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Tradersworld

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WINTER/EARLY SPRING 2005

DISPLAY UNTIL MAY 31ST

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ISSUE #39

QuoTrek Now on PDA’s & Smart Phones The Livermore Market Key Practical Elliott Wave and the S&P Swing High/Low Trade Entry Set-ups Earth Disturbance Cycles on the Rise W.D. Gann’s Secret of The Square of Nine is Hidden in the 1909 Ticker Interview

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Winter/Early Spring 2005 • Traders World Magazine

Traders World Magazine • Winter/Early Spring 2005

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Primus The Trading “Strategy” The Squaring of Price With Time Using Triangular Charting™ Primus Trading “Strategy” is a trading plan for traders that are ready to accept new trading concepts. This offering has been structured very carefully. It presents concepts never before outlined for traders. It should have a very serious consideration on your part. I don’t mail out fancy literature promising the holy grail. I don’t have it and it’s not a black box affair either. It is a trading concept that has taken me 37 years to perfect by deductive and inductive strategies, plus trial and error studies. I was one of Gann’s last students. He died the year I took his course, in 1955. I am offering the Primus Trading “Strategy” to you if you are one that looks beyond ordinary trading methods. This is my latest discovery of price charting. The charting of prince in three dimensions, according to the “Law of the Triangle” This was developed expressively for stock traders that requested a stock trading program from me. However, the Primus Trading “Strategy” is a simple trading method that is 100% usable for trading both stocks and commodities.

Squaring Prices...Charting Three (3) Dimensions, Drawing True Trend Lines (1) All prices must be given Width/Time/Area in order to represent true price value.

(2) In Primus Trading “Strategy” charting, there must be three (3) dimensions to each posted price: the high, low and close. The close will be give the width factor according to my principals.

(3) A True Trend Line can only be drawn from equal values. Drawing a trend line from one low to another low or from one high to another high is worthless. This is false guidance and has no true predictive value, and can lead to losses. To be successful in trading the markets you need to learn my Three Primus Principles of Charting. You will find that they are easy to learn, remember and implement. Take it from my students, you’ll be very happy once you did!

(8) Eight Trading Principals of Primus Trading 1.

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The (3) dimensional charting principle The four daily price movements Tabulating the total price movement The equalization principle explained Drawing the TRUE TREND LINE Charting the price reactions The squaring of price with time Inside days and use of (9) stops and reverse stops.

Testimonials Dear Joe: After 20 years, as I mentioned to you your concept is supported directly by Biblical Principals. As you know Mr. W.D. Gann was an excellent student of the Bible, because of this it is my strong belief our live Lord God revealed many things to him from the Bible which resulted in many of his great discoveries. Aslo, in connection with your system, when Mr. W.D. Gann explains that: “When Time and Price are squared, they are in balance and a change in trend is expected”. I can see now how your system makes this statement a reality for the first time in more than 20 years of studying W.D. Gann, God Bless you, Fred B

Each one of these PRINCIPLES is defined in detail with charted examples, they are easy to learn and remember because they are logical. When integrated these principles form a successful trading matrix. They are offered to you in this program. You owe it to yourself to take advantage of the offer while it is being offered.

I have received your trading manual and love the simplicity and clear cut signals P.S. your works that you shared with me has reinforced my belief about the priceless use of HAND CHARTING. It does present another dimension that no computer generated charts can give.

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This PRIMUS STRATEGY warrants your full consideration; it has a reliable consistent and well established track record. PRIMUS is listed at $999.00 in my Stock & Commodity magazine review. I am offering you a $400 gift at $595.00. This is only a 12 cent move in beans, a 12 cent move in wheat or a $6.00 move in gold. $595.00 is less than a one day move. YOU MUST MAKE A DECISION. Can you afford not to learn the PRIMUS TRADING STRATEGY??

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Winter/Early Spring 2005 • Traders World Magazine

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Traders World Magazine • Winter/Early Spring 2005

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Winter/Early Spring 2005 • Traders World Magazine

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Tradersworld Issue No. 39 - Winter/Early Spring 2005 10 Practical Elliott Wave and the S&P

By Robert Miner 12 Swing High/Low Trade Entry Set-ups

By Jaime Johnson 14 Interview with Kurt Sakaeda

By Larry Jacobs 15 Emotions

By Bennett McDowell 16 Action Backlash

By Andrienne Laris Toghraie 19 WD Ganns Letters to Students Explained

By Myles Wilson Walker 20 Murrey “presents” Murrey’s Profit Pie: M’$pie = 3.125 in Chicago

By T.H. Murrey 26 The Origins of Financial Astrology

By Brad Stewart 29 TradingSolutions 3.0

By Larry Jacobs 30 NO STUDIES? NO INDICATORS? NO WAY… 32 Earth Disturbance Cycles on the Rise

By Eric S. Hadik 35 Astro Cycles

By Larry Pesavento 36 W.D. Gann’s Secret of The Square of Nine is Hidden in the 1909 Ticker Interview - Part 1

By Chuck Carpino 38 The Livermore Market Key (or who is your Guru?)

By Andras Nagy 40 My Favorite Indicators For Daytrading The EMini Markets

By Jim Nissen 41 Trading Chaos

By Dr. Al Larson 42 Wheat Cycles

By Daniel T. Ferrera 43 ELWAVE 7.5 For MetaStock add-on

By Larry Jacobs 44 The Physiology of Peak Performance

By Gaby Boehmer 45 QuoTrek Now on PDA’s & Smart Phones

By Larry Jacobs

Advertisers PG ADVERTISERS 02 TCI Corporation 03 World Cup Advisor 04 Primus Trading “Strategy” 05 GFTForex.com 06 GainsKeeper 07 QuoTrek 08 Traders Coach 11 Magi Society 13 Dynamic Traders 15 Mikula Forecasting 15 Gann-Elliott Cycle Report 15 BioElectric Shield 17 Trading On Target 18 SuperTiming 18 Know Your Future 22 Chart Pattern 23 TMitchel 23 Cycle-Wave 24 Murrey Math Trading 25 AIQ Traders Expert Pro 26 Sacred Science Institute 27 Wheels in the Sky 28 MMA Cycles 29 TradingSolutions.com 30 KingFishTraders 31 Gilbert Steele 31 Day Trading Course 31 Options “40 in 4” 34 Insiide Track 35 Special Stock Market Report 35 Larry Pesavento 39 Track ‘n Trade Pro 39 MayYouBeHappy.com 41 MoneyTide.com 44 RSofHouston.com 46 MerchantCapitalInc.com 58 QCHARTS 59 TradersWorld 60 Internet Trading Expo 2005 61 Wave59 62 Prognosis Software Inc. 63 Stock Market Geometry 64 Traders International

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46 The Foreward of the Tunnel Thru The Air

By Michael Wong 47 MTPredictor RT 4.0 Software Review Outline

By Larry Jacobs 48 Interview with Jack Winkleman

By Larry Jacobs 53 TradingExpert Pro

By Larry Jacobs 54 WAVE59™

By Larry Jacobs 55 Sonata Multi-Monitor Trading Computer

By Larry Jacobs

SUBSCRIBE TO TRADERS WORLD QUARTERLY MAGAZINE $19.95 PER YEAR - PRINTED OR ONLINE VERSION - CALL TODAY

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International Phone 417-882-9697 Fax 417-886-5180 OR ORDER ONLINE AT: www.tradersworld.com or Email: publisher@tradersworld.com Traders World Magazine - Published by Halliker’s Inc. Editor-in-Chief: Larry Jacobs - Winner of 2001 World Cup Champship of Stock Trading Operations: Susan Pruett and Demetra Larrick 2508 W. Grayrock Dr., Springfield, MO 65810

Copyright ©2005 Halliker’s, Inc. All rights reserved. Information in this publication must not be reproduced in any form without written permission from the publisher. Traders World ™ (ISSN 1045-7690) is published quarterly for $19.95 per year by Halliker’s, Inc., 2508 W. Grayrock St., Springfield, MO 65810. Presorted Standard Postage paid at Liberty, Missouri and at additional mailing offices. Postmaster: Send Form 3579 address changes to Traders World™, 2508 W. Grayrock St., Springfield, MO 65810 U.S.A. Printed in the U.S.A. is prepared from information believed to be reliable but not guaranteed us without further verification and does not purport to be complete. Futures and options trading are speculative and involves risk of loss. Opinions expressed are subject to revision without further notification. We are not offering to buy or sell securities or commodities discussed. Halliker’s Inc., one or more of its officers, and/or authors may have a position in the securities or commodities discussed herein. Any article that shows hypothetical or stimulated performance results have certain inherent limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not already been executed, the results may have under - or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designated with the benefits of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The names of products and services presented in this magazine are used only in editorial fashion and to the benefit of the trademark owner with no intention of infringing on trademark rights. Products and services in the Traders World Catalog are subject to availability and prices are subject to change without notice.

Traders World Magazine • Winter/Early Spring 2005

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Practical Elliott Wave and the S&P

By Robert Miner, Dynamic Traders Group, Inc. his article is excerpted from the Nov. Dynamic Trader Long-Term Report which was issued Sunday, Nov. 1.

The monthly long term reports are issued each month for subscribers to the daily DT Stock/ETF and Futures Reports. The monthly long-term reports are generally 30-40 pages and cover the intermediate to long term positions of the major financial markets including the stock indexes, bonds, currencies and precious metals. This excerpt is part of the section on the stock indexes.

T

S&P Intermediate Term Trend At A Crossroads Our trend position analysis is primarily based on the probable Elliott wave position of a market. While the pattern position usually implies one particular wave count is the most probable, this is not always the case. An alternate wave count may be equally probable. Even when there are two equally probable wave counts, Elliott wave is useful because there will typically be a specific market condition that will confirm or invalidate a count. If a count is validated, the Dynamic Trading analysis includes minimum and maximum time and price targets for the trend before the wave structure should be complete.

For several months, we have shown both a potential bullish and bearish wave count off the March high for the S&P. The two counts have still not been resolved. Because the parameters to confirm one or the other are now so close to the current market position, we don’t need to favor either one but simply let the market confirm which is the more probable.

S&P Bullish and Bearish Wave Counts Chart #1 is a weekly chart of the SPX from the Oct. 2002 low. Two wave counts are shown. The bearish wave count considers the March high a W.C of (B) high which implies the bear trend should continue to eventually take out the Oct. 2002 low. The bearish count assumes the Aug. low is a W.1 of 3 low. The bullish wave count considers the March high is a W.3 and the Aug. low a W.4. If this is the case, a W.5 advance should follow to above the March high. Our bias has been for the bearish count for several months but there are several factors during the past few weeks that place the bullish count in an equal position.

The weekly DTosc has made reversals right at the weekly highs and lows since the March high. The weekly DTosc made a bullish reversal the last week in Oct. If the recent momentum rhythm continues, this implies the S&P will be sideways to up for several weeks. Market momentum may

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Winter/Early Spring 2005 • Traders World Magazine

change at any time, but the assumption is always that it will continue unless there are compelling factors to suggest it will not.

Oct. was an outside-up month which typically would have positive follow through. Last week was an outside-up week, another positive factor.

Last week’s outside-week made a low at the 61.8% retracement and shot right up to a high at the 78.6% retracement in an impulsive manner, another positive condition.

We have now arrived at the time when the market signal to confirm which Elliott wave pattern is correct is very close to the market. Which ever signal is made, it should be followed by a trend that lasts for weeks if not months with specific price targets. S&P Bullish and Bearish Continuation Signals Based On EW Pattern Position Bullish Continuation Signal If the S&P takes out the Oct. 7 high, the bullish alternative should be correct. A trade above the Oct. 7 high which is only about 12 points above Friday’s close would void any reasonable bearish pattern position and suggest Oct. is a W.4 low and the S&P should continue to at least the typical W.5 target zone at 1211-1254, about 10% above the current position. The W.5 target zone overlaps with the 61.8% retracement. The bullish weekly and daily DTosc’s suggest this is the more probable outcome.

Bearish Continuation Signal A trade below the Oct. 25 low which is just 40 points below Friday’s close will signal the bearish alternative should be correct. If this should occur, it is quite bearish as it would imply the decline is a W.3:3, usually a powerful bear trend.

Up until the last 3-4 weeks, I would have given the bearish alternative much more weight. At his point in time, I would give either the bearish or bullish outcome equal weighting. With less than 5% between the bullish and bearish continuation signals, there is no reason to second guess at this point. Which ever signal is given will also give us reliable time and price projections for the follow through that we can take advantage of.

S&P Should Be Used For Elliott Wave Analysis A favorite trick of Elliott wave analysts is to choose the index that conforms with their forecast. If we want to ignore the S&P, we could choose either the Nasdaq or DJIA and make a solid bearish case from a pattern and DTosc position.

But the DJIA and Nasdaq are effectively sector indexes. The S&P is the most popular broad based stock index and should be used for the majority of Elliott wave position and trend analysis for the broad market. The S&P pattern position is equally bullish or bearish. The S&P weekly DTosc position

gives an edge to the bullish side. The Nasdaq and DJIA should follow the S&P trend.

S&P Update – Nov. 3 The above comments were issued on Sunday, Nov. 1. Today, Wed., Nov. 3, the S&P closed above the Oct. high confirming the bullish wave count should be the correct one. See Chart #2. If this is the case, the SPX should eventually reach at least 1211 before W.5 is complete.

Whenever we have a confirmed wave count, the first thing is to identify what market action would invalidate that wave count. If the S&P traded below the Oct. 25 low at 1090.19, it would invalidate the bullish wave count and signal a continued bear trend. As long as the S&P has not traded below the Oct. low which is less than 5% below the market, trades should be oriented to the long side.

Trade The Market, Not The Forecast My consistent theme for almost 20 years has been to Trade The Market, Not The Forecast. As a trader or investor, you don’t make money with forecasts. You make money by making trading and investing decisions with appropriate stop losses and acting on those decisions.

The forecasts in this report are very high probability. But they may be wrong. Traders and investors must continually monitor each market for conditions that validate or invalidate the forecast/investment/trade. That is what we do with each DT Futures and Stock Report. We monitor the market, set our stop losses and let the market be our guide. If wrong, our stop loss for any position will take us out of the position with an acceptable loss and maintain our capital position to take advantage of a developing trend. Trading and investing strategies should allow us to capitalize on any major trend. Only amateurs with no conception of the realities of trading and investing believe they will not have losses. They are paralyzed by losses.

An important part of each DT Report, an important part of my advisory career for almost 20 years, has been to help you learn trading strategies - to deal with the realities of trading and investing. A subscription to a DT Report is an ongoing trading education at a fraction of the cost of workshops and seminars.

LEARN TO TRADE and it won’t matter what the markets do. Trade the market, not the forecast and your long term success will be ensured. The months to come should offer enormous trading opportunities. The best opportunities of the past 20 years. Be prepared.

Robert Miner is the author of Dynamic Trading named the 1999 Trading Book of the Year. He is the editor of the Dynamic Trader Stock/ETF and Futures Reports and developer of the Dynamic Trader Software and Trading Course. For more information, go to www.DynamicTraders.com.

Traders World Magazine • Winter/Early Spring 2005

11

Swing High/Low Trade Entry Set-ups

By Jaime Johnson Dynamic Traders Group very trade set-up should use two time frames for the trade decision.

The higher time frame determines trend direction or a possible trend reversal using oscillators, support/resistance, or by any of your favorite analytic tools.

The lower time frame is used for trend entry.

The most common two time frames for position traders (traders that hold positions anywhere from a few days to a few weeks) are daily to determine trend direction and 60 minutes for trade execution. But what if you can’t watch the market and place orders during market hours? Or, what if you want a confirmation signal that a trend reversal has been made? This is where the swing high/low trade entry strategy is useful.

E

The Concept The following examples use an oscillator to determine trend direction or the condition for a reversal.

The trade set-up conditions are identified on the higher time frame and the trade execution is on the lower time frame. The lower time frame oscillator must either be in the same direction as the higher time frame oscillator or the higher time frame oscillator must be in the overbought or oversold zone.

For example, if the daily oscillator is bearish or in the overbought zone, only short trades are considered following the lower time frame 60 minute oscillator bearish reversal.

If the daily oscillator is bearish and you would like to consider entering a short trade using 60 minute data but you can’t watch the market during the day, you can use the swing low trade entry strategy on the lower time frame. If the 60 minute oscillator is also bearish, set a sell-stop one tick below the prior minor swing low on a 60 minute chart. The protective buy-stop should be set one tick above the prior minor swing high.

Once the trade is elected, you must immediately put in a protective stop.

Either you must call in the order during the day after the trade is entered or you need to have a broker that accepts “auto stops”. When you call in an open order to enter the trade, you must also give a protective stop-loss order that becomes affective once the trade entry is filled.

The following is an example of a swing low trade entry strategy.

Set-up Conditions For Swing Trade TLT is an iShares ETF that correlates extremely well with Bonds.

Chart #1 is continuous data for 30 year T-Bonds. The daily oscillator is bearish and in a bearish divergence with price plus price is approaching the 78.6% retracement of the March

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– May decline, a key resistance target.

The Sept. 28 outside-reversal-day is the initial signal at least a short term reversal top has been made.

Chart #2 shows TLT also made an outside-reversal-day with the daily oscillator bearish. The larger time frame daily chart is in a position for a reversal.

Go to the smaller time frame 60 minute data for the swing entry set-up.

Chart #3 shows TLT 60 minute data up to the Sept. 28 outside-reversal-day.

The 60 minute oscillator is in the same direction as the daily oscillator, bearish.

The swing low trade entry strategy is to set sell-stop, either after the market is closed on the 28th or before the market opens on the 29th, at 89.09, one tick below Sept 24 minor swing low. The protective buy-stop is placed at 89.96, one tick above the Sept. 28 outsidereversal-day high. If TLT trades above the Sept. 28 high before the short trade is elected, the sell-stop to enter the short trade is cancelled.

Chart #4 shows TLT’s gapped open on Sept. 29 which triggered the short trade on the open. TLT continued to decline sharply. By the way, this is not an after-the-fact example. This is one of the trade recs we had in our DT Stock/ ETF Report.

Multiple Time Frame Swing High/ Low Trade Entry Strategies The swing trade entry strategy may be used with any market, stocks, ETFs, indexes, futures and mutual funds, and any time frame from position trades to day trades.

The swing trade entry is not a method to indiscriminately enter swing trades each time a new high or low is made.

It uses the larger time frame to first identify the trade direction. The trade is executed on the smaller time frame.

We rely strongly on the DTosc position of the larger time frame to identify the trend direction. Long trades are only considered if the larger time frame DTosc is bullish or in the oversold zone.

Short trades are only considered if the larger time frame DTosc is bearish or in the overbought zone.

The swing high/low trade entry strategy is in one of a handful of trade strategies used on a regular basis in the model trading accounts in the Dynamic Trader Stock and ETF Report.

Jaime Johnson is the chief technical analyst and trade strategist for the daily Dynamic Trader Stock/ETF and Futures Reports. Each issue of the report includes the most probable short term trade set-ups and key support/resistance for S&P and Nasdaq stocks. For more info, go to www.DynamicTraders.com

Winter/Early Spring 2005 • Traders World Magazine

Robert Miner’s

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Traders World Magazine • Winter/Early Spring 2005

13

Interview with Kurt Sakaeda

Winner of Robbins Trading Company’s World Cup Championship of Futures Trading®

By Larry Jacobs Larry: I understand that you were up nearly 1000% in the World Cup Trading Championship, which is very impressive. I first wanted to get an idea of your background and what have you done in the last twenty years.

Kurt: I have a Bachelor of Science degree in mathematics and I spent the last twenty years as a computer programmer in the financial district, mostly in the back office. I was the guy who was chasing down lost emails or even missing nickels in accounts and that sort of things.

Larry: How did you start trading?

Kurt: I started trading in June of 1979.

There was a jet crash outside of O’Hare airport. All the DC10s were grounded by the FAA. The McDonald Douglas stock was plunging and the stock was down 25%. So I bought the stock in the twenties. I made 20% on my first trade. That got me started in trading.

Larry: Where did you go from that point?

Kurt: From there I had to learn a lot of lessons from the market. So I did not have another winning trade for almost two years.

Larry: What did you learn in your years of trading and what are you now using today?

Kurt: I use seasonal patterns in commodities. For example, heating oil is more valuable in the winter than in summer. In summer, it is just an expense. You have to maintain storage.

In winter, everyone wants it because their houses are cold. In another example, on the supply side, all the soybeans are harvested in late October and November time frame as opposed to June or July where you can’t hardly buy them at any price.

Larry: With your extensive programming ability have you applied this knowledge to your trading?

Kurt: Yes, with my current model it takes my computer about 9 hours to run.

The computer I use is one I got about 5 years ago. It is only a 500MHz. Larry: So you don’t need to have high powered equipment to make money in the market?

Kurt: You just need to know how to use what you have.

Larry: Do you use computer oscillators such as Stochastics, Relative Strength and the like in your trading?

Kurt: I don’t use those, because they just mostly confuse me. I have joked that one time I went down to the Chicago Mercantile Exchange and was taking a trading class and I got an idea.

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A war had just broken out in the Middle East and I said I think the dollar is really low here, I should buy the dollar and I should be shorting gold and silver and all the foreign currencies. All my friends in the class using all the many computer oscillators and indicators said don’t do that, the risk is tremendous.

You should just cross your arms and take no positions. That good advice I figured cost me about $40,000. You have to be careful about not loading yourself with too many factors.

Larry: What about money management. Do you use that?

Kurt: Yes I do use it and it is very crucial. All systems have guaranteed losses. You do not want to expose yourself to too much risk with one bad trade. Eventually you are going to make a mistake or the system just won’t perform and you don’t want to blow everything with that loss. That is something that I am spending a lot of time thinking about.

Larry: What about stocks. Do you trade them also?

Kurt: I have a stock picking system that is triggered by large moves. It is based on price earnings ratios. But it makes only a fraction of the money produced by the futures trading system.

Larry: Do you believe in following your positions with close moving stops?

Kurt: If you are using a day-trading system a close stop is a good idea. If you are a swing trader, you need to give it a little more space, $500 or a $1,000 because of timeframes and profit objectives. For seasonal trading you need to have stops in the order of $5,000 $6,000 per contract, which is unbelievable to most people.

Larry: Do you use fundamentals?

Kurt: Again, that is another issue that will just confuse me. I concentrate on pure seasonal trading.

Larry: Do you go back a lot of years to pick up the seasonal patterns?

Kurt: As many years as I can. Some things for example, in grains I can get data back as far as 1959. Other things like the Euro are relatively new and are hard to get the data on. You can’t get histories that go back very far on many new future contracts.

Larry: Do you then concentrate on those things that you have long historical data bases on?

Kurt: I throw a little bit of money in some of the recent things. You have to be extremely careful there, because of

Winter/Early Spring 2005 • Traders World Magazine

the small sampling of historical data.

Larry: In what futures contract did you make most of your money this year?

Kurt: It came from energy this year.

The model I use overweighs my positions for the energies. When energy does well my model does well. I am trying to rework the model so that it is less sensitive to the price of energy.

Larry: It is estimated that 9 out of 10 people don’t make money in the futures market. Why do you think this is?

Kurt: What they don’t understand is that the best knowledge for playing the market is from a poker game. A lot of people would be scared if they took $10,000 to LasVegas and sit down against one of the major players in the poker championship. For some reason they have no problem running $10,000 over to their brokerage firm and trading the silver market. Warren Buffet likes to trade silver. That’s a rumor. I don’t know if it is really true. If it is not Warren Buffet, then it is George Soros or other master traders. When they are trading against these masters traders they might be fading their trades.

The average person without trading knowledge and experience can hardly compete in this market. These inexperienced traders also tend mix fundaments with oscillators and have not really done the numbers to test what they are actually using and if it even works in the market. I fully back test every thing that I use trading the markets. That does not mean that it fully works in a forward test, because there are other issues that will pop up.

Larry: Do you know any day-traders who make money?

Kurt: Yes, I do know some that do.

John Holksinger at Robbins does. He is a constant day-trader. There are daytrading systems that do work.

Larry: Do you have any recommendations on how our subscribers might improve their trading?

Kurt: Pick a method and stick to it as close as you can. Also be open minded when choosing a method. They need to have something that works for them personally. For example, I am not a day-trader. It makes me too nervous. I would have to be glued to my screen. I would not like that. I put in my trades and I go play golf in the afternoons, or I go out the airfields and practice flying light aircraft. If a person is nervous and a chain smoker then day-trading might be better for them. If a person is more relaxed then swing trading might be more recommended. They can take action with a trade and then come back in a couple days to see how it has done.

For more information and requirements necessary for entering the World Cup Trading Championships®, winner prizes, standings and more go to www.robbinstrading.com.

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orecasting Comp la F

any

By Bennett McDowell hat is really your deepest fear? Scared money never wins! Neo: “I know what you are trying to do!” Morpheus: “I am trying to free your mind Neo. But I can only show you the door. You are the one that has to walk through it. You have to let it all go Neo, fear, doubt and disbelief. Free your mind!”

Morpheus: “There is a difference between knowing the path and walking the path.” From the movie: “The Matrix” You must “LET GO” of fear, disbelief in yourself, and worry. If you are fearful, ask yourself “what am I afraid of?” If the answer is that you do not have confidence in your trading system or approach, then you must do everything possible to become confident! This allows you to trade confidently and fearlessly. It is also important to realize that you must react and be aware of the risks of trading the financial markets.

If you leave an opening in your mind where fear can gain hold and guess what, your fear becomes reality! What ever you are anxious about has the potential to become reality because of the excess energy you assert because of the importance you associate with this focused emotion. When this type of anxiousness is energized by remaining in thought, then it will crystallize into reality. If you are a fearful trader than it will sabotage you until your worst fear is realized, failure!

Traders that experience thoughts of failure should not take them lightly.

Instead they must find out what are causing these thoughts and take action to nullify them. Because once thoughts of failure become energized by negative emotions such as fear, they manifest into reality. Traders that fear failure will ultimately fail. Traders that fear success will not succeed. If you have these thoughts, then don’t trade until these thoughts are dealt with openly where they will be less powerful then if they where denied.

You must confront them and remove

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their power so they don’t occupy your thoughts.

Fear of failing, or fear of success, must be dealt with and removed from your thoughts before you will be successful at anything you try and do.

So choose and protect your thoughts carefully! Outside influences can and do impact what you think, much like garbage in equals garbage out. Even something as harmless as watching the news regularly with all its violence and dramatic fearful stories can over time create a fear based belief system in the viewer. Compound this with violent movies and TV programming and it is no wonder most people walk around looking over their shoulder and focus on and energize fear based thoughts which then manifest themselves in reality. This is why I say to protect your thoughts from manipulative outside forces and instead focus your energy on wholesome, happy, abundant, and fun thoughts creating the life you want, not the life someone else wants for you! See your glass as half full, not as half empty. Think of the universe as an abundant place not a place of scarcity, fear, and sorrow.

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Traders World Magazine • Winter/Early Spring 2005

15

Action Backlash

By Adrienne Toghraie, Trader’s Coach s a trader, what actions do you undertake every day? Many things that we do every day have few repercussions, but have you ever stopped to consider the backlash of some of the actions that do have impact?

A

In a recent episode of the television series “West Wing,” the President was faced with a difficult decision. In the story, terrorists assassinated two of the nation’s political leaders.

The President’s dilemma was a very difficult one. Should he take military action against the terrorists or should he to try to negotiate for peace? He chose the unpopular decision of doing whatever was necessary to create peace. Congress and the citizenry were more interested in exacting revenge on the terrorists. They did whatever they could to coerce him into bombing the terrorists. After considering his options, his response was, “How much collateral damage will be caused if we do attack and how will the terrorists respond to get even if we do?”

This dramatization is plucked directly from the headlines that we read every day. I am sure that each of us has a strong position as to the appropriate action to take under these circumstances. I want to say that this article is not intended to take a side on a political issue. Rather, it is intended to motivate you to examine your trading choices of action or non-action and the backlash that results from being prepared or unprepared to act.

The Meaning of Backlash Newton’s Third Law of Motion states that ‘for every action, there is an equal and opposite reaction.’ I learned this lesson when I was eight years old. While visiting my aunt one day, I took her rowboat out alone and accidentally dropped the oars into the water of the small lake in front of her summer home. Frightened by my error, I jumped from the boat onto the beach. To my dismay, the energy of my forward motion propelled the empty little boat back into the middle of the lake. That is backlash.

According to the Law of Conservation of Energy, energy can neither be created nor destroyed. By directing energy into a system, you can expect to create a reaction equal to the energy that is put into it. If no energy is put into the system, you cannot expect to see anything coming out of it. When you throw a small stone into a pond, a small splash and a small ripple are the result. However, when you heave a large rock into the pond, you can expect to get wet from the splash and create waves on the surface. These results illustrate simple physics in action.

For traders, the best way to put energy into a system is to perform any of the following constructive and pro-active steps. By performing more of these actions, more positive energy is added into the system: Preparation Activities • Doing research • Building your own system • Testing your system • Re-working your system • Reading books, articles and research material on trading and the markets • Attending seminars • Working on your psychology and physical health All of these activities are considered positive because they direct you toward successful trading outcomes. Like vectors, you can combine them and they will all take you in the same positive direction. Preparation vectors focus your energy into a single point like a laser beam. By focusing their collective energy, the positive effect is multiplied and it becomes an even more powerful source of energy.

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Winter/Early Spring 2005 • Traders World Magazine

‘Boomerang’ Actions There are negative actions as well as positive ones. These actions combine to form negative vectors that direct powerful energy in the wrong direction just like the little rowboat that my misguided leap sent gliding into the middle of the lake. And like vectors in physics, the negative actions must be subtracted from the positive actions that are moving in the right direction: Boomerang Actions • Trading without a system • Trading without studying the markets • Trading while sick, tired, upset, fearful or depressed • Trading against your system by not following your rules • Abusing your body with alcohol, drugs, poor food, lack of sleep or exercise • Trading to create excitement in your life In the “West Wing” episode, the terrorist murders were boomerang actions because their result was the urge to respond in kind and exact an equally monstrous revenge.

The President concluded that such a response would create a second backlash that would ultimately become a perpetual series of backlashes. This hypothetical situation mirrors the real-life drama in Israel where terrorist acts result in retribution, inspiring more terrorist acts in a continuing spiral of violence.

Sink or Swim Too many traders adopt a ‘sink or swim’ approach to trading.

Unfortunately, they drown. While these traders are action oriented, they are usually disinclined to take the steps required to prepare for action. Like parents who toss a child into the water expecting him to learn to swim or drown trying, these traders put energy into their system through the Boomerang Actions that are discussed in the previous paragraphs.

What are the backlash results of the “sink or swim” approach to trading?

• Losses that are proportional to the lack of preparation • Fear that results from not trading by the rules • Trading mistakes that are proportional to the lack of emotional and physical fitness “Ready! Set! Go—Nowhere!”

There are other traders who do everything that is required to prepare for trading and then sit on their hands. Their preparation provides initial momentum in the right direction. But, their failure to act on their preparation is a powerful negative vector that leaves them at the starting point when subtracted from their forward momentum. Inaction is like a bucket of ice water poured onto a fire. The failure to act can take place on a trade itself when a trader fails to enter the market when his system gives a signal. The backlash result of this failure can be a frustrating loss of opportunity, but the loss is on paper and is hypothetical. When the failure to act results in a trader failing to exit a trade, the backlash consequences can be a terrible loss of capital in real time.

Of course, the failure to act can occur at any step in the trading process, even in the midst of the preparation process.

A trader can go to all of the trouble of developing a trading system and fail to test it. Or, he can go to all of the trouble and expense of hiring a traders’ coach and fail to follow through on the instruction that he receives.

Over the years, I have seen a fair number of traders who have followed this pattern of ‘Ready! Set! Go—nowhere!’

One trader in particular stands out. ‘Jack’ appeared to be very eager to work with me and insisted that he come to a private session as soon as possible. He was determined to trade and said that he was committed to doing everything necessary to be successful. After reading articles about trader psychology, he concluded that he needed help in building his psychological foundation for trading.

Jack said all of the right things. However, after our intensive work together, he returned home and failed to follow

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Website: www.TradingOnTarget.com Traders World Magazine • Winter/Early Spring 2005

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through on any of the steps in the plan that we had developed.

Although the plan was simple to understand, it required commitment and the willingness to take risk. These were the two qualities that Jack was lacking. His fear of failure was so great that he prepared and prepared, but he could not follow through when the time came to act. The backlash from his failure to act has had a far greater impact on his trading than anything he had actually done wrong. When his trading results failed to meet his expectations, he became angry and disillusioned. Now, he is less likely than ever to act and follow through, while his chances to become a successful trader continue to grow more dim with time.

Back to the Backlash Why do so many traders believe that they can act or fail to act without paying the consequences? To begin with, the true nature of the trading profession is highly deceptive. From the outside, it appears to require so little preparation. When this illusion is added to the lure of quick and easy money, the impulse to view trading as little more than gambling is too tempting for the susceptible to avoid. If a trader comes to the playing field with the impulse to gamble, he will fail to do the necessary preparation of self-education and self-training. Gambling is an addiction, which is irrational, impulsive and self-destructive. No one, in the throes of an addictive behavior measures the potential backlash.

Another reason that many traders fail to measure the backlash of their choices is that the relationship between cause and effect is not always clear, immediate or direct. For example, a trader who fails to act on behalf of his health may not experience the backlash of his actions for many years. I have worked with countless floor traders whose health suddenly failed, leaving them unable to work. But had they been warned of the consequences of their actions, they would never have stopped their

SUPER TIMING W.D. Ganns Astrological formula for Stocks and Futures

In SUPER TIMING by Myles Wilson Walker, the trading formula is shown in detail. All of Ganns public predictions were analyzed to reveal the one common factor. Supertiming explains all of Ganns predictions by using the one formula. It shows you which planet will be signaling the next trend turn and it works on all markets. As well as Ganns timing method there is the price target method which is demonstrated by his predictions and from real life examples in recent markets (this is not a planets longitude converted to price). On my web site I have used one of Ganns charts to prove that he really did use astrology because there are still a lot of people who think he used only swing charts, angles or fixed time periods. None of these can be used to consistently explain all his public predictions. The planetary ingress and planets converted to price shown is explained in detail but this is only a minor method used for a particular situation. The real answer is in Supertiming where you will learn the pattern combination that is found in all of Ganns predictions both long and short term. Price is $250.00 S&H Paid Profitable Forecasting Master Course teaches you how to forecast major turning points in all Stock Indexes. S+P, Dow, Currencies, Gold, Bonds, Soybean Futures. Unlike traditional cycle analysis which depends on analyzing previous waves the cycles discovered by Myles Wilson Walker can be calculated for any time period. This allows the cycle to be directly incorporated and back tested in a mechanical trading system. In this course you will learn when to expect the biggest moves of the year. The daily cycles are listed until 2010. You will also learn the secret of the Master Planet, which is the prime controller of a market at any time. The best way to explain would be to say that the big moves will involve the Master Planet. You will also learn W.D. Ganns real Master Time Factor. Price is $460.00 S&H Paid Traders World 800-288-4266 or www.tradersworld.com

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Winter/Early Spring 2005 • Traders World Magazine

destructive behaviors anyway. After all, they would say, “I’ve been smoking, drinking, taking drugs and burning the candle from both ends for years, and I’m doing just fine.”

A second example of the delayed effect of the backlash is a trader who does not follow his system. He may do very well by disobeying his trading signals for a while. This is a common occurrence since no system is right one hundred percent of the time. As a result, he does not see any backlash until he loses all sight of the trading methodology and he can no longer trust himself or his system. Then, the losses begin to pile up.

Finally, there is the notion that all you have to do is read a couple of books about trading and you will know everything there is to know about the subject. At this point, you can buy a system, go to a seminar and sign up for a good service. Unlike other professions, trading does not have formal advanced training that certifies your competence to practice. For that reason, a fair number of novice traders jump in and struggle to keep their heads above water until they eventually become too exhausted to continue. As long as their nostrils are above the waves, they think they are still in the running. The struggling little minnows fail to see the shark lurking in the waters.

Conclusion Following the classic laws of physics, each and every action or lack of action in trading has its own consequence. A successful trader who is in the business for the long haul learns to measure the backlash. He knows that careful preparation adds positive energy moving in the direction of his goals. He also knows that destructive action and inaction add energy moving in the opposite direction. There is no avoiding the Laws of Nature.

Adrienne Laris Toghraie can be reached at www.tradingontarget.com

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You can use the professional part of the report to develop your talents, so you will be better able to attain your desired growth in your profession. Problems can be avoided and transformed into positives through insight and wise action. The personal part of the report given will deal with your identity, emotion, love, destiny, etc. Another section of the report deals with the major times of change in your life, showing clearly in graphic form the months when these changes are the strongest. Through this timing you will know what to do and what not to do during these changes.

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W.D. Ganns Letters to Students Explained Part 1 Part 1 by Myles Wilson Walker n this series of articles I will be going through WD Ganns letters to his students that he wrote in the year or so before he passed away. I will then explain as simply as I can exactly what he meant.

Gann wrote, by live or active angles is meant Prices and Time Periods where the Longitude of the major planets are or where the squares, triangles, oppositions are to these planets.

What Gann is saying is that when two or more planets form aspects it is important.

An aspect is a term used in astrology. The 360 degrees of the circle are used and the distance around the edge of the circle is split into measurements of one degree the distances between two or more planets is called an aspect.

Longitude of the major planets. The sky is a circle of 360 degrees. A planets position is always at some degree of the circle. In traditional astrology the circle is split into 12 areas of 30 degrees. You will best know one of these 30 degree areas as your star sign.

I

Square: Planets are separated by a distance of 90 degrees.

Triangle or Trine: Planets are separated by 120 degrees.

Opposition: The planets are opposite each other with a 180degree separation.

The Planets Mercury Venus Sun Mars Jupiter Saturn Uranus Neptune Pluto This is the Gann method of taking any planets longitude and converting it to a price. One degree of the zodiac is equal to 1 cent or 1 dollar of price. So any planet sitting at one degree of the zodiac is also at 1 cent or 1 dollar of price.

Two degrees would be 2 cents or 2 dollars until you reach 360 degrees.

What then happens is that if you have a price higher than 360 cents or dollars you go to the next level of the circle

until you get a price match. One degree is the same as 1 cent, 361 cents, 721 cents (360x2+1) or 1081 cents or dollars (360x3+1) Two degrees is the same as 362 cents, 722 cents (360x2+2) or 1082 cents or dollars (360x3+2) This is an example of how Gann would use the position of one planet to form a trend line. Using Mars as the planet we will overlay its motion around the circle of 360 degrees on a price chart of the S+P. Mars is represented on the chart by the geocentric view (as seen from earth) as a solid line. The curve is caused when at certain times if you look at Mars in the sky it seems to go backwards (retrograde) The lighter lines are made by taking the actual position of Mars and adding or subtracting 30 degrees or price points.

Using the date September 2 2003 Mars is at 333 degrees. The S+P is trading around 1000 so to get Mars at a comparable level add 360 + 360 = 1053. To get the price bands of 30 degrees 1053 – 30 = 1023 etc. The Mars trend lines act as support and resistance for price.

Gann wrote about these. “You can buy or sell against these resistance levels and place a stop loss order.”

In the next article I will show you an actual example of Ganns for the Soybean Market Mr. Walker is author of the popular Super Timing Book $250 and his new book Profitable Forecasting $460 sold in this magazine and on our website www.tradersworld.com

Traders World Magazine • Winter/Early Spring 2005

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Murrey “presents” Murrey’s Profit Pie: M’$pie = 3.125 in Chicago Labor Day Week: 2004, Chicago Mercantile Exchange Education Department

By T.H. Murrey he Chicago Mercantile Exchange Corporation’s Education Department, invited T. Henning Murrey to Chicago, so he could “present” how it is possible to trade all markets off (only) one number: M’$pie = 3.125 doubled or divided by eight.

In 1993, T. Henning Murrey discovered and proved all markets are reversing off one number: Murrey’s Profit Pie: M’$pie = 3.125, inside any one of 128 different Harmonic Internal Trading Octaves.

Presently, over 87,500 traders, all over the world, have converted, from trading random numbers, off random software programs, to simply setting the expected highs and lows from one number.

Every (other) software package is using a Fibonacci Ratio, of .382% or .618% off any extreme random past highs or lows. This is slightly wrong, sorry.

You have a software package, brought forward, from the works of Marcus Vitruvios Pollio, the Roman architect, 70 B.C., who stole this knowledge, from the Jews and the Moslems, sorry Pollio.

Labor Day Week 2004, T. Henning Murrey was invited to: 1) Chicago Mercantile Exchange, 2) Terra Nova Corp., 3) Lind – Waldock Brokerage, to “present” his trading strategy set to only one number, within one of 128 different octaves that never change.

After one meeting at the Chicago Board of Trade Building, on LaSalle St., in the Ceres Restaurant, Murrey had a brief conversation with Rick Santelli, who is on CNBC TV several times per day, speaking to the direction of bonds.

Earlier in the week, Murrey met with John Connally, who is on CNBC TV several times each month.

He was on TV, the same day Murrey met him, telling traders to expect low support on the S&P 500 at 1062.00 from August to be the spring board toward higher highs.

Murrey put 1,062.50 in his book, in 1993, as one of the 120 reversal numbers for the S&P 500.

Leonardo da Vinci and Fra Luca Pacioli worked to translate his (Vitruvius Pollio’s) work, so now, they get credit for the works of Pythagoras and Theon of Tales.

These men said that the human navel was the key to man’s proportions.

Every parent knows the logic set to the navel (of their new born child): 50%.

So, at birth, all measurements are set to a (true) 12.50% on either side of naval.

At 17 years old, the navel of a female, will set to (irrational) 5/8th of their height. You (already) know this truth.

So, the body has shifted from a true 12.50% ratio to an

T

20

Winter/Early Spring 2005 • Traders World Magazine

irrational .382%.

T. Henning Murrey, studied the art works, of men of math, in the 1500’s hundreds, and noticed that written in the margin, by either Pacioli or da Vinci, that they had noted that the irrational ratios .382% and .618% must also be expressed as rational ratios .625% and .375%.

The human body ratios are: random (irrational .381% or .618%).

If you missed it on the painting, you could have read it in The Book of Thomas.

Gann saw “something” about “time reversals” in this book.

Luke: Chapter 16 has five numbers that reveal the relationship between numbers and the ratio of music pitch: .625.

You will discover .375% and .625% in Chapter 16. Why go look?

Luke 19: alludes to Socrates “Atlantis.”

It hints to The Square of Kou, where nine numbers set in nine boxes in a square, equal 10 + 5 = 15 in eight different directions.

Atlantis sank under the sea, and was reported by Socrates, to be surfacing in a new harmonic region: The Three Stars.

Socrates reported that Atlantis measured areas and squares by 10 and five or five to the fourth power = 625, but, musically, it is .625% of one Harmonic Internal Octave set inside Murrey’s Master Squares: 100, 1,000, 10,000, or 100,000, etc.

Murrey saw the Logic between the squares of five and what Gann said about the five cent failure of wheat in 1861 (on page 71).

Socrates hinted at the value of Squaring five: 0, 1 x 5 = 5 x 5 = 25 x 5 = 125 x 5 = 625 x 5 = 3125 = M’$pie = 3.125.

All markets will reverse off a musical 1/64, 1/32, 1/16, 1/8, ¼, ½, or 8/8th.

Hermes of Toth, saw that 2 (female) + 3 (male) = 5, so any genius may see that all markets are set inside Murrey’s Harmonic master Squares: 100, 1,000, 10,000, or 100,000 for Brk.A or Brk.B. Simply multiply Harmonic Five: 5 x 5 = 25: 25% 100, 25 x5 = 125: 12.5% of 1,000, 125 x 5 = 625: 6.25% of 10,000, 625 x 5 = 3125 = 3.125% 1/32.

Murrey’s Profit Pie = 3.125.

Every bond trader, the past 100 years has been trading off 1/32 of 100 par value: 8th grade logic.

The New Atlantis was said to be built on the Three Stars surrounded by (seven) stars (states): middle Tennessee.

Nashville, Tennessee, is the only place on this Earth, where three stars are set on one of the Languedoc regions on the pearl necklace of sacred sites (just behind the Tennessee State Capital).

Sulfur Dell had seven roads leading to it, exactly where the Three Stars set (now).

25,000 B.C. animals in middle Tennessee discovered sulfur as a healing drug.

As a child, T. Henning Murrey would see “poor people”

come and fill gallon jugs full of the “foul” smelling sulfur from the backside of the Werthan Bag Company, (who owned the well).

Nashvillian, Charles Jones, who was poor, and lived near the Buena Vista Projects, on Buchanan St., moved past poverty, and now, owns the Werthan Bag Property, and is making upscale housing right where no one wanted to be “from” in the 1930’s or 1940’s.

T. Henning Murrey lived in the “Cheatum”“projects” across the street from Werthan Bag Company.

In Nashville, ½ mile from The Three Stars, set on a Holy Mound, Cedar Knob, of the American Indian, is a Greek Temple of Democracy, named the Tennessee State Capital.

Nash means Great Coffin. There are thousands of American Indians buried along the river near this Holy Mound.

Nashville is the Harmonic Musical Scale Pitch (land) set between the Granite and marble of East Tennessee, and the crystals of Arkansas, and the Serpent Mounds in Ohio. Three different kinds of music originated here.

The Gatlin Brothers live near Nashville, Tennessee. Larry, Rudy, and Steve are professional singers. They have sang in front of crowds at the White House for President George Bush. They know him personally, also. Steve was in attendance at my last class in Nashville, and made + $ 500 in fifteen minutes watching a stock move from the key of “C” to the key of “F”. It’s this easy folks.

1796 in Nashville formed its 1st Masonic Lodge, carried forward from North Carolina. It was named St. Tammany # 01, but was named Harmony Lodge # 01 by its original 40 members, then it reverted to Tennessee Lodge # 01. Why? Joseph Schillinger, came to US, and taught music and math at New York University and Columbia University and he knew how to set music to the Fibonacci Ratio.

His best students: Gershwin, Goodman, Miller. He even set a short interval of the Dow 30 Index to music and it matched up to some music by J.S. Bach.

1935 Ralph Nelson Elliott was bored and looked at Dow 30 Index as moving in waves set to Fibonacci Ratio: up five then down A, B, C. He had 144 waves in one Grand Wave.

The Elliott Wave is a variation of The Fourier Wave Transform Pattern.

So, T. Henning Murrey is compared to Galios, from France, who at 16, finally entered school, then at 17, wrote his insights to Quentic Theorms (quantum equations), he (Murrey) never entered the trading arena until he was 51 years old, and figured it all (out) in 90 days after reading one book 50 times.

Since Galios was from the wrong side of the tracks, and had no formal education, his paper was laid aside, so one of the big universities could get credit for it (his work).

This (same) cheating scheme is being planned against Murrey’s Logic right now.

The top 25 Universities know about Murrey’s original work, but they are afraid to bringing it to the surface, so their students will quit accepting “Buy and Hold” as the national standard.

Last August, 2004, Murrey went over to Vanderbilt, near

Kirkland Hall, and heard past Secretary of Commerce Mickey Kantor, from West End High School, Nashville speak. He said two strong points: 1) the world needs to increase its own internal food production, 2) intellectual rights must be protected world wide.

He used to come to see Murrey play basketball, when he was in high school.

We spoke briefly after his talk at the Y.U. Law School on International Negociations.

They are waiting for their higher authority to allow them to teach this “new truth” as it is carved into a stone at Kirkland Hall at Vanderbilt University.

Last November, 2004, Murrey was having lunch with his daughter, at Houston’s Restaurant, named after Sam Houston, from East Tennessee, who went to Texas to fight at the Alamo, which is five blocks from Kirkland Hall.

Murrey’s daughter was talking with his sister, who had typed Bill Frist’s papers at Vanderbilt, when he was matriculating through med school, and in comes Senator Bill Frist, who stopped to talk with Steve Riven, who grew up with the Frist “boys,” in Belle Meade, then he came over and spoke briefly with Murrey. Did we talk about trading?

We did agree that most things are easier than they appear (to solve).

T. Henning Murrey taught Ryan (Anytos) Waring, from Glendora, California, and he has taught his buddies and they have made + $10,000 paper trading the Forex since Jan. 04 2005.

These teenagers know only what Murrey taught them with his real time software.

These boys listen to DVD’s, play X box games, do their homework, and trade the Forex Currencies at the same time.

August 2004, Robert Precktor, from Georgia, came on CNBC TV, and said that back in Feb. 2004 highs, signaled a bear market rally to fail.

We are higher than his Feb. highs. So when will his Elliott Wave take this up market down?

The Tennessee State Capital was designed by William Strickland, a 33rd Degree Mason, who was buried in this Holy Place.

He was instructed by Thomas Jefferson, 33rd Degree Mason, who studied the Indian Languages, which were said to be Harmonic.

Strickland brought with him many secret papers, which Jefferson kept secret from public view. Who really knows?

This Temple was constructed in 1855.

Old Stone Fort, near Tullahoma, Tennessee, has a moat 1200 feet long, which resembles Stone Henge in England.

In 1780’s a Tennessee Indian Chief, Oconostota, told John Sevier, that he passed down the story of a man, Welsh Prince Madoc, in the twelfth century, who had come to Tennessee, in search of the tall white Indians, Titans or Mandans. He was here three hundred years before Columbus to Florida coast.

Dhyani Ywahoo is a 27th generation Cherokee Indian, who relates the same musical tone, brought the Indians to this Earth, from the Pleiades, from Teli (Tulla) homa.

The same musical story is related in Sumaria 3,125 B.C.by

Traders World Magazine • Winter/Early Spring 2005

21

way of the star Soraya.

Nashville had graduates of Harvard and Princeton move to live here in 1790, who were Masons.

Nashille, 1709, had the highest I.Q. west of the Appalachian Mountains and south of the Ohio River, before it was a state.

Nashville high I.Q. citizens knew: Menos and Anytos from Plato’s Republic: 4 Square: Theon’s Demonstation side diagonal 17; and how Vesica Piscis could set all of the Platonic Solids from one point.

T. Henning Murrey’s ancestors lived on Market Street, before 1800, which was ¼ mile from the Holy Mound of the American Indians.

The 1st brick house constructed in Nashville, Tennessee, was built by Dr. Henning, M.D., in 1805, which is now 200 years later.

It was knocked down around the Civil War Era. T. Henning Murrey was named after Dr. Thomas Henning Murrey M.D. graduate of Vanderbilt University.

In 1805, in Nashville, the average man lived to be only 43.75 years of “old age.”

The winds blow between 40.625 and 43.75 miles per hour, over the top of the Holy Indian Mound, Cedar Knob.

The pitch of the flute of the American Indian, 437.50 cycles per second, is the same pitch used for music by Mozart and Chopin, at the same time in Europe: go figure.

The Earth radiates 43.75 hertz per (every rotation of the Earth) twenty four hours, in Nashville, Tennessee.

The harmonic pitch in the King’s Tomb in the Great Pyramid is set to 437.50 cycles per second.

Murrey discovered in 1993, 437.50 cycles per second, is the 7/8th, or key of B inside the seventh Internal Trading Octave from zero to 50. The key of B has five sharps and no flats: volatile.

Last week Murrey had classes in Nashville, Tennessee, and one of the Gatlins, Steve, who is personal friend of President George Bush, was in attendance, and made money off the Key of “F” reversal on a “baby” stock.

During the Civil War a large hole was dug near the State Capital and southern prisoners were dumped into it, and

tossed down crackers and bags of water.

Last week Murrey met with several American Indians, who came from all over this country, when they were in the state capital, to receive an apology, from one of President Andrew Jackson’s relatives, from Europe.

Andrew Jackson was a Mason, who was part of Mason Lodge # 01 Harmony in Nashville, Tennessee.

Numerous US Presidents were fascinated with the language of George Gist (Sequoyah) mensa from Tennessee.

He created his own alphabet and written language. He printed the Bible in Cherokee language.

T. Henning Murrey created his own simplified version of Vedic Math: Murrey Math.

Murrey’s Perfect Binary Linear Algorithm: Murrey’s Profit Pie: M’ $pie = 3.125: Inverse Growth Larger: ½, ¼, or 1/8th Forward more cohesive was discovered in 1993.

In 1995 The US Congress passed a law, banning the Harmonic Language of the American Indians, to be taught to their children, in public schools.

Will the US Congress pass a law banning successful trading with MM? T. Henning Murrey, had passed down to him, from his relatives, who came to Nashville in 1788, from North Carolina,

by Thomas Porter Murrey, from The James Town Colony, in 1620 by Sir David Murrey, from his relatives from Robert Murrey, from the Isle of Man in 1520, who complied The Book of Murrey, when he was in Turkey, as knowledge came from Egypt to Turkey.

Would you convert from irrational percentages, to rational percentages, if they could be no more than 120 different numbers set to an artificial musical scale?

Are you confused?

Are you lazy, afraid to think, tired of trying so many random trading strategies? Have you almost given up?

Looking for a simple, reliable, strategy using only 13 numbers for the Dow 30 Index the past 13 months?

Simply request The Murrey Math Trading System Software Program: copyright 1998 – 2005 from Trader’s

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Winter/Early Spring 2005 • Traders World Magazine

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dan@chartpattern.com

World Magazine, then you may memorize all the numbers in one hour.

Why waste hours, on the Internet, trying to “steal” them as kids steal songs free?

You may get a trial version “cheap.”

The Book of Murrey contains several laws from The Laws of The Squares, of which there were 144. They are kept out of the hands of ignorant humans. They have been hidden since One A.D. Pacioli’s painting De Viribus shows one of the magic squares: of 16 numbers arranged to equal 34.

His numbers are: (from 1514 A.D.) 16, 03, 02, 13, 05, 10, 11, 08, 09, 06, 07, 12, 04, 15, 14, 01.

The Book of Murrey, 1562 A.D. brought over from Turkey, earlier, when the knowledge was being destroyed, presents a different arrangement, which is Murrey’s Chaos in Perpetual Motion: Yin and Yang: 15, 04, 05, 10, 06, 09, 16, 03, 12, 07, 02, 13, 01, 14, 11, 08,* which is the new arrangement created

by T. Henning Murrey, so you are to get 32 groups of (34) or 17 x 2, which is the mirror, or dark glass, Cor:13, 12. *Please a definition of how to use these numbers to defrag your trading brain, and Murrey will send it to you free.

What is the ultimate you could see that would be a mirror of Yin and Yang?

Since 1988, Trader’s World Magazine, has been accepting articles on the latest “new and improved” Indicator, but not one person, has ever seen that all markets are set to one number: 3.125.

T. Henning Murrey “owns” the Intellectual Rights to the 120 (exact) numbers between zero and 100, inside Murrey’s Master Square: 100; the 120 (exact) numbers from zero to 1,000, inside Murrey’s Master Square 1,000; the 120 (exact) numbers between zero and 10,000, inside Murrey’s Mater Square: 10,000; the 120 (exact) numbers between zero and 100,000, inside Murrey’s Master Square: 100,000.

Every trading “guru,” or broker, financial planner, or mutual fund advisor, will tell you that all markets are random. Please ask them, and smile.

At the CME, T. Henning Murrey set up his “live” real time software program and typed in only one name: ESZ4 and the S&P 500 Dec. Futures “real time” chart appeared.

Next, he typed in ECZ4 and the Euro appeared in “real time.”

As the morning trading session was in progress, numerous “floor traders” wandered into the classroom for a quick look, at how anyone is able to trade all markets using only one number: 3.125.

Murrey always got the same two questions: 1) How does it work?

2) How does it predict reverses?

It takes four hours to explain how to set up all markets from zero to 100.

So, why do you want to know how it works (internally)? Please don’t waste the time.

The money is always made in the execution by the “driver” not the mechanic that tunes your car.

These men were “too busy” to write their own software program, so they simple asked, “what is the reversal signal?”

Simply reverse off Yellows and Blues or any 5/8th move.* Floor traders making over + $ 100,000 year in and year out, want to know only three simple rules: 1) Best Long or Short, 2) Safest stop loss, 3) Normal profit for 50%.

Please look at the charts: 1) S&P 64 day, 2) Euro 64 day, 3) CME 64 day, 4) Interest Rates 32 day.

Do you want to profit from a “gurus” predictable knowledge, or do you want to improve on what they have learned?

It takes at least six months of study, day and night, or $ 50,000 worth of billable time, to get close to what it takes to ask for in one sentence: please send trial version for a “look see if it works.”

Please notice that every chart has an upper band set on the MM 5/8th line, and a lower band along the MM 3/8th line.

Now, go to the left side and find a small line just above, or below (each): marked A and B. The top one is called A. We must keep closing above it, to move higher. We get a panic “Short Cover Squeeze” panic push up here.

The bottom one is called B. When we get a close below it, if it goes lower, in the future, it will come back down a touch B 1 Long or B 2.

If we have a low down below our MM 0/8th, it wants to try and fight to fall back down toward the old lows. *We have B 1 Long as our best odds trade to Buy any market.

B 2 Long: 2nd best odds Buy, B 3 Short: 3rd best odds Buy. B 4 Short: 4th best (weakest) odds short.

If it closes below MM – 2/8th, it has the responsibility to fall lower and frame shift lower.

We have A 1 Short as our best odds trade to sell or short any market.

A 2 Short: 2nd best odds short, A 3 Short: 3rd best odds short.

A 4 Short: 4th best (weakest) odds short.

If we get a close above A 4 Short, we will get a MM frame shift higher, and the price will have an opportunity, not responsibility, to move higher.

If you become afraid and confused, when there is a frame shift, simply shift it 100 times in one hour and you will see why it shifts. It is the same as what W.D. Gann told you in his book on commodities. Please read it and know.

So you can see that Murrey predicted

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www.tradersworld.com (order on-line) future highs 90 days in advance (off only one number): M’$pie = 3.125.

The Labor Day Week, in Chicago, at The Chicago Mercantile Exchange, everyone curious to ask, was told that their stock would get resistance up at: CME: trading around 128.125 1) 137.50, 2) 150, 3) 162.50, 4) 175, 5) 187.50, 6) 200, 7) 212.50, 8) 225, 9) 228.125, which is up 100 points.

It reversed (going up) off every one of these predictions.

It made a Pro “S” fake out higher, above 225, so the rookies, outside of Chicago, would try another breakout, then, “they” would tank it lower.

Every trader at the CME knew exactly how to trade their own stock.

October 09, 1998, the US stock market reversed on Murrey’s birthday.

The Nasdaq Index went up from 2,500 to 5,000, so every one at the CME were ready to short it when it went up 100.

Please look at the longer term chart, and you will see that the CME went up on a 45 degree angle, so it had to fall and touch: 1) 22.5 degree angle, 2) MM 4/8th, and 3) 11.25 degree angle.

Since it fell below B’s small line, it will have to go and touch 162.50 or 150, since it started its up turn down at 128.125 (below MM 0/8th).

Any 8th grader can figure out how you get all these numbers from M’$pie = 3.125. We don’t teach the obvious.

CME moved up from 181.25, then fell right back down to it for a double bottom. If you like stocks that move up 100 points, this was a great short.

This felt like 2000 again. Thanks, CME for tanking almost – 50 points fast.

24

The Euro Currency was trading around 1.19625 on MM 1/8th, so Murrey told them to expect to find upside resistance at: 1) 1.2207, 2) 1.2451, 3) 1.2695, 4) 1.2939, 5) 1.3184, 6) 1.3428, 7) 1.3672 MM 8/8th.

Please look at the 90 day chart and you will see that our MM Square in Time Trading Frame, should expect a reversal over at 8/8th in Time the 1st week in January 2005.

It went up + 7/8th and fell to MM 4/ th 8 where it is to reverse up the 1st time down to it.

We have included a 32 day chart of Euro Currency, so you may see that you are able to pick off small profits, as it moves up and down long term.

The S&P 500 Cash Market was trading around 1,109.375 Labor Day Week.

Murrey predicted a sell off no more than – 3/8th toward 1,093.75, then upside pressure would be at: 1) 1,140.625, double top, 2) 1,156.25, 3) 1,171,87, 4) 1,87.50, 5) 1,203.125, 6) 1,218.75 MM + 2/8th.

Every S&P 500 Trader in the world, knows that one number: M’$pie = 3.125, or 390 degrees from zero, was known right after Labor Day: 360 degrees plus 30 degrees = 390 x 3.125 = 1,218.75mm.

87,500 traders looked at this number and laughed, when it reversed ½ point below Murrey’s number he put in his book in 1993. There is no random market.

Everyone listens to TV each day as to the affect of Interest Rates on the direction of the US stock market.

Winter/Early Spring 2005 • Traders World Magazine

Oct.08 2004 started the new trading year for bonds. They were at 50 (5.0%) 5 x 10 = 50, set in the Harmonic MM Trading Frame 43.75 to fifty: go figure.

So, look at A 1, A 2, A 3, and A 4.

We saw it tank on A 3 Yellow MM + 1/8th or the Key of C in the next (higher octave).

We know that if it closes below MM 3/8th at B, it will fall to MM 1/8th (B 1) or MM 0/8th at (B 2). It did.

Murrey asks his students to reverse off yellows and blues, or any 5/8th moves.

You have three choices: 1) guess trade for success, 2) try a new gimmick new week, 3) yellows and blues, 5/8th moves.

Murrey sends out E Mails to over 1,250 traders weekly, so we are gaining as a force of traders using Logic: Math MM. We will send you all 420 numbers any market will ever reverse off for $ 43.75.

The trading life of the average trader is cut short, since they are always trying a new theory. Why not just trade every time it hits a yellow or blue or 5/8th move and quit guessing?

In 1993, T. Henning Murrey saw that all markets reverse off one number. He proved it in 90 days of trading, with no prior experience trading.

He told hundreds of traders. They called him a fool.

Murrey told them in 1995, to expect the US markets to start reversing off his birthday, in the future, since they laughed at him in 1993.

We got an up move in 1998, on October 09, then again, on October 09, 2002.

We are up almost 3,750 points from Murrey’s birthday October lows.

In 1993, Murrey discovered Murrey’s Perfect Binary Linear Algorithm: Murrey’s Profit Pie: M’$pie = 3.125: Inverse: ½, ¼, or 1/8 growth larger.

Murrey’s Perfect Algorithm sets all markets inside one of 128 different octaves per Master Murrey Math Square.

Singer, song writer, James Taylor, wrote the song October “lows.” Who did he dedicate it to?

Books for reading edification: 1) Exploring Chaos edited by Nina Hall speaks to Chaos on the Trading Floor 2) Cloak of the Illuminati by William Henry 3) Dialogues of Plato by Rouse 4) The Golden Ratio by Mario Livio the story of Phi 5) The Giza Power Plant by Christopher Dunn 6) Fermat’s Enigma by Simon Singh T. Henning Murrey teaches basic and “live real time” trading classes. His books and software can be purchased in this magazine on ths page or by calling Traders World 800-288-4266 or at www.tradersworld.com.

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The Origins of Financial Astrology

By Brad Stewart n his 1909 interview in The Ticker & Investment Digest, W. D. Gann introduces The Law of Vibration and claims Natural Philosophy as the basis of his trading system, leading to a general assumption that Gann developed his astrological methods later in his career. Yet some have continued to question whether the Law of Vibration was actually a veil for the more esoteric and astrological work that Gann and his circle were practicing from the outset. Until recently, there was no clear evidence to definitively confirm either theory, however, we have uncovered a number of new pieces of information which will bring about a serious reconsideration of this question, in particular a set of onion skin manuscripts dating as early as 1902, 20 years earlier than almost all known works on financial astrology .

The first 1902 manuscript gives us a startlingly new and radically altered insight into the techniques used by the forefathers of astro-finance, in that it is the most advanced and important single document on astro-finance that we have ever seen, including everything written in the ensuing 100 years.

The second two manuscripts, written in approximately 1917 and 1930, add to the mystery by presenting advance astro-finance methodologies and insights that have not been duplicated in any other work since. Interestingly, the final undated manuscript, marked “…Confidential…” across the bottom,

I

is on Market Trends & The Volume Rule, and is written in a style and with a content surprisingly similar to Gann’s.

Unfortunately, there is no mention of an author in any of these documents, and the 1917 & 1930 pieces are missing their title page, perhaps to conceal a revealing stationary header? The original manuscripts are all in the same format, typed carbon copies on onion skin paper, with occasional blue and red pencil lines highlighting important points, something Gann used to do in some of his books and original courses.

Of course, we were immediately tantalized by the possibility that these manuscripts could perhaps be Gann’s missing astrological courses, which everyone has long dreamt might exist, but which no one has ever seen. So far, we have been unable to determine whether or not these manuscripts could possibly have been written by Gann, but further discoveries have confirmed that they definitely come from someone within Gann’s immediate circle. Recently we released a collection of the rarest books from Gann’s Recommended Reading List, many of which have been sought for over 50 years with no success.

Contained within these books were new clues to some of the questions asked above, and to the possible authorship of the manuscripts.

Directly relating to the manuscripts, we discovered in Fred White’s Guide To Astrology, one of the Gann List books written in 1901, a section on

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26

EMAIL: INSTIUTE@SACREDSCIENCE.COM (800) 756-6141

Winter/Early Spring 2005 • Traders World Magazine

the conjoined use of heliocentric and geocentric astrology in the markets, which was directly copied into the 1902 manuscript. This implies either that White is the author of the manuscripts, or that the author copied this one page section directly from Fred White. The author also makes reference to White’s Ephemeris and to certain pages in White’s Guide to Astrology. If Fred White is the author, this opens up some fascinating doorways of consideration.

We know Gann and White had some connection because White’s Guide To Astrology is included on Gann’s Recommended Reading List, and it is known that Gann and Johndro worked together, and Johndro was a regular contributor to White’s The Adept: Journal of American Astrology, along with Professor Weston, whose Forecasting manuscript is rumored to have been the one item locked in Gann’s office safe, so it is no large step to infer that this entire circle was well known to each other, and probably in direct contact. In the 1917 manuscript, the author makes reference to his correspondence with Sepharial, and knowing that Gann also knew Sepharial, the circle continues to tighten.

At the time this first manuscript was written, Gann was only 23 years old, so the likelihood that he had already done this level of astrological research is slim, if not impossible. We have heard that Gann began to study astrology in New Orleans before ever arriving on the East Coast, so the idea of his seeking out fellow astrologers upon his arrival is a natural assumption. Gann was known throughout his life to travel the world seeking information and knowledgeable contacts, including flights around the country in his own airplane, meeting up with the like of Elbert Benjamin, also known as CC Zain, to collaborate on research, as well as trips to the British Museum Library and rumored trips to India where he may have discovered the Square of Nine. His involvement with the Freemasons, particularly with his being at the 33rd degree, would further inevitably connect him with a vast network of serious esoteric individuals across the world.

Another probably associate is the Gann List author, Gregorius, from whose recently released Master Key of Destiny, we’ve now learned was not just an astrologer, but a market analyst.

In his 1924 Master Key, Gregorius mentions that “his service includes: SemiAnnual Stock, Bond and General Market Forecasts $250; Grain & Wheat Futures: A Reliable Guide to Fluctuations Of the Domestic Grain Market $250; Mundane Forecasts Giving Accurate Outlines of the Fluctuations to be Expected in International Trade, Finance & Events $250.” These are very weighty price tags in 1924 dollars, much like Gann’s $5000 price tag for his courses in the 1940’s. Unfortunately, no one today has ever seen or even heard of these works, so we have no idea what interesting secrets may lie hidden in these lost treasures.

Many have wondered whether Gann developed all of his theories on his own,

or whether he had some sort of an intellectual benefactor.

The existence of these manuscripts at the outset of Gann’s career demonstrates to us that there were certainly qualified individuals who had thoroughly mastered financial astrology at the turn of the 20th century. Shockingly, we feel that these manuscripts will demonstrate that our favorite forefathers of astro-finance actually possessed a more penetrating and profound insight into financial astrology than any but the most advanced astro-analysts of today, and perhaps even more so than they. This proves to us that these deeper insights were, beyond a doubt, kept extremely secret, as almost no record of any of these facts has passed down to us today, only Sepharial’s two Arcana and Weston’s work, and now these manuscripts, the 1902 piece predating all the others by 20 years.

Who these days has ever heard of Gregorius’ financial reports, and would he not have had a course as well? And what of J.P. Morgan’s astrologer, Evangeline Adams?

Nothing survives from her pertaining to financial analysis, yet she certainly did something for old J.P, who was the one who said, “Millionaires don’t use astrology, billionaires do!”

These occasional discoveries reveal to us that there is probably more that we do not know of the secrets of those times than all that which we do.

Of particular interest are the descriptions given by the author of the manuscripts of himself and of his forecasting and trading experience. At one point the author explains, “During the period from Sept. 1st to Dec. 24th, 1901, the Author was with a large Brokerage House in Boston, and his Forecasts on American Copper were so surprisingly correct, that he was accused of having information from an inside source.

After having traced the movements in the Stock Market back for fifty years, and noting the position of the planets, we are convinced that the system of directions which I use, taken altogether with transits are almost infallible. For several years while Sugar Stock was active, we successfully called every important move, by using the Heliocentric position of the planets. The Author has been able to prognosticate every day correctly without one failure for six consecutive weeks.

The student will be able to find many more INFALLABLE rules to follow… he will make mistakes, but his correctness on the rules given will demonstrate that the planets absolutely influence the markets.”

This would be a very impressive record for an expert today, yet the author accomplished this in 1901 using only financial astrology, and with no computer. The system with which he accomplished this is laid out in this manuscript, a lucid exposition of a precise set of astrological rules, to follow in a specific order, to forecast stocks, bonds and commodities, backtested over 50 years of data, and traded professionally.

The author uses an integration of Heliocentric and Geocentric astrology, which Baumring first pointed out in modern times had likewise been used by Gann. He states in a section entitled “For Speculation”, that “The Author, however, does not solely rely upon Heliocentric positions… there is no doubt whatever that the heliocentric system shows the tendency of all speculative markets. The Geocentric system has a few indications which are of great value in forming an opinion at times, but without the Heliocentric system for speculation, the astrologer is as badly off as he would be without his head.”

The section from which this quote is taken is an exact duplicate of a page in Fred White’s Guide To Astrology.

This 1902 manuscript is even more original in its integration of a number of techniques rarely taught or used today, such as, elevations, latitude & longitude, the parallel aspect, right ascension, declination, planetary days & hours, transits, directions, and the nodes of the planets, elegantly weaving them into a system with clear and precise rules of application for forecasting the markets, and including examples from the wheat and sugar markets. An example of the sophistication of his methods is shown in the following statement, “All speculative markets, Stock, Railroads and Mines, are governed to a great extent by the Elevation of the Planets; by Elevation, I refer to Delineation, and considering both Declination and Longitude, I find that Declination is more important than Longitude. The Parallel aspect is more powerful than a conjunction, but all aspects depend somewhat upon the conditions which exist at the ingress of the Sun into Aries or Libra, and at the time of a New Moon.”

The next two manuscripts are equally interesting in that

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The third manuscript, written in 1930, contains another complete system of reading market trends according to the New Moon, as different from the other two as could be, yet original in its methodology and application. This section presents a swing by swing analysis of the indications of the New Moon on the market for a 5 year period from 1897 to 1902, and demonstrates how to read the signs to determine direction and change in trend using only the moon. It is loaded with fascinating insights like, “An important discovery made in connection with these researches is that two New Moons in the same sign and in the same year invariably shows the market trend for the ensuing 12 months.” Other statements sound as if they came straight from Gann, such as, “Always bear in mind that if a stock continues gains or losses for three consecutive days, it is an indication that a change of trend will Traders World Magazine • Winter/Early Spring 2005

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Winter/Early Spring 2005 • Traders World Magazine

then follow. Always watch the volume of sales….” Then more interesting astrology, “Planets in declination and when forming parallels are more potent in their effects than the aspects in longitude. Observe that during the latter part of 1930, every lunar conjunction with Uranus will be an occultation.”

Near the end there are some curious statements concerning cycles. First, in the 1901 market analysis, he notes, “The market has been advancing since 1896, and we know that it moves in ten year cycles, and as five years is a half cycle and prices are the highest in history, we can naturally expect that a good decline will follow.” He continues with, “While some commentators follow the theory that the Stock Market is influenced by ten year cycles, astrological principles would seem to suggest a 11.9 year cycle coinciding with the perihelion of Jupiter.” And then, “The market problem involves various cycles impinging upon each other and one cannot lay down any empirical rules until these cycles are carefully computed.” Professor Weston was surely the commentator to whom the author refers, as his work represents the earliest application of Fourier Sequences to market analysis, by breaking down component cycle waves and combining them to produce a composite model. Weston was a regular contributor to White’s journal, The Adept. Weston was also one of the first to propose a theory of the 10 year cycle, actually with two different versions of the ten year pattern. The first is his computation based on 50 years of data, of a series composed of 14, 20 and 28 months, called the Venus term and based upon the Heliocentric system. The second is a sequence which divides the Jupiter/Saturn cycle into 10 irregular parts, but follows the Geocentric system, so again we see that this inner circle all used a combined Helio and Geo-centric system. Professor Weston was a great influence on Gann, implied by his manuscript being locked in Gann’s safe, and he may have been the one who introduced Gann to Fourier cycle theory, providing Gann with the foundation for his 10 year cycle with its multiples. In any event, these manuscripts help to illustrate further theoretical and historical connections between the icons of esoteric finance.

The final manuscript presenting rules on Market Trends, Price and Volume Trading Pointers, and The Volume Rule, is so similar to Gann that it could almost be straight out of one of his courses. The principles and presentation of the rules on market volume will be so familiar to readers of Gann, that one is left with a strong impression that either Gann copied the style of this author, or the author borrowed this information from Gann.

Reminiscent of the old master is the following quote, “Stocks have habits and characteristics which are distinct as those of human beings or animals. It is worth while becoming acquainted with those habits in order to anticipate stock movements.” Or this, “With corporation profits at the expense of the lambs, great buildings are constructed.”

The conclusion we’ve drawn from these insights into this network of connections leads us to believe that the financial forecasting community of the early 1900s was a highly advanced and tightly knit community of individuals who regularly collaborated and shared insights. This is not unlike today, where most everyone publicly participating in Gann research is somewhat aware of the other players, with many in personal contact, except that today there are considerably more players in the game. With the discovery of these manuscripts, we are left with as many questions as answers, such as, if, when and to what degree all these individuals collaborated together, and at what point, and by whom were the foundational elements of modern financial astrology developed? The difficulty in tracking or confirming these connections lies in the secrecy with which this deeper material was held, and the elusiveness of the documentation that proves it, which if not altogether lost or destroyed, then remains in private hands and is, sadly, unlikely to reach the public forum.

Rather than do as most private Gann research groups do and lock these manuscripts away for our own private research, we have decided to release this new find to the public Gann community, to further the research and insight into financial astrology and the origins of Gann’s wisdom. We feel these Earliest Financial Astrology Manuscripts, now first published over 100 years after their original authorship, will provide a deeper insight into the minds of the early market masters, and introduce us to the hidden techniques of financial astrology as used in the earliest days of this secret tradition.

Brad Stewart can be contacted at Sacred Science.com, Email institute@sacredscience.com, 800-756-6141, 951-659-8181

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It has over 250 technical indicators and charting tools with customizable spreadsheets so that you can see what is behind charts. It also allows you to write formulas for your own technical indicators. It has a rule based entry and exit system that allows you to fully test systems. The really neat part of TradingSolutions is its Neural Network function, which allows it to learn prior patterns for the best time to buy or sell the markets in the future.

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29

NO STUDIES? NO INDICATORS? NO WAY… nce you hit a ten-point trade—you O get a “fish” name. Who else can offer you that?

Trading the Emini S&P has never been smoother, but there are still many challenges for players to overcome.

Unlike the old days, the trade execution platforms available today offer up little for dispute, with fill prices or “slippage” minimal in even the fastest market moves. There’s no waiting around for a call back from your broker -- simply push a button and you’re instantly in.

However, which button to push remains the elusive question.

Though there have been advances in the field, serious research, and indicators over the years-- all the generated information looks like recycled renditions of the same haggard stuff. No real progress, just repackaging. Wouldn’t it seem with all the technology available, someone could come up with a revolutionary indicator that displays the one-touch answers we seek? Yet we search, spend money, work hard, and study even harder. Eventually, we are left with the fact that there are few fresh, credible answers to be found. Each of us asks: “Should I buy, Should I sell? And, how is anyone supposed to know with all these indicators?

So it was with Steve Boyd.

Steve’s Story Better known as Kingfish, Steve spent years chasing the same fugitive answers that consume your time. Ironically, like many of the lagging indicators he studied, he found himself looking back -- right back to where he had been. And while he found himself astute with all the indicators, followed advice, and put plenty of time in front of the screen, his pockets were empty.

So was his spirit: “It happened after one of those times I blew out my account. I looked in a mirror and conceded that I was a loser. Not that I hadn’t prayed before, but this time I was broken. I asked the Lord to help me with my problems and show me the way. I am the first to admit I’ve made some mistakes along the way, but the methods I teach today, and the wonderful people I’ve come into contact with, are the direct result of those prayers.”

A Gathering of Kindred Traders One of the more populated chat rooms on Paltalk.com, the Kingfish Trader’s room is far from conventional. It’s a gathering of like-minded folks sharing horror stories you can really identify with – all share their experiences, all understand where you have been and where you are headed. The moti-

vating value of this unique kind of comradery cannot be underestimated.

It’s a regular occurrence to hear one or more of the members sing Bingo, which is the Kingfish’s claim to fame.

“Where else can you celebrate, your remarkable trade by getting up on a pedestal in front of friends and singing Bingo?,” quips one of the members.

This happens when a trader closes a trade with a ten-point profit. As a member of this elite group, you are also entitled to add the word “fish” to the end of your screen name. For example, if you go by riskybiz, you become riskybizfish in honor of your achievement.

The Bingo trade is topped only by the Yatzee, which is jubilantly called out upon the close out of a twentypoint profit trade. Both trades are initially staged with a one-point stop.

Though support is abundant, don’t be surprised if you hear a chicken clucking when you jump out too early. The group offers a lighthearted diversion when you need it most.

Finally, there is the coveted Trader of the Week title. The title brings with it a “Kingfish” t-shirt and a personal note of congratulations from the Kingfish himself. “I wear mine everyday I trade now.” says the most recent winner, Billdawg(fish). After being a member for only one week, and in a range-trading week that finally ended on Friday, he proudly posted his ten-point close out. Then, he nervously waited his turn to sing Bingo for the other mem-

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Winter/Early Spring 2005 • Traders World Magazine

bers. The previous holder of the title was also a new member -- only three weeks in the group. She closed out three ten-point trades in a single week.

But it’s not all fun and games, Kingfish sees to it that members gain new knowledge on how to remain competitive: “I’m in here teaching everyday.” says Kingfish, “…and it’s gratifying to see these folks forget everything they have ever been taught and forget everything they have ever known about trading.

The room is full of people from all walks of life: real estate sales people, pilots, construction workers, students, and housewives. We even have a heart surgeon. One of my members is a retired 81-year-old who is a published author and has had three thousand brokers working for him in the past.

I put my method and my calls on the line every day for him and the others to scrutinize. The method proves its own worth because there’s just nowhere for me to hide. I offer a free trial to allow potential members or those who are just curious come in and see it all for themselves. We trade everyday the market is open.”

No More Loneliness “Trading is usually a lonely business.”

Says room member Condor. “It’s easy to tell someone not to take trading personal -- that the market is always right and that he or she just happened to be on the wrong side. But try as you may, it’s almost impossible not to take losing trades personal, especially after studying all those goofy indicators so hard. Losing trades has the potential to damage everything about your life and your well-being. But when you see 20-30 people posting positions long or short, it takes the personal aspect out of each transaction. You no longer feel “the market is against me” thing when you can see your peers fighting the same demons in the heat of the battle. It’s easier to pull the trigger when you’re in touch with a bunch of pros, witnessing their highs right alongside their occasional loss.”

It’s Free Everyone is invited to a free one-week trial period where the real validity and power of the trading program can be experienced first hand. While bragging rights and Bingo’s are usually abundant, don’t expect to hear much hype or sales pitches about success. On the contrary, the conversation is more likely to be about lost fortunes and the time wasted studying lagging indicators.

The chatroom has been around for a good while, but there are no published past histories touting hypothetical or real earnings. “No one really wants to talk about how much they make,” comments Chingfish. “I’ve been a member for five or six years and I wouldn’t be coming in here if there wasn’t something here to offer. Trial members get to see that for themselves.”

Joining the chat room group is simple and Kingfish has a technician available if you encounter any problems.

A visit to the Kingfish.com will introduce you to a new way of thinking.

A visit to the Kingfish trader’s room at Paltalk.com will confirm that the Kingfish philosophy is unconventional in just about every way. The members join for life but are free to come and go as they please. “We teach the method using the e-mini because it’s what we trade,” says Kingfish. “Since we don’t use indicators or studies, the entries and exits are based strictly on price action.

Price action charts can be applied to any time frame in any market. Therefore, some traders like to trade the Forex or Dax for instance, and they only pop in to say hi and visit. Once you learn the method, it’s yours to have and use forever -- with or without me.”

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31

Earth Disturbance Cycles on the Rise

By Eric S. Hadik or the past 10+ years, cycle work has pinpointed the overall period of 2005--2008 - and specifically late2004 through 2005 and late-2007 through late-2008 as two respective 12-month periods within the larger cycle - of projected earth instability. This has been published repeatedly since 1996 and has been featured in a couple Trader’s World articles since 1999. It has been explained that major earthquakes, volcanic eruptions and tsunamis were/are expected during this period.

Following the tragic events of December 2004, TW asked us to reprint and/or elaborate on this analysis, particularly that which had been published in almost every issue of INSIIDE Track during 2004, detailing why late-2004 (and all of 2005) was such a vulnerable period for earth-shaking events. Although I cannot include it all in this article, I will attempt to incorporate all of the previously published ‘high points’ as well as some corroborating information that has been discussed in the past and some new information looking ahead.

This time frame involves a convergence of cycles that range from 100’s & 1,000’s of years in duration down to 6 & 12 month periods. I am going to focus on just those that involve the past century, since these types of cycles require a smaller ‘window of error’ and are therefore more precise and more practical.

One of these cycles should be familiar to Gann enthusiasts.

It is a cycle of 60 years, which was described in the following analysis from July 29, 2004 - titled ‘Shake, Rattle & Roll’: “Throughout the last 10 years, I have outlined many of the longer-term earth-disturbance cycles that converge in 2005 - 2008...I want to hone in on a more contemporary cycle that involves Gann’s Grand Cycle of 60 years. This geometric measurement is also roughly the length of the average human life (60-70 years). As such, it represents a generation of life.

There could be reasons - within the earth and atmosphere why this is so...

When measuring earthquakes of magnitude 7.0 or greater (what would be termed ‘Major’ earthquakes) during the past 100+ years, the period with the greatest number of these earthquakes falls between 1945 and 1950 (a 6-year period).

It is of interest that this small window of time also incorporates the last World War, the birth of the European Union and the statehood of Israel - an event that was Biblically prophesied over 2,000 years ago. This 6-year period was a time of instability and massive change - above and below the earth’s surface. The earth worked for 6 years & then rested...

60 years later - in 2005 - 2010 - I expect to see a strong resurgence of earthquake & volcanic activity (and great change above and below the earth’s surface)...this incorporates a myriad of longer-term cycles - some of them hundreds

F

14/28 1906 -

1920 1934 [1935 [ 1948 1962 1976 -

1990 2004 -

Year Major/Deadly Earthquake 8.2 quake in San Francisco 8.8 quake near Ecuador 7.1 quake - Taiwan 8.2 quake - Chile 8.6 quake - Kansu, China 8.1 quake - India 7.5 quake - Pakistan 7.1/6.5 quakes - Taiwan 7.3 quake - Turkmenistan 7.3 quake - Japan 7.3 quake - Iran 7.5 quake - Guatemala 7.6 quake - China 7.3 quake - Turkey 7.9 quake - Philippines 7.1 quake - New Guinea 6.5 quake - Italy 7.7 quake - Iran 7.8 quake - Philippines 9.0 quake - Indonesia

Cycle 3,000 1,000 1,300 20,000 200,0001 10,700 40,000] 6,000] 12,000 5,400 12,200 22,000 255,000+ 4,000 8,000 5,000+2 1,000 50,000 1,600 250,000+

1 - Estimates run as high as 655,000 dead 2 - 5,000 - 9,000 missing; presumed dead

Table #1

32

Winter/Early Spring 2005 • Traders World Magazine

of years in duration. It is not just the 60-year cycle, but rather the synergy of so many diverse cycles, that pinpoints this time frame and creates these expectations.” “7/29/04 INSIIDE Track” I cannot emphasize strongly enough that this is just a single example out of the plethora of cycles converging at this time.

It is the resulting synergy of all these cycles - not just the isolated impact of 1 or 2 - that ‘screams’ for attention at this time.

On a slightly shorter-term basis, one of the most common and consistent cycles - that has been shown to impact everything from the markets to war - is a 7-year cycle. More to the point, it is two multiples of this - a 14-year & a 28-year cycle.

The 7-year cycle represents a small cycle of time on a natural basis. It is referred to as a ‘week’ or ‘week of years’ in Jewish culture and is cited in Old Testament prophecies many times.

It was the basis for Israel’s agricultural practices and is carried though to the present in modern-day organic agriculture (work the land for 6 years, let it rest on the 7th year).

In 1999--2001, this same 28-year cycle was used to forecast the outbreak of war - and a potential “surprise attack on America’s shores” - for August--October 2001 (there was even a Trader’s World article in 2001, detailing these cycles). Among other things, it was linked to 1917, 1945 & 1973 - all periods of immense importance to the Middle East, Israel & America and all separated by 28 years. This 28-year cycle (and its ½ cycle of 14 years) has also been used in earthquake research and showed a much higher-than-normal potential for an extremely deadly earthquake in 2004. This sequence of earthquakes is detailed in the accompanying table. See Table 1.

This 7-year ‘week’ of time was also cited in the following August 31st, 2004 analysis detailing the ‘week of years’ from 2001--2008 AND its critical midpoint in ‘late-2004--early2005’: “Much of my longer-term cycle work centers around two types of events. One is natural (earth disturbances, etc.) and the other man-made (war/peace cycle w/related political events)...the period of 2005 - 2010 - and in particular 2007 - 2008 - possesses great synergy of converging cycles related to earthquakes & volcanoes.

A marked increase in major (7.0 magnitude or greater) earthquake activity and the eruption of major volcanoes are expected during this period... The year 2001 began with a large concentration of major earthquakes, including 9 of magnitude 6.6 to 7.4 in the first 60 days of the year. In this period, there were 7 earthquakes of magnitude 7.0 or greater...The reason for discussing events in 2001 is because January/July (Americas/Asia) Earth Cycle July 12, 1992...The third in a series of Yucca Valley, CA earthquakes with a 7.0+ magnitude.

July 15-16, 1992...Second eruption of Mt. Pinatubo January 15, 1993...5.7 magnitude quake in Gilroy, CA January 16, 1993...7.5 magnitude quake in N. Japan July 12, 1993...7.8 magnitude quake in N. Japan.

January 17, 1994...6.6 mag. quake in Northridge, CA July 31, 1994...6.4 magnitude quake in N. Japan January 17, 1995...6.8 earthquake in Kobe, Japan July 3, 1995...5.6 magnitude quake struck Tokyo January 7, 1997...7.3 magnitude quake struck Mexico January 17, 1997...Mt. Merapi (Indonesia) erupts January 17, 1997...6.1 quake in Indonesia January 17, 1997...6.3 quake in S. Japan, near Kobe January 21, 1997...6.3 AND 6.4 quakes in W. China January 25, 1999...5.8 quake in Columbia July 11, 1999...6.6 magnitude quake in Honduras January 14, 2000...5.6 AND 5.2 quakes in China July 1 - 30, 2000... 9 quakes (5.4-6.4) in Honshu, Japan July 5 - 24, 2000... 6 quakes (5.4-5.9) in Indonesia January 13, 2001... 7.7 quake El Salvador January 16-18, 2001... 6 quakes (5.5-6.7) in Indonesia January 26, 2001... 7.7 quake in India July 13, 2001... Mt. Mayon (Philipines) & Mt. Etna erupt July 3 - 24, 2001... 6 quakes (5.5-7.2 in Peru, Chile & Bolivia) January 22, 2003... 7.6 quake in Colima, Mexico July 21, 2003... 6.0 quake in Yunnan, China Table #2

they were - and still are - expected to be precursors to 2007 - 2008. In the middle of that 7-year cycle falls the period of late-2004 into early-2005.” 8/31/04 INSIIDE Track Just identifying a year or group of years is of little practical value. Even pinpointing a 2-3 month period - like ‘late-2004 into early-2005’ is a bit ambiguous or difficult to use. It has theoretical interest - and can be used to learn important lessons about cycles - but does not progress much beyond that.

Being able to bring it down to a 30-40 day time frame begins to take on a higher level of significance… and applicability.

With this in mind, one of the most important factors to recognize and understand with regard to earth/natural cycles (and market cycles) is the geometry involved. W.D. Gann recognized this and placed a great deal of emphasis on it when dealing with market cycles, particularly those governed by nature (commodities).

The Old Testament of the Bible includes many events and cycles occurring on anniversary dates (360 degrees on the calendar). One example is the Exodus of the Jews, which took place 430 years after - on the exact day - that they first entered Egypt. There are others cited throughout the Bible.

Our own calendar(s) and schedules are rife with examples of the geometry of time.

Of these geometric cycles, 90, 180 & 360 degrees are the most prevalent (a circle/cycle divided in 2 and 4 equal segments) and appear to be the most important. Our seasons parallel this progression as they change at 90-degree points from one another (completing a 360-degree revolution from one Vernal Equinox to the next). The equinoxes are at 180-degree opposition, as are the solstices. 60 & 30-degree movements in time are a smaller, but equally important division of time.

Everything to do with time - and therefore cycles - is based on 360-degree revolutions, whether that is the moon around the earth, the earth around the sun or other longer-term planetary orbits. This is not the lead-in to a discussion on astrology but rather a simple observation of basic astronomy, geometry… and cycles.

With that said, one of the most intriguing sequence of earth-disturbance cycles is one that continues to impact the occurrence of major earthquakes and volcanoes. It involves 360-degree and 180-degree cycles with the highest concentration of earth events in mid-January and mid-July. However, the overall cycle extends from late-December into late-January (one of the reasons for projecting a major earth event at the end of 2004) and late-June into late-July. So, two separate 30-degree periods of time - at 180-degree intervals - are the most significant. This is demonstrated in the accompanying table.

[NOTE: A perfect - though peculiar - parallel to this cycle can be seen in the average daily or nightly television viewing habits. Two 30-degree periods of time (360 days ? 12 = 30 days // 60 minutes ? 12 = 5 minutes) surrounding 180-degree intervals on the clock (:00 & :30 of each hour) are when the most activity and instability is seen (and when shows transiDec/Jan Major/Deadly Indonesian Earthquakes January 19, 1981 - 6.7 Indonesia December 27, 1985 - 6.6 Indonesia December 12, 1992 - 7.5 in Indonesia/tsunami of 80 feet high, going 1,000 feet inland (at least 2,500 killed) January 1, 1996 - 7.7 earthquake in Indonesia with resulting tsunami December 26, 1996 - 6.0 quake in Indonesia January 17, 1997 - Mt. Merapi in Indonesia erupts January 17, 1997 - 6.1 quake in Indonesia (June 4--July 10, 2000 - 17 earthquakes of magnitude 5.4--7.9 in Indonesia // 180-degree opposition to Dec./Jan. period.)

January 16--18, 2001 - 6 quakes of mag. 5.5--6.9 in Indonesia January 28, 2004 - 7.1 quake Indonesia Jan. 28--Feb. 8, 2004 - 4 major quakes from 6.7--7.3 in Indonesia ***Jan/Feb. 535 AD - Krakatoa, Indonesia - Volcano considered one of the greatest natural catastrophes and which impacted global climate for years to follow. (Speculated date and location based on a myriad of natural and man-made records.)

Table #3

tion from one to the next). And, no, this is not to correlate interruptions of television viewing with earthquake cycles. It is simply an attempt to provide a visual aid to an important cyclic principle.] See Table 2.

Reinforcing the geometry of time, the December 2004 Indonesian quake and tsunami occurred on the exact 1-year anniversary of the most deadly earthquake of 2003 - the December 26, 2003, 6.7 Iranian (Bam) earthquake that killed 26,000+. (This is an intriguing parallel to the Jan. 17, 1994 Northridge, CA & Jan. 17, 1995 Kobe, Japan earthquakes that also struck exactly 1 year/360 degrees apart. Time is VERY geometric, particularly in earth cycles.)

Reinforcing the cyclic & geometric nature of these events, the 2003 Iranian quake came almost exactly 180 days/degrees from a 6.0 quake in the same region that killed 500 people on June 22, 2003.

The recent Indonesian quake came 45 days after a 7.3 ‘precursor’ quake hit Indonesia, 30 days from a 7.1 quake in Indonesia AND exactly 90 days from seismic activity on this side of the globe, when a 6.0 quake struck C. California as Mt. St. Helens began to erupt - both in late-September, 2004.

Whether these N. American ones have any relationship is debatable, but it is similar to the geometric sequence of quakes listed in Table 2.

This Indonesian quake also came at the inter-month anniversaries of other 7.0+ quakes in Indonesia from earlier in 2004. As bookends to a troublesome year, 2004 began with a swarm of major Indonesian earthquakes between January 28 - February 7th (3 quakes ranging from 6.7 to 7.3) and ended with an even greater swarm of deadly quakes.

If these facts were simply being pointed out & discussed after the fact, they would be spurious at best. However, warnings about the late-December 2004 time frame had been cited throughout 2003 & 2004. Late-June 2004 - exactly 180 degrees BEFORE the late-December 2004 time period - reinforced this analysis and was detailed in this June 30, 2004 quote: “It didn’t take long as multiple major earthquakes struck around the globe in the days that followed (2 of these came within 24 hours of publication). A 6.6 struck Japan and a 6.4 struck Iran, followed by a pair of 6.3 quakes near Australia and a 6.3 in Russia in the days that followed. The month of June is also ending with a small flurry of 6.0+ quakes, the latest of which just hit off the coast of Costa Rica...I do not really expect a dramatic & sustained increase in quakes & volcanoes to take hold until later this year...” “6/30/04 INSIIDE Track” Another interesting & closely related cycle has prevailed in Indonesia for at least the past 25 years. Indonesia is known as one of the most seismically active regions in the world.

So, an earthquake there - particularly something in the 5.5 or lower magnitude range - is commonplace. However, there is a much higher concentration of major Indonesian earthquakes and volcanoes (Mt. Merapi, Krakatoa) around the turn of each year.

This coincides with the Jan/July cycle and incorporates the time frame from late-December until late-January (with intervening flurries in late-June through late-July - the 180 opposition point on a calendar). These quakes have been included in INSIIDE Track issues since January 1997 and in the previously cited TW articles. Several of them have also resulted in deadly tsunamis - just not to the degree of this last one. Among these major earthquakes (and 1 volcanic eruption) are the following: See Table 3.

[I will be watching late-June to mid-July 2005 throughout Asia, particularly in Indonesia for new earth disturbances.

However, late-December 2005 through late-January 2006 is the highest-risk time frame.]

Another interesting phenomenon was seen in late-September 2004 - exactly 90 degrees before this massive earthquake.

This was also discussed before the fact (in October 2004) and is highlighted in this quote from www.sciencedaily.com...

“Three powerful recent blasts from three wholly different regions in space have left scientists scrambling. The blasts, Traders World Magazine • Winter/Early Spring 2005

33

which lasted only a few seconds, might be early alert systems for star explosions called supernova, which could start appearing any day.”

Are these events connected?

That, too, has been discussed in detail in years past. And I, for one, believe the answer is a resounding ‘YES’. One of the biggest celestial links to earth instability and increased seismicity involves the cycle of sunspots. While the overall sunspot cycle is expected to bottom around 2006, there have been several surprise solar storms - in the past 18 months - that have greatly exceeded the norm for this phase of the sunspot cycle. Two of the most noteworthy storms were in late-2003 & late-2004.

Is there a connection??

Another documented link to increased earthquake activity is climate transition. For the past two years, I have attempted to explain why I believe the current global warming is VERY cyclical (and mirrors the same thing seen around the year 1,000 AD, although we have not yet reached the temperature extremes seen back then) and is entering a time frame when both the 100-year and 1,000-year climate cycles peak. As a result, global warming should peak and reverse lower during the next two decades, potentially in the next few years. Historically, these times of transition - particularly when they involve the extremes of multiple cycles - coincide with an increase in major earth disturbances.

With regard to the 100-year cycle, the early part of the last century was very similar. Climate cycles were transitioning and the earth experienced a shaky and deadly time frame just as it was reaching its peak of cyclic warming. A 7-year period - from 1902 - 1908 - saw 9 MAJOR earthquakes and volcanoes - killing about 200,000 (known & documented) humans. A similar period has recently begun.

All of these factors and cycles reinforce analysis I have repeatedly published for over 10 years - that earthquake/volcano/tsunami cycles would see surges in late-2004 through 2005 and again in 2007-2008. In other words, by my calculations we just entered a VERY shaky and unstable period.

The sobering part of this discussion is what is expected during AND AFTER this period. 2005--2008 is a peak in earth-disturbance cycles, but NOT THE peak. There is reason to believe these shaky events could be on the rise for another 10-12 years. And, as history has repeatedly demonstrated, instability beneath the earth’s surface translates into instability on the surface - in human affairs. Politics and the markets are two of the primary arenas where this is manifest.

Considering that war cycles, climate cycles, market cycles and a host of other related cycles all converge during this period, there are likely to be many surprise events. The period between

Sept. 2007 and October 2008 holds the greatest cyclic potential for one or more of these.

Although standard guidelines for writing would encourage me to finish this article with the previous sentence, common sense and a sensed responsibility to all my readers dictates another approach. It is the one that emphasizes a rational response. These cycles and this analysis are NOT emphasized out of a desire to be sensational... but they are intended to ‘sound the warning’… in a rational manner.

I have often stated that I do not see myself as an ‘alarmist’ but rather as an ‘aware-ist’. I am NOT wishing this to happen but merely reporting & repeating what cycles have indicated for many years. The most recent events have powerfully corroborated what has been published and projected for the past decade (not just suddenly brought out now). This reinforces the potential for other expectations to be met. I hope I am wrong... but cycles argue otherwise.

Eric S. Hadik is President of INSIIDE Track Trading and editor of INSIIDE Track & The Weekly ReLay. Comments can be directed to him at INSIIDE@aol.com, by calling 630-637-0967 or by faxing 630-5855701. More information and copies of previous reports are available at www.insiidetrack.com.

Late-June through mid-July 2005 is a Major transition period for earth cycles and for Stock Index cycles. Significant ‘shake-ups’ are likely.

“For several years, I have focused on 2004 - 2005 as the time for the next increase in earth instability. …earth-related cycles show that the frequency and intensity of global earthquakes and volcanoes should increase into 2007 - 2008...I do not really expect a dramatic & sustained increase in 6/30/04 INSIIDE Track quakes and volcanoes to take hold until later this year...”

“A marked increase in major (7.0 magnitude or greater) earthquake activity and the eruption of major volcanoes are expected during this period... to be precursors to 2007 - 2008. In the middle of that 7-year cycle falls the period of late-2004 into early-2005.”

8/31/04 INSIIDE Track The tragic events of late-2004 precisely fulfilled cycle analysis for a major earthquake at the end of 2004. This - consistent with ongoing analysis published since 1997 - is expected to be the beginning of a major shake-up and coincide with momentous transitions in climate, global political structures, war & peace and - of course - the markets. The next crucial time period to watch spans late-June to mid-July 2005 (with two lesser ones in the interim). INSIIDE Track has already detailed some of what is expected during this time frame… and will continue to update this analysis in the intervening months.

“I enjoy your work and am in amazement as I watch things unfold as you so accurately predict. Thanks. Keep up the good work” S.G. [2/22/05] For FREE samples & more info., call 630-637-0967, fax 630-585-5701 e-mail: INSIIDE@aol.com www.insiidetrack.com 2005 INSIIDE TRACK Trading Corporation

34

Winter/Early Spring 2005 • Traders World Magazine

Astro Cycles

By Larry Pesavento any of you ask us what astro cycles are the most important.

Frankly, the answer is difficult.

We believe strongly that planetary cycles hold the key to market prediction. However, you don’t need a “Holy Grail” to make money in the markets.

All that is needed is a trading edge.

The combination of cycles and pattern recognition give you that edge!

My interest in astrology started in the early 1970’s with the works of W.D. Gann and George Bayer. After my experiences with the “silver” lady’s 19 straight wins at Drexel Burnham it became apparent that something significant was present in the planetary phenomenon.

In 1986 Dr. Ruth Miller started me on my search for planetary cycles. She started with the Venus-Uranus aspects and the Mercury conjunct (0 degrees) Sun (Combust) as reported by TG Butaney in ‘Forecasting Prices’.

What follows are my favorite cycles but they are not listed in their order of importance because I am not sure of their importance. They do work far more than they fail!

The Bradley Stock Market cycle gives indications of the key trading dates for the stock market as well as the shorter-term trend of the market. It is based on using planetary pairs with each pair having a positive or negative bias.

Donald Bradley wrote “Stock Market Predictions’ in 1947 and it’s very, very hard to disprove the effects of planetary cycles on the stock market. Use of the Bradley Model should be limited to the short-term trend and the trading dates. It is not too useful for price levels. Pattern recognition and swing ratio analysis is helpful in this area.

The Pesavento Index shows the statistical deviation from the normal number of aspects shown from the daily aspectarian. The average number of aspects in the sky each day is eight.

Whenever there are thirteen or more or three or less on that date a Pesavento Index date is present. These dates have a high probability of a trend change.

There are only a few each year. The index was named by Frank Tauscher for the Supertraders Almanac. Dr. Ruth Miller gave me the idea and she insisted that the index be named after me.

“Combust” is Mercury conjunct (0 degrees) the Sun as reported by TG

M

Butaney in ‘Forecasting Prices’. This occurs about four times each year. It is extremely accurate (within 2 days) and is quite strong giving important cycle highs and lows. Pattern recognition is necessary to determine price levels.

The Venus-Uranus aspects are one of my personal favorites. Although they are short term they work remarkably well and are very accurate! This aspect was tested over 2000 cycles to determine its accuracy. We only look at the 90-degree aspects - conjunction 0 degrees, square 90 degrees, opposition 180 degrees.

The lunar phenomenon is probably the most widely known of any planetary cycle because you can visually see it in the sky. Full and New Moons as well as the lunar and solar eclipses can have dramatic effects on the market at various times.

Remember that these are all probability-based cycles and must be treated as such. Nothing will work without good money management regardless of bull or bear markets!

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35

W.D. Gann’s Secret of The Square of Nine is Hidden in the 1909 Ticker Interview - Part 1

By Chuck Carpino .D. Gann used ONLY ONE algorithm from the Square of Nine to make all his price forecasts in the 1909 Ticker & Investment Digest article. Just one.

There are ELEVEN examples of this one algorithm in that article plus two future forecasts. It is the same method in every forecast, with only slight variations. The method I am referring to indicates price points, but does not project the trend.

I first came in contact with the 1909 Ticker article ages ago. It took me about four years after obtaining a Square of Nine to discover the method; then another year and half figuring out the slight variations to use and a set of rules to follow. I know of at least one person (he doesn’t know me) who has used a similar method, in my opinion, for a long time.

Everything I have seen to date by others on how Gann arrived at the price points in the 1909 article with the Square of Nine is incorrect and I can irrefutably prove it to you. When one sees the same method used over and over in each forecast, one will understand his true method immediately. It will also become clear that Gann was using the Square of Nine early in his career.

The true method he used in these forecasts is NOT about setting the 0 line on a price and watching prices at every single angle that originates off the 0 line. It is not about hoping one angle out of a multitude of choices (45d, 60d, 90d, etc.) will be the one that works.

When floating the decimal on the Square of Nine, more possible prices become available. Without a repetitive, price pointing model to clarify which price could be support or resistance; one is left with too many potential price alternatives. The method Gann used pinpoints a specific price at different junctures in a trend.

The Gann method is NOT about square roots, an area where the majority of traders have concentrated their time in working with the Square of Nine (I certainly did). Square root harmonics have a role all their own in price fluctuations. However, that isn’t what Gann used in every one of the 1909 trades. Rather, one angle of the Square of Nine targets the price and the other angle eliminates a lot of the copious price possibilities presented on the maze of numbers spiraling outward sequentially. That is the secret that Gann would never share with his book and course buying public, or his partner Lambert.

All eleven forecasts he gave can be identified down to 1/8 of a point with these two angles. The method is unmistakably the one he used to arrive at the price equation of his forecasts.

The technique is simple yet complicated by the fractal nature of the markets. It is hidden in the maze

W

36

of numbers due to the required floating of the decimal, yet available when the rule upon which it operates is learned.

Mostly though, the method is the one Gann undeniably used to target all the price points he gave in the 1909 article.

The CATCH-22 to Gann’s clandestine method is that I think it can only be used effectively as a trading edge the next day as opposed to forecasting ONE FINAL HIGH or LOW price into the future as implied in the 1909 article.

More than one outcome is generated by the method, but we are given only the final turning point in these movements by the writer in the 1909 article. Did Gann really make those long term forecasts? If he didn’t, why is there a single algorithm used (with multiple indications) from the Square of Nine to identify every one of the price points in those eleven forecasts?

Conversely, are we to believe he had some magical astrological technique to pick the terminal price point out of the many possible outcomes the method indicates? There is some evidence to support the questioning of whether Gann made the forecasts exactly as they were presented in the Ticker article.

For many years I blindly accepted that Gann made the forecasts as presented in the 1909 article. As my experience increased over the years and I uncovered more information about Gann ideas and Gann the person, I changed my opinion.

The three main reasons I have doubts as to him making these forecasts exactly as they have been portrayed in the article are as follows: His two forecasts into the future at the end of the article failed to occur. Those results are disconcerting after one reads about eleven phenomenal trades in which both the trend and reversal point were supposedly given in advance. After these two failed forecasts, Gann all but disappears in recorded financial print between 1910 and 1918.

Secondly, there is a less than inspiring story about how that article was conceived according to a man who was there. F.B. Thatcher claims to have been Gann’s advance man at the time. Thatcher told well known trader and author Larry Williams in the early 1970’s that the article was embellished.

The story is in a recent book published

by Williams. I talked to Williams about this and more information can be found on my website concerning F.B. Thatcher. Maybe some portions of the forecasts were embellished, as Thatcher suggests, in order for Gann to make a name for himself early in his career.

Lastly, having discovered (finally) how the Square of Nine pinpointed his target prices, I know I must have the Start Price in order to set the 0 line to arrive at a possible end price (PEP). In Gann’s United States Steel

Winter/Early Spring 2005 • Traders World Magazine

forecast, he predicted a top of at least 58, and no higher than 59. Then he gave the next low point before this top actually occurred. Not knowing for sure that 59 was going to be the top, one cannot set the 0 line on the correct price, in order to arrive at the 42 predicted price low.

I don’t see how that particular forecast could be real.

Another bothersome factor for me occurs thirty two years after the article is written. At the end of the 1909 article, Gann predicts Wheat will trade at 1.45 in the spring of 1910. The highest price for Wheat in 1910 was the 1.16 area and it went lower for several years. Yet in 1941, when he publishes the book, How to make Profits in Commodities, on page 79, Gann says the following: “1910-February and May, Wheat high, 1.16 and 1.17. Note 118-1/8 was oneeighth of 1.35 and 1.20 was one-fourth of .75 to 1.35, making this a selling level.” If 1.16 was such an obvious selling price, why forecast 1.45 thirtytwo years ago in 1909? Did he not think that article was still around?

There are other reasons why I question the validity of the exact portrayal of his trading in that article, notwithstanding some over-the-top predictions and unflattering personal recollections of Gann by a few who knew him, including his son.

Believe what you want about whether the forecasts were 100% truthful, but there is no doubt in my mind that in those forecasts is an algorithm based on the Square of Nine that points to all the prices he predicts or discusses. The method still works today, it just isn’t known by very many in the trading business.

I can see where the Gann method in these forecasts offers sensitive numerical points of force, but without a known trend, the points are not necessarily going to get touched. Trend and the price points have to work collectively in order for a forecast to work. If Gann made those forecasts, he had to have used some sort of trend determination. His two forecasts in the future were wrong on the trend, but I can see why he selected the 1.45 price target in May 1910 Wheat based on a previous low in price and time.

Gann used astrology, cycles, and arcane methods to devise his trends. I think he then combined his algorithm from the Square of Nine with his trend calculations to arrive at a price point that would coincide with the change in trend.

Without the correct trend, the multitude of possible numerical outcomes on the Square of Nine is overwhelming. It is a lot easier to use the points offered that are close to the prevailing price rather than forecasting a price reversal way out into the future.

This is why I definitely see how all three of his intra-day trades were probably done exactly as they were defined in the 1909 article.

Using what I call the Prime Start Price, I could give some reversal points

off a known SP500 low or high with an assumed trend that would have a strong likelihood of being some sort of reversal in price days or weeks ahead, but how much of a reaction is unknown and whether the points get touched is unknown.

Which sensitive price point would be the final one that completes the trend reversal would also be uncertain.

The Prime Start price is the price recorded by the stock exchanges. There is no floating of the decimal. If the SP500 made a low or high at 1180 and a new trend commenced, the Prime Start Price is 1180; not 80 or 180 according to the floating of the decimal on the Square of Nine. On a stock low or high at 52, 52 is the Prime Start price; not 152, 1152, 1052, 520, or 1520. The other five numbers do represent 52 on the Square of Nine as Start Prices. They are just not the Prime Start Price. In order to use the Square correctly, one has to use all the different Start Prices with the Gann method.

There are six or seven ways to represent each Start Price on the Square of Nine. There are three ways to represent a date or time. One can conclude this from observing Gann’s trades in the 1909 article.

I should mention that even with the correct method, the same as used by Gann in all the 1909 forecasts doesn’t always work. Other times, it identifies terrific reversal points. Support and Resistance levels can get broken when the force behind them is powerful. One interesting rule in using the method is that I found the failed support points to be excellent resistance levels when price bounces back to them. One uses the broken support point to enter a short trade with the down trend with tight stops just above the old failed support point.

Three of Gann’s trades in the 1909 article were day trades.

Other forecasted trades did not hit the price point he projected for weeks, sometimes months. In one of the Wheat trades, price did not hit the price he is alleged to have given until a year later. In the US Steel trade, he gave a top price to reverse at and gave the next low price before the top was even made.

In another trade, he supposedly told a man by the name of Gilley that Wheat, while trading under 1.10 around noon, must hit 1.20 by the end of the day.

In that last trade, both 1.10 (minor resistance) and 1.20 show up with his method. I see many reasons why 1.20 would be more powerful. I would not have said, as he did, price must get to 1.20 by the close of the session even though there is an algorithm that connects the date to 1.20. If Gann did say what he is purported to have said about Wheat touching 1.20 that day, it must have been because of that algorithm which tied price to the date. The date a stock makes a high or low price is often connected by the model. Many other trades in the 1909 article also connect the date and the price of the final high or low. I used this algorithm in the example at the end of this article.

A reporter for the Wall Street Journal at the time, talking about the surprise move in Wheat when it rocketed to 1.20, said someone placed an order at 1.11 and from there, prices just rose quickly. That discussion, in 1909, is consistent with how prices move away from penetrated sensitive points. 1.10 was a sensitive point. A sensitive point is like a water table.

Once the water table is penetrated, the water will keep rising.

Likewise, price wants to move to the next sensitive point once one sensitive point is surpassed, but not necessarily the same day like what happened in the famous September

Wheat trade. The water table effect is a key factor in trading the Gann method.

I can easily duplicate Gann’s trades on the day (ON DATE) they occurred with pinpoint accuracy, but I would not have been able to forecast the non-day trades in the way they are presented in the 1909 article. F.B. Thatcher said he knew the truth, but the truth is buried with him. I do know that when using this method, there is more than one price outcome, like in the Wheat trade mentioned above. I do know that on the Square of Nine there are many support and resistance points that are possible, and picking the final reversal point in advance is a guessing game.

The method I am writing a workshop course about consists of using the algorithm discovered in the 1909 article one day at a time, with some hint of the next minor target “as long as the trend continues”. As a trader, one takes partial profits and holds some position with stops to deal with the unknown date of trend termination.

An example of how this method works on an equity is shown below. This is a chart of GM in late 2004-early 2005.

A low was made on December 6 at 37.92. A high point occurred on January 3 at 40.8. In order for the drop from the top to be an extended decline, cycles had to be pushing down hard in early January. Otherwise, a smaller reaction or minor correction would have occurred. Without having precise and consistently accurate cycle forecasts, one doesn’t know if any drop will be a small or big decline in GM. I say this having published cycle forecasts for eleven years on a month to month basis. It’s not easy.

A few days after it is obvious that GM set a low on December 6, and assuming the trend continuing upward, one can get an indication of a profit taking point or short position entry based on the Gann method.

My version of the Gann method of the Square of Nine tells one nothing about the trend factors. What the Gann method does predict is a three-fold indication of prices meeting resistance between 40.4 and 40.9. (By the way, none of Gann’s eight non-day trade forecasts mentions when in time, the final turn will occur.) The first two indications originate from the price low of 37.92 and the date of December 6 respectively. The third factor is that on January 3 price touches the resistance prices and an algorithm can be used to see if the date of January 3 is tied to the price in the resistance range. It is and therefore a three-way indication of resistance is given on that day. I call this last indication the ON DATE algorithm. Gann used it on a day trade when he said that Union Pacific would go to 168 ¾ but not an 1/8 higher without a good break.

The way I see the method that Gann used in all his price forecasts is as a SUPPORT and RESISTANCE calculator and only ONE DAY AT A TIME. No fancy forecasts are made very far into the future. Gann’s forecasts in the 1909 article lay the foundation for how one should use the Square of Nine and it is very, very different from the standard way that it is taught. The value of the Square of Nine is strictly limited to price targets, profit taking, and trade entry support and resistance points close to the prevailing price. It is an edge with tight stops that the trader needs, but it isn’t the holy grail of trading as portrayed in the 1909 article-that is the catch-22.

In Part 2 of this series, I will talk about a multiple number of algorithms used for such purposes as getting an idea of the possible Range of Day and High or Low of the Day for the SP500. Did you ever notice how once the high of the day has been made, most short trade signals work on the SP500.

Yet before the top price is made, most short sale signals get killed. That is why it is important to get indications that the high of the day has been made before shorts are initiated. In addition, I will discuss various classes of the basic algorithm and adding START TIME and the ON DATE to the basic method.

The author is writing a workshop manual, based on the Square of Nine algorithms in the 1909 Ticker article, for trading equities, commodities, and day trading the SP500 Emini. The first workshop is in May in Clearwater Beach, FL. More information can be found at www.tradesq9.com.

Traders World Magazine • Winter/Early Spring 2005

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The Livermore Market Key (or who is your Guru?)

By Andras Nagy any people follow various traders like Gann, Elliott and others. There are near religious arguments over what methodology or technique is adequate or ‘real’.

This is not what I want to foster with this article.

I was reading some online articles about Gann and his fame and allegations. A while back I was reading similar articles of the reality of the Elliot Wave Principle.

Gann’s own son as a stockbroker had no use for his father’s techniques and alleged that his father’s estate was worth around $10,000 when he passed on.

Gann used to charge $5000 for seminars in the age when you could purchase a nice home for that sum of money.

I do not wish to discredit any methodology here only to explain my choice and my reasoning to pick it.

For me a methodology has to be simple. I like simple systems. Simplicity is elegant. It is natural and wholesome.

For me, Gann style trading is extremely complex and cumbersome.

I must say this in defense of Gann; He picked signals based on patterns, for example, he would have the trend indicator lines showing buys and would enter because there was a double bottom, but looking at the chart, he overrode his own system.

In other words his complicated methodology was often questioned and second-guessed based on charts and other subjective conditions only Gann knew. Gann purportedly made at least $50 million dollars in trading profits in the commodities and stock markets. Where is that money, the skeptics ask.

Jesse Livermore made $100 million (in 1929 dollars) after the 1929 crash, yet after 10 years he could not ‘find’ that money anymore. Fast living and lavish lifestyles cost money.

Women also cost money….

Gann allegedly lost a lot of money from his brokerage operations. With details unknown we can safely say that risk management and control was not what it is today. Why speculate…

It is entirely reasonable that a man can be a great trader and a lousy businessman and manager. I do not think that my model has to be perfect human being and a person who has never lost a dime in his life I can’t understand people who belittle Jesse Livermore or any author who has lost money before. For me having lost before is showing experience and seasoning. I would not trade with a broker or manager who has not lost some money in his career. I would always ask myself - is he for real?

Gann has lost his money in some shady brokerage deal or a few clients going berserk. Jesse Livermore got busted four times in his lifetime. Three fortunes before he was 30. Livermore is a kindred spirit. I know what losing is.

Gambling is losing. Compulsion in trading is losing.

I played poker for 5 years as a semi-pro and fought compulsive gambling in my trading style for at least 15 years.

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Winter/Early Spring 2005 • Traders World Magazine

My familiarity with Livermore stemmed from a trader who programmed his trading strategy using the Livermore market key in a C++ application using MetaStock data feed.

He asked for my help in the area of money management. He found out that I was researching the turtle style portfolio and risk management algorithms.

Back then I had a rudimentary course and an excel spreadsheet for the turtle style unit calculation for futures and the rules of the turtle style pyramiding. At that time I have not even had the chance to read the “How to trade in Stocks” book that Livermore published in 1940, shortly before his death.

Reading the book; It was an eye opener but it created more questions that it provided answers. It is a very difficult read and frankly it confused me a great deal. It took me several months and reading everything I could find on Livermore to manage to grasp the meaning of the book. No wonder that the book did poorly after it was published.

Livermore as a very secretive man had to fight his nature and personality to write a book. Sharing methodologies was not for a man who on purpose avoided people before the market opening. I will never know if Livermore wrote his book obtuse on purpose or because he was a lousy communicator and a secretive man.

At any rate do not look for the book to provide you easy answers.

Livermore breaks the market up to 6 stages, Bull market Bear market Natural Reaction Natural Rally Secondary reaction Secondary rally I wrote a script in Wealth-lab 3.0 to provide color scheme to demonstrate these stages.

In this example (crude oil) has turned bearish (red) after a reaction (yellow) and a brief bull market comeback.

The black bars are depicting a natural rally, the blue bars depict a bull market. The script gives optional choice to trade only bull and bear trends or to trade the noise as well.

Obviously back testing results support trading only trends no the noise.

Clearly this is not a turnkey system. I use Wealth-lab free end-of-day quote access to scan my stock market portfolios and get signals for potential trades. I still handle exits in a discretionary (Gann-like) manner and use turtle style portfolio and pyramiding logic also in a non-programmed discretionary way.

This system is a manageable and cheap way to get trading ideas and swing trade without the necessity of real time quotes, level II entries and excessive day-trading commissions.

Using stops and turtle style units also alleviate the need to look at the markets all day.

As you see the system will not get you out at the top and decidedly not get you in at the rock bottom. According to Livermore’s credo those areas are the dangerous place best traders striving to avoid.

Not selling out too early is also hard actually harder than buying right. The $88,200.02 profit on crude was on a 10 contract not on a one lot. As you see pyramiding or adding on is not yet code in the model but money management is predicated in the system by using a Wealth-lab SimuScript: Graded Combo %Wager%Winners%Equity I do not wish to make this article a wealth-lab promotion.

A 30-day trial can be arranged from their web-site and as a Fidelity brokerage customer you can use the same application I am using bit for free.

I intend to code my own stock scanner and analysis application based on the Livermore code but until that time I find using and testing with WLD 3.0 more than adequate.

I like to disclose that I also use TradeStation 2000i and Excel for research and trading along with Gecko Software’s Track’ N Trade for charting.

This system works with nicely trending and swinging stocks that are liquid and orderly. I would not trade illiquid and penny issues with this system or with any system for that matter.

The win loss ration is about 50:50 using the Livermore Market Key but the size of winners are at least 3:1 relative to the losers or much better. Obviously short trades are harder but amazingly the short side of the signals are amazingly accurate. Often you find a short squeeze and any short attempt must be done very gingerly in the stock market. With futures it is a little easier.

The TIBX (Tibco testing) reveals that the win loss ration is 39:61 but the win loss percentage in terms of dollars are a staggering 3% versus 25% - meaning that the average loss is a 3 percent loss but the average gain is a whopping 25%. In USD terms the average loss is $821 versus a $5374 gain!

The modified system for stocks to cover a short if the bear phase is over regardless of the nature of the next phase.

This makes my short trading a little choppier but since the US stock markets are propped up and manipulated more so than the futures markets this strategy change shows monetary significance.

See, if you waited to cover my short till the bull phase comes back you would have given back all or most my paper profits. Instead you make a little each time a natural rally has commenced and you covered instantly. (Do not do this in the bull side.)

(Andras is a researcher of trading systems and methodologies - he coaches other traders in risk management and trading to ask questions please contact him via his web-site www.livermoreskey.com

How come Jim gets all the credit?

You know Jim Sloman of course, he's the originator of the Delta Phenomenon and a lot else besides. Now I'll admit that Jim's new Ocean Theory is the best market approach I've ever seen, and I've seen the best. And okay, Ocean is the first and only relatively non-arbitrary approach to the markets. And sure, the math is dazzling. But hey, I created the software from it! When do I get a little credit?

People who have seen Ocean say that for the first time it allows apples-to-apples comparisons across all markets and timeframes. I'll admit it, it's true. But listen, without my software would any of that be available to traders?

Certainly not! So how come my picture isn't sitting at the top of this ad? You see what I mean?

Jim gets the glory and all I get is a footnote in history. I tell you, it's not fair!

And retracements? Every trader knows that the holy grail is to be able to pinpoint the end of retracements in major trends. Does Ocean do that? Of course it does, with breathtaking precision. But it's my programming that displays exactly where that happens. Listen, without my software Jim would be nothing. Nothing! But does he give me any credit? Nooo-o-o!

So can I blow my own horn a little bit? Charts of Advanced Ocean Software in action are now available. Just go to www.mayyoubehappy.com & click on the Ocean button at left. That's right!

You can see my beautiful software in action in examples that have been described as a course in advanced trading all by themselves. But just remember to give me a little credit when your jaw drops open.

—Pat Raffalovich Traders World Magazine • Winter/Early Spring 2005

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My Favorite Indicators For Daytrading The EMini Markets By: Jim Nissen, Global Trading Academy he S & P emini was first introduced in Sep 1997 and has grown to be one the most actively traded futures markets. Underlying the S & P emini is a market so huge that it can’t be manipulated or controlled. The S & P 500 has a market value in the $TRILLIONS. Some of the features of the emini markets include: No insider trading No manipulation No corruption No scandals Consistent volatility Unmatched liquidity Huge leverage Tight spreads Little slippage 100% electronic order execution Low commissions No uptick rule Go short as easy as long Hedging opportunities Favorable tax advantages The eminis are truly a traders dream.

Emini’s are also available on the Nasdaq 100 and the Dow 30 Industrials.

In this three part series, I will show you how to use a few indicators and some simple methods to get the odds in your favor when trading the Emini’s. Many of these indicators tend to lead the movement in the futures rather than follow.

In this first article I will introduce you to an indicator that I first devised in the 1980’s when options on the stock indexes first started trading. I’ve changed the structure of the indicator over the years and will make ongoing changes to reflect the then current market.

I measure the current sentiment of traders in the market by tracking the trading in puts and calls at the CBOE. (Chicago Board of Options Exchange) A large volume in calls versus puts indicates the sentiment is bullish and a large volume of puts versus calls indicates that the market sentiment is bearish.

When the majority of investors are bullish, a top is reached (If most are really bullish, they’ve already bought their stock - who’s left to buy from them?)

Conversely, if the majority is bearish, that’s the bottom because most investors have already done their selling. It’s a contrarian view of the market - when most people are bullish the averages should go down; when most are bearish, they should rise. This is a theory that I maintain is equally valid for the short term(days) and the quick-term(hours) as it is for the long-term(years) and intermediate -term(months).

The records of numerous advisory services and brokerage firms, confirms the validity of the sentiment theory on the longer term. When the majority of market participants are bearish, the bottom of the market is near and vice versa, when the majority is bullish a market

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top may be at hand. These longer term measures of sentiment are difficult to use in timing the shorter term direction of the market. Given that, I wanted to devise an indicator that would aid me in trading the eminis intra-day.

The activity in the options market is available to everyone and is updated every ½ hour from the CBOE. Reports from various media sources look like this: Index Calls 150,382 Index Puts 238,425 Equity Calls 867,425 Equity Puts 522,832 It’s interesting information, but what does it mean? Is that a lot of calls? Is that a lot of puts?

The answer is: IT DEPENDS ON WHEN IT HAPPENS. The “normal” put-call ratio changes over time. The “normal” put-call ratio and volume varies not only intra-day but also varies each day in the monthly option cycle. The trick is to compare the current put-call ratio and volume to the normal put-call ratio and volume for the current time period.

To measure the current sentiment, I now construct two separate oscillators, which are updated every ½ hour during the market trading day. I call these my market sentiment barometers. The index barometer measures the option activity in the index options and the equity barometer measures activity in equity options.

Both barometers compare the current readings with the expected “normal “ activity. On the graphs that follow the “normal” put call activity would fall on the 100 line. If there is more put activity than “normal” the barometer is below the 100 line(bullish) – if there is more call activity than “normal” the barometer is above the 100 line(bearish).

The market sentiment barometers tend to lead the subsequent market activity. The index sentiment barometer usually leads the market by 1-3 hours and the equity barometer leads by 3-6 hours.

For example, when there is excessive put activity in the index options, expect the market to rally over the next 1 to 3 hours.

Or if there is excessive call activity in the equity options, expect the market to top out over the next 3 to 6 hours.

The best signals are given when both barometers see excessive call activity (at market tops) or both barometers indicate excessive put activity (at market bottoms). Great signals also occur when the market is in an up-trend (higher lows and higher highs) and put activity increases – this means the rally should continue. Or if the market is in a down-trend (lower highs and lower lows) and call activity increases – the decline will most likely continue.

These market sentiment barometers are available at my website www.qtt.com.

You will also find a tutorial on the barometers and more examples of actual

Winter/Early Spring 2005 • Traders World Magazine

market activity.

The second in this series of indicators to trade the eminis will feature two indicators that also tend to lead the movement in the emini markets. Check the next Quarterly issue of Trader’s World.

Here are some sample charts of the sentiment barometers:

Trading Chaos

By Dr. Al Larson A recent book, The (Mis)Behavior of Markets, by Benoit Mandelbrot and Richard Hudson (ISBN 0-465-04355-0), presents a detailed history of the evolution of statistical models of markets. Every trader, investor, advisor, and broker should read this book cover to cover. Benoit Mandlebrot is the inventor of Fractal Geometry, which describers many natural systems, including markets. Hudson is the former editor of the Wall Street Journal, Europe.

This book is a final attempt by the 80 year old Mandelbrot to convince the financial world that the mathematical model of bell curve statistics they are using is not valid. Bell curve statistics do not predict, or even permit, events like the Crash of 1987. Only the type of statistics found in chaotic systems can describe what all traders know-there are sudden, wild, chaotic moves in markets.

Mandelbrot has found that he can create a computer model whose statistics look like those of a real market by creating a fractal price curve using a simple zigzag fractal generator, and also creating a fractal time curve with the same process. That process is show in the first figure, a chart from Mandelbrot’s book, which I have annotated.

This verifies what I have found- markets are chaotic, and form fractal patterns in price and time, as taught in my Cash In On Chaos and Fractal of Pi courses. The time fractal is the result of the various speed planetary cycles imparting their influences on markets. This is the subject of my Market AstroPhysics course.

Mandelbrot’s work has focused on creating a mathematical model of markets whose statistics match the statistics of real markets. My work has focused on creating a model (the Market Chaos Model) of the real physical energy process underlying markets, with the goal of precisely predicting the price curve. One example of that is my S&P MoonTide model, which is used to predict each day’s energy pattern in the S&P. If it were true that prices were exactly equal to these energy fields, I would own everything. But prices are not quite the same as the energy field. It has been found that they are related to the energy field in one of 3 ways; 1) they follow the energy field, or 2) they follow the inverted energy field, or 3) they switch back and forth between the two.

One important feature of this model, though, is that it does predict those periods in markets when prices move sharply.

For 51% of the time, the S&P trades in a narrow range. This is a period of mixed energy fields. The other 49% of the time

is spent making one way, significant moves. These are the moves traders want to catch.

The trading approach I have developed for using my Market Chaos Model is simple. First, compute the energy forecast daily. Second, note the turns in the model, and pick one, two, or three turns as trade times. Third, near these times, use two moving averages and specific trading rules to make a trade. This is shown in the second figure.

This is a chart of the S&P EMini on November 2, 2004, election day. The normal energy forecast is marked +MoonTide. The inverted one is marked -MoonTide. These Tides had 3 turns, so three trades were planned. The first, right after the opening bell, was taken for +5 points. The second trade time did not give a trade, as the volatility needed to separate the two moving averages was not there.

The third trade time was a sell, taken for 7 points. So for the first hour or so of the outcry session, the market followed the -MoonTide inverted energy forecast. Then for the next 4 hours, the MoonTides were essentially canceling each other.

Then for the last 90 minutes, prices followed the normal +MoonTide energy forecast.

This model, along with the trading approach, has yielded consistent results over the past 33 months. The model goes beyond statistics to the specific, a step necessary for making a model useful for real time trading. Used appropriately, this approach works over time.

Dr. Al Larson is a private trader, a CTA, and a RIA. He has two web sites, at http://moneytide.com and http: //daytradingforecasts.com. He can be reached by email via http://moneytide.com/hans/emailsend.asp

Traders World Magazine • Winter/Early Spring 2005

41

Wheat Cycles

By Daniel T. Ferrera “By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another’s, and each obeying its own law…the same Nature which delights in periodical repetition in the skies is the Nature which orders the affairs of the earth. Let us not underrate the value of that hint.”---Mark Twain

Throughout the ages, man has tried to predict his future and/or the future concerning his surroundings. He has typically failed miserably and his failures are buried deep in the dust of history. From the stories of legendary fortune tellers, prophets, oracles, astrologers, mystics, numerologists and seers we are left to believe their claimed possession of supernatural occult powers that enabled them to foresee into the future. We are certainly not without their counterparts today! There are psychics with television and radio shows, astrology, taro and numerology websites. You can call a 1-900 number for just about any type of “mystic service”. They all play on our latent superstitions that are within all of us, making people somewhat dependent on their predictions of the next “political assassination”, “earth quake”, “airline tragedy”, “Hollywood divorces”, “your love life”, “career”, etc. Mysticism is not the way to accurately predict the future. The secret to forecasting lies in the above quote from Mark Twain. The law of Periodicity provides man with the opportunity to anticipate the future mathematically and scientifically.

There is a science which deals with the behavior of recurring phenomenon at reasonably regular intervals and this science may ultimately enable man to predict, mathematically and accurately, the events of tomorrow! Anyone who is willing to study Graphical Analysis, Time Series Analysis and Cycle Theory is capable of creating highly accurate forecasts of the future.

The consequences and responsibilities represented by this science are just too staggering to fully comprehend.

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What is a Cycle? A cycle is simply a rhythm that repeats with predictable regularity. We all know that it is cold in the winter, hot in the summer and mild in the spring and fall because of the cycle of the four seasons. If you feel your heart beat, you are feeling another rhythmic cycle; i.e. something that occurs “again and again” at a more or less uniform time interval. We know the cycle of the 24-hour alteration of day and night. We know that the moon reappears every twenty-five hours.

Women experience a regular menstrual cycle. The tides ebb and flow every 12-½ hours. All of these cycles, and countless more, are clearly understand-

able and explainable. There is no supernatural mystery involved. However, there are thousands upon thousands of rhythmic cycles in our world for which there is currently no logical explanation or known cause. It would however be foolish to ignore these rhythms simply because we cannot currently explain them! As you will see in this report, these unexplained periodic rhythms have a tremendous value!

There is an “appointed” time to reap and a time to sow. This applies to Wheat and everything else on this earth.

In Genesis chapter 41, Joseph interprets the dream of the Pharaoh. Joseph tells the Pharaoh that his dream simply means that there will be 7-years of abundance followed by 7-years of famine.

Because Joseph was able to interpret the Pharaoh’s dream, he was put in charge

Winter/Early Spring 2005 • Traders World Magazine

of the whole land of Egypt. During the 7-years of plenty, Joseph had stored the entire surplus from the crops to be used when the famine came. “When the 7years of abundance enjoyed by the land of Egypt came to an end, the 7-years of famine set in, just as Joseph had predicted. Although there was famine all over the rest of the world, food was available throughout the entire land of Egypt”.

Knowledge of this 7-year cycle did not prevent the famine from coming at its appointed time. The knowledge simply allowed Joseph to prepare for the situation. Forewarned is forearmed. In the price fluctuations of the Wheat market, there is a strong cycle of approximately 7.44-years. There are of course other cycles that we can isolate but for now, let’s concentrate on the big trends. “My experience has taught me that nothing can stop the trend as long as the Time Cycle shows an up-trend. Nothing can stop its decline as long as the Time Cycle shows down”-W.D. Gann 45years in Wall Street, page 3.

From a quick study of the charts on the preceding page, it is quite obvious that import highs and lows are separated by a period of 7.44-years.

The high prices in this cycle interval are very pronounced, which should be extremely useful information for wheat producers in this country and around the world. Simply adding 7.44-years to the high price of cash wheat reached in late April of 1996 projects a potential high to be reached about July of 2003.

Similarly, a significant low price should be reached around mid-June 2007 if this cycle continues to repeat as it has done in the past. This type of information provides the wheat farmer with the foreknowledge of when to expect high prices in his crop. This would therefore also allow him to prepare for the anticipated price decline by either hedging in the futures or options markets or possibly even producing something else protecting himself from the event.

Because wheat farmers are always naturally long the wheat market as a result of actually having the physical wheat to sell, a hedge strategy that involves selling out of the money call options and using the premium received to purchase put options may be worth your investigation. This strategy is also known as a “cost free hedge”.

As was stated earlier, there are several cycles in this market that can be isolated and projected into the future.

It is not my intention to provide too much detail, as this is just a simple report focusing on the big trends in the wheat market. However, to make things more interesting, giving you an idea of how much further this type of analysis can be taken, I will provide you with four additional cycles. Reexamining the cash wheat weekly chart, there appears to be rhythms of 19.3-years, 9.7-years, 5.36-years and 3.65-years in length. The chart on the following page will show these cycles along with the 7.44-year cycle and the corresponding cash wheat chart. In addition, the summation wave of all five cycles will be displayed in “red” on top of the wheat price data. Furthermore, I will provide you with the last bottom made in each cycle so that you may project them into the future yourself to anticipate the highs and lows of this market.

Cycle 19.3-year 9.7-year 7.44-year 5.36-year 3.65-year

Last Bottom May 1987 December 1998 February 2000 December 1998 September 2001

Projection of these 5 cycles indicates the potential for high prices to be reached in June/July 2003, followed by a rather significant decline into October/November 2005. This is followed by a minor 1-year rally into October/November 2006, which then leads into another substantial price decline into August/September 2008. If these cycles continue as they have in the past, the price advance from the August/September 2008 low to the next 7.44-year cycle top due around May/ June 2011, could be very rapid and explosive. This could be analogous to the rapid 3-year advance that occurred from 1971 to 1974 in the cash wheat market, which took this commodity to new all time highs!

Although the market does not always match the cycle composite “perfectly”, in terms of trend or ideal timing, it does provide another perspective of what is actually influencing the market’s behavior and thus allows one to plan and prepare for what is “anticipated” to occur.

I sincerely hope that this article has provoked new thoughts and ideas you may have about our seemingly random existence.

If you are a student of W.D. Gann, I hope that this has aided you in your search for more knowledge. I believe that what I have presented in this material is certainly related to W.D. Gann’s “Master Time Factor”. Over the last 10 years, I have personally spent well over $30,000 in obtaining knowledge about the financial markets. Most of the information was not worth the price I paid for it. This type of cycle work has been an extremely valuable roadmap for both my long term and intermediate term investment decisions, which in my opinion makes this small little article worth several times the small sum of money it took you to obtain it through the magazine!

You have gained extremely valuable knowledge about the wheat market’s most dominant cycles and their phasing. This type of knowledge was considered absolutely priceless to the extremely wealthy such as the Rothchilds and the Morgans.

More importantly, you have gained a new “view” of market behavior and I doubt that you will ever look at markets in the same old way.

ELWAVE 7.5 For MetaStock add-on

By Larry Jacobs etaStock has been around for a long time and their latest version 9.0 is a featured rich trading program.

It has over 230 built-in indicators and line studies. Its gives clear charts of stocks, futures, commodities, and mutual funds. Metastock has an excellent library of experts that will help you with your specific trading situation, identify trends, highlight price bars, set alerts, etc. It even has access to fundamental Information that will give you added trading insight.

The program works with the leading data vendor eSignal, which is considered to have some of the cleanest data in the world. The MetaStock platform is excellent and is worthily of your consideration.

One of the features I like is its ability to work with third party trading software companies. These companies produce outside modules that work with MetaStock. There are currently over 13 plug-ins and add-ons modules available. One of the add-ons is ELWAVE 7.5. This uses ELWAVE’S improved Elliott Wave analysis engine, which gives MetaStock the power to create a high quality wave count. The program is easy to install and is straightforward and simple to use. All you need to do is to select a chart in MetaStock and click a button and it will be analyzed for the most preferred Elliott Wave count. ELWAVE does this using its excellent pattern recognition analysis tool based on the Elliott Wave principle.

It is generally recognized as the most powerful trading method in existence.

The program analyzes the waves using the classic rules of Elliott Waves defined by Prechter in his book “Elliott Wave Theory” The best, preferred count will be shown on the price data of a MetaStock chart. ELWAVE performs 1000’s of combinations to figure out the wave in just a few seconds. It completely labels the chart. In addition to the first step, labeling the waves in the chart, you can ask the Expert Advisor for a clear interpretation of the analysis. This will be in explained in a plain natural language.

Additional to the Expert Advisor the Summary inspector is shown in the same window as the Expert. It clearly shows the consecutive wave degrees or patterns and most importantly, if every wave degree supports the same price direction. One of the nice things it includes is its clear targets for every wave degree, which are based on Fibonacci. This is the most certain, high probability target, which will be reached most of the time.

This software uses its object-oriented programming technique for fast performance. There is a 30-day trial available at www.prognosis.nl

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All of the charts utilized in this article where created in Microsoft Excel using my CycleDF program, which is available for purchase through Traders World Magazine for $70/copy. This unique spreadsheet program allows you to experiment with a multitude of different cycle lengths, phases and amplitudes to generate a summation wave or cycle composite for any market data. This program actually allows you to build a cycle composite “piece by piece” right on top of the actual market data for a direct one on one comparison. I have found this particular tool to be absolutely invaluable for conducting cycle research on wide variety of financial markets. If you are interested in obtaining a copy of this unique program and instructions, contact Traders World Magazine at 800-288-4266.

Traders World Magazine • Winter/Early Spring 2005

43

The Physiology of Peak Performance

By Gaby Boehmer hat some researchers are calling a “binge-purge� approach to stress management is not only ineffective, it’s out and out unhealthy.

Binge for weeks and months on unhealthy stress levels, then expect that a “purge� can cure you.

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Unfortunately, while you wait for the ‘cure’ – the week-long vacation, a weekend at the spa, or even the massage certificate your family gave you as a birthday gift -- your performance and your health suffer. To understand why, and what is the right approach to sustaining peak performance during stressful times, let’s take a few quick lessons in human physiology.

Lesson #1: The human body doesn’t care if it’s a BIG stress or a little one.

Big or little, stress affects the body in predictable ways. Research indicates that the relentless impact of minor, stressful events may be more damaging to health than one big stressor. In addition, a major problem today is that most people don’t even notice their stress. Or they have become so adapted to the little irritations and annoyances

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44

of life, they think it’s normal. We tell ourselves, “that’s just how it is.� Yet the small stresses accumulate quickly and we may not realize how much they impair performance and health until the damage has been done.

Lesson #2: Understanding basic information about your body brings new awareness. A marvelous system that your brain uses to manage roughly 90% of your body’s internal processes is called the Autonomic Nervous System (ANS). One of the most essential tasks the ANS performs is to signal the heart to either speed up or slow down to accommodate changing physical demands: it’s time to run, or it’s time to sleep. The ANS has two branches designed to handle these essential tasks. Your ability to think clearly and make good decisions is best when these two systems are in balance.

However when you’re experiencing stressful emotions like anxiety, frustration, or fear, whether you’re conscious of them or not, higher brain processes can become seriously compromised.

Brain researchers call this phenomenon cortical inhibition. For traders, cortical inhibition can be disastrous -- resulting in poor decisions, the inability to even make a decision and execute the trade on time, loss of perception of the big picture strategy, and more.

Lesson #3: Your brain and heart work best when there is synchronization between all systems. A new software/ hardware system called the FreezeFramerÂŽ allows you to view your heart activity in real time, and includes easyto-follow techniques for bringing synchronization to the ANS in a matter of moments. Synchronizing your brain and heart is simpler than you think, and can have more dramatic benefits than you can imagine. Researchers call the state of heart-brain synchronization cortical facilitation. Decision-making is quicker and more sure, physical coordination is enhanced (athletes love this), and emotional balance is easier to sustain.

Lesson #4: Just relaxing won’t do the trick; shifting your emotional state is the key. You may have already discovered a few good stress reduction techniques (alcohol doesn’t count) and more than likely they involve some form of relaxation. While relaxation can be a good thing, the effects are usually short-lived.

In addition, relaxation is not always appropriate: being too relaxed won’t get a job done quickly and efficiently.

If you’re feeling anxious, frustrated, or angry, relaxation can turn down the volume on this emotional noise, but doesn’t change our underlying perception. Shifting the emotion you’re in creates perceptual and mental clarity.

Athletes do it all the time. Unmanaged emotion is the biggest killer of high performance. Tools and techniques for shifting emotional states are available – see below – and can be learned quickly (it’s easier than you think!).

Lesson #5: Hormones are key to improving performance. You have the

Winter/Early Spring 2005 • Traders World Magazine

power to manage the emotions that create the right hormones. There are two hormones in the human body that play a major role in your performance, energy levels and overall well being: cortisol and DHEA. Cortisol is called the ‘stress hormone’ because it is secreted in large amounts when we are under stress.

Cortisol is necessary and plays a positive role in overall health, but when we produce more than we need, it creates problems. Some researchers believe a majority of the working population overproduces cortisol daily, with dire health consequences.

DHEA, its cousin, is often called the ‘the anti-aging’ or ‘vitality hormone’ because it’s plentiful when we’re young, and when we’re producing large quantities of it we feel energized. DHEA and cortisol are made from the same building block hormone. Consequently, if your perceptions are stressful, that tells your body you need more cortisol, so more cortisol is produced -- at the expense of DHEA. That’s okay in the short term. However, chronically high levels of cortisol combined with low levels of DHEA are prevalent in health conditions ranging from obesity, diabetes, chronic fatigue syndrome, migraines and fibromyalgia to osteoporosis, high cholesterol and other chronic conditions. It is also responsible for premature aging. In routinely stressful jobs, the rate of aging can be extreme.

Chronic emotional stress=excess cortisol=accelerated aging. Do we have your attention yet?

Research has now proven that stressful emotions fuel cortisol production; while positive emotions fuel healthy DHEA levels. Simply learning to relax, or having a “relaxing� massage or spa weekend, may briefly slow down the nervous system but will not necessarily re-balance the DHEA/cortisol levels, which have been imbalanced as a result of the constant low-grade anxiety that many traders experience throughout the year.

Emotional Management Maximizes Traders’ Health and Performance. As many world-class athletes have learned, the same emotions that balance the hormonal system and the ANS to support good health also drive peak performance.

You can be the master of your physiology – and your emotions -- to maximize your success. The FreezeFramer program, can help you create the physiology of peak performance and minimize stress in trading.

Traders World is now offering the Freeze-Framer software system to all traders for $295 plus $8.95 S&H. The HeartMath Solution book is also available for $14.95 plus $4.95 S&H For more information on the HeartMath training and the FreezeFramer software/ hardware system for traders, contact at Traders World at www.tradersworld.com or call 1-800288-4266.

costs around $500 with activation and works QuoTrek Now on PDA’s Voq on the GSM network used

by TMobile and Cingular. & Smart Phones The Voq looks like and

By Larry Jacobs eSignal now has a fantastic new service called QuoTrek, which allows traders and investors to free themselves from their desktop computers. They can now get real-time streaming data, quotes and now even charts with oscillators and indicators on their PDA’s and smart phones. It works with stocks, futures, and indices from most exhanges and also gives news from leading news wires. It works on Palms, Pocket PCs and Blackberry handhelds. The service works through wireless phone carriers such as, Cingular, TMobile, Sprint, and Verizon.

With QuoTrek, you have the ability to access your portfolio, analyze it with charts and see the latest news on both the individual stocks and well as the entire market. These are real-time streaming charts and you can put the most popular analytical studies on them. It also has a real-time, summary window ticker that shows you the trades being made on the issues in your portfolio as they are being made. It also has a desktop companion streamer so you can add symbols to your portfolio on the web and keep track of them from your PDA. Thru a news window you can keep informed about the events that affect the symbols in your portfolio with news from PR Newswire and Business Wire and soon from other sources such as Dow Jones, OsterDowJones, CBS MarketWatch, Comtrex and AFX International News. It also has an option lookup function that allows you to list the options for the underlying symbol. You can even make trades in your portfolio right through the device. You can therefore actually manage your portfolio through the QuoTrek service, at home, in your office or even on vacation!

There are a number of PDA phones that QuoTrek can work on and there are advantages and disadvantages of each one.

The main question is do you want a cell phone first or a PDA first. The HP iPAQ H6315, BlackBerry 7100t, The PalmOne Treo 600 and the Sierra Wireless Voq Professional Phone will all work with QuoTrek. Most of them are too big and not convenient to carry and don’t work well as a cell phone. The one we liked the best for the purposes of a wireless phone, email and for QuoTrek was the Voq. It is a tri-band GSM/GPRS device which works on the Windows Mobile 2003 Operating System for Smartphones. It has a fold out keyboard and can connect to email just like the BlackBerry. The Professional The Quotrek offers you the following chart analytical studies with the ability to customize the parameters: • Accumulation/Distribution • Average True Range • Bollinger Bands • Chaikin Oscillators • Commodity Channel Index (CCI) • Donchian Channels • Stochastics • Exponential Moving Average • MACD • Momentum • Moving Average • On Balance Volume • Rate of Change • Relative Strength Index (RSI)

The quote portfolio window can display: • Ask

is about the size of a normal • Ask Size cell phone. Its size is 5.24 • Bid x 2.1 x .9 inches. It weighs • Bid Size Buy and Sell Pressure about 5 oz. What makes •• Tick Trend it different than a regular • Change cell phone is that the lower • Change Percent half opens on a hinge which • Change Today reveals a tiny but usable • Company Name keyboard. The buttons • Date are large enough and well • Exchange Listed spaced to allow easy use.

• Form T It has a powerful • 52-Week High and Low 200MHz Intel processor and • High has 16MB of RAM for data • Last and it has 20MB of flash • Low memory. It also has a SD • Net Asset Value • Open flash memory card slot.

The device has a very • Previous clear 2.17 inch screen with • Symbol 176 x 220 pixel screen with • Time 64,000 colors. It is easily • Volume visible both in daylight and You can display the following at night. rate of intervals on the chart: 1, It comes with Internet 2, 3, 5, 10, 15, 30, 45 and 60 Explorer, Inbox for e-mail, minutes as well as daily, weekly Windows Media Player, and monthly bars.

MSN Messenger, Outlook Contacts, Calendar and a ToDo function. It can easily synchronize with the Microsoft Outlook on your desktop. There are also a large number of third party software applications, which can also be installed on the Voq. The device has other functions such as voice dialing. It‘s easy to setup and works very easily using the following commands: Calendar, Call, Contacts and Dial. I found it to be very convenient to just tell the phone to call someone rather than pushing the buttons on the keyboard.

The Voq has a scrollable horizontal toolbar. On the home screen there is a start key and on the right a contact key. The phone is easily navigated using a joy stick to scroll menus, web pages and text. On both sides of the button are green start and red end call buttons.

If you want a very usable cell phone with the ability to fully access QuoTrek’s features with an easy to use interface, then this is the right solution you.

The Voq Professional Phone provides a great e-mail experience on a phone, allowing you to check and send e-mail wirelessly over the GPRS data network. VoqMail™ Personal Edition and VoqMail™ Professional Edition are now available, and offer always-there e-mail for your personal and corporate e-mail accounts.

With VoqMail software on your Voq Professional Phone, you never have to worry about missing those important e-mails, and now you can easily reply-to or forward them right from your phone. The Voq phone’s flip-out QWERTY thumbpad makes writing e-mails a breeze. VoqMail Personal and Professional Editions both offer reliable e-mail delivery, with low-bandwidth consumption, to help keep your wireless data costs low.

The cost of the phone is $299 for the personal edition, after rebates through Coastline Micro, who works with eSignal.

They provide presales support and post sales and warranty support for Quotrek on the Voq. eSignal charges a $49 monthly fee or $25 if you already have eSignal plus exchange fees.

Cingular have various data plans. Talk to eSignal or Coastline Micro for full details and to have them tailor a package that fits your situation. A 30-day trial is available from eSignal.

For more information go to www.tradersworld.com or call Coastline Micro at 800-729-6809 or eSignal at 877-5752596.

Traders World Magazine • Winter/Early Spring 2005

45

The Foreward of the Tunnel Thru The Air

By Michael Wong t has long been said that the novel "The Tunnel Thru The Air" is the most important W.D. Gann publication for, as Gann has written it in the foreword, it contains a valuable secret, clothed in veiled language; and which everyone hope the valuable secret will lead them to as wealth as they would like to be.

From what we, the W.D. Gann research team stationed in Hong Kong, extracted from the novel "The Tunnel Thru The Air", we realized that there are at least two layers for this novel. One layer is where words and understandings are explicitly spoken out and explained, another level is what we called the layer of "In silence, by silence, through silence were all things made". There is little explanation on that layer, and the words are just written there, in the novel, to serve the purpose of the silence layer.

W.D. Gann had a few different kinds of writing style which he kept on using it again and again. The information he presented in his two Stock & Commodity Market Trading Courses and in his novel "The Tunnel Thru The Air" are all scattered here and there. Without a roadmap, one can hardly join all the puzzles together.

As we have found that the 1909 Ticker and Investment Digest interview is very useful in conjoining most of the price & time concepts presented in his two trading courses, we realized that W.D. Gann was using the same writing style

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in the foreword of his novel “The Tunnel Thru The Air”. If the public interview is the road-map for his two trading courses, then the foreword of TTTTA has to be the road-map for his "The Tunnel Thru The Air".

To most of the readers, the foreword says something like it is a romance story and it serves other purposes that W.D. Gann would like this book to serve. Most of the readers will either miss reading this page or want to start their reading as soon as they have finished the foreword. As a matter of fact, like the public interview, W.D. Gann has plugged numerous keywords and phrases into that passage to help his readers. We often wonder how few reader would stop at that page, for a moment, and try to read the foreword itself for three times first.

Take, for example of the Bible quote "seek and ye shall find, knock and it shall be opened unto you" in the foreword; for most of the readers, it is just a plain Bible quote which say something like "If you desire something, go search for it, then you will find it", despite the fact that most of the time we have to knock the door real hard before it will be opened to us. In fact, the Bible quote there actually served another purpose.

If you would now read further to chapter VII. In page 75, you will find that the Bible quote is quoted there again: "Ask and it shall be given to you. seek and ye shall find, knock and it shall be opened on to you", this time quoting the whole Matthew 7:7 phrase.

Since the foreword quote is mentioned again, we should pay more attention to the chapter and should probably read the chapter three times also. And you guess what? This chapter is the only place where Robert Gordon openly explains the basis of his prediction. By re-quoting the Bible quote in foreword, W.D. Gann has pointed the important chapter to his readers.

Let us now take another example. "a BOOK, to be worth reading must do more than amuse and interest. It must be instructive to be of real value to the reader. This book has a three-fold purpose..." Like the Matthew 7:7 phrase.

The "BOOK", with all the capital letter is only mentioned two times in his novel: in the foreword and in the chapter VII. In page 83, you will find the phrase "The Bible is the BOOK of all books, and if we only study it and understand it, we can gain a proper knowledge of all things.

I believe it the duty of any man who understands science and mathematics and the cycle theory, and knows what is coming, to warn the people in order that they may prepare for trouble ahead."

And if you would now look back to page 78 where Robert Gordon says "I have always look for causes when once I determine a cause I can always be sure of the effect or future event which I predict.

IT IS NOT MY AIM TO EXPLAIN THE CAUSE OF CYCLES. The general public is not yet ready for it and probably would not understand and believe it if I explained it." The question now is: then it is to whose aim to explain the cause of cycles?

And for the sake of the beauty of three, we will have one more example.

Has anyone noticed that "DEDICATED" is only mentioned three times in "The Tunnel Thru The Air"? One is mentioned for W.D. Gann's mother and his old schoolmate in Texas. The remaining two is mentioned by Robert Gordon in his two love letter record on page 29 and 36.

If you would do a quick research on the people whom the authors often dedicated their books to, you may find, most of the time, are the immediate family members of the authors. However, according to a number of sources, we learnt that the second wife and the son of W.D. Gann oppose very much to the W.D. Gann's prediction method and their relationship with W.D. Gann is not that good. As a result, when W.D. Gann is finishing off his novel "the tunnel thru the air", he did not write a dedication to someone who will probably not appreciate that dedication; W.D Gann skipped his wife and his son, and wrote the dedication to his mother instead. From this clue, we can see that W.D. Gann used the word "dedicate" in quite a confined way. He used the word "dedicate" to indicate a specific kind of relationship. .......and may the hardworking & enlightened students of W.D. Gann understand the above passage and be blessed for the journey toward W.D. Gann wisdom guided by our hands.

Michael S K Wong & His Research Team, www.studyofwdgann.com

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Winter/Early Spring 2005 • Traders World Magazine

MTPredictor RT 4.0 Software Review Outline

By Larry Jacobs f you are looking for a nice piece of trading software, you might look at the MT Predictor Real-Time 4.0 (RT 4.0) and/or the End-Of-Day 4.0. (EOD 4.0) I found both of them to be excellent trading software which is deliberately stripped for the process of trading, not for satisfying the whims of everyone who has ever used any trading software. The program has no excessive use of indicators, quantitative analysis, optimisation or curve-fitting.

The software is designed to be simple with the primary objective of teaching traders the discipline of risk control and taking full responsibility for their trading decisions.

This sets it apart from black-box systems, which can spew out anonymous automatic buy and sell signals and leave the trader none-the-wiser (and potentially poorer!).

‘How to trade’ is the overriding concern of this software, as its purpose is to provide an answer to the 4 key questions: what to trade, what is the risk/reward outlook, how much to risk and how to manage the trades? This is refreshing and vital – partial solutions can be found in any number of software programs but very rarely in one unified place. This is a trading process, not a blind system.

RT 4.0 is downloadable from the website. Once downloaded it is unlocked for use by an automatic unlock code process – so there’s no need to wait to be able to open the software up and get going, and no dongle needed.

A welcome e-mail includes instructions on accessing the comprehensive Members’ Section of the site, to use the range of Support Tools.

RT is stand-alone and uses eSignal® or a RealTick® data feed, so customers need an eSignal account or Townsend Analytics account.

The company believes that new customers follow the Support steps highlighted, to learn and understand the proper use of the software. There are useful video Help Files and PDF Help Files. There is a PDF Trading Course in 2 sections – the firm makes it almost compulsory to read the first (shorter) section on its unique ‘Isolation Approach’ to Elliott, the 3 key trade set-ups, risk and trade management. There are 2 Daily Reports – one by Steve Griffiths on EOD and RT trade examples and proper use of the software, which has a wide following; one by Tony Beckwith (Sales & Marketing Director) on RT U.S. index trading, which updates the firm’s RT trade record. Both help the learning process hugely – and both are free! Customers are also invited to a monthly online web seminar, hosted by Steve Griffiths and designed to address any issues at the time.

The library of indicators in this program is almost bare – just the basics such as stochastics, Bollinger bands, RSI,

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moving averages. The program is meant to be clean of excessive software indicators. As Tony Beckwith says: ‘They are here for those who do actually want extra confirmation of trade set-ups, but they are not part of our trading process itself’. There are fewer buttons around the chart space than you may be used to, but that is deliberate.

It seeks to answer the ‘what to trade?’ question by focusing on finding ABC or 3-wave corrections to a trend. It strips this out of Elliott, discards the rest and concentrates on finding corrections which are not only at a critical price level but where the market is also showing signs of price reversal. In RT 4.0, the Trade Scanner automatically identifies such trade set-ups the instant they unfold, and with a double-click on the relevant symbol displays both all the set-up analysis and the risk/reward analysis for trade management. No other scanner does this…

To answer the ‘risk/reward’ question, the software shows vital information visually and in different colors on a valid chart. This includes the initial stop price, the entry price, the price where 100% of your initial (money) risk is covered, the price where 2-3x your initial risk is made (‘good trade’ area!) and the profit targets (called Wave Price Targets) where profits can be taken. It is immediately clear whether a trade will make at least 2x initial risk if it reaches its first profit target, or not. This is extraordinarily useful for quick and disciplined evaluation when trading small timeframe charts.

On ‘how much to risk?’, two of the buttons on the top taskbar are an ‘Initial Risk Calculator’ and ‘Trade Module’.

Although similar modules are available elsewhere around the net, this is integrated in the software, so again cuts time. You can plug in, say, no more than 2% of your account size to be risked on any trade, then enter your entry and initial stop prices and it will calculate the number of shares, futures etc. you need to trade. So, your bet size is controlled every time.

As for ‘managing the trades’, as mentioned earlier, the relevant Elliott-based profit targets are projected immediately onto a chart with a set-up, so the emphasis is on visual confirmation of your exit strategy. For novices, the firm has Standard guidelines to follow eg. ½ of the position out at the first target, the remainder at the second; for experts there are more suitable options. Tony Beckwith’s RT report highlights Standard ‘Trading Guidelines’ which are explained to be used consistently by traders.

For those wanting to carry out manual analysis, the software allows you to perform your own Fibonacci calculations (retracements, extensions, projections) in both price and time. There is also a module called ‘Natural Time Vibration’, which automatically ranks times according to Fibonacci time clusters – again, the company says this is certainly not part of the real process, just for those who want some automated time confirmation…

Chart annotation tools offer enough options and there is also a module to plug in DGLs, Don Fisher’s Gann lines which a number of customers are said to use. Charts can also be saved in various formats for emailing to other traders.

The whole point of any trading software is – does it help you build a profitable trading plan? Otherwise, why bother?

The company is refreshingly open about its RT performance and what it’s trying to do. There is a trade record of RT 4.0 used to trade the US index futures (E-mini S&P500®, E-mini Nasdaq-100® and mini-Dow®) and ETFs (Exchange-Traded Funds: SPY, QQQQ and DIA) updated weekly on the website. It is made clear that the trades are not actually taken but monitored and published. They are also before commission and slippage. It’s also maintained in the RT Daily Report.

We do recommend this program. It is also offered with a combo datafeed and possible brokerage discount rebate in combination with a Sonata Trading computer. If you are interested in details or for a hotComm demonstration go to: www.tradersworld.com/mtpredictor.

Traders World Magazine • Winter/Early Spring 2005

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Interview with Jack Winkleman

By Larry Jacobs Larry: How many years of experience do you have trading the markets?

Jack: It would be 35 years in the cash or futures grain trade.

I started with a grain company in 1969 moving grain from farmers to end users. From that it evolved into futures trade. I then became a broker in 1983 until January 2000.

Larry: Where did you starting using some of the trading theories that you use today?

Jack: Mostly self taught and self study. I started buying books and I still am. The technical side of it interested me. I have an associates degree in Physics so the angle of attack so to speak and point of force identified with me looking at a chart.

Larry: Do you believe that the stock and future markets move according to mathematics and if so how?

Jack: Yes. They move from one point to the next. Generally they will move in a direction with variables within that direction based on certain timing. Its very similar to a plane of attack or how a pilot would compute his flight plan. When I look at a chart I see that same thing as when I am planning a cross country flight allowing for wind and angle of attack relative to direction that you have to go. This is how the markets look like to me when I look at a chart.

Larry: With what you have developed how is it different than what every one else is using?

Jack: Most people come to the market with a price standpoint. They are looking at it to see if it is high or low. I am more interested in timing. If you know the time of a high or low price then measures how much you won or loss.

Larry: I know that you have studied Gann a lot. Is your system similar to what Gann was using?

Jack: Could be and might not be. I don’t know. It’s possible.

Gann was very complex. He was certainly aware of a lot of things especially mathematics. Yes, I have looked at Gann a lot and certainly from his reading list I have a learned a lot from that. But what I am looking at, Gann never specifically came out and said this is what we have to do. So to say it came from Gann, who knows.

Larry: Do you think your method of day-trading is similar to what Gann did in front of the reporter from the Ticker Tape Magazine.

Jack: Actually what we are using is a form of time price squaring, which is a Gann method, but to say that it is what he used, you can’t say it and be definite.

Larry: As far as what you are using and what everyone else is using what do you think most people are missing.

Jack: We are back to time verses price. Most people are look-

ing at price and how long it has been at that price and look at various retracements. They are looking at the market after the fact. We look at time in the future and whether it should go down or up. If we get a high instead of a low we know how to reset and recalibrate. Time works as a marker on where you are at and where you are going to be in the next time frame.

Larry: Is your system based on anything?

Jack: Yes it is. It is proprietary knowledge of course. It came from 30 years of looking and discovering some things that are constant in the market. Once I learned those constants I then developed the method from that. There is a methodology to it.

Larry: On the news service you are getting ready to put out, what type of signals are going to be given and how and when?

Jack: It will be prior to the market opening and will be times that we expect a high or a low with the probability of the direction. They will get two or more timing periods between the 8:30am opening and 11:00am.

Larry: Do you trade after 11:00am?

Jack: Not as a rule. I like to keep it clean and my studying current. I don’t want to get confused by trying to overwork a market and myself at the same time.

Larry: What markets will this start in?

Jack: It will be in the Dow Jones futures based on the cash.

Of course, subscribers will trade the futures. Then we will go to bond and other markets later.

Larry: How much money will a person need to have to trade it effectively?

Jack: I would like to see them have Dow Jones Futures margin plus 25%. With the $5.00 commission it does not take a lot of money.

Larry: Do you have any recommendation of money management using multiple contracts?

Jack: In talking about money management, I am a great believer of stops. Once you are given a time, we would like to get at least $100 profit. Personally I like to go for 30 points and carry a 16 point stop. In the past I have been right 82% of the time. It does not take a rocket scientist to figure out that that particular plan works out very successfully.

Larry: Any track record on this yet?

Jack: They should see if it works as a trial and if it works use it, and if not don’t use it.

Larry: What is the cost of this service?

Jack: It will be $300 per month. Which works out to be $15 per trading day.

Larry: Any idea on what you think a customer could do during a month for profits?

Jack: If he maintains stops as he should and he could run 60% correct and with little skill development I would think that he would do very well.

Larry: Does the customer need to have a chart service?

Jack: I recommend it. If they are going to day-trade on an intraday timing method they are going to need to see what the charts look like and they should be able to read a chart and see if a market is moving into a time frame. If it is a high or a low then act accordingly.

Larry: Anything else you want to comment on?

Jack: The fact that it comes out before the market opens and with specific times during that time period should be a tremendous advantage. If they are working the market at all and seeing how it develops, those time frames should be a powerful tool to put in their toolbox. To give them that edge for $300 per month is not very much.

More information about the service and a free 1 week trial is available at: www.livingcycles.com

Above is an example of the before times and direction given before the market opened. Below is actually what the market did for the day.

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Winter/Early Spring 2005 • Traders World Magazine

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Traders World Magazine • Winter/Early Spring 2005

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Winter/Early Spring 2005 • Traders World Magazine

Picking the Best Stocks & Strategies for Every Option Trade with James Bittman James Bittman DVD Item B1152x-2379852 VHS Item B1152x-2379851 now: $99 Now, learn the proven methods of Options Industry Council’s top instructor James Bittman - as he outlines a clear-cut program for finding the best stocks to use as a foundation for all your options trades. You’ll discover which options strategies are best-suited to increase profitability when dealing with “break-out” stocks, “rangebound” stocks, or “trending” stocks - and when to apply call or put purchases, spreads, collars, covered call writing, or wide range of other option strategies. An essential primer for every options trader.

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Options and Options Trading: A Course That Takes You From Coin Tosses to Black-Scholes, 1st Edition Robert W. Ward Item B1152x-1843969 reg. $39.95 now: $24.21 Unravels the mystery of options and gets you all the necessary tools to grasp the basics of options and derivatives.

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Traders World Magazine • Winter/Early Spring 2005

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instruction on the practical applications of candlestick charting to give every level of investor a complete understanding of this proven, profitable, and time-tested investing technique.

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Winning Methods of the Market Wizards with Jack Schwager Jack Schwager VHS Item B1152x-621426 reg. $64.95 now: $43.56 Whether you’re an active trader, or simply want a better understanding of how to succeed in today’s markets, you’ll benefit from the wisdom and insight of renowned “Trader’s Hall of Fame” winner, Jack Schwager. Through his best selling “Market Wizards” books, Schwager has probed the minds of the world’s most respected investors, studying their personal traits and learning the secret techniques that have turned them into investment role models. Now a professional investor and successful fund manager in his own right, Schwager shares his own secrets, along with those of his prominent “interviewees,” in a powerful presentation.

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Winter/Early Spring 2005 • Traders World Magazine

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TradingExpert Pro

By Larry Jacobs n the last issue of Traders World we had an interview with Dan Zanger, who turned $10,775 into $42 million in less than 3 years trading the stock market. In the interview Dan stated that he used the AIQ Charting Program to view over 1,400 (end-of-the-day) stocks nightly. Dan also updates his AIQ charts about once every hour during the market hours so he can see how his patterns are unfolding during the day and how new patterns are setting up for the next day. Many of our subscribers asked that we do a review on AIQ Charting Program and here it is.

TradingExpert Pro is the name of the program and it is much more than just a charting program. It also has reporting and screening, industry group analysis, market timing, portfolio management, fundamental analysis, real-time quotes, alerts and even artificial intelligence-based expert systems which screens for trading can dates that may have been missed by other systems.

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It also includes a revolutionary Expert Design Studio.

This is a way to design and test virtually any trading idea.

It basically combines a point-and-click interactive trading library with state of the art back testing and report writing. It is easy to use and a very good resource for finding new trading ideas. It provides a complete list of trading components and dozens of popular prebuilt trading strategies. You can combine multiple strategies and paste their basic elements into completely new strategies.

Some of these strategies include Chart Pattern, Market Timing, Jeff Cooper, Linda Raschke, Custom Indicators, Expert Rating, Real Time Trading and Dr. Elder’s Trading Strategies.

By back-testing these strategies in the Rule Builder you know what returns the strategies have produced over a number of years and how these returns compare to the general indexes.

You also know how much trading activity is required to take advantage of these strategies and if you have enough capital to implement them to withstand the maximum drawdown. You know what market trends it will perform best and worst in.

The Expert Design Studio answers these questions in seconds.

You receive an objective analysis of exactly how your strategy performed in the past and how it should perform in the future and whether it is compatible with your personal trading style.

TradingExpert Pro also has a new Portfolio Simulator function that provides a different approach for back testing your strategies. You first set up the simulation by specifying entry and exit strategies, the initial investment and capitalization constraints. The test run then produces a day-by-day simulation of trading the strategy which tracks investment dollars from start to finish.

It has has something called Pick of the Day, which finds buy and sell opportunities on a particular day. Any strategy that you have created and found effective through simulation can be selected. Then you just click Pick of the Day to produce a list of trading opportunities which satisfies that strategy criteria on the current date. For each ticker it selects, it even tells you how many shares to trade based on your individual trading style.

The charting function of the program is excellent. It is no wonder the Dan Zanger likes it. It combines stunning graphics with an easy to use interface. It displays an on-chart indicator library with a Color Barometer to give you an instant indication of the status of each chart.

Over 50 indicators are just a click away. You can even write your own indicators by simply describing them to the Expert Design Studio and adding them to the library.

The program also gives you excellent drawing tools such as trend line, regression lines, Gann fans, Fibonacci arcs, fans, time zones, retracements and others.

One very nice feature is the control panel on the right. it displays the indicator library. Just point and click to chart one or more multiple indicators. At the touch of a key the control panel changes to display your favorite securities, portfolios or even an entire industry group structure.

TradingExpert Pro gives you a quote grid with up to 700 tickers. You can chart real time or historical tickers from quotes.

You can also display scrolling news updates and ticker news stories. It also has real-time alerting with alerts on 1, 5, 15, 30, 60 minute daily or weekly data. You can use the expert Design Studio for custom alerts. The program introduced the first artificial intelligence based trading system in 1985. Today it is programmed with over 400 rules that represents the insight of technical experts for the last 50 years. What it means is that based on the fact that no single rule works all the time, the program incorporates many rules that work together in a powerful synergism to signal when the overall market or individual securities are ready to move. It even gives you an expert rating (ER) and a test based expert opinion on each chart you view.

The program also automatically organizes all of your stocks into industry groups and sectors. It then builds an index of each group and sector. By doing so the program is able to calculate volume on groups and deliver an industry analysis.

You can even build customized groups with breadth data.

NASDAQ Level II screen is also available which gives you a visual representation of the number of market makers at each price level, visual representation of market maker volume size at each price level, visual separates in a chart large and small volume trades and visual displays trades and or quotes. It also gives you tick updates on charts every 5 seconds or higher.

TradingExpert Pro also includes a portfolio manager that is capable of tracking virtually an unlimited number of accounts and has many of the features from a professional portfolio manager. It includes securities and cash management, stop/ loss alerts, year end reporting for tax preparation, automatic stock split adjustment and integrated charting features.

TradingExpert Pro also includes the ability to combine fundamental analysis with their technical work. It allows you to rank your stocks based on over 300 fundamental factors. You can also build you own fundamental trading rules utilizing the Expert Design Studio into your own trading systems.

Also included in the package is a massive CD-ROM data base of over 12,000 tickers. All of the exchanges are represented and allows you to prescreen tickers for both price and volume levels.

The program also comes with free educational tools. It includes tutorials that cover basic functionality and building winning trading strategies. It’s presented by AIQ’s senior staff members and designed to get you up and running as quickly as possible.

This program is recommended to both the trader and the investor. Try out their RISK FREE 30-day trial at www.aiqsystems.com Traders World Magazine • Winter/Early Spring 2005

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WAVE59

TM

By Larry Jacobs AVE59™ is software for day-traders designed to be a cut above the standard technical analysis program.

Earik Beann, the designer of WAVE59, feels that most of the programs out there just use ordinary technical analysis indicators and they are in fact dinosaurs. Technical analysis indicators in most programs were invented before computers were used for trading. These indicators were designed to be calculated by hand using just simple formulas and daily closing prices. Even elementary school students can calculate them in just a few minutes. So how can these primitive tools and indicators be used to complete with the speed and power of today’s ultra fast Gigahertz computers with the power to calculate complex industrial-strength trading formulas. So with that in mind, we took a look at what WAVE59 had to offer. After exploring the program it does in fact have many things I have never seen in a technical analysis program.

Let me explain some of them.

WAVE59 has an indicator called the 9-5 count. It is a remarkable algorithm that has the ability to find the termination points of price cycles. This is a new concept. To use the indicator, you buy near the blue 9’s and sell near the red 9s.

It is just that simple. See chart 1 below. These numbers mark the end of the current price cycles and the beginning of the next. It looks pretty simple, but it is based on a formula that is over 10 pages of computer code. So which is better, a RSI one line formula that any elementary school child could figure in 5 minutes and is very subjective or a clear cut signal from the 9-5 count formula. By the way it probably would take a university math student several hours to calculate its formula.

The program also has something called Exhaustion Bars, which are bar-to-bar patterns. They are too complicated to figure by hand and involve at least 30 bars. It uses two patterns which are called ExBars1 and ExBars2. They tend to appear close to tops and bottoms in the market. The ExBars1 are rare and focuses on longer swings and ExBars2 come up more often and it suited more for short term. On the second chart below I have illustrated ExBars2. It is amazing how well it works.

One of the things I really like about this program is it keeps the proper relationship between price and time on the chart.

Most charting programs can’t properly scale charts. So it is difficult to use them for correct charting and pattern matching.

With the WAVE59 program you can actually scale the charts.

That means you can setup a chart properly by using X points per Y time periods. This can be done by setting up the high or low or by specifying the number of points per bar/hour/day in the chart. This produces a properly scaled chart, with rallies and declines moving at a slope very near to 45 degrees.

If W.D. Gann was designing a program, this would be one

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Winter/Early Spring 2005 • Traders World Magazine

feature that he would have in it, in my opinion.

As you read in the last issue of Traders World, Dan Zanger successfully used patterns to amass a fortune in the market. The ability to recognize patterns is necessary for profitable trading. Because WAVE59 is properly scaled, chart patterns are more easily recognized. Ellipses, curved trend lines and most patterns can now be more easily recognized.

WAVE59 even provides an easy and automatic way to build patterns using its Pattern Builder. It can create patterns using a large number of drawing tools. Once the pattern is built WAVE59 can automatically apply it to your charts and search for matches. It does this by combining both price and time patterns together and that is one of the keys to successful trading. WAVE59 can be used to automate the process of pattern matching. Fibonacci, Elliott Wave and many other patterns can be built and evaluated by the software.

WAVE59 has many other features in it, but there are just too many to cover. It contains many versions of popular trading indicators and techniques used today. Some have unusual twists with them such as a Fractal Trend Index which resembles the behavior of the better known ADX indicator and a Ultra Smooth Momentum curve like many of the more used momentum curves, but without the noise. It even contains an advanced AI module that allows it to apply neural networks to a particular problem the user has specified.

The drawing tools in this program are truly outstanding.

It has many excellent tools such as ellipses, Gann Squares, circles, flower of life, time counts, etc. It allows you to draw any possible figure and place it right onto the face of the charts. It contains an impressive array of tools that can be used to give traders visual clues about what the market is going to do next.

WAVE59 has incorporated astrology into the program.

It contains a number of astrological routines that have been shown to work well on the intraday basis. They have proven to beyond a shadow of a doubt that astrology does have a great predictive value.

WAVE59 has just about everything in it you would want.

In addition it has the ability to create custom indicators or even to add 3rd party add-ins such as Al Larson’s Face of God and Fractal of Pi Patterns, Mark Tinghino’s Tee Shot indicator and Jules Greenstein Prime-Line Method.

You owe it to yourself to check out this program. To help you understand the many indicators that this program contains, there are two new books available. Trading with WAVE59 and The Fibonacci Vortex Handbook, both written by Earik Beann which are explained and available in the catalog section of this magazine. You can also download an interactive demo or just try a free 30-day trial of the program.

For more information go to www.WAVE59.com.

Sonata Multi-Monitor Computer for Trading

By Larry Jacobs orget about going to computer stores or internet computer companies. They will just disappoint you and they are not going to give you the computer you need to successfully trade with. You will find they are not capable of producing a multi-monitor computer designed for trading. Most of the time they won’t even know what you are talking about.

If they attempt to build one for you and are successful, it will usually have constant problems such as lockups, software and hardware conflicts with many shutdowns.

Traders World decided to do the necessary research to build the finest multi-monitor trading computer in the world for our subscribers to successfully trade with. We designed the Sonata Trading Computer. We became an authorized reseller partner with some of the biggest and the most successful hardware and software companies in the world with companies such as Intel, Microsoft, Samsung, U.S. Robotics, Western Digital, Logitech, Colorgraphics, Cyberpower, and others. We used their technology to design, build and continually upgrade the Sonata, the perfect trading computer.

When any of the companies come out with a new upgrade, it is evaluated and if it fits a trader it is then included into the Sonata. We are always on the leading edge technology for a trading computer. The main feature we have in the Sonata Trading Computer to take advantage of new technology is that it is upgradeable. That means that it can be sent in and upgraded to the latest technology at a much lower cost than buying a new computer. With most national computer brands you can’t do that. When they become out-of-day, you trash them and buy a brand new computer. This is not only totally inefficient and not the way it should be.

The Sonata Trading Computer is on our site: www.tradersworld.com and is fully configurable with different options for memory, CPU size, number of monitors, keyboard & mouse, etc. The nice thing about the Sonata is that it is reasonable priced. See the configuration example above.

Now let me explain what is in this sample configuration computer. It uses the Intel D915PCYL motherboard. This is a high quality motherboard with the Intel 915 chipset. It is one of the most compatible motherboards out there. That

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The SyncMaster 711-T Black (17-inch monitor) Samsung recently came out with their latest monitor technology in the SyncMaster 711-T, pictured above. It is an analog and digital monitor with a 0.6” ultra-thin bezel with VESA stand mount capability. That means it can be mounted on multi-monitor deskstands.

The ultra-thin bezel means you can get the screens closer together for multi-monitor benefits. It has an 1000:1 contrast ratio, which is excellent for the trader’s eyes. The higher the contrast, usually the easier it is on the eyes. Movies and TV pictures played on the screen are also clearer. It has a 1280 x 1024 resolution and a 178 degree viewing angle, which is perfect for the multiple-monitor mode. When you have several monitors, you can’t look at all of them directly. You have to look at them at an angle. Therefore it is important that your monitors have a fairly large degree viewing angle, like the 711-T has. Another excellent feature this monitor has is that it can be pivoted into the portrait mode. The benefit of this feature is that it can be placed directly beside the SyncMaster 21.3-inch monitor and fit perfect. A triple monitor configuration would be the 711T in portrait mode - left side / 213T landscape mode - middle / 711T portrait mode - right side. We reviewed the SyncMaster 21.3-inch monitor (Samsung 213T) in our last issue.The 711T monitior also has a builtin power supply, and has the MagicTune and MagicBright technology to give the trader a clear, bright and sharp screen to view. This monitor comes highly recommended by Traders World.

Case: Sonata Motherboard: Intel D915PCYL SystemMemory: 533DDR2512MB HardDiskDrives: WD360GB VideoCards: NVS280PCIE FloppyDrive: 144FLOPPY KeyboardMouse: LogitechLX700 DVDCDRW: Samsung16xdvdrw OperatingSystem: WindowsXPPro Software: Trading Software Preinstalled Recovery: PCAngel 775CPU: Intel 2.8 Prescott Disable Onsite Service: Optional Total: $1,199.00 monitors not included

means you are not going to run into software conflicts like you would get on a cheap motherboard like in many of the national brands. It has the Enterprise Western Digital 36MB Raptor 10,000 drive, which is almost twice as fast as the standard 7,200 RPM drive used by most computers. It is much more reliable and lasts much longer than the normal drive.

It uses Kingston matched DDR memory. That means every chip on one module is exactly the same at the other module.

Other national computers don’t match memory. This is where you get lockups with multi-monitor computers.

It has the state of the art Logitech LX700 wireless keyboard and mouse. It is sleek, ultra flat design and zero-degree tilt on the keyboard delivers a high level of ergonomic comfort. Its keys have the best feel and performance. The rechargeable 800 dpi optical mouse delivers exceptional comfort and control. It has the most advanced navigational features available in a keyboard-mouse combination.

The Sonata uses the latest technology PCI-Express video card cable of supporting DVI output which is much higher quality than the standard analog output of most computers today. It’s 100% faster than a PCI video card.

It has the Windows XP Pro operating software and it is optimized both via hardware and software. That means many of the features of XP Pro hog the power of the computer. These items are disabled so you have the full power to trade with.

The Sonata has our PCAngel which has virtually eliminated our technical support. This software can fix just about any software problem that you would have on the computer. It can restore your computer to an earlier date. So if you had a virus or computer glitch that happened today you can tell it to go back to yesterday and the problem would be probably fixed.

You can also have your operating system replaced with a new one without affecting the trading software. You can have the computer returned to the state that we sent it to you. In many cases we install your trading software before we install PCAngel. That means you can recover your computer with all the trading programs we put on it within 10 minutes. Also all the files of your computer are stored in a recovery folder. PCAngel is at least 5-years ahead on any other recovery software.

We also have optional onsite service. That means you get an 800 number to call. If you have a computer hardware problem call them. The technician on the phone will run a program called Digital Lifeline on your computer. It will tell him what is wrong with the computer. They will then send the part out to you and when you get it, you call one of their local tech people who will install the part and get your computer up and running in your home or business. There is no need to send your computer in and wait for two weeks to get it back.

The computer can be configured in many different ways from different size CPUs. memory, video cards and other things. Two drives can be configured for a 40% speed increase or for redundancy. Multi-monitors can be configured from two all the way up to eight monitors. Monitors can be used with their own stands or with multi-monitor stands. Monitor stands come in dual horizontal, dual vertical, triple, and quad versions.

For those of you who want to use a notebook computer for your trading we have two solutions for multimonitors. One is the VTBook ($249.95) which can give you up to 2 external monitors and the Magma Solution, which can give you an additional 2 - 4 monitors from a notebook computer. ($899.00) Both of these work through the CardBus slot. For more information on these two notebook computer or the Sonata Trading Computer please go to www.tradersfworld.com.

Traders World Magazine • Winter/Early Spring 2005

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SPECIAL TRADING BOOKS CALL 800-288-4266 or go to: www.tradersworld.com The Gann Pyramid: Square of Nine Essentials

by Daniel T. Ferrera A new ground breaking course on the Square Of Nine, W. D. Gann’s The Gann most mysterious calculator.

Pyramid: This course is full of never Square of Nine before seen principles and techniques of analysis Essentials using Gann’s Square of 9, with detailed explanations of their applications to the markets. $395.00 Studies In Astrological Bible Interpretation by Daniel Ferrera An interesting exploration of the process used in coding Studies in astrological and astronomiAstrological cal cycles into literature.

Bible Engages in a thorough analInterpretation ysis of the book of Genesis, Course exploring coding systems by which astrological symbolism is veiled. $55.00 Wheels Within Wheels by Daniel Fererra.

Breaks down the 16 primary component cycles of the DOW Jones Averages, Wheels producing an accurate Within map of the last 100 years Wheels of history, and projecting the cycles ahead to 2108. Includes all Excel Spreadsheets with all cycle calculations and charts, and the 100 year projection DFT Barometer. $450.00 The Earliest Financial Astrology Manuscripts byW.D. Gann, Fred White, Sepharial, Prof.

EARLIEST Weston 1902-1930 FINANCIAL A unique and unknown set ASTROLOGY MANUSCRIPTS of onion-skin manuscripts on financial astrology written in 1902, 1917 and 1929, the most advanced and important documents on astro-finance that we have even seen.

Subjects include: Planetary Days and Hours, Elevations, Transits, Directions, The Parallel Aspect, Right Ascension, Nodes of the Moon and Planets, The Integration of Geocentric and heliocentric Astrology in the Markets, Forecasting Markets with Examples from Wheat and Sugar, Indicators, Significators, The Radix, Transition points, Market Trends and The new Moon, The Volume Rule, Includes Membership in Research Salon, Hardcover 250p. $999.99 How To Make A Cycle Analysis by Edward R. Dewey Approx.

630 pages, with charts.

This how-to manual on cycle analysis was written

by E.R. Dewey in 1955 as a correspondence course.

It provides step-by-step instructions on the elements of cycle analysis, including how to identify, measure, isolate and evaluate cycles. The most elaborate cycle course ever written, by the star of cycle analysis, founder of the Foundation For The Study of Cycles. This course had a limited release

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in the 50’s at a price of $350.00. It has been unavailable since then. Now $350.00 The Step-by-Step Guide to Profitable Pattern Trading by Al Coppola Not just another “How to book” but a wonderfully clear and illustrated guide to trading a system which assures high probability Day and Position trading. Master Trader, Larry Pesavento says that this book, “is soon to be a classic”. The author, Al Coppola, provides a unique presentation of the complete method - from identifying the patterns, exact entries, targets, and trade management. The steps used to evaluate each trade are illustrated clearly with over 200 actual recent charts. $125.00 Shipping is $12.00 W.D. Gann in Real-Time Trading by Halliker’s, Inc. If you feel that you would like to do short term scalping or swing trading in the markets, then this book might be for you. It illustrates many short-term Gann mathematical trading techniques which have a high tendency to work intraday. Various intraday time frames are shown and how they can be used together to keep you in the direction of the market. 200 pages $69.00 Patterns & Ellipses by Halliker’s, Inc. Stocks and futures move in elliptical paths. When a market makes a gap, its price action usually passes into a new sphere. All its activity will remain in the current sphere until it moves into another new sphere. This new book tells you how to use ellipses along with detailed chart patterns to determine if a stock or futures contract is bullish or bearish. 100 pages $49.95 The Fibonacci Vortex™ Handbook By Earik Beann The Fibonacci Vortex™ is one of the most complicated, yet powerful tools in Wave59. This book covers the theory behind the pattern, how to construct it, how to forecast with it, and most importantly, how to trade with it. In-depth chapters on chart scaling, sizing the vortex, time targets, price targets, and time/price squares, plus countless example charts. Includes vortex techniques previously unavailable anywhere. 120 pp. $89.00 Trading with Wave59™ Volume 1: Technicals

By Earik Beann This book illustrates how to use the most popular tools found under the “Technicals” menu. In depth coverage of Exhaustion Bars, UltraSmooth momentum, 9-5 Count, Lomb Periodogram, SmartMoney Index, Fractal Trend Index, Action Zones,

Winter/Early Spring 2005 • Traders World Magazine

Predict, and Neural Networks. Check out the 9-5 Count working on daily temperature fluctuations! Many charts and trading setups presented. 152 pp. $39.95 Pyrapoint by Don E. Hall Mr. Hall discovered a secret from one of Gann’s associates “Reno” who shared a desk with him on the floor of the Chicago Board of Trade. Apparently Gann carried a piece of paper with him to the floor every time he made a successful recorded trade.

Mr. Hall found out what that paper was and developed the Pyrapoint trading method around this. An easy to understand trading software program was fully developed. It creates a natural trend channel and areas of both support and resistance. It’s clearly tells you when the trend changes. 300 pages. $150.00 The Patterns of Gann by Granville Cooley The author of this book has been researching W.D. Gann’s work since 1983.

Cooley has found patterns (cycles) using numbers. His approach to understanding of cycles will enlighten any student of Gann. If you are serious about the study of Gann and the study of cycles and patterns, this book is a necessity. 611 pages (8 1/2” x 11”) perfect bound book. $159.95 The Structure of Stock Prices Using Geometrical Angles by Russell M Sedlar “This chart based book shows how the Geometrical Angles described by W.D. Gann, when used is this newly discovered way, literally become the controlling force of stock price fluctuation, causing tops and bottoms to form and trendlines to be determined.” $49.95 Gann Master Charts Unveiled by Halliker’s, Inc. Complete 100 page book explaining how to use Gann’s Master Square of Nine Chart, The Gann Hexagon Chart and the Gann Circle Chart. $49.95

Natural Squares Calculator™ The Natural Squares Calculator™is used to calculate both natural time and prices. It can be applied to any time frame. In today’s fast paced electronic trading world with 24 hour worldwide markets, the calculator is a natural for intra-day trading. For the longer term position trader, the daily times are uncanny in their ability to provide you with support and resistance points. Physical size is 19” X 19”. $547.00

AstroCycles: TradersViewpoint

by Larry Pesavento Pesavento begins at the very beginning of this book by teaching the basics of astrology. He includes the basic definitions and explanations fo the planetary movements. Included in the topics covered are explanations of the Zodiac and its relationship to the signs and houses, eclipses, equinoxes and solstices as well as Lunar phenomena.(190 pgs) $40.00 Geometry of the Markets

by Bryce Gilmore Book explains the theory behind time in the markets, Ancient Geometry and Numerology, Squaring Price Levels, Time Support and Resistance. Heliocentric Planetary Cycles. $40.00

The Geometry of Stock Market Profits by Michael Jenkins This book is about Jenkins’ proprietary techniques, with major emphasis on cycle analysis, how he views and uses the methods of W. D. Gann, and the geometry of time and price. $45.00 Chart Reading for Professional Traders

by Michael Jenkins This book is a complete, comprehensive study on reading charts, forecasting the market, time cycles, and trading strategies.

Explains reversal of trends, when to expect them, and how to know the trend has change. Shows you how to forecast with great reliability how long the new trend will last and its price target. $67.50

The Opening Price Principal

by Larry Pesavento There is an amazingly reliable relationship between the opening price and the high/low range for the entire day. This relationship is generally known only to seasoned veterans. This new book from 2 traders with over 50 years combined experience reveals this consistent pattern, illustrates it with many tabular and charted examples, and tells you how to trade profitably using it. $23.70

Fibonacci Ratios with Pattern Recognition

by Larry Pesavento This new book is well focused and organized. The bulk of the book describes a limited number of high probability patterns which coincide with clusters of Fib price projections that provide the short-term trader with high probability and low capital exposure trade set-ups. These trade set-ups are equally valuable for intermediate term traders as well. The short-term set-ups can also be used to enter for an intermediate term position. $43.95

Complete Stock Market Trading and Forecasting Course by Michael Jenkins In this course Jenkins Complete teaches you to trade the Stock Market markets using the time and Trading price principals of Gann.. He Forcasting also reveals his secret trading Course techniques which he only has revealed to some of his close friends.(284 pgs) $529.00

Profitable Patterns for Stock Trading

by Larry Pesavento Over the past 20 years the use and misuse of the Fibonacci Summation series has proliferated to the point that commentators on the nation’s TV business channels are now resident experts. I lay no claim to being an expert.

I have, however, studied the subject of Fibonacci numbers extensively, especially how it relates to trading. $43.95

Planetary Harmonics by Larry Pesavento.

Provides phenomenal trend change dates and Applies George Bayer’s Secrets of Forecasting Prices to financial markets, Proves the validity of planetary harmonics, Illustrates hidden Fibonacci ratios. 202 pgs. $49.00 $44.10 Harmonic Vibrations by Larry Pesavento In this book, Pesavanto deals with planetary aspects and their relationship to day-trading. He takes you to the floor of the Chicago Mercantile Exchange with wave trading techniques such as a geometric trading plan based on George Bayer’s secret message, Combust (one of the most important astro-harmonic cycles in soybeans) and the Rosh Hashanah Cycle. 176 pgs. $49.00 $44.10

traders how they used the techniques of W.D. Gann.

This was put together in an GANN easy-to-understand course MASTERS designed for the average person. The course includes dozens of charts and illustrations which were not included in the courses of W.D. Gann. 200 pages. An Excel template was also developed to help the students with master table and circle charts. $90.00 Gann Masters II by Halliker’s, Inc. This course shows you how to implement Gann’s mathematical techniques to trade GANN the markets including using MASTERS II angles, swings, the squares, time cycles, astrology and many other techniques illustrated with the software program GannTrader 3.0. Much of the course is taken from the GannTrader 3.0 software manual. $90.00 The books on these two pages are just a sampling of what is available in our catalog section on our internet website www.tradersworld.com. Please go there for a much better selection or for more information please call us at 800-2884266.

Book Order Form 800-288-4266 Fax 417-886-5180 Qty Item# Description Price _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________

Intro to Astro Tech Trading of Stocks and Commodities by Myles Wilson Walker Part One: For Beginners, Planet glyph, Wheel explanation, Terms, Fixed (Automatic) Astro Cycles and examples, Stock Indexes, Grains and Bonds, How to Find Fixed cycles for any Stock or Commodity, Planetary Ingress, Retrograde - Direct planets as a Cycle timer, Jupiter Ingress and Soybeans, Repeating Aspects, How to Find the Dynamic Astro Cycle for any Stock or Commodity, Natal Astrology, Bradley Indicator, Time by Degrees, Chart Patterns, Trading Organization, Profit goals, Appendix, Complete Glossary. 130 pages. $49.95 Gann Masters

by Halliker’s, Inc. Due to the overwhelming interest in the W.D. Gann trading techniques, Traders World created the Gann Masters Trading Course to help traders become successful.

The course was created by Traders World Research in combination with asking large

_______________________________________________ ______________________________________________ Shipping in (x.xx) beside price ______________________ MD residents add 5% to order ______________________ Total Amount of Order ______________________ Name_________________________________________ Company_______________________________________ Address________________________________________ City_________________________________State______ Zip ___________ Phone __________________________ Country________________________________________ Method of Payment: __ MC __VISA __ AMAX __ Check Card#__________________________________Exp.____ Shipping: U.S. Orders: 1st book $4.95, each additional add $1.95 International Airmail: Canada: $8.00, $4.50, Mexico: $12.00, 4.00 Europe: $19.20, $9.50, Asia $25, $$19.50 TradersWorld, 2508 W. Grayrock St., Springfield, MO 65810

Traders World Magazine • Winter/Early Spring 2005

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Traders World Magazine • Winter/Early Spring 2005

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Winter/Early Spring 2005 • Traders World Magazine

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Traders World Magazine • Winter/Early Spring 2005

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Winter/Early Spring 2005 • Traders World Magazine

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