Sunday, December 30, 2012

Gold: Technical Chart


Friday, December 28, 2012

Dow Weekly


Thursday, December 27, 2012

Sunday, December 23, 2012

Gold: Mid January Low?

Could there be an important low in Gold circa Jan 13-18th @ 1450-1550?

Thursday, December 20, 2012

Tuesday, December 11, 2012

Monday, December 10, 2012

Friday, November 30, 2012

Gold Weekly

Below is a weekly gold chart. The basis of the chart is the initial thrust from the 2008 low and January 2009 initial high pivot. Some observations.
  • the 3x2 fan line from the low seems to be the operative support resistance ratio.
  • the stars mark where gold has been supported by the 3x2 line.
  • gold dropped below the primary 3x2 line in April 2012 and declined to the 1st harmonic 3x2 below the primary 3x2--new support
  • the latest rally found resistance at the primary 3x2--new resistance: a further sign of weakness.
  • currently, gold is testing the harmonic 3x2 as it did earlier in the year. A break of this 3x2 harmonic would suggest lower prices--perhaps the next lower 3x2 harmonic.
  • Check out the first 3x2 rectangle--prices were relatively nearby the bottom right corner. check out the second 3x2 box--once again prices were close to the bottom right corner.


EURO-US$

Here is an example of the geometric technique by subscriber "Dolemite". His insights into markets is phenomenal...he has contributed greatly to the work I do.

Note the low @ 'X' where AF and BC intersect...and the top where AF and WY intersect.

Click here for Dolemite's updated chart

Thursday, November 29, 2012

USDX Harmonics

I was recently asked to explain my charts and how I would use them as a trading tool.
The chart below of the US $ encapsulates pretty much what I look for in the squaring of a pivotal advance or decline. I hope this is somewhat coherent:
  • The entire geometric structure is based on the decline AB--which is used to form the square ABCD. It is hypothesized that all pivotal movements in markets are related to each other in a fractal nature...that the characteristics of significant pivot will effect the behavior of future market activity. In this example I use a previous decline and project the geometry forward. It is also effective to 'square' the first impulse wave of a trend..the first wave of this years advance in Feb-March 2012 would be an example of a rally that could be extended forward geometrically. If a projected decline and advance show signs of harmony this becomes an incredible powerful tool.
  • The square is duplicated and extended out in price and time. Square CEIF is an example of the progression of square ABCD
  • The next step is to take the diagonal of ABCD (DB) and form a square DBEF. The squares project forward in a geometric expansion based on the diagonal of each successive square forming the pattern 1, 1.414, 2, 2.828, 8......The squares are color coded on the chart.
  • As the grid begins to take shape the corresponding harmonic angles are formed, such as 1x1, 2x1, 3x2, 1x2....
  • In the chart below note what has happened at points C, F & I. Prices were near these intersections (corners of the primary red square. (time-price harmony). Points C,F & I were also at or near major pivots in the USDX chart. (Pt. C being an acceleration) Follow the path A-B-C-F-I-G. Where are prices at those points?
  • D-F-G is providing support resistance while its 'root' A-C-I is also delineating support and resistance.
  • Note the center points of each progressively larger square--what do prices do?
  • Note BF || EG  &  BD || EF || HG

SO what does this mean NOW? 

  • The USDX is entering an important time price harmonic--Pt. G) The market has progressed 3 primary (1.00) squares, 2 green (1.414)squares and 1 blue (2.00) square.
  • Prices have touched the harmonic fan lines as they approached pt. G
  • HG is proving support but EG (2.00 square) has been violated similar to the break in October. Resistance is formed by DG, AG, BG (root points of each progressive geometric square)
  • If 80 is broken prices are likely to continue to decline, however the USDX could quickly rally to pt. G over the next few sessions to form another price-time harmonic. (represents a larger break than the October break in prices)
  • A clear and decisive break above point G would support the case for higher prices ahead.
  • A sharp rally to point G over the next few days would be pretty incredible to watch materialize.
Bottom Line: Market geometry is suggesting that an important time-price harmonic is nearby and the market is likely to react in a pivotal way--or an acceleration. At this point traders should do the following:
  1. Assess portfolio for computation of risk-reward scenario to determine size of position (# of contracts based on acceptable loss amount (% of portfolio) to undertake. (money management is the most important aspect of trading)
  2. Monitor your favorite trading tools: RSI, MACD, Candles, Bollinger Bands.....
  3. Set up an execution plan--void of emotion--at stick to it.
Here is an example of a PHI based geometric projection.


HOPE THIS HELPS

TRY THIS: Stare intently at the chart and visualize some of the three dimensional  shapes. The patterns of the market will become significantly clearer. Picture the structure as a multi-faceted diamond.

Monday, November 26, 2012

S&P Update


The Pebble Effect

H/T 'Dolemite'

The concentric circles are based on the decline AB. Note market behavior at arrows.
The following radii were used.
AB, AC, AD...AH


Pebble Effect based on 1st wave off June 4th low: AB


Friday, November 16, 2012

S&P Update

S&P 500

  • are lines  based on AB
  • AB = CF
  • BC = FG
  • CG = DH = EI

 Dow Transports


Tuesday, November 13, 2012

USDX

USDX
  • all lines are based on advance AB
  • CD is parallel to AB
  • FE is parallel to BC
  • BE is parallel to GC
The resolution of trend expected at point E should indicate the likely S&P/Gold action as well. if US$ up : then S&P | GOLD down


Monday, November 12, 2012

S&P 500 Approaching an important trendline

S&P 500

  • squares based on AB (the first leg from the 2009 low)
  • S&P has held above support provided by the 2x1 AE
  • 1x1 BE intersects 2x1 AE at current price levels but time does not intersect until January 2013. ( possible time for a major low and end of intermediate cycle bear campaign)
  • Note intersection of previous fan lines highlighted by arrows.


Thursday, November 8, 2012

S&P 500 Update

Weekly Chart


geometric fan lines from October and June lows.
  • 45* = 1pt:1day
  • 36* = 0.726/day
  • 30* = 0.577/day
Gann 180-360* from September peak 1474.52
  • 180 : 1398.71
  • 360 : 1324.91
  • 540 : 1253.11
  • 720 : 1183.32



Daily Chart 

  • Square BCDF is based on AB. ( BC = AB)
  • 2x1 from A is converging on 1x1 from B
  • Circle radius CB is containing price levels since market broke CE (2x1)
  • breaking below 1350 without a bounce would be very bearish and may lead to significantly lower prices sooner than later.

Tuesday, November 6, 2012

Thursday, November 1, 2012

The Nifty 50

There have been several requests from Indian subscribers to do some geometry on the Nifty 50. I have posted a weekly technical chart and a daily geometric chart. I will endeavor to make periodic updates on this market--which I think has INCREDIBLE growth potential long term.
  • diamonds are major pivots (and horizontal S&R levels)
  • Market is retreating from a weekly RSI overbought level.
  • breaking above the 'double resistance point' would be VERY bullish although a time-price correction is currently underway.

The daily geometric chart does not 'fit' that well since none of the harmonic lines of the square are providing support-resistance or delineating pivot points...although the corner of the square (point C) was fairly close to the time period of the October high (natural time-price square). The bottom of the initial square (green line BC) seems to be the midpoint of the May-Oct  rally. The parallel (red and green) lines should provide support and resistance.

Here is a harmonic based on the SQRT of 5 (2.236)
  • Triangles ABG and BDC are based on the rectangles formed from the 2x1 diagonal of square ABCF
  • AG = 2.236xBG   and  BD = 2.236 CD
  • The circles formed from radii AG and BD seems to resonate with price time patterns.



Testing the 200 day moving averages.


Tuesday, October 30, 2012

Fibonacci and Nature

H/T  to Dolemite...Thank You Danny

Friday, October 26, 2012

Apple Turnover

Daily AAPL (One Year)

  • base: AB
  • Circle 1 Radius BA    Circle II Radius CB
  • Note how last rally climbed the vesica piscis XE--breaking below at pt. 'Y'
  • Decline BX is parallel to decline YZ
  • 1x1 (BD) support at current levels. If BD is broken price decline could accelerate.
  • There should be decent support at the 2x1 fan line AD. A decline to support at 565-570  would be very similar in price and time to the decline BX


AMAZON Monthly

Amazon Is a Black Hole Threatening To Devour Corporate America (Slate)

Monday, October 22, 2012

S&P 500 Update

S&P 500

  • Rectangle based on AB 
  • AE (1x3)  is a minor price and time harmonic: breaking below the star at E would be considered bearish resulting in a possible decline tasking place below line BC.
  • A close > 1460 would be considered bullish.
  • The April high should act as significant support. (blue horizontal line)

Thursday, October 18, 2012

Nasdaq Composite

  • based on decline AB
  •  High at the 2x1 fan AG intersecting 3x1 BY at corner of square @ C (red arrows)
  • Lateral support at center point of square ABCD (3050)
  • Note other market action at other highlighted intersections.

  • Breaking support at CZ, which is parallel to BY, will push prices out of the red circle which is about to terminate.
  •  Breaking CE will suggest much lower prices. (CE = 1/2BC)


GOOGLE

  • based on decline AB
  • note market action at highlighted intersections
  • the recent high--before today's precipitous decline--took place at  point E which is the 1x1 fan line  ACE ( AC = hypotenuse of the original AB)
  • Support at 480-500

Sunday, October 14, 2012

Map of a Harmonic Decline

S&P 500

The chart represents a possible scenario of the expected decline.
  • Assume Pt. X, where the Sept 14 high touches the line AE, is the intermediate cycle high.
  • Assume that the ensuing decline will be parallel to the previous decline AB
  • Therefore: XY // AB
  • 1395 is the center of XY. This point is around October 17-19th. A break below 1395 next week would suggest that the decline might become radically non-linear.

Friday, October 12, 2012

The Decline has Commenced

The trading square based upon the last significant decline--April 2 - June 4th has been violated which suggests that the next intermediate cycle decline has commenced,.
  • 1390-1395 remains to be a highly significant support level which should hold the market unless the seasonal factors are stronger than expected--which is a very high possibility.
  • Cycle interaction indicate that between now and November 5th a very large decline could occur.
  • Note that the market peaked  at the right extension of the trading cycle on September 14th (blue circle)

Thursday, October 11, 2012

AAPL

I would rather be Short than Long
 


Monday, October 8, 2012

The March 2009 Low and PHI Expansion

A chart similar to this was posted last evening and has generated several queries as to how it was produced. Here is a brief explanation:
  • The entire grid is based on the initial thrust off the March 6, 2009 low (A) to the first pivot high of June 11, 2009 (B)
  • The initial square is made by making the AB the left (earliest in time) side of the square. (1) dark red
  • The second square is formed above the first square. (1) bright red
  • The 2x2 square (2) is formed using the right hand side of squares 1 & 1.
  • The 3x3 square (3) is formed from the top sides of Square 1 and Square 2
  • Note how the 1x1 from the March 2009 low has acted as major support in 2011 and so far in 20012.
  • THe PHI expansion 1,1,2,3,5 is not the conventional method of creating a Fibonacci spiral but is made by moving the PHI expansion always into the future and--in this case--pointing upwards. A decline would move to the right and downwards.
Examine the fan lines and especially the intersection of the various fan lines. Many support and resistance levels are evident as well as several significant changes in trend where various fan lines intersect.
It is amazing that these points are determined from the initial thrust off the March 6, 2009 low. It demonstratwes the fractal nature of markets.
The current juncture of the S&P is fascinating since it has broken above the 2x1 from Square 1 but its highest level has been seen at a intersection of two 1x1 fan lines.

Sunday, October 7, 2012

S&P Weekly

Trying so hard to break out....

 
 

PHI Square Grid


Friday, October 5, 2012

TLT

TLT 20+ Treasury IShares

A close below 120 would indicate that the bear is not yet sleepy.


Tuesday, October 2, 2012

GOLD


Nasdaq Composite

Nasdaq Composite:

 A weird confluence of cycles. Contemplate upon this.
  • The Green circle is based on radius BA = BE.  AE is the hypotenuse
  • The recent HIGH PRICE--the bright yellow circle was made at the 2X1 line extended from AG which is SQRT(5) units. (2.236)....at the same point in TIME that the square was completed at point E
  • Note Point C. The pale yellow circle is formed from the radius CB = CD. Considering only amplitude and not time BC = .618BA. The first thrust BC was .618 of the March June decline. 
  • If point C is extended horizontally it is extremely close to point E: hence the two circles intersecting at that point.
  • March 27 high to June 4 low is 69 days.  69 x 2.618 = 180 days. 180 days from March 27 was Sunday September 23rd. The high was made on Friday September 21st
So to recap:
  • Price found resistance at the 2X1 fan line which is 2.236 times the radii BE & BA at the same time that the large cycle AB has price harmony (.618) with the smaller cycle BC from the first thrust from the June 4th low.
  • POINT "E" IS AN EXTREMELY INTERESTING INTERSECTION OF CYCLES.
ANY COMMENTS?




Saturday, September 29, 2012

S&P, Gold and TSX (Toronto)

S&P 500

  • Square and circle based on April-June decline
  • Ci Max harmonic with 1X2 fan line
  • Gann Levels to watch: 1465, 1427, 1390 & 1353
  • Harmonic Dates with 1465.77 Sept. 14 High October 7, 11 & 21st.

 

GOLD 

The squares and circles in the Cash Gold chart are based on the February-May decline.
  • Note the CIT near the maximum point of the circle--the December 2011 low.
  • Opposite maximum point is in the current time frame.
  • Horizontal Green support line is based on the center of square. (approx $1750)

TSX Composite (Toronto) 

Squares and circles are based on the February-May decline (AB).
  • Diagonal of square (AC) is resistance to the rally.
  • The resistance on the AC diagonal is also coincident with the maximum cycle point Cii. Note the CITs at the maximum points in time of Ci

Wednesday, September 26, 2012

S&P Square Sept. 26 14:51 est


TLT Update

TLT 20+ Treasury IshareS
This graph shows the effects of the various cycles emanating from BC and XY at play in the TLT chart.
  • The cycles are marked c1, c2, c3& c4
  • Major Support is line 'CE'
  • Minor Support is line 'YZ'
  • Diagonal fan-lines indicate support-resistance
  • c2 is resolved at point Y
  • currently the market is under the influence of c3
  • a break below CE and YZ would indicate c4 is dominant.

Tuesday, September 18, 2012

Monday, September 17, 2012

Why is 1465 Important?

S&P 500

On Monday September 10th I mentioned that "If the S&P was to approach 1441 or 1465 on Thursday there is a increased probability of a market reversal at that time." On Friday the S&P closed at 1465.77. Why is this level important? This is due to the vibrational harmonic of Uranus in this time frame.
  • September 13th: Uranus was 120 degrees from Venus
  • September 19th: Uranus is squared Pluto
  • September 20th: Uranus is opposed Mercury.
  • September 29th: Uranus conjunct Harvest Moon. (opposed both the Sun and square Pluto)
Uranus is currently at 7* Aries.

To determine the degree of a price level on a Gann Square of Nine the following formula can be used:
Sqrt(Price) x 180 = X
X -225 = Y
Y/360 = Z.zzz
Subtract the whole number Z to end up with .zzz
.zzz x 360 = The corresponding degree associated with the price.

If we use Friday's close of 1465.77 the following degree is ascertained.
SQRT of 1465.77 = 38.2853758
38.2853758 x 180 = 6891.36764
6891.36764 - 225 = 6666.36764
6666.36764/360 = 18.5176879
18.5176879-18 = .5176879
360 x .5176879 = 186.367644 degrees.
This is very close to 180 degrees from the position of Uranus.

This time frame also had a new moon (Saturday September 15th) which is often coincident with a market pivot.  The chart below shows that the S&P hit the parallel resistance line and then backed off into the close. While this may not mark the anticipated high it does suggest that the 1465 level should be closely monitored. This week sees some more Uranus action with Uranus squaring Pluto on Wednesday and opposing Mercury on Thursday. It should be noted that the market may hang in until the 29th when Uranus is conjunct the Harvest Moon at 7* Aries.

The market is becoming over-bought and the recent high is 1.272 the amplitude of the May-June correction. It is time to be cautious and to look for signs of a reversal.


TLT: 20 Year+ Treasuries.

 It is beginning to look like the low in rates is in. The precipitous decline in TLT since July 25th strongly suggests that the back of the great bull market is broken and that the secular bull market since 1981 may have seen its final days. Currently the market is quite oversold  and prices are at a 61.8% retracement of the March-July advance. Friday's low also touched the 1/2 square (ABFE) that is based on the March-July rally.(AB)


 USDX

The US $ is very oversold and is at an important support level. There could be a sizable bounce in the dollar here but I think that a bottom will not likely be made until the September 25th time frame when the Fed natal chart becomes active. (more on that at a later date). Nevertheless, I expect the markets to become increasingly volatile as we approach October. The clowns at the Fed are looking increasingly desperate and once the markets begin to realize this there will be some crazy trading sessions. The US $ and the S&P usually move in sympathy with one another so keep a look out for a pivot on either--and of course, the VIX will reflect this if there is going to be fireworks in the financial markets.