000. Amazing!!!
The up move between 1994 bottom and 2000 top was 11,800 UNITS. The down move between 2000 top and 2002 bottom was 6,483 UNITS. When you combine both values together you end up with a value of 18,283 UNITS. The move took 9 years.
The up move between 2002 bottom and 2007 top was 10,156 UNITS. The down move between 2007 top and 2009 bottom was 8,137 UNITS. When you combine both values together you end up with a value of 18,293 UNITS. The move took 7 years.

So, the combined move took 16 years and there was only 10 UNITS of variance between the moves. And you still want to argue with me that the market is random? It Is Not. Once you know and understand this structure you can time the market with great precision.

For example, if you understand the structure you know that the move from 2007 top will be exactly 8,127 UNITS. With such knowledge you can know the exact time and point location of the bottom in 2009. I mean to the day and long before it happens. Just as I predicted in 2008. So, while everyone is freaking out and trying to figure out where the bottom is you can be laying on the beach while making crazy amounts of money shorting the market.

The sample structure above is just a small sample of how the market truly works. This type of measurement is available on the daily charts as well as the long term charts.

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October 14, 2013October 14, 2013

The Secret Of The Dow Chart

BusinessWeek Writes: Hedge Fund Chart Guru Tom DeMark Sees Dark Days Ahead

“The market’s going to have one more rally, then once we get above that high, I think it’s going to be more treacherous,” DeMark says. “I think it’s all preordained right now.” He feels this is probably irrespective of how and when the crippling impasse in Washington is resolved. “If you look at the new highs and new lows on the [New York Stock Exchange],” he says, “every time we made a higher high, there were fewer stocks in the index participating in that high. It’s getting narrower.” And once that happens, you typically get a collapse. The opposite looks to be true for gold, which he expects is making its low right now and should start to move up dramatically.

Read The Rest Of The Article Here

I tend to agree with Mr. DeMark to a certain extent as my own work confirms parts of his analysis. There is no doubt in my mind that we are approaching a major top here in most financial markets. Now, it is just the matter of hard work to pin point it. As I accelerate my timing work over the next few months I should have an exact answer for you by the end of the year.

With that said, there are only two possibilities here (based on my work).

1. The market has already topped. Triple tops are notoriously dangerous and tend to mark the end of a bull market. We have already set 3 tops and as I have suggested before the market finds itself in an exciting spot. We either confirm a bear market here by breaking down below recent lows over the next 4 weeks or….

2. The market will top out in March of 2014. This type of a scenario resembles Mr. DeMark’s forecast above.

Either way, we are approaching the end of a bull leg and you should begin thinking about reallocating your capital in order to avoid losses during the bear market.

Will we experience 1929 type of a decline as Tom suggest? My work doesn’t show that. It shows a slow yet volatile decline into the 8000-9000 range on the DOW over the next 2-3 years.

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October 3, 2013October 3, 2013

Jesus Confirms, No Market Crash This Year

World Report Writes: Ignore the Pundits Predicting a Market Crash

There are many reasons to be concerned about the market these days. Among them are the government shutdown, the recent run-up of the market and the fear that stocks are currently overvalued.

The problems of trying to time the market are many. Short-term movements are random and unpredictable. Prices change rapidly, making it difficult to predict them with any certainty. Missing a relatively few of the best trading days by “sitting on the sidelines” can have a seriously adverse impact on your returns.

Read The Rest Of The Article Here

I oftentimes use the terms “Collapse” of the US Economy and the stock market too loosely here. This little note is to correct that. I agree with the first premise of the article that you should ignore anyone who is predicting a market crash at this point in time.

My work doesn’t show that activity. It shows a prolonged 2-3 year decline into the 2016 bottom. Not a huge drop over a short period of time, but a lot of volatility, up and downs, with a general trend pointing down. Basically, we have to get into the 8,000-9,000 territory on the DOW over the next few years.

However, I do not agree with the premise that the market cannot be timed. It very well can be. My mathematical work clearly proves that. It is the authors close mindedness that leads him to that unfortunate conclusion. Yet, instead of arguing the point I will show you how the market can be timed over the next few months. Keep coming back.

P.S. After a short discussion with my office mate Jesus M. he has confirmed that there won’t be a crash either.

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