Transports and F#

Transports at critical level

The last time I posted about the Transports they were finishing measured moves and the target w/ in around 9700-9800. The index blew thru that area after some consolidation and tapped out around 11, 500. We now have a very nice pattern taught to me by Larry Pesavento – the 1-3-5 and it appears that the index is starting back down. There are two interpretations that I’m showing – 1 is very bearish and the other is very bullish. Either way, in the near term, I expect a pullback and if we get a BUY pattern I’ll buy w/ a stop and if we get a SELL pattern I’ll sell w/ a stop. I’m a pattern dude do I’ll just wait and see …

Kind of cool that the price projection from the all time low from the 1930’s was 1.68179 (F#) and we stopped on the .68179 retracement. In the world I live in (you might not, so don’t worry about it or believe) what’s that usually telling me is the ‘index’ is respecting (OK vibrating) to that ratio and it’s inverse …

The bullish case is that we stopped at exactly the same price point as we did every other time since this powerful move began in the early 2000’s …

hope you have had a good weekend.

Bart

Fractal Present on the Utilities – check it out

August 25, 2014:

CLIFF NOTES: please see below to understand the importance of our recent high at 577.  The long term PATTERN from the all time low completed.  Now, we have the beginning formation of the trusted and true head and shoulders pattern on the DJ Utility Index.  Why is this important …?  Well, look below at the fractal that existed at the top in 2007-2008.  It’s exactly the same PATTERN.  So, in a nutshell:

  • we completed a major pattern on the Utilities up at 577.
  • a head and shoulders pattern is forming the right shoulder, now.
  • the same FRACTAL is present at the time, here’s a cool video to show fractals at work: https://www.youtube.com/watch?v=ZVwoYVkg-m4

folks it’s a PATTERN — it WILL work or it WON’t but it’s a PATTERN.

fractal pattern on the Utilities
fractal pattern on the Utilities

 

4 hour chart showing formation of potential head and shoulders
4 hour chart showing formation of potential head and shoulders


 


 

 

 

April 05, 2014

CLIFF NOTES: I am a patter recognition chartist.  I am NOT trying to be overtly bullish or bearish.  Just using this forum to show the PATTERNS that area ppearing.

On the DJ Transports we have completed a MAJOR AB=CD sell pattern w/ a 1.618 extension.  That is bearish.  It’s particularly bearish because the pattern using the former all time highs and lows. I am also showing the Utilities almost completing a very bearish pattern.  Again … heads up folks, these are NOT 60 minute intraday scalping trades.  These are MAJOR patterns that bear close watching.

DJ Transports
DJ Transports

 

DJ Utilities
DJ Utilities

DJ Transports and Utilities updated

CLIFF NOTES: I am a patter recognition chartist.  I am NOT trying to be overtly bullish or bearish.  Just using this forum to show the PATTERNS that area ppearing.

On the DJ Transports we have completed a MAJOR AB=CD sell pattern w/ a 1.618 extension.  That is bearish.  It’s particularly bearish because the pattern using the former all time highs and lows. I am also showing the Utilities almost completing a very bearish pattern.  Again … heads up folks, these are NOT 60 minute intraday scalping trades.  These are MAJOR patterns that bear close watching.

DJ Transports
DJ Transports

 

DJ Utilities
DJ Utilities

the most important chart in my lifetime

CLIFF NOTES: the most important pattern in the history of the US stock market was hit today.  Period.

  • all time low on Dow Jones Transportation Index was 49.59 on 10/29/1896
  • that low when used as the key node for retracements was responsible for the LOW in 1987 (.382 retracement ), the LOW in 2003 (EXACT 50 percent retracement) and the LOW in 2009 (EXACT .618 retracement).
  • it was also the beginning of the projection for the high in 2007.
  • now, currently, the 1896-2007 leg is projection to an area EXACTLY to where we close today …additionally a 1.618 extension from the 2007 top is at the exact same area.

folks, I incorrectly assumed that a top had been made in the transports when we went down 4% in one day.  figured some slippage or something like that.  well, it kept going up and, guess what — it went up and smacked (today) the ONLY PATTERN that can be complete using the all time low.

the market is so beyond thunderdome that I expect it to get crushed and the band will simply play on and on and on …but the prudent investor, trader, institution would BAIL AT THE FIRST HINT OF A WEEKLY SELL SIGNAL …

one last – these numbers we are dealing w/ have their genesis from the all time low in the Dow Jones Transports some 42887 days ago.  what does that mean?  well, it’s a big flipping pattern that completed today is what it means…you can argue if it takes into account inflation or stock splits or any of that other stuff … none of that matters.  Look at the chart and there right in front of you is the retracements and projections.

that 49.59 has been responsible for EVERY major high and low in the history of the Transports …

Dow Jones Transports 1896-2014
Dow Jones Transports 1896-2014

 

Transports pattern complete from 42,281 days ago …

I’m going to give myself .003% w/ regards to the pattern being complete on the Dow Jones Transportation Average.  It never did hit, exactly, the 7616 target …but w/ the big move that occurred yesterday odds are that we have a MAJOR top in place.  If you have been following my blog this “target” area has been forecast for a while …

Aristotle, Diogenes Laërtius and the Dow Jones

DJTA … 120 points away from MAJOR pattern completing

I’m a pure play pattern recognition technician.  I pay major attention when using “nodes” that are 42,281 days ago.  I also pay particular attention when this “node” from 10/29/1896 has been responsible for support and resistance at every major top and bottom in my lifetime.

we finished a MAJOR pattern …the reaction is not surprising.

I type this blog, today, not because I did anything special.  Simply, for the past couple weeks I knew a pattern was completing on the transports in this area. And, having been down the travels of a professional trader and succumbing to expectations, having to be right, etc. I simply have now trained my persona to EXPECT NOTHING.  It’s a PATTERN and it will either work or it won’t …

Now, that being said, I do ask that you (my fellow bloggers) think about what could potentially be at work here … did the major institutions know this level before I did?  I doubt it … did the Federal Reserve have someone tell them that the Transports were going to encounter major resistance?  Again, doubtful.  Did Warren Buffet have this knowledge?  No, I submit nobody was CONSCIOUSLY aware of this level.  But, FOR WHATEVER REASON, the psyche, emotions, feelings FLIPPED ON A DIME.  At the PATTERN level EVERYONE SOLD.  Think about it … no CNBC, no FAST MONEY, no fundamental talking head pundit … a NUMBER was hit (natural square OBTW) and bada bing bong boom EVERYONE SOLD.  Take a moment and think about that one …

It worked, the GOOG, YHOO and others didn’t … it’s all probability.

W/ that in mind, the PROBABILITY is rising, albeit slowly, that we are on the cusp of the biggest bear market we have EVER experienced in this country or world.

As for me, I’m just going to wait for a PATTERN and deploy capital …

Make it a great weekend

Bart

DJTA 4 HOUR CHART
DJTA 4 HOUR CHART

DJ Transports ... 1896-2013
DJ Transports … 1896-2013

 

DJTA from the beginning 10/29/1896 w/ a dose of a 2.6 is 4.0 to me

true confession time … some of you might know and some of you might not know that I spent my first 11 years out of college w/ the privilege and honor to serve in the United States Navy.  I flew jets, saw the world and knew absolutely NOTHING about the economy.  In fact, here’s the confession time, I have NEVER TAKEN AN ECON or BUSINESS COURSE in my life.  I was a “mathematician” at the Naval Academy simply because 1) it wasn’t engineering, 2) I didn’t have to write papers, 3) I didn’t have to take a language and 4) there was no labs.  Swear to my dying days that was my thought process … and, guess what, I graduated w/ a BS in Math (note irony of BS portion) AND w/ the rocking GPA of 2.08 in my major.  2.0 and go ….my Pops used to get on me (so to speak) and I always told him — “Pops, right now, a 2.6 is a 4.0 to me so PLEASE use that grading scale!”

why is  this germane to this post, tonight? Well, I was taught/shown and devoured anything and everything that had to w/ charts because, well, I thought that is all there is ….

why is that germane … because I am long over trying to convince anyone that this stuff works.  do the work, prove it to yourself or not but in the end it really doesn’t matter, does it? I firmly believe the market is musical and chart patterns that vibrate to the numbers which can be found in music.  That’s my edge, take it or leave it …

so, tonight, when I heard the talking head pundits on a financial tv show start slobbering over the DJTA I thought “well, I haven’t looked at that puppy in a while so go take a look …”

  • always start from the beginning (or w/ the best most historical data)
  • the all time low was 10/29/1896 – interesting we are 8 days from 10/29 in 2013.
  • from that point I went forward in time and looked to see if this was a good “node” and it certainly proved to be ….!  (yeah math)
  • from the 2000 top into the low in 2003 we have a PERFECT 50 percent retrace from that low of 49.59
  • if we use the low at 49.59 and PROJECT from 1896-2000 we NAIL the MAJOR resistance in/around 5500 ish on the DJTA.
  • from the high in 2007 to the 2009 low … .618 retracement (EXACT)
  • finally, using the 1896-2007 leg and projecting UP we get a zone of 7500-7650.

when I started this study of the DJTA I did not know any of these numbers or projections or moves would be present.  it does not surprise me at all, but do you really think as the market was crashing down in 2009 that EVERYONE knew the .618 retracement level from 10/29/1896 was at that 2100 level?

DJTA – please go up to the 7500 level ….

the vibration of the DJTA since inception ... pretty cool
the vibration of the DJTA since inception … pretty cool