VooDoo or Sound Principles? Who cares …

for any of you who have followed this blog will attest – I simply live and die by the patterns. They are an edge …and edge is simply something that is more likely to happen than not.  If I manage risk then the edge supports making money in the markets.  I DO NOT care how one enters the market …there are more ways to enter the market than one could think and the brightest minds in the world are on the street coming up w/ all kinds of ways to make money in the market.

what works for me …? PATTERNS based on the fact that there is a collective ENERGY/VIBRATION to the market.  And this ENERGY/VIBRATION repeats itself and because is vibration and energy then it will abide by the mathematics of musical theory, sacred geometry, square roots and blah blah blah …

my mentor and friend Mike Jenkins (www.stockcyclesforecast.com) taught me this very SIMPLE but POWERFUL method …. it’s total voodoo OR not ….

1.  The Signal Reversal Candle on a LONG TERM chart is very very important.  It’s the candle that erases the “emotion/energy/vibration” of the proceeding bull or bear market.  It “usually” occurs on a MONTHLY chart.

2.  Once you have a well defined MONTHLY SRC then, IF YOU BELIEVE THE MARKET IS MUSICAL (cliff notes: I do) THEN you simply use that SRC as the seed and define it as the UNIT which will define a run UP or DOWN.

3.  In this example of the S&P you can see the SRC and how we simply sub-divided it and PROJECTED up into the 1996 area.  That target “completes” this run …

4.  As you are well aware this is an EDGE!  Right … it’s a target and an edge that MIGHT work or MIGHT not but, I’m certainly aware of this target.  Look at what happened to the PATTERN on HD – it got smoked today.  That same pattern STOPPED IN ITS TRACKS – the DAX, Boeing (BA), WYNN, IBB (buy), etc etc ….so, it’s all probability and that’s OK, for me.  Also, don’t use it alone … work your own technicals, moving averages, oscillators, fundamentals – whatever – but be aware of these levels.

5. Last thing – I’m going to pick two or three securities that I have NEVER done this before and just do this technique and see what happens.  Not that many, but a couple because, well I’m tried after Bikram Yoga.

Hey, hope you are having a great week!

Bart

1/8 th intervals of the Signal Reversal Candle

1/8 th intervals of the Signal Reversal Candle

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NASDAQ targets … note the .68179 target

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in my mind, the only Voo Doo out there is the Federal Reserve …

GN

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