Calm Chaos in Market Madness.

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Below are the Relativistic Market Data, One Market Year Slope and One Market Year Chaos charts for the S&P 500, NASDAQ and DOW.

One Market Year is about 271 market days and is used to calculate the previous one year of linear regression at each point in time.

As we can see, the slope and chaos tend to move above and below the Zero Line in a fairly regular pattern.

In the 1987 Crash, we see the green slope dove beyond zero and chaos spiked in the positive.

However, after the 1987 Crash, the slope rose and chaos spiked again.

Not a bad thing, it just means growth took over again.

Notice how before the 1987 Crash that chaos was negative throughout 1985, 1986 and most of 1987.

Something similar happened in the 1990 market correction.

The green slope and blue chaos lines work together in showing the one year market state at each point in time.

Now, let's look at where we were at in 2013 and through 2014.

Notice anything strange about the blue chaos reading?

Given the market slope is positive and chaos has been dancing around at low levels for nearly a year, the market is set explode.

It could be for the better, but if you don't even entertain the thought it could be for the worse, then there is an 'I told you so.' in your future.

Keep a Very Close Eye on the Markets.

We are.

 

Entry #3,244

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