this, never gets old .. Bladder of the Fish and Soybeans
Posted on March 28, 2016 Leave a Comment
03/28/2016 – am prepping for a presentation I will be giving at http://www.markettechnicians.org and it’s about the math of the great pyramids, Stonehenge and Music. I’m trying (really I am trying) to walk slowly thru the progression of why square roots are important and I had to include an example of the Vesica Pisces (bladder of the fish) and I remembered this post … I’m going to use one of the charts in my presentation so I figured what the hell, just repost it.
B
had a “google hangout” w/ JC today and we zipped thru, easily, 6 different asset classes from stocks, commodities, single stocks and currencies in roughly 10 minutes.
“check this out – boom boom boom” and “blah blah blah” – and we were done.
question .. how long do you think it would take non-chartists? hours …? just saying.
anyway, we took at look at long term soybeans and what we need to focus on is the POWER of a MEASURED MOVE on a long term chart. in the chart below you’ll see blue and orange arrows. they represent the MAXIMUM correction of Soybeans on this 40 year old chart.
folks, when you have a LONG TERM measured move that sits right on a .618 retracement – you have high probability. If you don’t believe me … just look at the chart.
every major correction has either been a blue or orange arrow …
W H Y ?
the Vesica Piscis of course (the bladder of the fish)
so, look folks, you can believe me or not … but – HONESTLY – I chose the black dashed move to being the construction of the Vesica Pisces for this long term soybean chart. And, because I believe in my edge – and w/ full disclosure I had NEVER done this for Soybeans I constructed the VP from that one corrective move from 1988-1991.
as you can see below I built the picture above and then ….. use sacred geometry to measure the fractals of the square roots of 2,3,4,5 which are represented by pink/black/blue/orange arrows and then transposed them to PRICE in the lower right hand corner.
and, guess what … see that black arrow? THAT is what created the measured moves above … and, additionally, as you can see, I used the orange arrow from the low in 1999 to the EXACT high in 2012.
now, believe it or not, you can use any major swing .. they are all related from a proportions and fractal point of view. I trusted my eye and looked at where this correction was occurring and trusted my “hunch” that this was the right vector to use as the seed.
if you get the chance … use the vectors as time. (hint hint)
SPOILER ALERT:
The mathematical ratio of the width of the vesica piscis to its height is the square root of 3, or approximately 1.7320508… (since if straight lines are drawn connecting the centers of the two circles with each other and with the two points where the circles intersect, two equilateral triangles join along an edge). The ratios 265:153 = 1.7320261… and 1351:780 = 1.7320513… are two of a series of approximations to this value, each with the property that no better approximation can be obtained with smaller whole numbers.
21:11 Simon Peter went up and drew the net to land, full of large fish, a hundred and fifty-three and although there were so many, the net was not torn.
really need to pay attention here … POUND is flirting w/ a BIG OLD HEAD AND SHOULDERS
Posted on March 22, 2016 Leave a Comment
Folks, this ranks up there as a “big deal” so watch this one carefully as theirs a potential the POUND busts wide open and moves 3000+ pips if we have a MONTHLY closing below the neckline.
Bart
Super Size Me … $MCD
Posted on March 21, 2016 Leave a Comment
So, here’s another AMAZING run by a company that really has it down. Let’s face it – everybody has gone to $MCD every once in a while – hugh? People buy Burgers man ….
But when I look at this chart I see the “Sir Isaac Newton” parabolic takeoff. So, starting from scratch were going to have some fun w/ geometry.
Exhibit 1: chart of $MCD
Exhibit 2: what does the LOG scale and RSI look like?
- the “top to top” trend line looks like it wants to go a little higher – 130 ish?
- note the “bearish divergence” in that $MCD makes new highs BUT the RSI doesn’t …important.
What about Volume? (are people buying it up here?)
I’m going to chalk it up to …nothing too crazy. Volume is “good”
Now, EVERYTHING, I “Really Need to Know I learned in Kindergarten” (I actually mentioned this during my CMT talk at the convention a couple years ago). But, seriously, I want to make mention that what you see below is 1) real time (I didn’t do it and then publish it – it just looks parabolic) and 2) simply based on geometry we learned back in Elementary School.

Let’s take 3 points and figure out how to make a circle ….? OK?
http://www.mathopenref.com/const3pointcircle.html
Here’s the end result for $MCD:
Again, if your a first time or new reader of the blog you’ll think “I curved fit this” or “did it first and then published it”. For those of you who know me – you know I wouldn’t do that. So, I didn’t …
What is going on here? Well, do you think, for one moment, that all the circles, squares, triangles, pyramids, etc. were built and created for the heck of it? OR, possibly, they were using these angles and natural order to convey higher, powerful but very simple truths?
If you study this chart, you’ll see that I drew “Gann Angles” (musical angles) from the gravity center and where the lines intersected the circle we had horizontal prices support or resistance and vertical time components.
Anyway, were tapping against the top of THE circle and w/ the bearish divergence present believe it might be time to have “one last” super size and step aside. WOULD NOT SHORT THIS STOCK UNTIL WE HAVE A MONTHLY/WEEKLY SIGNAL REVERSAL CANDLE. (the low of the high candle is taken out by a daily, weekly or monthly CLOSE below)
B
the importance of 3 waves …
Posted on March 19, 2016 2 Comments
I have had the unique opportunity to train under Connie Brown of http://www.aeroinvest.com. Frankly, she’s probably one of the best technical traders/analysts out there. She also told me to never count a wave again …! and if your going to count – just learn the corrective moves and look/watch for them.
folks, that’s where the importance of 3 waves comes into play. particularly in the YEN and the EURO vs USD.
Here’s the YEN:
followed by another 3 wave movement – in this case the waves were symmetrical an exactly the same:
so now we have carved out a 3-3-? correction. The “?” mark is for the last wave of this sequence. we have finished “a” in 3 waves and we have finished ‘b’ in 3 waves so now “c” HAS TO BE 5 waves ….it appears we broke down from the triangle a-b-c-d-e for 4 and we are in the 5th and final wave of this correction which I am labeling 2 or B and then off the $$$ goes against the YEN.
EURO vs USD – here’s the triangle look:
else – we have a more complex FLAT working ..
again, either way, I think that the EURO is STILL bearish and this complex correction is coming to an end …
the POUND is testing the 31 year trend line polarity – right now.
also, remember to watch this level on the LOONIE!
Aussie has been a monster …no pullback to even get in it, yet.
but here’s the issue … look at the 3 waves UP and then 3 waves down and then a near exact 1.618*a=c wave relationship that shows an expanded flat pattern. We’ve “bounced” almost a 1000 pips … but is that it and the down trend resumes?
so, as you can see, the USD is at a very critical juncture. IF all these patterns WORK then a dollar rally should begin – soon. Else, we have more dollar weakness coming.
Emerging Markets, EM Currencies, Patterns and an example
Posted on March 18, 2016 Leave a Comment
I’ve posted, more than once, how I really love when a market makes 3 waves to a new high or low and then fails in the opposite direction. It’s the classic “expanded flat” and – if you can get the C wave right – it’s a great trade to take to new highs or new lows.
the chart below is of the USD vs Singapore:
- note the highlighted box – see how the market goes up into a new high in three waves? CLASSIC B wave ….
- note the monstrous bearish divergence
Here’s the potential count:
note:
- in the past, it didn’t have bullish divergence at the lows to get going so we are either finishing wave ‘c’ and/or we have one more wave to go down into the 1.618*a = c w/ the blue measured move arrow.
- either way, believe we are coming to the end.
note:
- the subdivison of the circle part down doesn’t lead to a “clean” 5 waves down into these lows so I’ll watch for an UP/DOWN sequence to complete. this could be the low BUT my bias is the UP/DOWN into the low before entering a position.
what does this mean for the Emerging Markets Equity Exposure?
below is the Singapore Dollar (as an example) withe EEM overlaid INVERTED in the blue line.
NOTE – very strong correlation to EM Currencies and EM Equities
Here’s the EEM:
Note:
- .707 retrace and 1.4142 extension caught the lows ….see math on chart
- blue measured move arrows are complete – see how that corresponds to the low in Singapore Dollar?
- however, the red measured move seems to be the next logical target IF the up/down scenario plays out
- also, note how the measured move takes us back up to the year long support cliff
- however, the red measured move seems to be the next logical target IF the up/down scenario plays out
SO, now for the “if-then”
IF the US Dollar is finding the low against the Singapore Dollar THEN the EEM bounce is coming to an end.
Bart
PS — had to do it … JNK and EEM sure look alike. I wonder why ….. 🙂
NYSE Index – resumption of downtrend or pullback in/around here?
Posted on March 17, 2016 2 Comments
well this pattern got SMOKED today … ctrl-alt-del on this one and look for the most logical stopping point.
not sure right now …




























