Financial Markets

I haven't blog'ed in a long time but I cannot be quite about this any longer. The recent 'financial crisis' is bunk. After 3 years of studying markets using our algorythm I can only conclude that the weeks from 9/05 to 9/19 were nothing more than mundane market behavior.

How can I say that? First let's consider the conditions. From 9/14 until 9/19 the markets (When I refer to markets I mean specifically the NYSE -- ticker ^NYA) actually climbed 97 points. This climb lifted the markets to a 3 week high.

But Tony you say, "the market was in free fall for two days before the Feds stepped in and halted short selling". So let me explain. If there is any doubt to what I am saying, reference my facebook account, look at my comments regarding what I recorded my buys were for any of the given days. I have never posted this information to any account until this last week because I wanted the information to be available.

The market place - when measured properly - behaves in oscillatory behaviors. There is a method to detect this 'energy' level. In March of this year we perfected this detection. The confusion in the detection is a model that I dubbed MaeWest. In the MaeWest structure there is a series of falls (or climbs). Followed by an up (or down) motion in the market. This is when great concerns ring in our office. The second fall of the MaeWest is artificial in dollar function. Understanding the composition of the Index itself is critical in understanding what I mean by an artificial fall. Needless to say I do not intend to disclose how nor under what pretense we calculate these values (unless you have A LOT OF MONEY LOL).

At a certain 'energy' level of the second MaeWest it is critical to reverse your purchase from the direction of the market motion. In our case (and again you can see my decisions in my facebook account - time stamped). In our case we saw not only the ensuing climbs that occurred on the 18th and 19th of September, but we were actually able to select stocks that went long on the 17th and stocks that went short even during these tremendous falls and climbs.

So if I am so smart why don't I just make money off the knowledge and keep it a secret. 1. I did make money. My portfolio value increased 10% over the the last week alone and not all in shorts. 2. The intervention of the Feds may or may not have been needed.

Because I probably believe in quantum, I am not sure if what saved the market was the intervention or if the market had no where else to go and the intervention was ineffective. I tend to believe the latter is true.

What ever the case is reality, the limit of short selling of financial stocks scares me to death. It is my belief that unnaturally altering the market leads to greater volitility at later dates (which btw is good for me but really bad for you).

Here is my point. I bought long when everyone from NPR to Obama to McCain to Bill Orielly were saying we were in a crisis. Because I went long I made huge profits. Luck - you say. No, go back another week and you will see I also called a short lived up. Our method has correctly called these changes in actual trading since Jan of this year - through automatation since March with 100 percent accuracy. Even scarier, tested against historical data, it has caught the situation every time for 10 years. So either I knew the Feds were going to halt short selling and create bad debt groups or there is a mechanism for the markets to maintain equilibrium (albeit volitle).

If you can accept the equilibrium arguement, then limiting shorts is tantamount to removing predators from ecosystems. Get rid of cats around a barn and see what happens to your rat population....

Happy stock hunting...I will go out on a limb - I would say Monday is mixed or down. Our model told us to get out of the market. I am really reaching here but I would project 1 to 3 weeks of moderate growth (primarily due to limited short selling - money has no where to go). Our model only provides with determinism 1 day out. There are overlying trends though and that is why I am willing to reach out so far in my GUESS. More importantly, I would expect to see a run up in commodities as money exits the market (there are no shorts to play). This means higher oil prices. Hold on to your wallet. What do I know? I am just a Physicist who perfers to work in garden and read and study evolution.... Don't trust me, trust your financial advisors LMAO