Price and Time Forecasting: Time as a Mathematical Object

our next speaker was one of the top 10 managers in the world in the late 70s in the early 80s in 1985 he founded the stock cycles forecast and he's correctly called effectively every major a bull in a bear market turn in the past 25 years including the 87 crash he's been on cnbc a lot he's in bloomberg you'll see him often and ultimately he's really considered one of the foremost experts in the financial industry if not the world on the cycles that exist inside of the economy and stock markets would you please join me in welcoming michael jenkins chef you good morning um as stated i'm michael jenkins i i see a few familiar faces out here perhaps people who knew me when i was on the public circuit this is my first public appearance actually in 12 years and but back in the 90s i was on cnbc every single week for seven years and i made the circuit at that point so a lot of you may not know me unless you've read the six books i've written or some of the courses i've had or the newsletter over the years so i should give you a little bit of my background and perspective of where i'm coming from in order to understand the topic today was would be a little bit eclectic and i was very fortunate in life in that i knew when i was eight or nine years old exactly what i was going to do i the stock market came into my head i knew i was going to trade stocks i read every book in the library by the time i was in high school in stock market and that was the worst thing i could have done because all the books in the library were pretty bad there was no technical analysis books around that were really good although the gartley books from the 1930s i had to have all those now and uh most of the stuff i saw it didn't appeal to me but i thought i would go down at the root that most people take to become an analyst i got an mba i became a cpa i thought if i could analyze a statement very well i could make a lot of money in the market and that really didn't work out too well i could analyze a statement perfectly i could predict all the numbers just right but the market seemed to fluctuate up and down a lot and it didn't quite tie in with the fundamentals and i after that was introduced a technical analysis and i found out that that made much more sense to me logically intuitively price and volume correlations and i have a unique ability of recognizing patterns i could look at a chart and i could see the patterns in it not so much the elliott wave patterns that are fractals but more like larry just mentioned a little while ago i see things in shapes of triangles circles and squares and as they move through space it is the intersection of these vertices of these geometric shapes that give rise to the turning points in the market so having seen that i decided to do a lot of original research on my own i found out that it didn't make no sense at all to use a moving average or an oscillator or any kind of the normal technical things they're all very nice you can use them if you don't know that much about the market they're better than nothing but i knew that the market was very precise and i knew it was possible to predict an end point from a beginning point i could see it over and over with the fractals that i followed but just was very difficult because like the elliott wave these fractals expand and they contract and even though you can see the shape of it trying to predict the exact low day when the shape is moving that was the thing that took took me about 39 years now and uh but i think in the last five years i've made significant progress and that's one of the reason i dropped off the public circuit around the year 2000 i was getting into some very esoteric study and i wanted to devote full time to doing this and i produced during that time three or four books which many of you probably read the secret science is probably my best known one or i've developed probably a dozen revolutionary technical analysis tools that give you uh the predictions down to the minute of where the market's going to go every day and support and resistance based on numbers and math and musical theory and we won't get that esoteric today on the charts but i'm going to have to start doing some very basic theoretical implications first so you have to bear with me for maybe 20 minutes as i show these first couple of slides so you get the understanding of what the theory is behind time being connected to price as market analysts and technicians almost all of you are familiar with price patterns and you focus on price all the time but the big mental blockage we have is to recognize that time and price are the exact same thing sounds a little strange i hope at the end of today's speech you will understand that time and price are the same thing they are interchangeable when you see a number on the s p of 888 it has to do with time doesn't have to do with the price of 888 and if you can start to think in these concepts you'll make some real evolutionary discoveries i might say that this is our our worst enemy is the mental blockage we have in thinking these ways we are bombarded as technicians into using overbought oversold or i'm always hearing there's cash on the sidelines there's no cash in the sidelines multi-millionaires who had their cash in the bank only had insurance up to a hundred thousand dollars per account last year and they all went into mutual funds and money market funds that had private insurance much greater than that they also took money out of real estate most of the cash on the sidelines is going to go into the mailbox to pay bills it's not going into the stock market but we have these tools that we look at overbought oversold short interest ratio option expiration and it gets our mind very jumbled about what the facts are and so we get these mental blocks so i'm going to try and show you some pure mathematics today using circles and squares and time elements that show you that the market is quite predictable exactly predictable and i will go through the decade from the 1998 low and i will show you in sequence how to predict the exact high and the exact date of the high within five pennies and from that high get the exact low and the exact next low not when i missed it by two dollars and then from that low to the next one all from one starting point one price one time and how it's all connected but i'm going to have in order to get you that to that point of understanding we're going to have to go through some basic concepts and i say it is it is a mental block i'm reminded back when i was in graduate school i took a course on creative thinking and i gave to the class at that point there were 25 students and a teacher i gave him this little riddle now this was back in the 1970s and uh all 25 students and the teachers kept begging me don't tell us the answer don't tell i know we can get this i know we can get it and not one of the people after 10 minutes could figure it out and a riddle went like this a young boy is rushed to the hospital because he's had a terrible accident and he needs an emergency room treatment the doctor comes in to do the surgery and stops and says oh my god i can't operate on this boy it's my son but the truth is the doctor was not the boy's father so the rid was who was the doctor well 30 years ago nobody could figure it out the doctor was his mother today we all think of doctors can be women they could be men whatever but in that time period everybody thought the doctor is not his father but it is the son and they went on and on and on and how can it be that that's his son but it's not his father and that's how we are with technical analysis you've got to get through this blockage about is just price alone it's time time is invisible it moves through space as it moves through space it carries with it information a lot of the information are themes themes from a hundred years ago themes from 200 years ago the 60-year cycle we see the things in the news all the time but in the stock market they surface as numbers that recur and the numbers are either the full part of the the cycle we're looking at or it's a fractional part of the cycle so i'm going to show you some mathematical techniques today to try and figure out where we are in these cycles and what we're going to do about it so early on as i said most technical analysis was simple trend lines people just connected some trend lines between highs and lows and i might say you know the purpose of a trendline method is that when you break a trend line it's supposed to reverse the trend but 99 of all the people draw trend lines wrong and your trend doesn't reverse so i'm going to show you how to do a an accurate trend line that will reverse the market every single time and create a bull in a bear market swing if you know how to draw one right so people use moving average they use trend lines but it basically didn't do a lot for you the first concept that had any validity really was this idea of a measured move the measured move basically uh is a well-known observation that the market never does anything new people are always saying oh you can't predict the market there's always something new the crash last year was unexpected it's much bigger than we've ever seen but the measured moves which are these uh elements here um these copies here uh it says original vector and then copy copy copy the first thing you do as a professional trader and i've been a professional trader all my life i've never earned my income from outside sources or anything else i had lived by capital gains as a day trader ever since 1984 when i moved to new york and on a handshake i went into a wall street firm a specialist firm and was given an amount of money with just a payout and the idea that if you ever ever ever lose 10 percent just don't ever show up again and in 25 years of doing that day after day after day after day after day there was only one occurrence in that 25 year period i ever changed jobs because i lost 10 percent but you have to learn to make money every single day occasionally you lose on a day but every single month month after month after month after month after month and the only way you do that is study in these charts and these measured moves um and the first thing i do where i say copy here the first thing you should get your mind is is you draw the the measured move and then you copy it and make a parallel one to give you a rough approximation of how far the market normally goes each measured move is a typical price and time duration well because stocks can either go straight up with a lot of momentum or they can drift on sideways there's this question of what the measured move really is and so the i idea comes up that these vectors can really be measured in a 360 radius so we can really take usually you'll draw a vector from a low up to the high and draw the circle around it in this particular chart i've split the middle of the run and i drew the circle around there and what is to be known is that on the circumference of these circles each and every single dot along the circumference is the exact same measured move as from the center to the top where the prices uh hit that that top point up there so this represents time and price if you go straight up the maximum it could have gone to is this maximum resistance at the top and if you go sideways you can go sideways until you hit the time resistance and you can go down to the bottom you note in this particular chart when they broke the prior low everybody probably uh blew out their position but it did not break the mathematical structure of the low oops let me go back there for a second it did not break the mathematical structure of that low this low here mathematically could have gone all the way down here and be part of the same structure and if you can visualize these circles moving forward in space over time this low is actually rotating into the lows over there so once we get an idea of what this vector distance is we can do an awful lot with it now using arcs have a lot of advantages in that they describe emotional behavior and we can see in the parabolic example here that uh a parabolic is a market that has extreme accelerating rates of emotionalism in the market so anybody who could be invested will be invested at the top the classic case is oil from last may when oil went up to 147 it was just a feeding frenzy and we know from our time cycles on the other side here as we go from the 6 pm on the clock representation up to 3 is the maximum upside potential you're going to get from your emotions and once that is reached the market tops out and goes down so one of the first things we want to do when we examine any stock or a market is try and come up with this universal vector so we can identify what is the harmonic or the price uh and time equivalence so the first thing we usually do is take this initial run from the low to the high and then we draw an arc going backwards to the straight up vertical because that is the same radius vector but that would have been the maximum you could have gone with this same type of energy of price and time combined and we know this vector is good because i've made a little square out of it the best way to make a square of course is just draw the circle backwards and draw a 45 diagonal coming down to where it intersects the bottom and then draw a square around it and we see this square has a big gap down at the end of the square so we know this is a valid energy point and it was constructed from this first ratio up here we also see the top of our theoretical move later on becomes our top and if we draw an angle up through the midpoint of the side of this square we find that becomes a trend line that hits the top on the date of the next square if we then bisect our square again to the quarter point we can find an angle that comes up and gives us the top on our third square so all this information is coming out of the very first dna so to speak the first impulse wave off a low and i'm going to show you some techniques today where you can just take a low and a pure numbers off the low to get all the future highs but more important is to get two or three points if you take that initial low to high run you have so much more information you can get out of the chart here's the same type of a chart but after you have that first arc you can double your your radius vector and you can get a second arc and a third one and the rule of thumb of course is as much as they go up they have to go down or consolidate so what happens is after you have a high the market has to consolidate and go down until the arc expends its energy and there will always be a low over here and then you start going up again this one hits the arc at the support area up here it starts to consolidate it has to consolidate until you come down and make a low right in here and then we go up into the third arc most arcs i usually draw are looking more like this i take a low this is the s p back in november so from a low we swing an arc up to the high and we can see after this high is made we have a time period where we have to correct and we go down into a low which is pinpointed right here however the bigger move is still getting support from the first high if we swing an arc down here and turn it up the arc climax is right here at the point of your maximum theoretical high for the arc where the resistance is and then the market has to go into a bit of a correction now keep in mind this is only an hourly chart and you would also have these arcs on daily weeklies monthlies and so you can get some bigger pictures of where they're going to come from here's the idea though of the time and price bit the top here in this stock was 66 dollars so everything in life is always hidden in plain sight it's always there it just waits for the mine to be open enough to see it so this price of 66 is spinning out cycles of 66 days and 66 hours and then on the bottom when it broke down to 55 dollars it started a cycle of 55 days and we see there was a common denominator between the 66 and the 55 and the market just busted on that date to get caught up one was a high cycle and one was a low cycle it broke to get caught up with it then it zooms up trying to get to the high cycle over here but there was a low cycle here first so there's a little dip and it zooms up to there then it dips down to the low cycle from the 55 then it goes up to the high cycle so we start to see that the highs and lows the prices themselves if we think again we see the price we want to think time days months weeks hours minutes here's a typical stock koac that hit a bottom of 25 dollars and we clearly see 25 calendar day harmonics however the 25 is not the full cycle this is operating on otherwise every 25 days we'd have a major high or major low here we see maybe at 150 or 300 might be a bigger percentage of what the full cycle is and the 25 is just a small fractional part of a much bigger cycle here's a grid based on eighths now i picked this stock as a good example because it first had a top at one hundred dollars so it was very easy to go down to the zero price and draw angles up one eighth one quarter three eighths angles down from the top one eighth above one quarter above three eighths and if you notice at the intersection points of the grid each intersection point creates a change in trend in the stock pattern and some of the grids coming up provide support or resistance coming down from the top if we follow our old gan rule of uh the the death zone being the number seven if we count over one two three four five six seven on the seventh zone it hits and then it collapses so are we using the number eight a lot today uh number eight stands for the octave you know when uh if you're familiar with wd gan and the uh square of nine he really used that he called that the octagon chart not the square of nine and if you put zero in the center instead of a one in the center your last number out is eight but we traditionally see the square of nine as i'll show you in a second as a the number nine so the odd numbers and the even numbers line up but eights are very important and eight is the uh octave in a musical scale and i'm going to show you some of the mathematics of the number eight coming up that the relate to the highs and lows we've seen for quite a few years now usually when you're trying to get changes in trend in the market there are three and only three techniques you ever want to do square the high square the low square the range what does that mean well if a stock has a high like that last one is 66 when it goes over a time unit of 66 there will be an equivalence of price equal to time and at that point where there is a balancing of price and time you will get a change in trend the other way to do it is to use a timing line and a timing line is very easily uh put on your chart to keep track of cycles by starting at a theoretical zero price and just going up one point per day one point per week one point per month and this timing line when it crosses the price scale on your chart you can instantly know how many days weeks or months you are from the bottom and when it crosses the price of the stock at the high this is where the low or the range has been squared out and the angle from zero here has squared out the high price over in the second angle most people often when they do one of these things they get a result like this over here and if you can see that and what happens is it's a square of two different things here and it's the midpoint between the two that give you the actual high one is from the low and one is from the zero line and usually it falls in between the two same thing is done from a high you can take an angle going down at one point per unit and it can intersect the low price and it can intersect the zero point and usually the halfway point in between is where the major square out is so this idea of a square out and keeping track of time is what's very important and all our trend lines arise from this idea one point per day one point per week you can also do expansionary cycles you can do fibonacci cycles of 1.618 points per day and when those things square out you're going to square out at a fibonacci relationship so it's extremely easy to just start at a low and put these trend lines on and square your highs and square your lows and then you will basically see what's what's what's happening there this is the zero angle technique up from zero and this is a chart of google and it tells you a lot of things you usually start an angle under every significant high and low you will start another angle going up and what will happen is when the angle from the first little top comes out you usually get a drop if it breaks under it and it goes up here to square out so i put a number one up here because that's a replay it is reminded at that point of the equivalence of price and time when it hits that trend line there is a proportion at that point it this trend line if it was one point per day theoretically you see would square out the high right here it would be at that price level right over in here and that gave you this major top but that price line continues on up to all kinds of oddball fractional proportions so at this point over here it touched the line and i don't know what that harmonic is maybe it's a you know 1.875 or something of this other low maybe it's two and a half times the low but it is a harmonic frequency and so time and price have an equivalency and then what we see is a fractal pattern this little tiny wiggle down here goes up and there's a big gap in the top and that's now expanded to a big gap and a top and then we see things like over here is number six where number six comes up we see the same fractal again there's kind of a creepy little rally a little down hook and then a giant run this one this chart was made just before the giant run to 746 or so on google last year at their in 2010. so you can use timing lines for a number of purposes to keep track of your cycles but also to identify when you hit the the trend line the price structure itself is getting a remembrance of where it was in the pattern when that that trend line uh originated from now the idea of a time and price working together was was popularized by wd gann and through the use of the square of nine now this gets a little uh involved i'm not going to get too much into it um this is a picture of the great pyramid view on a flat surface if you were to pick that number one up and pull it up you would get a three-dimensional picture of the great pyramid and you would find an ingenious way of keeping track of all the stars with lines going up through the sides of the pyramid being projected into outer space with the pyramid lining up absolutely perfectly north south east and west it also serves as a mathematical calculator for odd and even squares it's also known besides of the square of nine which you can see from the inner rung that first square goes one two three four down to nine down the left hand side here is the odd squares and we can see that the number nine twenty five is really three five seven nine eleven so we can see that the odd numbers are separated by two obviously so the mathematics of the the structure is such that any number going out to the next rung all you have to do is take the square root of it plus 2 and re-square it and you'll get the next rung out and if you wanted to go halfway around the circle you would take the square root of the number plus 1 and you would get the number opposite it and if you wanted to go to one of these 1 8 segments you would take the square root plus 25 cents and square it and that would bounce to each of these angles and as you know everybody in the pit these days if you're trading smps they bounce off these angles every single day at a week they stop for at least 10 to 15 minutes to let you get on or off if you have a large enough square which you should have that goes all the way up to the current price levels this is also though known as the square of 19 because 19 is the first uh full integer that approximates 360 degrees and so we have a spiral series of numbers that is it goes in the spiral and it each number can then approximate a degree that adds up to a circle and traditionally the days of the year are marked on an outer wheel around the outside edge with the start of the the year being the first day of spring this way we can incorporate time on our calendar basis with any one day of the year being a point around this square and from that point you project a line to the center of the square and there will be harmonic numbers along that line that your price of your stock or commodity should vibrate to and close on that day of the week particularly if you have a final high or low on a given day or week that will be the access line that in the future all the highs or lows in history will usually line up along the same axis i might also add since this is a great pyramid representation based on the sun moon and earth the number 19 of course is the cycle of the moon the eclipses the last 19 years if you look at the in the muslim world the temples they have have a little moon on the top the quran is based on the number 19 whereas the judeo-christian bible is based on the number seven but all these numbers have certain symbolism and uh and they do relate to what's going on number 19 by the way is the strongest harmonic we have this year it goes back to 1990. and if you remember 1990 was the year japan collapsed and all the markets went down into february into early march and then they rallied up into the middle year into july and then we had the big break down into october and so that seems to be what's going to happen again this year i know the bradley model and larry was just showing the bradley model goes up until october but i suspect it's going to pivot and go down like this 19-year cycle from 1990 this year and you'll have another waterfall that goes down into october tying in with a two-year low a seven year low and 19-year low and a lot of other lows this year but we'll get into that in a second all right marrying the two ideas together now again what what the idea used to be there used to be a big rung around the outer side of this with the days of the year so on any one given day you would have a harmonic line of that day of the year with certain numbers and this particular approach was a little confusing to do every day so i wanted to find a way of incorporating this into a simple system and i came up what was called the jenkins true trend line i didn't name it that the software manufacturer who picked it up put that on there to try and keep his competitors from doing it but it's not patented it's it's in the public domain it was introduced in my secret science book and what it is it is a a true trend line that has miraculous powers what it is is you can take any major low like down here and we follow the mathematics of the square of nine so what we do is we marry once around the wheel which i've just said the mathematics are take the square root of the low plus two and we square it once around the wheel in this case it would have been from 52 it would go to a price of 84 and we would move it out one year into the future so you go out one year into the future and you put a little x there so that would be your theoretical target a year away and then you just draw a line through it and when we do that we have a trend line that is composed each and every day of a logarithmic section of the great square of nine and every single place the stock hits that trend line there is a gap there's a gap here there's a gap here there's a gap here there's a gap here every single place it gaps that shows you that there is a mathematical squaring out of time and price that is perfectly fit for a stock that had a low here of 52 along this line i might add also in trend lines the reason trend lines work is when you get on an accurate trend line there is a remembrance of where it came from this low right here is the same low again and the pattern that takes off out of that low is often repeated here every time it hits until you'll come to a point when it will break your trend line the pattern now will be upside down and backwards to the pattern of the origin so all along your trend line you're going to have these mathematical relationships now this a true trend line is very easy tool to use and it squares out and can give you hundreds of trades all the time very quickly with just one date one price all i did in this particular chart is i took the low 33.75 square rooted it plus two i get a theoretical target one year later from october i go over to october theoretical target was 61. i put a dot here i draw the angle through the dot i did not draw this trend line through this price of the market the market came to my trend line i didn't go to it all i know is this date and this price i put the dot there i do the trend line now we can do that square the high square the low square the range idea the first impulse wave high is here so to square that range there we go over until we intersect the trend line then we get a major impulse wave the second high is over here we go over a square a second high we get an impulse wave the third high is now squared out go over here we get the impulse wave fourth high comes over here square and this goes on and on until you you get to the end of time and this will work on any any time frame minutes weekly daily um this one too by the way i have a semi-log scale over here there's not a great deal of difference if you have an annual a yearly chart maybe you're going to be off by four or five days and i might add too as a professional trader you never trade off the forecast all i'm doing here is setting up points i know over here at point number one i know exactly where this point is it's four months into the future or so so i'm going to write that in my calendar and i'm going to be prepared when i come into that if i see technical action on the tape that gives me a signal reversal bar i'm going to make a trade but i'm not just going to blindly go into it and say i have a turning point today i'm going to jump in the market so always remember the forecast every time we have a forecast it's not to trade with you trade off normal everyday technicals you're looking for a signal reversal bar the low the high of the low bar or the low of the high bar on a bar chart to get your buyer sell signals now when i put the uh jenkins true trend line in the secret science book a lot of people misinterpreted what i was really saying they liked that idea of using a trend line and all they focused on was the trend line but what i was really doing was pointing out the fact that here was a trend line which could give you all the harmonics of the price with no work so basically what you wanted to do was find out where the big turns are going to be so the easiest way to do this is find what your target is going to be one year into the future let's say you took the square root of this low 25 resquared it and you found your target was 49 in the future we would then subtract that from our origin at 25 and we'd find that the net difference from the low to the high one year later the net expected gain would be 24 so we could divide that by 365 days in a year and get a net rate per day about six and a half cents and so each little dot on our trend line might represent six and a half cents so the big question becomes when do i square out that low of 25 well you basically divide the low price of 25 by your six and a half cents and you get 381 calendar days and exactly 381 calendar days there's a gap in the chart and it breaks down big we did the same thing on the top it says it squares out 650 days 650 days later there's an exact top a gap down in the chart and a big change in trend so the purpose of doing a lot of these uh jtnl's are to find the big price harmonics with with no work at all it takes uh 30 seconds to calculate most of the highs and lows you're going to want to trade during the course of the year i simplified it by making a little tiny program for myself where all you have to do is punch in one price and one date and you get all these turns right to the day by by dividing into harmonics in the last chart we so showed the full square out what you would do is take the full square out let's say it was 400 days you chop that in half 200 days would be your half point one quarter of it one third of it three quarters of it and the full square would be down here if you just want to go for the bigger trades stick with the halfway points here was the top it scheduled out the full square would come out right here and we have the crash and the halfway point of that came out right here so virtually with no work whatsoever and you can computerize this you can track thousands of stocks and just wait for the day of the week when some of these square outs are going to occur a lot of people say oh what about scaling you know my chart isn't scaled properly with this method you don't need to scale a chart at all this is a long term uh 10 or 15-year chart of continuous corn futures obviously not scaled the simple way to do it if you're going to do a one point per day one point per week but whatever the scale is is you just go over exactly one year from your top drop a vertical line that takes you five seconds with the click and then you you take the square root minus two we square it and draw a horizontal line what that price should be one year later then you draw an angle through one year later the target price and that will be your true trend line and then if we want to square the high square of the low remember if you have an accurately drawn trend line by definition when the highest high and the lowest low is squared out meaning that trend line reaches the lowest point and the highest point you will get guaranteed a new bull market that's the advantage of having an accurate trend line and the advantage of knowing a bull market had started and it will last for months if not years and you buy every dip so now we're in the the new bull market we go out one year we flop on a vertical line here we do the square root plus two we do a horizontal line then we draw our angle up through that and now we're going to square our previous range the high to the low and we find out that squares out over here and gives us a guaranteed end of the bull market or an abc major league correction in this case it wasn't the final end of the commodity bull market because we had this big double bottom over here and we still have a couple more years to run on the commodity bubble so the softs are still a way to go food stocks some of the other commodities will be much stronger even though the dow may languish the other approach that i've used is using these vectors and we started off showing how you could take a an initial radius and make a circle out of it is to apply the pythagorean theorem and here this is the 9 11 low and we know how many days it was to the top and we know how what the point count was so we can easily calculate through our a squared plus b squared equals c squared uh theory of the right triangle what this vector distance is now the thing again that confuses people and they can't get their head around it is that this vector c is a composite of time and price how can that be how can you mix time and price but if you keep thinking if you open your mind and think that time and price are the same thing we're really not mixing and matching anything we're dealing totally with time all the time time is going through it's showing up as numbers and as these numbers come out we can take these radius vectors in this particular case what i did is i got the radius vector and because the chart isn't scaled if you were to swing this if you were to swing a circle around this radius vector okay you swing a circle around as it comes down the horizontal distance on that gives you this first top right here then i multiply and extend on up by certain ratios here's the square root of 5 1.272 1.382 1.618 square root of 5 2.236 4.236 5 cubed and each one of these gives you almost an exact hit all the way through the square root of five if you notice here is exactly march 12th of o3 and that's predicted from the 911 low so these are some very simple techniques too before we get into the more advanced ones that show you that there is a element of time and price in these calculations if you can just think that the radius vector is a composite ultimately now larry in the previous presentation was talking about the gartley thrust book and he was showing how these threats he had a diagram similar to this how our garrett had shown that the fibonacci ratios lead to thrusts of fibonaccis and a lot of people use the fibonacci ratios but i find the ratios that arise in the stock's price are specific to that stock just like no two people are the same ratios are unique and although pi and phi and some natural constants appear all the time each stock is unique and it has its own dna the way we find the dna is just like we do with music theory in that secret science book i mentioned i show all the history of music theory how you can start with any middle c at least in the western world the notes of the scale are based on the 12th root of 2 which is a constant of 1.0594 so no matter what vibration you could start with a number like 400 400 kilohertz or something and multiply that times 1.059 and you will get the next scale of the musical scale and then you multiply it by that constant 1.519 and you get the next note all the way up to the octave just like the musical scale each and every stock has an initial impulse wave rally that little tiny impulse wave sometimes it's only a day sometimes it's a week you take a percentage ratio of that and that will be the musical fundamental frequency for that stock forever at least for that bull market so when you divide that initial top by the low price maybe you'll get a frequency of 1.12 then as soon as then what you would do you multiply the top that first top price by that same ratio 1.12 and you get the next ratio then you multiply that one by the 1.12 and you get the next one you multiply that and so it expands with bigger and bigger prices but it is a constant ratio and i've done this with stocks if you took well bank america is a bad example but up until a year ago bank of america was very expensive and you could go back to 1990 and you could look in the chart book and of course it was pre-split you would see a 75-cent stock that went to 85 and it would be very hard to do mathematics on that but if you went back to the unadjusted prices from 1990 and did the initial impulse wave it was still at eighty dollars in the case of occidental petroleum at 150 coming out within 50 cents of all these levels that were calculated 10 years earlier so these ratios and i call them natural ratio lines are are specific to each and every stock and so the best thing to do is wed the idea of the circle to the natural ratio lines so that's what i've done i've now put my center point of the circle radius at each one of these natural radius support and resistance lines and then we see our little legs here of the parabolic and we finally see what is causing these parabolic movements in the market and ideally the parabolic will go vertical and you will be at a major time and price element and you will square out and that will bust the pattern i might add that it's imperfect to draw the perfect chart on a computer screen because sometimes you're going to have an oddball ratio of 1.2 points to one day or 12 days to 1.5 points and there's only so many pixels on a computer screen so this representation looks like it's actually off if i could have drawn this accurately it would have perfectly fit the trend line and then this trend line over here would have perfectly gone through that gap but it's impossible to give you an exact representation on on the scaling and the graphics i have to take a snapshot of it but if you could do that you will see the perfect patterns will arise from it now i want to get into this idea of objects um in the late 18th and i'm a programmer myself because i i i was doing some very proprietary stuff at one point and i couldn't afford to have anybody else see what i was doing so i had to teach myself programming and and i i program everything in windows now and i do all my own work but this idea of the graphical user interface popped up in the late 90s in windows and this was an idea that you could make an object out of your code so instead of running a long series of executions what if what if what if if you do this if you do that if you do that and run through hundreds of lines they just made it into all these subroutines and you could put the subroutine behind the little object and so you just click on that and that goes to an area where a little part of code would run so this was an idea that you could embed into a much larger structure little bits of information that would be irrelevant same thing happened recently there's been a popular book called the bible code now i don't know if the book is right or wrong but the hypothesis is really intriguing and the hypothesis goes that in the bible if you take a a spaced equally spaced distances of letter sequences maybe every 10th letter every 20th letter every four thousandth letter and you line them up in a sequence they will spell out hidden meanings and more so than on a flat place of just doing uh the bible in one dimension you could string the letters of a code into an object into a square into a circle into a triangle and take slices through that basically giving you an infinite amount of information if i had another lifetime right now to do it i'd go into computer programming and take this approach which would crystallize all your your streaming media you could probably have a full length uh eight-hour movies on you know one little megabyte in a second because you could have the information going in different sections in different directions and you would just have a mathematical algorithm to take those equally spaced data so to me i started thinking about the stock market and and how could this encoded information in the price and time vectors that we run into how could it be contained in an object that was invisible and yet we could keep track of and i discovered back in the late 1980s early 90s what i call the stock market object now this chart is very interesting and it has a lot of implications that are just staggering first of all it was trend fitted from three points aft this is the dow jones this was the 1966 top and the big flat and then the 1974 low was in the center and i used the first 1966 load in 1970 low and 1974 low to trend fit the circle as you know in geometry you need three points to construct the circle you bisect the distances between each of those two points and they point up to the center of the circle that once you calculate where the center of the circle is then you can draw your radius vector down and draw it around the things here that are startling first of all is if we take these angles coming down from the center here's a 30 degree angle we will know that where it intersects the circumference it gives us the bear market low and where it intersects the circumference it gives us the impulse wave of the new bull market the 45 degree comes down intersects the circumference gives us the highs of the bull market and it again gives us an impulse wave of the next bull market and over here there's some other ones you could have 60 degrees you can split these angles there are specific angles for specific prices that are unique but if you look at this you say wait a minute what happened here we had nixon resigning we had watergate we had jimmy carter and hyperinflation we had ronald reagan we had this and that and the gdp and yet every one of these bull market highs and lows came out exactly where they were supposed to the the tops were the tops the bottoms were the bottoms the next bull market started where it was supposed to and all this was known before prior to 1974 and it was known all the way into the future where this arc said there would be a big collapse on or about early 1990 well the big collapse was the japanese market which was the major market in the world our structure what it did is it doubled again and we rolled up from this even higher to an even bigger bubble but the theoretical implications of this are that time and price does have a fixed destiny it doesn't matter what the administration is doing now it doesn't matter what the politicians are doing what the fed is doing these numbers are going to come out because they are set in stone okay and and you may have to look at that for hours or think about that to see it but uh i can show you several more examples it it is true they do come out when they come out and it is only us who are fooling ourselves that we're not not being manipulated by time so how do we keep track of an invisible cycle moving through space a couple hundred years ago if you're on a whaling ship and you're hunting whales you have somebody up in a crow's nest and you're peeking out there looking for the big water spout there she blows and you'd have to wait at least for a second surfacing to get a reading on maybe what the line the whale was traveling in you didn't know how deep he was going up or down or what he was doing and this little line of travel is kind of like the stock market and the surface area is the maximum frequency we're going to see but sometimes we'll get frequencies down at a low sometimes we'll get a lower low and they're going to be harmonics of the main frequency so it would look something like this on the dow jones in 1966 when we first hit a thousand that was one of our primary frequencies that the market was operating on and we can see our rule that time and price of the same thing 1 000 days later exactly the dow hit a thousand again twenty five hundred days later it hit the top square root of three times a thousand was a low the final low was armstrong's pi times a thousand days but more important is the price itself was the tangent of 30 times a thousand and if we go back for a second i don't want to get too much into geometry trigonometry and stuff here but if we look at these angles coming down off the top you know your tangent is the end of those the the flat pit placed down in here coming off off of here opposite that your tangents are these numbers here and later on we're going to work with some tangents and you might consider the fact that although this is a tangent here you could also take this partial point here and this partial point here and maybe this partial point all as parts of big uh fractional tangents so the low was the tangent 30 times a thousand days in price and in time it was the cycle price times pi and then we had over here this top was four thousand days later the 750 pops up a lot and we have five thousand so we see pure numerology showing its face here because it's pure numerology just like in the bible or the hebrew bible a number and a letter are interchangeable names and numbers are the same thing every name has a number for it so you can read a word as a number or as a as a name and what is not so widely known is those names converted to numbers are frequencies only say the word and thy shall be healed words and sounds gregorian and chance give out vibrations and they come from number patterns before the uh the hebrew uh bible we had the vedic scripts and we had the uh sanskrit and we had the ying and the yang every other letter was interchangeable it was perfect positive and negative so we can we can move these numbers back and forth here's one of the great secrets a very simple technique okay why did we bottom on march 6th why because october 10th of 02 the market traded at 768 there's some debate about the 50 cents whether it was 80 cents that they wet some systems will have slightly different numbers this is not that important here 768 let's divide it by 10 move our decimal point 76.85 five and do it one point per month and so we get two thousand three thirty nine days two thousand three thirty nine days later is exactly march six to two thousand nine it's not an accident happens all the time the top and i had this in my newsletter if those of you who do subscribe to it i know several of you here have uh i went through the number mathematics of the highs when i predicted this high two years ago and i predicted this subsequent march 17th for the low it was a simple uh conversion of the high price of 1576 divided by 10. we're just moving decimal points here represents 157 days 157 days after the all-time high was the first major low we take the first major low at 12 57 we moved the decimal point 125 126 we get july 20th only off by a day same thing here going up to the top this is the big top i predicted there were four or five ways of getting this from the financial panic in 1907. that was a hundred years ago fifty years ago the top was in july 90 months ago the top was a january 14 18 on the dow jones in the year 2000 and we see here on february 22nd though was our first inkling that something bad was going to happen we had a 500 point down day if you recall and so the price that day was 1461 we move our decimal point 146 147 days you get 7 18.07 no mystery and often when these come out you will see the same fractal developing 500 point drop same 500 point drop we can also break this down and do the smaller frequencies of the square roots here we have the little highs and lows coming out with the square root the weekly one this would be one weekly or seven of these square roots and and that also tied in with a low we can do it yearly the lifetime low 1932 there's a debate on the price down there was it 40 80 40 50 what was it but the high that they was 42 and the low was about 40. so that range of that bar on the lowest day in history sets up a dna projection where 40 to 42 years later it shows up as the high in 73 and the low in 74. i know many of us say this looks like mumbo jumbo but trust me when you play around with the time and the price and the related and the time cycles the number of 40 40 days 40 weeks 40 months 40 years and they have a tendency to expand the more you play around with it the more you will see the common denominators now i'm going to go through how you can get the price and and the dates 1998 financial panic low october 8th the low was 9 23 32. here's that tangent of 30. if you remember i said in 1974 the low was the tangent of 30 times the top here we're going to take the tangent of 30 times the low price of 9 23 32 we get 533 exactly and no other 533 days after that low was march 24th that's not an accident price was 1553. why was it 1553 oops okay now i'll go into because we're back to our number eight i'll give you a little background here the numbers spin out family trees of roots for instance everybody knows the square root of 2 was 1.414 the square root of 3 1.732 but that's not really what's happening it's really the square root of 16 is a 4 the square root of 4 is a 2 the square root of 2 is that the square root of 81 is 9 the square root of 9 is 3 the square root of 3. so each of the numbers has a family tree that you can square root square root square root square root square root all the way down and to find out what family tree you're in you take your ratio of a final low or a first impulse wave up let's say you had a price increase of 1.08 you could square that square that square that square that square that and you will come up to an even number maybe 153 or something but as you square it up it will fall in a family tree of roots one of the most popular ones for the stock market is this octave of eight so if you take the square root of eight it's two point something if you take the square root of that it's just 1.681 now note this is not 1.618 the fibonacci ratio and this one comes out much more frequently than the fibonacci ratio this is 1.618 the square root of the square root of 8 or in other words 8 raised to the 0.25 power and i might also add if you go back to march 12 2003 when the s p sold at 788.90 and you multiply that times 1.68179 you get 13 26 70. and that was the exact high within five pennies on may 9th of 06 before we had that big break all right so that gives us our price on the date we already knew the date of it now we have the price for the date now after that top we want to find our next bottom we're still working off one date over here october but now i'm going to use the high price which was calculated you saw on the last slide from this low now i'm going to take the that high and i'm going to take the tangent of 30 times that and i'm going to get 896 and i'm going to treat that as time and i'm going to add it to the october 8th 98 low and it's going to come out exactly to march 22nd 01. so we've gone from this low to this high date and price now we've got this date now we got to come up with a price on that date price on that date is our same 8 power but we're going to take a square root square root of it and divide by 2 which is the 1.414 or a square root of 2. you divide the high price by the square root of 2. it's supposed theoretically it was 1098. the average between the high and low that day was 1102 in my secret science book i show you how to do it as a proportionate ratio and get the high that day of 1129 based on the proportion in advance after that low here's another example uh october 8th still using the same number let's try moving the decimal point 92.33 months 618.08 that was that crash by the way i just used as an example if you took the march 12th low multiplied the march 12th low by 1.618 you got the exact high here and this one comes out with a low because it's coming from a low here's the crash in 1987. move the decimal point 33.789 months later 618 of 90. the next high they made it to july because it was an eclipse i had i was very lucky that day on the exact high day i was on cnbc saying at 12 noon that day i was saying this is the exact hour this is the high they're gonna crash 25 percent into october and they looked at me a little funny because it was a new record high at three thousand and twelve something or so that day and followed following me as i got off and i got some stairs we're two of the most famous analysts in the world at that point one was a woman one was a man i won't mention their names but they both said the market was going to go 300 points straight up and the market went straight down but i knew about moving the decimal point and they didn't now here's the final uh proof that they are interchangeable if we look at this uh october of 98 low 923 and we have our top in the year 2000 1553 i'm just going to add them together i'm going to add 9 23 days as a price from the top we get october 3rd of 00 okay so maybe i missed it by eight days here but it's just an approximation so we're starting to see that numbers themselves treated as time and then switch back to price are interchangeable and if you can get over the mental blocks we can we can do an awful lot with this and i better speed up here i don't have many more slides but i can finish this up i want to get into the origins of the numerology and numbers and most of these things are in the bible you know w d gann was a big bible freak there's a lot of information in the bible besides pure spiritual stuff there's a lot of coded information um you know the world built in six days well six times six is the 36 is the completion number six is one of the magic numbers that everything is based on and the second is 10 and 10 times 10 and that was pythagoras's trackies so we we end up with 10 times 10 is 100 10 times 6 is 60 10 times 36 is 360 and these are the primary prophetic cycles and the numerology we use all the time and they show up in the 100 year and the 60 year cycles all the time and we can take the half harmonics 50 years of the 130 of the 60 and we can also break them down into thirds to get to 20 and 10 year cycles and those are the cycles we find in the market now this is not really a political statement but i'm going to mention some things here and don't take it the wrong way but i want to show you that the 100-year cycle and the 60-year cycles and this movement of time are the valid cycles because of the events that are taking place and these events are cyclical driven and just like the stock market chart i showed you that can't be changed these events probably will not be changed either the 100 year in the sixty year combined to make the fibonacci 1.618 years and 161.8 years ago was karl marx's communist manifesto in 1848 and uh 60 years after that well i'll go in here the background here marx was in paris when he started formulating this idea he was in there it was 60 years after the french revolution he started seeing everything in the world as a struggle between rich and poor the lower classes in the upper classes and all of marxism and socialism comes from that idea of struggle sixty years after 1948 marxism came to america under the guise of the progressives even teddy roosevelt was a progressive and instituted some of these same ideas in 1908 1909 we had the very first income tax and now 100 years later we're graduating up the income tax in the the early 1908 1909 we had the regulation of all interstate commerce and we broke up all the trusts and there was massive regulation of by the government of society 100 years after marx uh 1948 was the institution of the fairness doctrine we have that again now talking about fairness in the media comes back again 150 years ago is a very big harmonic that was the big crash in the stock market 1857 part of that discord was abraham lincoln coming to power 200 years ago in that cycle was the rise of another narcissist in napoleon childed revolution who was powered by the underclasses 100 years from marx chairman mao 184 1948 60 years after that 1908 china is another revolutionary powerhouse so we start to combine these harmonics and we see a number of themes the big collapse in 1857 the 1907 financial panic the secondary crash in 1837 in the depression the top i predicted from two years ago was from the 50-year 1957 top 87 panic this and following each of these cycles which are the primary dominant cycles we had major wars 1857 civil war 1907 world war one 1937 pearl harbor 1947 korea vietnam bolshevik revolution i'm not necessarily forecasting a war here but i'm saying these cycles bring with them tremendous civil unrest and discord and uh and we're going to get a lot of that in the united states and it's not just a question of who's in power and who's out of power anything else it's part and parcel of the cycle it's part of the parcel of this economic cycle that is still turning down and like larry pessavano who was on before me i too have lower numbers on the s p i have a target coming up i'll show you based on the same things i was just showing you uh for next april of 468 on the s p but it's going to be hard times and people get under pressure during hard times and it's part of these cycles and it's very hard to mitigate these cycles but you can protect yourself the masses probably can't but you and i can and being forewarned is a four-armed now as to the stock market our top on october 10th 2007 and 1576 tangent of 30 times that is 910 subtract 910 from it oh what's that number 666. how is that kind of amazing isn't it and if you remember that previous slide where we got the exact date march 3rd and march 6th was the decimal point move uh from the october 10th oh too low we moved the decimal point to get the march 6 low and doing the tangent of 30 from the high gives us the price so that is a valid low the question is is it the low and i maintain it's a low like the 911 low it's probably a three to four month rally in a bear market that will burn itself out by june or july and by august we're going to go off the cliff again and the more likely scenario for at least a temporary final low although this is going to last for five or six years so the the low that i'm going to be talking about is a low that's good for a bull market that will last a year year and a half before you have another two year bear market so that big low is going to be next march april and you see what we've done is we've taken the october of 07 high added 910 our tangent of 30 to get april 8th of next year and we combine it with the low on march 6th of 666 and that comes out on 324 maybe you want to split the difference but the last week of march first week of april is probably going to be our low what's going to be our price i'm getting that on the next slide i guess um also the if we add the bottom price to our our top date we get august 7th is a big turn okay and i think that's the beginning of the crash uh march 12th of 03 789 was a low move the decimal point that comes out october 709 exactly two-year anniversary exactly seven-year anniversary 11-year anniversary 19-year ask for so october is very big now if you remember larry's presentation before the bradley model which some people use have an october high so the whole thing boils around to will the market pivot down in july and august or will it keep going up until october it doesn't matter to me if they don't break in july august i'll still be long but i'm looking for the break and i'm looking to go short and i'm looking for record lows below 666. in the meantime by the way as to where we are right now on our way up to july august if you remember the natural ratios i was talking about before about music you take the initial impulse wave and take that percentage gain as a musical frequency well from the 666 our first little top on the hourly's daily is about 8 34 or so if you take that same percentage increase it will get you to a thousand 44. the normal technical analysis of one-third retracement of the all-time high to the all-time low will get you to a thousand and seven so ideally uh you would get up until june or july somewhere up in there and we're probably doing a little abc that we've had our first little top we're in a little correction mode now whether it's a week or three weeks then we have another run up to 980 to 1000 whatever and keep in mind too that most mutual funds by law can't sell things until they have a 90-day holding period under tax loss otherwise they'll lose their tax status so if you had a low and you were in cash in march a lot of these people are not going to be able to sell their portfolios until they get into late june or july or at least they're going to try not to sell them so there'll be a propensity not to sell and to keep the market up and wall street doing what it does so well is sell the market people will be out there telling you to buy up until june july and then then watch out um so here's what the the patterns to i look at 1990 as one of the keys up to july down final low in october 1979 was a pattern a little more difficult on the 30-year cycle there was a july low they crept up into the first day or two of october and then they crashed down i made my first real killing then and uh and i actually celebrated by coming to new york and met ralph hakimpur that was my first person i ever met in new york city on november 11th of that year believe it or not here we have the length of days 1906 1907 that length of day cycle comes out august 15th so here again we have an august pivot if they're going to go up into october maybe that august will still be a low and they'll have one more up until october but i think that would be more like a right shoulder if we look at the there was five uh in 2002 remember we had the october low we had the march of 03 low they were five months apart so that could be a bottom in march and august the 1937 market if you take the length of days you get 11.3 that more ties in with what i'm looking for financial panic of 1907 lasted until november 15th you have an anniversary cycle these october crashes so i'd like to see the low in october november and the march 6th one we move our decimal point 666 6.66 months gets you down for another low area at the end of september so the summary is basically up 90 days june 8th start the roll around and over we start to crash down into october probably get an oversold rally to december and then the final low is down in april of next year at 468 which is 1576 divide our times 8 to the square root of 8 square root of 8 square root of eight which is like a point twenty nine something meaning the market will be down a total of seventy percent off the high a couple of final thoughts here um also from the bible we know yahweh and jehovah mean and angry god and a good god and these are cycles that were cracked by the vedic scriptures also 5000 years ago the 16-year bullish cycle lasted from 84 to 2000 starting in the year 2000 we have a 19-year bear market and the first sub-cycle of that 19-year bear market last three years so that was march of of 2000 to march of 2003 and uh and it ends near this bolshevik revolution cycle 19 years from the year 2000 and it has a a harmonic very similar to the wave we did see in 1966 i somebody on tv the other day mentioned a cycle like this he said we're in a long-term bear market and a person laughed at him is how could we be in a bear market we just went to a new record high in history well if you look at this chart you can see where theoretically you could have had a top in 2000 and even though we went higher in here it's still within the structure of a broadening top type bear market that could last for several years so the sixty four thousand dollar question is is the 666 number the final low already or are we at a midpoint like this with a quarterly three or four months up that looks good and then just the lights go out again for our final low and then we'll have our year and a half up to two years up and then a year or two down a year or two up and this will finish off the cycle so i think it will be very very similar to that finally here's just a little tout back in july 6 2007 my newsletter was calling for the final high note that the final high occurred on the 18th which is exactly between my 12th and 14th count and on july 6 when i wrote this everybody in the world had their little hats on tv down 15 000 let's buy goldman sachs at 250. and i said on here 90 months ago was january 2000 the all-time high in the dow it returns again this year in july this cycle also ties in with cycles in 1990 57 98 all these cycles saw 25 declines into the fall this one looks no different and it appears to be a financial panic like 1987 and 1998 due to the collapse of hedge funds who over concentrated holdings in subprime mortgages and this was honored about the date blackstone was going public giving you a rare opportunity to participate in the american dream so or a nightmare so don't say it can't be predicted um i've been doing it all my life and um and this is my first outing in 12 years to face the public uh because my previous outings around the year 2000 i was getting tomatoes thrown at me when i said we're going down and we're going down pretty hard the masses have a tendency to kill the messenger um so that's that's scraping the surface this is a tiny bit of what i do if you go to my website you'll see all the other bookses and things i've written about the mathematics of these structures and how to do it yourself hourly minute daily monthly and that's it one of the one of the best tools that i have actually in technical analysis that i use and you understand that i'm really about downside risk but one of the things that i have was something that michael recommended i i get and i keep it in my desk actually i got another an extra one because i gave it to my daughter i tried to teach you a lot of mathematics and uh one of the uh the most interesting things that i have is a 3.50 plastic clear see-through uh trend line tool for the cam from the kansas city board of trade and michael recommended me that and i learned to use just the thrust type of technique that he talked about and i can tell you it's the most valuable trendline tool i have katie talked yesterday about keeping it simple and using trend lines this is obviously very advanced material it's stuff that you can master over time everybody goes between long-term or short-term use but if you just use something as simple as a uh a true trend line i'm telling you it's truly exceptional work and it can add value no matter what you're doing i would say really apply it as a risk metric and don't get caught up in the timing elements of it it actually will help you assimilate the information we've got time for probably a good 10 15 minutes question we'd have a one-hour lunch bake i asked everybody to be respectful because we're michael's very giving his time we'll take three to four questions and then as always while we're here in the lunch break and spend some time and ask some questions up front so we don't hold the rest of the crowd so if you do have a question i won't be able to get the mic i'll just ask michael to repeat the question because we are on broadcast and as i said if you have extras we can come after you can give some some of his time before he needs to go back and work out what he does for a living say and i'll let michael call the the questions all right well it's just stock cycles forecast.com oh one word we'll leave this slide up the one that's up we'll leave this up you can get this after yes well the the commodities you know of the major bubbles that we saw with the bond market having topped out the stocks having topped out the real estate having topped out commodities still has one more phase and also our experience this time is going to be more harsh than the rest of the world we're going to replay the japanese experience basically so it's going to be a money flow out of the united states and into the other countries china india you know the bric nations will recover and and they will have the demand for the commodities and also many of the people are jumping the gun too early predicting the dollar is going to collapse immediately and uh the truth is though if i'm right about the second leg down the other countries are going to be hit just as hard or worse than we are so there'll be one more big rally in the dollar but after that settles down and it becomes obvious to everybody let's say april of next year if it becomes obvious the economy is finally stabilizing everybody's going to know the united states is a low growth country and you're going to start to see the chinese market and these other markets take off the money will flow out of the u.s the dollar will start to go down and then you'll have this final bull market giant bubble in the commodities and so i would and it'll be food the food stuffs you know will really be in great demand at that point oil is more questionable it is denominated in dollars if they cut it from a basket out of the dollar into a basket of currencies it could go up dramatically but there is a actual demand problem with oil the opec nations have to continue to pump it out as much as they can because in this area of social unrest we're going to face for several years if they don't feed their populations they're going to have some real political problems so as much as they say they're going to cut cut the demand to get the prices up they have to pump the oil out so i don't i don't think the oil is going up that much at all in the back will gold go up dramatically i am a gold bull but i am reminded of what the franklin roosevelt did he outlawed gold as you know he confiscated gold from u.s citizens and that may yet happen again although i think the world is much bigger and i think it's all electronic these days so i think as the currencies start to fall apart i do think gold will have another leg up in the short run over three to six months it is entirely possible that gold goes back to seven hundred dollars but if it doesn't do that in the next six months i think at that point we've started the next leg up to 2000 3000 and beyond uh yes what are your uh actual targets for the april 2010 final low and for the june 2009 all right the targets for the temporary top in july june wherever the temporary top one is anywhere from a thousand and seven to a thousand and forty on the s p thousand forty yeah give or take you know right and then the uh april the end of march april next year i'm using a target of 468 if you know larry passavant was on before had a target of 350. theoretically there are lower numbers i don't think we'll get a lower number i also never underestimate the ability of wall street to substitute a new name into the index uh and juice it up so it never gets to the numbers you expect so 468 would be a theoretically uh modest decline in other words the market would be cut in half from a thousand to 500 yeah in the in the back one final question in the green shirt well there's another way i do it these days besides that i just came out with a new thing called the secret angle method and i and using that angle method those of you who have bought it already if you go back to 1920 and go up to 29 with it you will get all the highs and lows in the next decade but yeah the circles the circles use do very well on any chart i've done it on apple computer in my newsletter i uh every so often newsletter i'll have three or four stocks that are highlighted with those circle charts and the elements broken down but it works on any market thank you very much

Channel: rapid fx

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Length: 83min 41sec (5021 seconds)

Published: Fri Jul 15 2022