Chaos Clinic Recap

Here are Al's comments

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An Example of Chaotic Scale Jumping
Chaos Clinic for 10/11/2018
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This was a chaotic week, with the Dow dropping 830 points on Wednesday. and more on
Thursday. Many traders and investors were surprised. Following my analysis of a Fireball
Top, I was not surprised that the market sold off.

But I was surpised by the size of the drop: about 3 times a normal big down day. Whenever
I am surprised, I try to figure out physically what happened.

One of the hallmarks of Chaotic Systems is scale jumping. In his famous papers on chaos
in markets, Dr. Benoit Mandelbrot showed that cotton prices had several scalings.

In my research, I have found that such scale jumps can be related to heliocentric planetary
patterns. On Wednesday morning, I was watching a geocentric ephemeris, and saw the drop start
as the Exchange coinjoined the Moon's Node. But one does not get 120 point S&P drops from a
geocentric pattern.

So I looked at the heliocentric pattern, and found that at the same time. Mercury was coinining
Jupiter, and trining Node and Chiron. I once had a student tell me that in his research of
October crashes, Mercury and Chiron helio were always involved. In addition, the Moon squared
the Node and opposed Uranus. So there was a 3:4 harmonic "chord."

This suggest the high volatility will continue. The Mercury/Jupiter/Nod/Chiron cycle is
91 days, 1/4th of a year. That suggests this downtrun could run to January 9th. IT may only be a
move 1 of a longer downturn. It also suggests that day traders will have to cope with 3 or 4 times
the risk.

The fact that this drop is being taken seriously as a sign of things to come is the jump in
two ETF's I trade: gold GLD and short S&P SH. Traders may want to use these vehicles instead
of futures.

Besides the comments made by Al, the chat room is has live
comments from other traders who sometimes share their views,
trades and tips. Below are the chat room comments from this clinic

10/12/2018 1:50:17 PM MT Al****:: nice "two moon day" ; Moon-Noon-Moon
10/12/2018 1:15:22 PM MT TG****:: You too AL
10/12/2018 11:45:06 AM MT Al****:: everyone have a good weekend
10/12/2018 11:25:41 AM MT Al****:: buying came in just as soon as Dow turned negative. Big boys will probably hold it up. Covered my short. Done for the day.
10/12/2018 11:18:34 AM MT Al****:: looks like a switch from green +Tide to red -Tide
10/12/2018 11:02:33 AM MT Al****:: normal session range now 45 points - more evidence of scale change
10/12/2018 10:57:05 AM MT Al****:: by that I mean do not attempt to go long - OK to take profits on day trades
10/12/2018 10:45:55 AM MT Al****:: under no circumstances attempt to buy; this is a falling dagger
10/12/2018 10:42:19 AM MT Al****:: Dow just went negative
10/12/2018 10:40:28 AM MT Al****:: a Moontide trade would have been a sell near 2766
if you managed to do that just hang on
FYI, I sold 2772.5 as a swing trade and am long in GLD and SH
10/12/2018 10:09:02 AM MT Al****:: panic is here
10/12/2018 9:47:58 AM MT Al****:: nice EXMA sell at Tide time
10/12/2018 9:45:57 AM MT Al****:: Dow up 400 was a mirage-as soon as Dow goes negative panic will set in
10/12/2018 9:43:56 AM MT Al****:: overnight rally was big houses using their dark pools to bid prices up so they could sell at a better price
to learn about dark pools read the book "Flash Boys"
know what environment you are trading in
10/12/2018 9:42:03 AM MT Al****:: on my Secret Daniel chart the yellow cycle has turned down
10/12/2018 9:21:53 AM MT gon:: Great advise!
10/12/2018 8:52:17 AM MT Al****:: If I'm low on energy I don't even watch the screen-the thing is not to become entranced by the minor moves
10/12/2018 8:29:50 AM MT pyc:: ok so from now on i will definately try to say better than -40. so you dont even take all your setups?
10/12/2018 8:28:33 AM MT Al****:: I need to take a break, but it looks to me like the bears are back
10/12/2018 8:27:35 AM MT Al****:: better than 40 as a guide-on low energy days I make sure I'm charged up and trade only if I see a really good setup
10/12/2018 8:24:19 AM MT pyc:: dr al do you not trade on your low energy days. i seem to have 50% results. also what energy level is best to be trading in better than 40 better than 30. just a general question from your perspective
10/12/2018 8:21:51 AM MT Al****:: GON; yes, and thanks
PYC:not doing a screen on teamviewer today

10/12/2018 8:08:23 AM MT pyc:: what is your team viewer id
10/12/2018 7:32:42 AM MT gon:: Besides the horn-pattern you mentioned lat week, the topping formation on larger charts looks like a Fireball top as well, doesn't it?
10/12/2018 7:31:31 AM MT gon:: Hi Al, great read on the AUX page- already published at FXS.
10/12/2018 6:38:46 AM MT Al****:: GM all-good luck today
I expect a narrower range today - late spike reversal yesterday
tells me big players need to hold it up and distribute
I tried to resume a swing short yesterday but got stopped.

9:00 Eastern-System: No comments

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