071202
In this showcase, we'll look at some interesting techniques involving the natal forecast. Please take a look at the chart below:
This is a two day chart of the e-mini S&P. The red and green lines show the plot for the natal forecast for these two days. This plot uses the default settings for the forecast except they have been shifted back in time by 45 minutes. During the middle of the day on the 11th, I noticed that if the forecast was shifted backwards by this amount then it would be an almost perfect representation of what price has done during the day thus far. I actually sent a post to the discussion group about this.
As you can see, aside from a late inversion, the forecast was perfect on the 11th if this shift was taken into account. The question that came to mind at the open on the 12th was obviously whether or not this shift would hold. So I put the forecast up and took a look to see if I could find an answer to this problem. The answer came when I turned my attention to the low marked by the big blue arrow.
I always like to focus on the big stuff as far as the forecasts are concerned, so this location naturally jumped out at me when I was looking. The interesting thing about it is that it happens at the same time as the New York Stock Exchange conjuncts (= same place) the Moon. You can see this visually with the gray vertical lines drawn on the chart. This represents aspects between the NYSE and the Moon during these two days. The market is too complicated to be governed by a single aspect like this, but you can see that it definitely had an effect. Notice especially the first four aspects on the 12th.
Having seen these aspects calling out the turns in the morning, I had a very good reason to trust the turn late in the day at the blue arrow. Pattern matching obviously helped as well. At 1306 Mountain Time, price was bottoming just on time, the aspect arrived, and a blue 9 from the 9-5 Count popped up as the official buy signal to mark the end of the decline.
So the point of all this is to give you an idea how to fit the forecast into context of standard aspects during the trading day. It is also meant to give a possible explanation why the forecast shifted in the first place. The market has to take many different forces into account. Alan Greenspan is doing one thing, the program traders are doing another, the Moon and crazy astro-traders are doing a third. It goes on and on. But despite all these different influences, there can only be one low and one high of the day. So sometimes the cycles get tweaked and shifted to line up like this. The market really wanted to bottom on that Moon/Exchange conjunction, so all the cycles ended up being influenced by this, and thus we find a shift in the forecast.
So there's some food for thought. I would probably have stopped there in older showcases, but since many users of Wave59 are starting to get the hang of this, let's look a little deeper and get to the good stuff! If we pull up an ephemeris for 1306, here's what we see:
Don't worry if it's a little confusing. This is probably the most esoteric thing in the entire program.
This represents a graphical picture of what the planets were doing at the instant in time of our NYSE/Moon conjunction. This is shown at the upper left and marked "Focus". When using this chart to forecast turning points during the day, there is often a focal point on the chart where everything comes together. When you find this magic spot, all of a sudden 80% of price action becomes clear. The problem is that it's not always so easy to locate it ahead of time.
But in this case, the shifted forecast was a big clue. There are more clues on the ephemeris. First of all, the Sun is in Cancer, home of the Moon. This makes the Moon the ruling planet for now. See that gold crown drawn right on the ephemeris? That's what that means. So the Moon is extra special right now. Additionally, the Moon is in the right spot on the chart.
There are two rings of dots around the edge of the circle. The inner ring represents where the planets were at the birth of the Stock Exchange (5/17/1792 12:00). The outer ring represents these same planets progressed along with the sun. So it's the same pattern, but it moves with the Sun.
Anyway, if you look at where the Moon and NYSE are coming together, you'll see that it's right on top of a red triangle on the inner natal ring. This is the ascendant, a very important spot. It means this is a really hot conjunction. And there's more. If you look at the blue hexagon, you'll see that there's an important natal or progressed planet sitting every 60 degrees away from this location except for one leg, directly up, where we have current Saturn instead. Saturn is a powerhouse in the stock market, so pay attention when you have a pattern involving it. Also important is the fact that the natal Moon is involved in this pattern.
The Moon is the right planet and it's in the right place. Both of these conditions are important. You can have plenty of gas in your Ferrari, but you've got to be on the highway too, not off in some ditch. Can't go too fast over mud and rocks. It's the same here.
So this is why it was pretty obvious that the Moon/NYSE conjunction would be the focus of this day. Now that we have all that set up, we can use this information for trading. This part is easy. See that price ring on the outside of the ephemeris? We can use our pattern to find important prices during the day. I've marked a few of them on the chart for you.
We can also watch as the NYSE passes past these hot points. When it was conjunct Saturn, we made the high of the day. This is marked "top" on the picture. The price at the high was 150 degrees from our focal point, and on the same pattern as the price of both yesterday's high and low. Then, when it moved to our focal location with the Moon, we had the low of the day. The price that corresponds to our focal location is 914.25 or so. Our 4 minute chart never closed below this level.
So there's some more food for thought. There is a reason that all the legendary traders studied astrology...
Stay tuned!