Comment #1

CajunWin4 — Mon, 04 Mar 2013 01:16:01 GMT

Great Information

Original Blog Entry: IMO: May be your last chance while you can.

JADELottery — Sun, 03 Mar 2013 20:28:06 GMT

Before we start, we'd like to say that none of this has to be believed.

If you don't agree, Great, more power to ya.

Moving along, we have made a few charts from the S P 500 close data to illustrate the possible coming change.

We used our JADEXCODE Excel AddIn to do some analysis for the close data.

For your reference, we used the Exponential Regression, by Amplitude Only, and Wave to BMA RMS Ratio = 0.84 settings for these charts.

Below is the S P 500 close data with the Exponential Regression and the Regression plus Wave 1 summation.

Wave 1 shows the long term trends over many years and any changes in its value must be long term effects.

From this you can pick out the past two economic disasters, the Dot Com Bubble and the Housing Bubble.

It looks like it's going up, but to the untrained eye, this is not entirely accurate.

We have to look at the Wave by itself to understand it and look at how fast it's changing; how fast it's accelerating.

First, we can take out the Regression and just deal with the wave.

Below the chart shows how the wave deviates from the regression.

The Red line is the Regression and it is the average 7.34% year on year growth.

Anything above the red line is better than average growth, anything below is less than average.

Also, anything moving horizontal with the red line is moving up at average growth; anything other than that is better or worse.

To get an idea of what direction the wave is moving we need to look at its Rate of Change, or how fast is it moving up or down.

The graph below show this Rate of Change and can be an indicator of where the S P 500 is going in the long term.

As we can see for the other economic disasters, when the Rate of Change heads to the red line, somethin' may be a comin'.

Not always, but as we said it's an indicator.

We can see the trend is heading back toward the red line.

We need to go one more step and see how fast is the Rate of Change heading for the red line.

This is also how fast the wave is accelerating to the red line, so it's called the Rate of Acceleration.

Below is the Rate of Acceleration and is an additional indicator of long term change.

As we can see, the Rate of Acceleration is negative, meaning the long term rate of change is heading down.

Looking at the other times this has happened we can get a fairly good sense of what is about to happen.

Good Luck.

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