Yes You Can... Cash In On Chaos!

Setup for a Luny Day

August 17, 2000

I've been very busy replacing a computer, so I haven't been paying that much attention to the market. When that happens, and I want a quick view, I usually look at the 6 day MoonTide. This is the normal MoonTide, filtered with a 6 day Zero Delay filter to bring out the 6 day nominal cycle.

When I did that tonight, I saw something pretty interesting - a set up for a Luny - or is it Looney? Day. Here's the chart.

The +MTZD6 6 day MoonTide is shown at D. It shows a sharp drop tomorrow.

Here is the setup. Lines A and C form a rising wedge. When such wedges break, they often retrace the whole rise. Then lines A and B form an "upper channel." This channels usually don't hold. When they break, a drop to the bottom of the wedge, and a possible break of the bottom, can occur.

Now note that the lines A, B, and C are converging - right into a chaos Strange Attractor/Strange Repellor. Often, these SA/SR's are like a hot stove. When prices get too close, they try to "arc" around the stove. So prices are entering this "hot zone." They could arc down sharply, then rally back up toward the SA/SR.

Seeing this, I looked for anything special happening tomorrow. Since highly volatile days almost always involve the Moon. I checked where it is. It is almost on top of the S&P natal Moon! These days have a history of being highly volatile.

So that's the setup. It could very well be a Luny Day tomorrow. The caveat to that is that this IS a SUMMER Friday, which are often dull. But dullness is a precursor to Chaos, so be alert tomorrow (we can always use more lerts).

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