Yes You Can... Cash In On Chaos!


January 11, 2001

This page is sort of a "holiday's catchup." It explains the analysis that led to both me and my clients Cashing In On Lunar Eclipse Chaos.

Last Friday, after the Chaos Clinic, I was feeling "buzzed." I knew that Tuesday the 9th was a full Lunar eclipse. Then I remembered that the eclipse was right on my natal "life axis." So I was sensing some strong energies. And so was the market.

The market had been acting bizarre. It shot up like a rocket when the Feds cut interest rates. Then the euphoria disappeared, and the market gave up all the gains.

I knew that the Fed effort had lost out to natural forces. And I was busy figuring out what those forces were up to.

On the 4th, I sent out an email that said:

Last week I sent you a 6 day MoonTide showing the end of year drop - which came as predicted.

I said it showed an early January low. That came yesterday. I was looking for it today, based on the time shift I was using on the 6 day MoonTide. Unfortunately, that time shift changed. But a 6 day MoonTide with the shift adjusted showed the Fed move nicely. See the two charts.

Note that the 6 Day Tides are contained inside a "fireball" limit cycle. So if there is no follow through on the Fed rally this week, we should see a "right roll" into a low next week.

I have not yet figured out what causes these time shifts. But when I do .....

It had these two charts attached:

The shift problem bothered me. I don't like not undersatnding something. I know that the MoonTides are the energy INPUT into the market. Price is the OUTPUT. But how does the market system process the input to get the output?

Basically, systems act as filters. So my 6 day Zero Delay filter was a crude "system model." Then it hit me. Systems tune into more than one frequency. The market was on another "cycle length." So I did some homework.

That night I sent out an email (to hotline subscribers) that said:

Last week I sent you some 6 day MoonTide charts. They showed a fireball pattern. Prices have not only stayed inside the fireball, but declined to the center.

Using my Face of God program, I tracked down the physical cause of the fireball ( chaos strange attractor/repellor ). It's the Total Lunar Eclipse next Tuesday.

Prices will not stay at the center- So to see if I could figure out what would happen just after the center, I looked at the cycles, and ran a 10 trading day Zero Delay filter on the raw MoonTide. It is showing a rally back out to the edge of the fireball. If it happens, it will truly confuse most people. But for the unconfused, it could mean some quick money.

Over the weekend, more of my discovery "arrived." It woke me up at 3 AM Saturday. What came was more information about how to model the system. It's complex, and of course TOP SECRET, so you won't read it here. It will probably go into a new course.

I could hardly wait for Monday. My analyis showed that a low could come BEFORE the eclipse, late on Monday. Here's what happened.

The important line to look at on this chart is the blue line labled MTZD10. That's the 10 day MoonTide. That spike low came right as the exchange passed Venus. So the forecast was looking good. I even make some money on that late rally.

The day of the eclipse was forecast to be pretty flat. You can see it on this chart. But just to be sure we didn't miss a nice move, I had my position trader clients put a buy stop at 1320. As you see below, it was hit. But prices sagged into the close.

This chart was sent with my Tomorrow's Market Email, which said:

The red -MoonTide is unshifted

I have shifted the green MoonTide left 68 minutes - note that lines up the "overnight jump" with Venus, the last planet "in the market"

I don't usually shift the tides. The reason I did this one is that the blue MTZD510M (510 minute optimum filter of the MoonTide), a Fractal of Pi overlay, and a Face of God pattern all show a low coming in near

10:45-50, 1302.

This is on the +M270 Moon flux line, which should be pretty solid support.

This time is 2 hours before the Exchange passes Mercury and the Moon. That will be a high energy point, so we could get a fast 12th harmonic move into it. Mercury/Moon are setting a price of 1319.

Strategy: Look to buy an early dip, ideally near 1302 at 10:45-50. It could come as late as 11:40

That 510 minute "optimum ZD filter" was new. I was now applying my discovery on the lowest layer of the fractal. Would it work? Could I remain unconfused and grab a little money? I instructed the position traders, who were long two contracts, to buy 2 more contracts at 1304 or better.

Here's the next day.

The market opened down. The forecast energy center at 1302 was real. Position traders were elected long at 1300, for an average price of 1310.

I watched the early trading hover below the +M270 Moon flux line. I realized the forecast time would be off. My Face of God pattern showed me exactly why, and it validated the energy center that was the chaos "strange attractor/repellor." If prices started up, it would repell them sharply higher.

I put a buy stop at 1304. I knew that the Moon flux would probably be strong support. After all, that's what I told clients.

Prices shot up from there. When the trade worked, I added another contract at 1309.75. When the market paused above the +M000 Mooon flux line at noon, I covered. A nice $1400 on two E-MINI's. I turned off my screens and spent the rest of the afternoon catching up on other work. It gets neglected at times like this.

With the market following the 10 day MoonTide up, today's hotline trade was a buy 3 points off the opening low, covering at 12 points.

So at this point, my homework had paid off for me, and for my day trading clients. But my position traders were still long 4 contracts. I had them cover at 1342. Thats a nice +128 points. This chart shows why.

It was a no-brainer. Prices again poked above the Moon flux lines, completing another "bandgap energy jump." And the 10 day MoonTide said tomorrow was down. Cash It In, Gunga Dhin!

Finally, here's the status of the 10 day MoonTides.

So my theories worked again. I admit they are still evolving, but you must admit, this was a pretty good example of Market AstroPhysics and Market Chaos theory in action.

If you'd like to get these emails, they come as part of my Tomorrow's Market Email service. You will find it in the Chaos catalog.

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