The upcoming version 2.38 has some updated low-level components, and whenever that happens I have to spend some time fooling around with the software in order to make sure that nothing basic got blown up. One of the fun things about doing this is that it gives me a chance to revisit parts of the program that I haven't used in a long time (let's face it, there's a TON of stuff in here at this point ). This morning, I spend some time with the old SA/SR tool, which is something I haven't looked at in years.
Basically, this tool locates strange attractors and strange repellers, which comes from chaos theory. The market tends to be attracted to these points, but doesn't like to touch them. So you sort of get sucked in, then spat out. Or, in other words, a turning point forms. I used to spent a lot of time working with Mercury on 1min charts using this technique.
Anyway, I wanted to point out something really interesting...
This is a chart from yesterday. The blue dots on the chart are the attractors/repellers as calculated by W59 for this day. You can think of it as a special kind of astro: a dot forms when planets interact with the exchange in Chicago, and they are active at a certain price at a certain time. All of this was solved for back in 2001 or so, and uses some unique degree-to-price conversions. I've put a pink box around two planets. The "J" is Jupiter, and the "N" is Neptune. The reason that these are important right now is that they are clustering together, which makes them more powerful, and also because the market clearly seems to be respecting them. You can see that the J-N bubble happened right at a nice high on this chart.
If we zoom out to show the entire week, this is what we see:
(If this chart is hard to see, you can right-click on it and open the graphic in a new window)
I've boxed in all the J-N bubbles, and you can see that they came into play every day this week. The white lines show how the market reacted. On Monday, we had a low. Then, on the next three days, we had highs. Today, we had a low again. At this point, it looks like a more typical astro tool, where you get a high or a low, but really don't have any idea which until after the fact. That's actually an illusion! Watch what happens when we add a third planet:
I've drawn some white lines in. These are connected to Mars, the "R" bubble. What we're seeing here is that Jupiter and Neptune are solving for time, while Mars is solving for price. The market is going to want to make a turn at these areas, and it's going to want to bounce off the cluster. We know the time from Jupiter/Neptune, and then we solve for direction by watching which way the market moves into Mars at the time. So on Monday, the first day on the chart, we moved down into J/N, bounced off the R line, and had a low. We had similar action happen the next three days, except instead of moving down into the Mars line, we moved up into it. Wednesday the 24th was a little tricky, since the market couldn't quite reach Mars, but the other two days were quite accurate. Finally, on the last day (today), we repeated the pattern from Monday, moving down into the line, and bouncing up. You can see how easy it was to forecast the direction of these turns once the price planet (Mars) was considered.
Pretty slick, right? Obviously, when the signals went with the direction of the trend, they were much more powerful than when they went against it, but in all cases, they worked and the market respected them.
Ok, so why are these three planets important right now? Why not some others? I went to the ephemeris to try and see what was up, and found this:
This is a heliocentric chart for today. The spokes are the current planets, and the dots around the edge of the wheel are the locations of the planets back on the first trade date of the E-mini (Sept 9, 1997). The pink line at the bottom is Jupiter. It is right on top of a maroon dot, which is the location of Mars at the E-mini natal. Square to that location, we have Neptune, the teal line off to the right. If you look at the triangle pattern, you'll see that Mars is trine to Jupiter, on the other side of the wheel. Both Neptune and Mars aren't exact in their aspects BUT they're off by roughly the same amount. That balance is important, and makes this powerful in it's own way. So we've got a conjunction against a Natal, and a square and a triangle. Anyone familiar with Gann's symbol? So you can see how these three planets are activated, and how the pattern they form gets them involved in the market, since they plug right into the E-mini's natal chart.
On last thing: remember on Wednesday, how the market was a little short and couldn't quite reach the Mars line? Take a look at the ephemeris wheel again. See that red dot that Neptune is sitting on top of? That's the natal Sun. Here's what Wednesday looked like when we take that particular planet into account:
Anyway, I wanted to share. Sometimes markets are like putting together puzzles. It's not always clear like this, but when you manage to figure one out, it's nice to take a step back and see how well it all works.
All for now,
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