More from Ali...
Time to expand the way you think about how things really work... including the movements in the stock market!
(to watch on youtube: http://www.youtube.com/watch?v=MXE_5806O-0)
In my previous post, I mentioned that everything in nature is based on “The Law of Harmonics” or “Vibration”. All things are universal, actually there is nothing which is not universal. Man and mind, emotions and all creating things are universal, as we are all made of “Aether “ which is the fluid-like energy of life and the force behind the “space and time”. Time is life is energy is motion and according to the law of vibration and harmonics, every motion is cyclic and periodic, of course in a non-linear system.
As a matter of fact, there is no straight line in the universe and all directions are curved and non-proportional. All the forces in the universe are “diatonic” and the universe is a “tonal one” which is pulsating round the clock. Man is sure part of the nature and all nature is a series of orderly tonal periodicities of the “One Force” vibrating into the "Octave of Dimensions”. Every form of energy is spiraling, thus, it is progressive and evolutionary and divided into “opposites” (positive and negative), clockwise and counterclockwise, revolving around a nuclear center.
Humans consciousness, thoughts and emotions are truly based on “etheric energy”, as we are made of the same stuff. Therefore, thinking is a process, an orderly, evolutionary and periodic process which is truly constituted in form of “seven tones” and multiple octaves. When these octaves complete, a new cycle will be born and the process will go on to infinity. The fact that matters is that these octaves along with their tones constitute a cycle of evolving states of motion.
All motion is oscillatory and in form of “Electromagnetic Waves” which swing in sequence between two opposing forces, namely “gravitation and repulsion” and are respectively electric and magnetic. This progressive and evolutionary motion is a pulsating and vibratory in-breathing and out-breathing. These two opposite forces are only two forces of mind which are added together, constituting the “One Force”.
Now we may infer that mind is the universe and that's all there is to it. Indeed, all the forces in the universe are diatonic. “Musical scales” or “Harmony ratios” were first documented by Pythagoras a philosopher and mathematician in the 6th century B.C.
In my prevoius post, I mentioned that the "seed sound” of the universe vibrates itself into an octave in order to create a life from itself: Do, Re, Mi, Fa, So, La, Ti.
- Do-has the value 1. (The other vibrations are simply increasing ratios of this vibration - [Ascending]).
- Re- Do by 1/8, or the factor 1.125
- Mi- Do by 1/4 or the factor 1.25
- Fa- Do by 1/3 or the factor 1.333
- So- Do by ½ or the factor 1.5
- La- Do by 2/3 or the factor 1.666
- Ti- Do by 7/8 or the factor 1.875
Do- which is refered to the “descending octave” and completes the octave.
Below, a descending octave (1 to 1/2) is measured by multiplying the descending Do (1) times ½ diatonic ratios.
- Do- 1 (descending Do)
- Ti- 0.9375 or 15/16
- La- 0.8333 or 5/6
- So- 0.75 or 3/4
- Fa- 0.6666 or 2/3
- Mi- 0.625 or 5/8
- Re- 0.5625 or 9/16
- Do- or 0.5 or 1/2
When it comes to the consciousness, there are actually three positive major “tonal forces” and three negative tonal forces and the last one is the combination of both positive and negative forces. Actually, this process completes an octave (Master Tone). I also touched on movement of the stock market and how to link it all to the “Law of Vibration” or Harmonics in the last post. Indeed, the financial markets can be the best example, reflecting and charting out the humans emotions (greed and fear).
The weekly gold chart below is an example of “diatonic forces” but remember that it is not always the same case with all the patterns in the charts, as most of you folks know that patterns are quite interwoven and the bigger cycles can easily overpower the smaller ones. (the info I present here is so limited as this study is very deep).
Weekly Gold chart...
As you see,if you measure from the high of September 2011 to the high of November 2011, the “fundamental tone” is 10 weeks, when you multiply it by the “musical fifth” (Ratio of 3:2) or the factor 1.5, you will get 15 weeks... the high of February 2012. Now if you multiply that by the next octave or 2, you will get 30 weeks. This is the beginning of the spiral with combination of both positive and negative energy. The process will go on until it completes the octave and the “mid-tones” describe the fractals!
Below is another example of the Dow Jones monthly chart...
As you see, we have 16 months between the low of march of 2009 and the low of July of 2010. Now lets take it as a "fundamental vibration", or 11*1.5 (musical fifth)=16.5. As I stated earlier, every movement of energy generates opposing movement of energy or "polar opposite", so now the reverse of 11*1.5=16.5 is 11 months (the move between the low of July 2010 and the high of May 2011). It's a "counterclockwise" move!
You see... 11*1.5=16.5, or the move between the high of May 2011 and the beginning of the down move in October 2012. Therefore the octave will have to complete... so you multiply the 16months by 2 (octave), and you'll get 32 months. Now count the months from the low of July 2010 and you'll reach the low in February 2013. I suppose the closest date of the bottom is 25th of February. You see, there are 15 months between the low of July 2010 and the low of October 2011. The cycle will shift into a high October 2012, and a higher high or a chop sideways move into the August of 2013.
How? You simply do the math... 15*1.5=22.5, which makes the closest date the 19th of August 2013.
To sum up, mind is indeed based on the "universal law" and energy reproduces itself transferring its expression throughout the universe from wave to wave. Therefore, all energy is expressed in waves and all waves are divided into positive and negative. We live in non-linear system, all directions are curved and this curve means spiral... a diatonic spiral with combination of opposing forces.
Feel free to email me your questions...
Ali Firoozi Yasar
afiroozi (at) rocketmail (dot) com.
The Final Top In The Stock Market For The Year 2013 Is Likely To Happen Within A Week...
(to watch on youtube: http://www.youtube.com/watch?v=CWwyPwHtnKk)
One of the last comments I made on the previous post was that I see another push higher starting likely on Wednesday the 9th of January and concluding by Friday the 11th... which I still think has the highest odds of happening. The bulls are clearly running out of steam up here at this overbought levels and with hardly any bears short and no more buying from bulls the high is sure close now. My best guess is that they will fall just slightly short of hitting 1500 on the spx by this Friday. The charts are way to extended on the daily chart to give much help for the bulls but it looks like they have reset the 2 hour and 60 minute charts enough to turn them back up and make another run at piercing through the 1470-1474 resistance zone.
While I don't study Elliottwave and I'm certainly not a big believer in it being accurate anymore (it used too be back 20 years ago before us sheep had access to computers to chart stuff), I do still see wave patterns in the market. With that being said I'll speculate on what I think is going to happen over the coming weeks and months. This final move up to around the 1500 area (give or take "falling short" or piercing over it by 10-20 points in some exhaustion move) should be the final high for 2013.
The first wave down should start as early as this Friday or Monday of next week. This really depends on whether or not we fall short of 1500 (which I then think we'll peak by this Friday), or by some unknown "pull another dead rabbit out of Bernanke's hat trick" we manage to go up to 1510-1520 (which pushes the high out until early next week). I give it 60/40 odds that we'll hit the 1490 zone and top versus 1510-1520 area. And with those odd's I think Friday will end the move up and allow this first wave 1 down to start... which should drop 60-70 points if it follows prior "wave 1" moves down in the past. Then we should see the wave 2 up into the week of February 11th... just after the Legatus meeting ends.
At that point I do believe we'll see our wave 3 down similar to the May 2nd, 2012 (a prior Legatus meeting date) that lasted until May 18th and dropped a nice 123 points off the SPX. That move lasted 16 calendar days and ironically Ali's "estimated" low date of February 25th is 14 calendar days from the likely starting date on the 11th... pretty close if you ask me! Now do note that Monday the 11th isn't a "yearly" eleven date where all the digit's add to up equal eleven, but the12th is! So, you have the "daily" eleven date on the 11th (obviously... duh!) and the "yearly" one the date afterwards on the 12th. One of those 2 dates is very likely to be the top of the coming wave 2 up rally and the start of the wave 3 down.
So what will they blame this future sell off on you ask?
If I had to guess I'd say the next big scare in the news will be the "Debt Ceiling" issue. Possibly they will time some future vote on this issue will be centered around the sell off? I don't have any knowledge of any future date but "something" will be blamed for this coming sell off I'm sure. I guess they could bring back the "Fiscal Cliff" crap and spin some kind of panic into that issue as we all know it's not really fixed but just the usual "kick the can" down the road move.
(Last minute find: http://www.washingtonpost.com/business/fiscal-cliff/us-may-default-on-its-debt-a-half-month-earlier-than-expected-new-analysis-shows/2013/01/07/6c3b3b26-590a-11e2-9fa9-5fbdc9530eb9_story.html LOL.. February 15th huh... nice timing!)
But for now let's just focus on this week and trying to find the right spot to get short at. It's not going to be easy picking the top as although I think it will happen around 1490 spx (by this Friday) these gangsters have a evil knack for fooling the most sheep and going up higher then anyone can really believe. But, I think we are already in that "disbelief" mode right now... especially after the insane rally up from the 1400 area low at the end of last year. For you though... make sure you continue to watch the daily comments as "if" and "when" we get close to either one of these probable highs I should be able to make a better guess on which one is like the real high.
Again, I'm going with a 60% that we'll fall just short of the 1500 target by this Friday and top out there... which leaves a 40% chance that we'll pierce through it and go 10-20 over 1500 by early next week. I wish I could figure it out exactly but that huge 2 day up move really screws up any elliottwave count I can figure out (not that I trust it anyway though), so I'll just stick with trendlines of resistance, prior average point moves, and prior time frame cycle periods (along with technical analysis too of course) to pick a point to go short at. If it happens on some final gap up exhaustion move Friday morning then I'll be looking for 1480 on the low side to 1490 on the high side for that topping tail to happen.
P.S. I'll be put out the news for "The Big One" on the HOT Penny Stock in the newsletter this coming Thursday evening.