Sunday, April 20, 2014

Cheating, NDX and the sqrt(2); perfect order in the world

You may have read the previous essay regarding DJIA where each extreme high and low from 2000 to 2009 is related to the February 5, 1934 Grand Cross by Gann zero lines drawn from it using Sacred or geometric  numbers as the slope.  It was pretty easy to do the same thing in SPX using the earliest quoted date for SPX (in 1950) and similar sacred and geometric numbers:
SPX showed the same sacred and geometric numbers early in my investigation so I didn't belabor the point by finding more than the first 3 points above.  I'd expect the 2002 low is supported as well.

But NDX was problematic.  So what does an enterprising investigator do when he can't find the answer he wants?  He cheats.

I took a simple 1X1 zero line and fitted the line to exactly touch the top of the 2000 top and looked back to fit the origin to the nearest high or low.  Cheating.  The date of that low was December 31, 1986.  Nothing of distinction came to mind about that date.  Maybe you have a thought?

After painfully looking at dozens of sacred and geometric numbers I finally found that all of the 2000 to 2009 extreme highs and lows were 'explained' by an obscure function of the 4th root of 2 or 1.189 (of course the 4th root is 2X2 as well).  And, as we know, the 2nd root of 2 is the hypotenuse of the 1X1 square.  For the geometrically disinclined, the square root of 2 is 1.414....a number that Bradley Cowan says is more prominent in freely traded markets than Phi.  So, from the top in 2000 the Gann angles are 1X1, .5946 X1 (the 1X2 line with a step of 1.189), etc.  The fit is too good to be coincidence in my opinion.  The geometric root of 2 must be at the bottom of this.

But cheating is just so very unsatisfying.....until I noticed the close on the origin date of December 31, 1986.  I'll let you savor the 'coincidence.'

Happy ending.  Perhaps the Lord teases us in giving us glimpses of His perfect order.  Time for church this beautiful Easter day.

Jim





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