Monday, December 15, 2014

DJIA 2014 vs 1997

Calculated and charted with Sergey Tarassov's Timing Solution.
For the methodology see HERE
www.sentimentrader.com

The Stock Trader's Almanac Blog presented December’s typical seasonal pattern pointing to a bottom in stocks this week, possibly Monday, followed by a strong up day and then a nice rally.

www.stocktradersalmanac.com

Sunday, December 14, 2014

Crude Oil's 10-Year Leading Indication for DJIA | Tom McClellan

Tom McClellan - Chart In Focus (December 11, 2014)

Tom McClellan recently presented a 10-year leading indication relationship between oil prices and the stock market, as shown in the above chart. The current oil price slide says that sometime around 2024 some type of “echo” in stock prices from this year’s oil price drop can be expected. 

Stock prices echoing oil price movements with a 10-year lag has “worked” for over 100 years and there is enough evidence to accept it, even if we cannot explain it. For now, the message of this leading indication is that the oil price rally from 1998 to 2008 has yet to see the full extent of its echo during the 2009-2018 period. While the current dip in oil prices is going to be bad for stock prices about 10 years from now, it is not really a problem for stock prices in real time. 

The following chart zooms into this correlation between the S&P500 and the Crude Oil Price shifted 10 years into the future and suggests the S&P500 would continue moving down next week, then up into end of December before forming a major low around January 6. Another rally into early July - with a correction from around March 20 to April 24 - should follow.

Monday, November 24, 2014

Geocentric and Heliocentric Bradley Indices 2015

This astro-forecasting tool was developed by Donald Bradley and published in 1947 in a booklet titled Stock Market Prediction. On the book-cover Bradley coined his tool the ‘Planetary Barometer’ and inside the book the ‘Siderograph’. Today it is simply called the ‘Bradley Index’. 






















There are two versions of the index, a geocentric and a heliocentric one. Both attempt to forecast major and minor changes in the trend in stock markets indices. The Bradley Indices do not forecast highs or lows. Simply changes in the trend or non-directional turning-points. Donald Bradley wrote: 
[...] There are many [other] cycles affecting man with causes outside our immediate world. Well known among these is the electromagnetic cycle in biology which is caused by the relationship of the sun and the moon. Even tadpoles are seriously affected by this soli-lunar cycle which incidentially proves the wisdom of the oft-ridiculed practice of planting under various circumstances of the moon in the sky. What stimulates and pacifies the pollywog stimulates and pacifies the human being periodically.
“[...] At no time must the reader gain the impression that a Siderograph, as such, is a prediction of what the stock market will actually do. Nevertheless, observation proves that basic reversals in collective attitudes, clearly predicted by the line, are inevitably mirrored in stock averages.
(See also HERE)

[Eastern Standard Time (EST) -0500 UTC] 

Geocentric Bradley Index 2015
2014-11-20 (Thu) = Major Low
2014-12-09 (Tue) = High
2014-12-26 (Fri) = Low
2015-02-16 (Mon) = @ 0
2015-03-06 (Fri) = High
2015-03-11 (Wed) = Low
2015-04-03 (Fri) = High
2015-04-14 (Tue) = Low
2015-04-25 (Sat) = High
2015-05-04 (Mon) = Low
2015-05-10 (Sun) = High
2015-05-22 (Fri) = Low
2015-06-09 (Tue) = Major High
2015-06-20 (Sat) = Low
2015-06-28 (Sun) = High
2015-07-16 (Thu) = Low
2015-07-23 (Thu) = High
2015-07-29 (Wed) = Low
2015-08-03 (Mon) = High
2015-08-27 (Thu) = Low
2015-09-05 (Sat) = High
2015-10-01 (Thu) = @ 0
2015-10-09 (Fri) = Low
2015-10-26 (Mon) = @ 0
2015-11-08 (Sun) = High
2015-11-16 (Mon) = @ 0
2015-11-25 (Wed) = Low
2015-12-11 (Fri) = High
2015-12-20 (Sun) = Low
2015-12-25 (Fri) = High
2016-01-06 (Wed) = Low
2016-01-13 (Wed) = High
2016-01-18 (Mon) = Low
 
Heliocentric Bradley Index 2015
2014-11-22 (Sat) = Major Low     
2014-12-09 (Tue) = High   
2014-12-26 (Fri) = Low     
2015-02-10 (Tue) = @ 0
2015-03-04 (Wed) = High  
2015-03-12 (Thu) = Low    
2015-04-03 (Fri) = High     
2015-04-12 (Sun) = Low    
2015-04-24 (Fri) = High     
2015-05-04 (Mon) = Low   
2015-05-11 (Mon) = High  
2015-05-20 (Wed) = Low   
2015-06-09 (Tue) = Major High   
2015-06-21 (Sun) = Low    
2015-06-27 (Sat) = High    
2015-07-17 (Fri) = Low     
2015-07-21 (Tue) = High   
2015-07-30 (Thu) = Low    
2015-08-03 (Mon) = High  
2015-08-23 (Sun) = Low    
2015-09-03 (Thu) = High   
2015-09-24 (Thu) = Low    
2015-09-29 (Tue) = High   
2015-10-08 (Thu) = Low    
2015-11-06 (Fri) = High
2015-11-17 (Tue) = @ 0     
2015-12-07 (Mon) = Low   
2015-12-12 (Sat) = High    
2016-01-04 (Mon) = Low   
2016-01-13 (Wed) = High  
2016-01-19 (Tue) = Low    
 
Geocentric and Heliocentric Bradley Indices 2015
2014-11-20 (Thu) = Major Low (geo)
2014-11-22 (Sat) = Major Low (helio)   
2014-12-09 (Tue) = High (geo + helio)   
2014-12-26 (Fri) = Low (geo + helio)     
2015-02-10 (Tue) = @ 0 (helio)
2015-02-16 (Mon) = @ 0 (geo)
2015-03-04 (Wed) = High (helio)
2015-03-06 (Fri) = High (geo)
2015-03-11 (Wed) = Low (geo)
2015-03-12 (Thu) = Low (helio)   
2015-04-03 (Fri) = High (geo + helio)    
2015-04-12 (Sun) = Low (helio)   
2015-04-14 (Tue) = Low (geo)
2015-04-24 (Fri) = High (helio)    
2015-04-25 (Sat) = High (geo)
2015-05-04 (Mon) = Low (geo + helio)  
2015-05-10 (Sun) = High (geo)
2015-05-11 (Mon) = High (helio)
2015-05-20 (Wed) = Low (helio)  
2015-05-22 (Fri) = Low (geo)
2015-06-09 (Tue) = Major High (geo + helio)   
2015-06-20 (Sat) = Low (geo)
2015-06-21 (Sun) = Low (helio)   
2015-06-27 (Sat) = High (helio)   
2015-06-28 (Sun) = High (geo)
2015-07-16 (Thu) = Low (geo)
2015-07-17 (Fri) = Low (helio)    
2015-07-21 (Tue) = High (helio)  
2015-07-23 (Thu) = High (geo)
2015-07-29 (Wed) = Low (geo)
2015-07-30 (Thu) = Low (helio)   
2015-08-03 (Mon) = High (geo + helio)  
2015-08-23 (Sun) = Low (helio)   
2015-08-27 (Thu) = Low (geo)
2015-09-03 (Thu) = High (helio)  
2015-09-05 (Sat) = High (geo)
2015-09-24 (Thu) = Low (helio)   
2015-09-29 (Tue) = High (helio)  
2015-10-01 (Thu) = @ 0 (geo)
2015-10-08 (Thu) = Low (helio)   
2015-10-09 (Fri) = Low (geo)
2015-10-26 (Mon) = @ 0 (geo)
2015-11-06 (Fri) = High (helio)
2015-11-08 (Sun) = High (geo)
2015-11-16 (Mon) = @ 0 (geo)
2015-11-17 (Tue) = @ 0 (helio)    
2015-11-25 (Wed) = Low (geo)
2015-12-07 (Mon) = Low (helio)  
2015-12-11 (Fri) = High (geo)
2015-12-12 (Sat) = High (helio)   
2015-12-20 (Sun) = Low (geo)
2015-12-25 (Fri) = High (geo)
2016-01-04 (Mon) = Low (helio)  
2016-01-06 (Wed) = Low (geo)
2016-01-13 (Wed) = High (geo + helio)  
2016-01-18 (Mon) = Low (geo)
2016-01-19 (Tue) = Low (helio)

Sunday, November 9, 2014

2015 - Presidential Cycle - Seasonal Cycle - Decennial Cycle of DJIA

HERE & HERE
Lance Roberts @ www.streettalklive.com
TheChartStore.com




























Since 1834 the U.S.-stock market has been positive 12 out of 18 times in the 4th year of every decade and the 5th year was by far the best year of the Decennial Pattern. The Dow Jones Industrial Average started in 1895 and since then 11 of the last 12 5th years were up and averaged a return of almost 22%. The exception from the pattern was 2005 when the DJIA lost 0.61%.

Tuesday, September 30, 2014

The Birth of BABA

HERE
On September 19 the China-based e-commerce giant Alibaba performed the largest IPO in U.S. history: 

Alibaba (symbol:BABA) was collecting $ 21.8 billion - more than Google, Facebook, and Twitter combined (HERE). 

HERE
Alibaba's consumer-to-consumer portal Taobao, similar to eBay.com, features nearly a billion products and is one of the 20 most-visited websites globally. The Group's websites accounted for over 60% of the parcels delivered in China by March 2013, and 80% of the nation's online sales by September 2014. Alipay, an online payment escrow service, accounts for roughly half of all online payment transactions within China. 

After some delays matching the huge volume of buy and sell orders, the first trade of Alibaba took place at 11.54 a.m. (HERE).

HERE

















HERE
















HERE

Thursday, July 3, 2014

July 12, 2014 = Mercury’s Maximum Western Elongation + SuperMoon

Of all the planets Mercury is the smallest and closest to the Sun, and has a fast orbital period of 88 Earth days on average. Despite the small size and the slow 59-day-long rotation, Mercury has a significant magnetic field, strong enough to deflect the solar wind and to create a magnetosphere that can trap solar wind plasma. Mercury was a Roman god who travelled between the worlds of gods, humans and the dead. In astrology Mercury is generally associated with mental activities and faculties of the mind, and in astrofinance Mercury is the planet of trading, commerce, and intellect. However, seen from Earth, Mercury’s orbit around the Sun is 116 days on average (+/- 32 days). Also seen from Earth, it reaches a maximum Eastern and a maximum western elongation. These moments frequently coincide with a changes in trend in financial markets (see also HERE). 


On July 12, 2014 Mercury will reach the maximum western elongation on its orbit (HERE). On the same day there will be a SuperMoon (HERE) making a series of aspects to Pluto, Uranus, Saturn, Mars and Jupiter between July 11-12. This should have at least some short-term impact on the financial markets. On July 15 (Tue) both the geocentric and heliocentric Bradley Indices are at their highs of the year 2014 (HERE). Saturn is the Lord of Karma, and after 150 days of retrograde motion, will station direct on July 20 (Sun). Uranus is the Lord of the unpredictable, revolution, and progression and will turn retrograde the next day, July 21 (Mon). Ray Merriman remarks on this period: "Equity markets are prone to upheavals during such bouts of cosmic thunder."


Wednesday, June 18, 2014

VIX nearing the 2006 Low























Modern Money Mechanics | The Alchemy of Global Neo-Feudalism

"Modern Money Mechanics" was a booklet published
and distributed by the Federal Reserve Bank of
Chicago, originally written by Dorothy M. Nichols
in May 1961. Described as a "workbook on bank re-
serves and deposit expansion", the text offers a
detailed description of the basic process of money
creation out of absolutely nothing in today’s glo-
bally established fractional reserve banking schemes
such as the Federal Reserve System and the European
Central Bank (see also HERE).
Most academic texts teach that money is created first by someone making a deposit and then the bank waits for someone to come along and borrow it. 

However, that is not true: Modern Money Mechanics explains how money is created the instant it is borrowed. In other words, debt creates money. All the so called ‘Western’ governments create bonds (= public debt), give them to private bankster-cartels called ‘independent central banks’ or 'commercial banks' which use that debt to create money. There is no other value attached to it. It is the act of borrowing which causes it to spring into existence. Also all other banks are creating money based on a borrower’s promise to pay (the IOU = I Owe You). They create money by ‘monetizing’ the public and private debts of businesses and individuals.

In his book ‘The Creature from Jekyll IslandG. Edward Griffin elaborates on this in the example of the US:

» The entire function of this machine is to convert debt into money.  It’s just that simple.  First, the Fed takes all the government bonds which the public does not buy and writes a check to Congress in exchange for them.  (It acquires other debt obligations as well, but government bonds comprise most of its inventory.) There is no money to back up this check. These fiat dollars are created on the spot for that purpose. By calling those bonds “reserves,” the Fed then uses them as the base for creating 9 additional dollars for every dollar created for the bonds themselves. The money created for the bonds is spent by the government, whereas the money created on top of those bonds is the source of all the bank loans made to the nation’s businesses and individuals. The result of this process is the same as creating money on a printing press, but the illusion is based on an accounting trick rather than a printing trick. 

The bottom line is that Congress and the banking cartel have entered into a partnership in which the cartel has the privilege of collecting interest on money which it creates out of nothing, a perpetual override on money which it creates out of nothing, a perpetual override on every American dollar that exists in the world. Congress, on the other hand, has access to unlimited funding without having to tell the voters their taxes are being raised through the process of inflation. If you understand this paragraph, you understand the Federal Reserve System.

[…] The federal government adds ink to a piece of paper, creates impressive designs around the edges, and calls it a bond or Treasury note. It is merely a promise to pay a specified sum at a specified interest on a specific date […] this debt eventually becomes the foundation for almost the entire nation’s money supply.  In reality, the government has created cash, but it doesn’t yet look like cash. To convert these IOUs into paper bills and checkbook money is the function of the Federal Reserve System.

An instrument of government debt is considered an asset because it is assumed the government will keep its promise to pay […] so the Federal Reserve now has an ‘asset’ which can be used to offset a liability. It then creates liability by adding ink to yet another piece of paper […] the “Federal Reserve Check” […]

There is no money in any account to cover this check. Anyone else doing that would be sent to prison. It is legal for the Fed, however, because Congress wants the money, and this is the easiest way to get it […] The process is mysteriously wrapped up in the banking system […] The Federal Reserve check is then deposited in one of the Federal Reserve Banks […] These checks become the means by which the first wave of fiat money floods into the economy.
«

Sunday, May 25, 2014

Update: SP500 and VIX - Intermediate Term Delta Projections

Apparently there was an inversion in the ITD. So in early June a low in the VIX and a high in stocks
should be expected. Source: Time-Price-Research (Tuesday, February 18, 2014)

Updated Delta count for S&P 500: (Friday, May 23, 2014)




















Also the LOW in the SoLunar Tides on June 1 points to a HIGH in equities on that date

Wednesday, May 21, 2014

Trading with Nothing for Something | Islamic Perspectives on Fiat Money

Money must have intrinsic value ... Fiat currency and
banking are acts of crime ...
(HERE)
 

"[...] Money must have intrinsic value due to it being the measure and store of the value of things. A form of 'money' that is open to total artificial manipulation and subjective valuation will not be able to perform these two functions of money.

[...] Fiat currency and banking are acts of crime, in fact, among the worst crimes in human history. Banking institutions must be held accountable for the continuous campaigns of wars and colonialism – today, corporate colonialism – which are undeniably their biggest and lucrative money-making opportunities. They have left behind clear fingerprints and traces for the world to see. They are also directly responsible for the impoverishment of countries shackled by unpayable debts owed to internationally recognized bloodsucking money lenders and financiers.  

[...] The monetary system based on fiat currency ensures that the amount of debts created will always be far more than the actual money supply, which means that many will never be able to repay the original sum, what more the interest. Many will be forced to default, declare bankruptcy and watch as their possessions are confiscated before their eyes. This does not happen to individuals only, but also to countries and nations which are forced to sell their resources for a measly price due to their inability to repay their international debts.

Muhammad Mahathir - Malaysian Prime Minister (2008):
» Quantitative Easing is a privilege for the rich nations only. When Greece lost money, it could not print currency notes or issue cheques to pay debts.Greece needs to borrow money from European countries to repay loans. Again no currency notes would be involved. The amount lent would be credited to the Central Bank of Greece which then would issue cheques to the commercial banks... Rightly both the United States and United Kingdom should be bankrupt. To recover they should be selling all their banks, industries and other assets at fire-sale prices. That was what the Asian countries were forced to do after the currency traders forced many of them almost into bankruptcy. But the bankrupt powerful countries of the West don’t have to do that. They carry out Quantitative Easing, print money and refinance their banks and bankrupt industries. And they talk about transparency in business practice. «
 
[...] One-third of the world's population now lives in a state of poverty. This is not due to the lack of natural resources or intellectuals, but due to the mischief of the robbers, i.e., the international bankers who went around the world selling their loans while hiding behind the pretext of offering technological progress and modernity to the 'backward' countries.

[...] The criminal act of banking (lending other people’s money on interest without their consent and earning through that without any risk of loss or without any labor involved) cannot be separated from fiat currency. Without fiat currency, banks today will not be able to function as how they are functioning. From the very beginning, it was the introduction of promissory notes (which have now devolved to fiat currency) that allowed the banks to engage in this misuse of the money that was entrusted to their safe-keeping by the unsuspecting masses. Both the practice of banking and the use of fiat currency are based strongly on Riba [usury].

[...] Fiat currency today cannot be a measure of value or a store of value as it constantly loses its illusory 'value' due to it not having natural or intrinsic value. In reality, it is nothing presented as something. This is why fiat money and chronic inflation are not separable; both are the results of each other. Nothingness will only return to nothingness and history is a witness to this.

Imran N. Hosein  (2013) - The International Monetary System:
» When the poor are permanently poor, and the rich permanently rich, that is oppression! All around the world today that oppression exists, and is constantly increasing - the poor grow poorer and the rich richer. Riba [usury] is the cause! A predatory global elite, centered in the West, but also around the world, is constantly sucking the wealth of mankind and impoverishing the masses through riba. Their ultimate objective is to utterly enslave all of mankind in a new sophisticated slavery.Political, legislative, judicial and legal systems, the media etc.,  are all created by the oppressor, and all function to preserve the system of economic oppression. Television is used to transport the masses to fantasy-land so that they remain unaware while riba is used to enslave them. «
 
[...] When inflation occurs, the purchasing power of the money we hold (fiat currency) falls, that is to say, the money that we use today buys lesser and lesser constantly. As time passes, the purchasing power of money only falls, hence people can only buy lesser with the money they have.

 [...] This fall in its purchasing power does not happen based on real situations where the money supply circulating in the nation naturally exceeds the goods and services available in the same nation. The resultant increase in the price of goods and services is due to the artificial creation of money out of nothing. This artificial creation of money out of thin air - one of it - is due to what bankers call Fractional Reserve Banking. This has never ceased to happen since banking took control of the money supply of a country and as a result, the price of goods and services are deliberately forced to be raised and as an inevitable result, the value of the money in our possession (purchasing power) keeps falling. This is intended rip off [Al-Bakh].

Riba-nomics
 
[...] Therefore, trading with fiat as a means of exchange, in reality, is trading with nothing for something. There is no equality; it is zulm [oppression], a clear act of injustice especially from the part of the issuer of the money.

[...] We do not need to bring down, attack or destroy the banking industry. The usurers will themselves bring the banks down since usury is baatil [falsehood], and baatil is bound to perish. What we have to do is to bring the haq [truth] and haq does not need the majority to give it any extra strength.

[...] Many shops and traders around the world have started to accept the Dinar [gold] and Dirham [silver] as payment. Some have also started using it as their mahar and some have went a step further by signing business contracts with the Dinar and Dirham being the capital as well as the profit.

Tarek El Diwany, 2014: » An economically educated person should ask why a man would go to prison for creating money at home, while the bankers do it for a living. Still the question goes unanswered. Why does the crime of counterfeiting become a respectable profession through the act of incorporation as a limited company? Can you give me one example in Shari’ah where something that is haram [forbidden] becomes halal [legal] by the granting of a commercial license?
«