Thousands of Instant Facts and Opinions

The bears are now in turmoil, and the talking heads are discussing wedges, ABC formations, tops leading to new bottoms, and all the normal stuff we hear after the market does a complete shift yet again.
It's big numbers: a theoretical Dow low of 9861 and a high of 10,208 by 3.25 p.m.
Whatever caused it (and the reason and catalyst I hope you are realizing is MEANINGLESS, just that the cycle changed is of value in making money.)

It has been an astounding whipsaw this past week. As you view our new Dow Projections next week you'll see we will have the same struggles and turning points.

OEX trading is around moments to days, following cycles and patterns around support and resistance lines. Within it we utilize the Dow (which runs in correlation to the OEX well) for tops and bottoms to look for.

Cycles in which one trades, however, are much longer as we analyze the series of events that create longer term triggers. Charles Nenner of Nenner Research states: "A period of 250 years is the minimum for the student of the business cycle. Only detailed historic knowledge can answer most questions. Without it, theoretical analysis is inconclusive. Looking at the facts of the prior quarter or even the half of a century is, in our opinion, quite inadequate."
We use cycles in our Blue Chip Option trading, and the longer historical events to help us see what will trigger movement.

Comparisons, for example, to the 1930's crash, are interesting, but don't take it far enough back, NOR include current events that have changed from the 1930's. As examples:

1. Our greed of oil was just beginning then.
2. China was not a factor then. China is now a factor, because investors concentrate on it.
3. Deflation/Inflation was less, as the world was less, in people, in manufacturing, and in money. We still had a Gold Standard.

Lastly, there was not any form of media that instantized news. We now deal with 1000's of "instant" facts and opinions.


Here's a movie on youtube that truly explains it all:

http://www.youtube.com/watch?v=mSujCHfvTb0