Financial Markets and Fibonacci Golden Ratio

I commence with my gratitude to The Ultimate All-Knower

When I published my recent forecast and analysis for December 10/13, 2010. I had referred to Golden Ratio. I was asked to elaborate a bit more its relationship with financial markets and how I apply it in my research. 

Well anyone, who is willing to put some time into the analyzing the technical charts of the financial markets, equities, currencies, and commodities, would discover that Fibonacci is present every where in the financial markets. Most of the impulse moves rallies and corrections shall stop at the 61.8% (or 62.5) or 161.8% (or 162.5) of itself and the previous run. It is applicable in both time cycles and price cycles.

I have enclosed two weekly charts from the low of 2003 to the current, which will illustrate the Golden Ratio effect on the financial markets. Besides these charts, you can and shall find thousands other instances, where these specific Golden Ratio numbers 61.8 and 161.8 (inverse of 61.8) are prevalent.
We allow 1-3 weeks orbs for long term time cycles.
1. March 2003 bear market low to the May 2006 high = 163 weeks
2. Aug 2004 low to Oct 2007 bull market top = 163 weeks
3. March 2003 low to May 2004 low = 61 weeks
4. Feb 2004 high to April 2005 high = 61 weeks
5.October 2007 high to Nov 2010 high = 161 weeks
6. May 2008 high to July 2009 low = 61 weeks
7. Feb 2009 high to April 2010 high = 62 weeks
8. November 2008 NASDAQ 100 bear market low to April 2010 high = 61 weeks
9. Above all The Chilling One Day Fastest Crash in recent history of May 2010 occurred 61 weeks from the March 2009 low 

Profitable Trading!

Financial Markets Forecast - 12-17-10

I commence with my gratitude to The Creator

What does the Change in Trend (CIT) on a certain time cycle, mean? Well, simply, whatever was the trend before a certain time cycle, will not remain the same. If the market was up, it would stop going up, or if the market was trending down, it would stop doing so. It could be either a pause and then change in direction or it could be pause and selling on daily basis, but not enough to change the direction into opposite one, but rather to grind the buyers and sellers out :)). The change of trend, as previously noted, is supposed to last for certain time band. It is minimum 3 trading day to 5 trading days.

Gold and Silver Commodities Markets have been affected seriously by the recent time cycles, as they have been down since last time cycle ingress.

As I noted in yesterday's post, if the S&P's support at 1,220 is held, then the Financial Market shall finish its cycle, which it started back on 03/06/2009. It could be 24 months cycle, ending in March 2011 or it could expand into the June 2011 (3 months orb.) Click on the chart to expand.

Today, my Geometrical Time Cycle Generator, has one time cycle due, which could mean that today is the last of sideway move.

Financial Markets Outlook UPDATE - 12-16-10

With my gratitude to The Creator

Financial Markets are probably making some participants dizzy due the moves, the markets are making. Though mostly downward trend since Monday. However, the markets are failing to make definite lower low. I would consider a lower low, when S&P closes below 1,220, with solid bar, not with a Doji daily candlestick. Yesterday was a lowest low since Monday, but it is lacking that commitment and strength to head lower.
One thing to note and watch out for ......that sell-off usually starts in the later part of the day.

Prudence strategy requires, that we wait for the markets to show us their definite trend development and keep our stops tight and close, to protect the risk capital.  Please see the attached chart for the elaboration!

Sometimes, the Time Cycles, create a pause, which is sideway move. Actually sideway move satisfies a certain qualification for the change in trend, (a change which does not occur). What happens is that most of buyers and sellers get tired during this side-way move of the Financial Markets. And the time it spends in sideway move is considered to satisfy the Time Cycles' requirement. So if a time cycle was supposed to create a change in trend for 7 days (or 5 trading bars), then a side-way move for 5 trading bar just satisfies that.

Financial Markets Forecast 12-10-10 - A Change in Trend is Due - Follow Up - ALERT

With my gratitude to The Ultimate All-Knower

The time cycle got extended for three days, and so did the points of S&P. The Time Cycle was due on Friday (115 days) or Monday (116 days). It is extended for 3 days thus the high prices accordingly, as it is following the "t x 2" rhythmic motion.  So we got 3 more trading days (including Friday) and 6 more points in SPX

Another two astro-time cycles got triggered today. Thus, the awaited CIT is due today.!

GS and GOOG Forecasts - Follow Up

With my gratitude to The Ultimate All-Knower

I had fore-casted on 12/6 and 12/8 about GS and GOOG. Both of them have reached their first targets intra-day, today.