Yes You Can... Cash In On Chaos!

November 8, 2001

This piece is dedicated to my good friend Jim Twentyman, professional trader, in appreciation of our many discussions.

First Snow 2001

Today was the first snow in Denver. Since 1986, I have been noticing that the first snow in Denver was usually a major high or low in the market. So there must be a relationship, right?

Of course there is. If you truly understand it, you know the secret of the market. But before we delve into that, here are a few photos of this event.

I love to celebrate events, and photos do that. This year, I have been hurrying to complete a back fence, re-roof a patio and shed, repair Bird Mountain, and get all the leaves cleaned up, all "before snow flies."

As a boy growing up in the Black Hills of South Dakota, we always worked to be ready for the first snow. If you were, you were in tune and in synch with nature. And the winter was easier if you were ready.

I always felt a joy when the snow finally came. It meant the rush was over. The snow usually began at nightfall, and brought a stillness to the crisp air. Standing there as it fell, I always felt a peace, serenity, and harmony like no other. And I felt exuberant. Now I know that the exuberance comes because the snow crystalizes about negative ions, bringing us an electric charge like a full Moon. So we feel a bit giddy with the snow.

When I got up this morning, I saw that it was not just a first snow, but a special one. The snow started as a gentle rain, wetting the trees. Then as the rain turned to snow, it stuck to the trees. Here are some of the beautiful sites.

Chaos Manor, Old Glory, and Nature's Delight

Chaos Manor

I think that I shall never see a poem as lovely as a tree

Blackbird has spoken, like the first bird

Ace loves to romp in the snow in the park. I am Ace's human.

Now, if you look closely at a snowflake, you will see that they are all different, yet the same. Observe.

What you are seeing is "fractal self-simularity." And you are also seeing that nature involves both fractal geometry, in the differences, and Euclidean geometry, in the sameness. These snowflakes are all hexagons, six sided figures.

These photos are from the Wilson A. Bently snowflake collection.

So what is the big secret? How are markets like snowflakes?

Answer: They are both forms of energy. They both obey the rules of energy addition. When energy adds together, it forms hexagons, or snowflakes, as the most common embodiment of the energy laws.

I have learned that these laws work in markets just as they work in snow flakes. They are both driven by waves in the earth's electric field, and these waves are affected by planetary motion.

Now, in the past I have written about the hex in the S&P. So let's look at the Wheel of Fortune, the ephemeris for today. Could it be that the planets are in some sort of hexagon pattern?

I have marked H, the sun at 225 degrees. That makes today the 5/8 point of the natural year, which starts at the Spring Equinox. That is a Fibonacci ratio.

The red Hex is the Sun/Jupiter, 90 degrees to Saturn hex. These planets form a hex in the heavens, which forms one in our electric field, and which translates to the market.

There is also a green hex, driven by Saturn/Pluto ,Moon, and Uranus. Uranus is the bringer of the rain, and apparently snow. This rally we have been having in the S&P has been a Saturn/Pluto rally. And yesterday's high in the S&P and today's in the Nasdaq were both set by the Moon and Uranus.

Finally, here is a chart of today and yesterday in the S&P. I have marked prices and areas affected by the red hex in red, and by the green hex in green.

The Sun at 225 degrees set the center vibration point for the two days. The red hex set the low in price yesterday and the high today. The green hex, in the form of Saturn and Pluto, set the time of yesterday's high and today's secondary high.

So you see why I apprecicate the first snow. It is a wonderful harmonic convergence. You can see the snowflakes everywhere outside. Then you can go look at the market and see snowflakes there. And once again I get that feeling of peace, serenity, and harmony like no other. So no matter what follows the events of September 11th, I know that nature tends toward stability, peace, and harmony.

My new Chaos Institute has been set up so serious students can learn how the laws of nature rule the markets. If you are serious about your trading, consider it.