Yes You Can... Cash In On Chaos!

New Moon Chaos

April 6, 2000

I chuckled at the news reporters trying to explain the wild ride the market had this Wednesday. About the only word they got right was the word CHAOS.

Wednesday was just a chaotic system behaving exactly the way it was physically built. And one person I know had a very good prediction of a "sharp drop." On my position trader's hotline I even said, "Tomorrow should be very volatile."

First, the forecast for the sharp drop. It is shown in the chart below.

Yes You Can... Cash In On Chaos!

The blue line is the Hand of God Forecast. It inverted near March 17th, so if you saw an early version, that's why this one looks different. The red ellipse shows the "sharp drop."

The Hand of God Forecast is periodically added to our CHAOS TRADER'S HOTLINE for position traders.

Now, why did I say I thought it would be volatile? The answer is in the Wheel of Fortune below.

Yes You Can... Cash In On Chaos!

At A, one sees the Moon lined up with the Sun. This was a "New Moon at Noon." They are very similar to eclipses. The New Moon traps the energy flowing from the sun, often causing a sharp dip. Centered at noon magnifies the effect. Add to that our recent switch to daylight time, which centered the "notch" right in the trading day, making about 3 hours from the open and the close. That made for a "harmonic" day.

Further, at D, Mars was conjoining Jupiter. This added another high energy point into the trading hours. And at E, Venus was nearly at 0 degrees, very close to the S&P natal Moon. Anything near that point increases the probability for chaos.

And at C, the Moon was at maximum negative incliantion. That again magnifies it's effects.

Finally, these points all had critial separations from a common planet, Uranus-the planet of "Big Changes." These separations triggered the unstable 4.5 th and 6.5 th harmonics. Half harmonics are chaotic. So the Wheel told me it could be a wild day.

This chart shows what happened.

Yes You Can... Cash In On Chaos!

First, the pattern for the two days shown was forcast by +MoonTide.

The market traced an up Chaos Clamshell (CC) Tuesday and early Wednesday. It had the usual 7 moves. Move 1 peaked as the Exchange passed Mercury (A). It formed a base on the Mercury/Moon flux cluster at B. Move 2 bottomed at the New Moon (C). Move 5 peaked as the Exchange passed Mars and Jupiter at D. Move 6 pulled back to the Sun/Moon flux at 1512. That flux became a very tight bundle overnight.

On Wednesday, just before the open, the Exchange passed Uranus, and the market rallied to the Uranus flux at E. That set off the 4.5 and 6.5 unstable harmonics. A down CC began.

Move 2 again peaked on Mercury. Then the decline moved to F. Now, remember Venus, very near the 0 degree point. At F, the chaotic break broke, right as the Exchange passed Venus. Move 3 bottomed as the Exchange passed 0 degrees. The rout was on.

The market then dropped like a rock, as it picked up the 6.5 unstable harmonic energy between Uranus and the Sun and New Moon. Note how the Sun/Moon flux set quantum levels at G, H, and J.

Move 7 in the down CC came at L, 540 degrees from the high. It was again set by Uranus. And just 15 minutes after the Exchange passed the Moon, the rally was on. The low in the Tide had been passed.

The rally made a high at M, as the Exchange passed Mars/Jupiter, and a low as it passed Saturn (N). Xtide at P called this low nicely.

So you see, all that really happened was that the New Moon caused yet another panic, like it has done so many times before. And the market followed the rules of my Market Chaos Theory, like it has done so many times before. All those explanations given by the news people were uninformed. It's just a chaotic system in action. And if you understand it (hint: take my courses) you can gain a trading edge.

Now what's next? A Setting Sign. So you know what it means? Have you learned to earn?

Yes You Can... Cash In On Chaos!

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