Friday, April 16, 2010

PHI and Nature in Markets

This posting is not meant to be a prognostication of any trend in prices or as a comprehensive analysis of T-Bonds. The intention of this posting is to demonstrate how all creation is goverened by a universal source--reflected in the perfection of mathematics.


  • The first cycle (red) emanates from the 104.88-122.81 rally that occurred between June 2008 and March 2008.
  • Prices briefly shot outside the circle when T-Bonds made the ultimate high @ 142.66--but quickly collapsed following the arc until the termination of the cycle which occured at the 124.56 intermediate low in February of 2009.
  • Note how prices advanced up the arc of the .50 radius between July and September of 2008--making a high @ 124.73 just after the .50 rad terminated.
  • The 4.236 (1.618)3 natural support line (light blue) starting at the 104.88 low provided support and then resistance during the entire time frame shown.
  • The 1.618 natural resistance line (blue from 142.66 high) has contained prices during the decline and now represent nearby resistance at 117.61.
  • If vertical and horizontal lines are drawn from the 'cardinal points' of the circles important turning points are intersected.
  • The Green cycle is constructed using the 142.66 high and 113.12 low during the December 2008-June 2009 decline. Note how the .618 radius marks the 133.89 high in March of 2009.
  • It is fascinating how the two .618 radius cycles (the thick red and green circles market .618r) touch together in October of 2008 in the midst of the financial crisis exactly at the price level where the Bond market fluctuated with extreme volatility. (The Yellow HIGHLIGHTED AREA) This is not a coincidence even though both circles appear to be unrelated based upon their respective origins.
  • Note how the linear cycle (purple at the bottom on the left side of the upper graph) is 'reflected' on the right side of the graph--the .50 and .618 segment of the reflection pinpointing intermediate highs. (October and December 2009)
  • There is a high probability of a trend change or acceleration in the Late June-Early July 2010 time frame since the linear cycle shown on the bottom terminates at the EXACT same time as does the cycle representing the decline from 142.66-113.12--Green Line and Blue circle. Look at June-July 2010 for convergence of the 2 cycles.
Finally the bottom graph is a Fibonacci spiral based upon the peak of the T-Bonds @ 142.66 in December of 2008. Note how prices were repelled by the spiral on both sides of the peak. FASCINATING.


forex-cat said...

Good blog!!
Thank you.

Fibocycle said...

check out the SSE posting