Thursday, April 6, 2017

Current Market: The first and second squares of 12 and mated cubes

This essay is a bit of a rehash of the immediately preceding essay but with a little more perspective on the second, third and fourth dimensions' possible interrelation.  Takes me a while to deal with the 'aha's' with which I am presented and, even then, I'm hardly at peace with my supposed understanding.

The second dimension square has four sides any way you look at it.  The third dimension cube is comprised of 6 square faces having 12 independent, unique edges.  You dissemble the cube into 6 second dimension squares each having 4 edges then you have 6X4=24 edges.
Given a 1X1X1 cube, the perimeter of the cube (12 sides) will be 12 and the perimeter of the 6 dissembled squares will be 24.  A law of two and three dimensional Platonic cubic structure.

12 unique edges of the assembled 1X1X1 cube divided into 24 less so independent edges of the dissembled cube gives us the metric of 2.  And, as previously discussed, the growth spiral of the square of Pythagoras' hypotenuse of the 1X1 square is 1, 1.4142, 2, 2.8284.....  2 is a very very important geometric metric.  And Phi, well, as expert market analysts we all know the Phi growth spiral (or as attorneys say "know or should have know").

What does the third dimension cube look like in the fourth dimension?  We would want to see the metric 2 involved, wouldn't we?  "As above, so below?"  Let's take the question to the laboratory and examine data that has been accumulated on our lab rat name DJIA.  We need data.  Here are the ugly mated (sharing a common face) cubes of the period 2000-present:

In previous essay, Price Time Vector (PTV) values have been computed and presented.  Both the approximate values in the chart above and the detailed mathematic values previously computed are based on the assumed points K and L.  Points K and L were derived from the application of the "camera obscura" concept in a previous essay and from a yet to be described "coincidence."  The above software calculations are approximate as they require visual fitting to points.  The exact data has been computed and can be found HERE.

Will we find 2 when we assemble and dissemble each of the 2 cubes above?

Rearrange the previously computed PTVs to form the perimeters and average sides of each of the mated cubes, both for 12 unique sides of each cube and 24 sides of six squares of each cube:

Duh, it works.  It had to work and I'm sure a mathematic notation and logic person could provide a proof in abstract logic.  Me, I have to plod through numbers.  Simply, 21319 / 10659 = 2 and 17595 / 8647 = 2.  

Now that we have the numbers for such a seemingly inconsequential proof, let's see if there is something else.  Let's check the relation of the perimeters:

.28%, a coincidence?  What say ye, Randomites?


The '2' had to emerge from each cubes relation between of 12 unique sides of the cube to 24 redundant sides of the cube's component 6 squares.  Had to happen; baring my computational errors.  The laws of the second and third dimensions had to be respected in the fourth dimension.

Comparing the mated cubes; was there any two dimensional or three dimensional rule that required the relation of the perimeters of the mated cubes to be the quotient of 2 and Phi?  No, I don't think so.  Nature, at work in the DJIA, made it so.  A "natural law" it would seem.  Books have been written about how WD Gann used the phrase "natural law" as a code.  If we knew more about the fourth dimension, would we have said "it had to happen?"

Does this suggest the hint of a law of fourth dimension systems of mathematic growth?  I think so.  Is it the same relation for every fourth dimensional system (markets, people, natural events...) or could there be other relations including the growth spirals of 5 or 3, etc?  Of the effect of personal vibration (promoted by both WD Gann and his nom de plume, Luo Clement) on one's destiny?  As well, I believe so.  Like the consistency of math throughout its progression between the second, third and fourth dimension, it is intuitive (to me at least) that natural law will be consistent as between all natural phenomena; markets, physical geologic, atmospheric events, sociologic events... all the way down to personal destiny.  But that's conflating 

At a minimum, the experiment strongly suggests mathematic structure of spacetime.  Not randomness.  Exquisite mathematic structure; "geometric points of force."  For every effect there is a cause.  Everything is circular and responsive; for every action there is a reaction.  Every point in the market is related to a previous point in the market.  For every act in our lives, there is a response.

This experiment also suggests some level of integrity of the proposed and here above assumed values of points K and L.  I do not believe K and L are exact, but increasingly, they seem to pretty close given the derivative appearance of these metrics.  It will be interesting to see how DJIA plays out later this month.

Oh, there's so much more cooking in the DJIA laboratory.

Jim Ross   

Sunday, April 2, 2017

Current Market: The twin cubes, 2 and Phi, this morning's "Aha"

When looking at the Price Time Vector (PTV) values of the twin cubes of the 2000-present market I have been examining, many classic key numbers jump I've mentioned.  "Aha's" that pull me back into chasm of "Why?"  Here's a simple 'aha.'

We all know the Fibonacci growth spiral that gives us Phi and most serious market students accept that it is a fabric of markets.  But what about 2?  We know WD Gann taught his students the heuristic of doubling and halving of time or price.  He ascribed the importance of the 45* angle to its dividing time and price into equal parts.  At the basest of levels of biology, the cell divides into equal parts.  Back maybe a 2000 years a riddle of the ancients' was how to propagate the 1X1 square forward to create a square of twice the area of the first.

The ancients riddle of the growth spiral of 2.  It  is 1, 1.4142, 2, 2.8284, 4, 5.6568, 32....  Its the side of the square beginning with the 1X1 square having a side of one, followed by the grown square having a side length of the hypotenuse of the 1X1 (which is 1.4142, e.g. root 2), followed by the grown square having a side length of 2 (which is the hypotenuse of the 1.4142X1.4142 square e.g. sqrt(1.4141^2 + 1.4142^2).....

Two growth spirals from two well known numbers; 2, and Phi.  Already knowing what I want to find for you because I had the "aha" moment this morning, take the two spirals and concoct a number we want to find in the twin cubes.
Now we need some raw data of the twin cubes.  Remember the latest iteration of the "ugly" twin cubes of the DJIA from 2000 to present twisting through spacetime:

The PTV values on the above are approximate because one must visually fit the end points to tops and bottoms.  Here are the perfect calculations the software makes according to the application of Pythagoras' theorem of the hypotenuse of the 1X1 square to time and to space (the PTV):

Now let's arrange certain of the vector values to comprise each of the two cubes.  Hint, a cube has 12 unique edges or PTVs.  [I underscore the word unique as a segue to a future 'aha' and essay.]

Perhaps one cube of spacetime PTVs ruled by 2 and the successive one by Phi?  And their conjoin representing a hint of the structure of spacetime?

.26% difference.  Coincidence?   Remember, its all extrapolated based on two assumed future points, K and L.  If I change point K from April 20, 2017 to April 20, 2019, the percentage difference becomes 5.04%.  Get the drift?  If the calculations were based on finer data (time to the minute - or four minutes to satisfy Mr. Gann's claim it being the smallest cycle - as opposed to the hour), might we find a more perfected set of dates and prices that would make the percentage difference even smaller.  Simulation, optimization.  A process of getting closer and closer to a perfect solution but never getting there.  Hmmm, like Pi.


Imagine you find yourself instantly comprised at an age of say, 5, without and previous history, in the middle of a vast corn maze.  You haven't a past to remember so as to compare your predicament to past happy or sad events, you haven't any frame of reference.  No sense of sadness or happiness.  Just 7 foot high corn stalks all around you and turning paths between them.  There's nutritious berries and vegetables (and, of course, corn) on every path.  All the base needs of which you are aware are met.  But, each day at the same time as the previous day, when you look up at the sun, you know you're about where you've been before.  You haven't made progress to where ever it is you intended to go.

You dream of what is beyond the maze as you wander its paths for years and decades of your life.  At the corner of every turn where there are alternate paths, you notice signs with different color configurations that, over the years of seeing them and thinking about them, you decide they have some meaning in the scheme of the structure of the maze.   

Then, one day, you get the idea that you'll follow one series of the several sets of signs at each junction.  You'll concentrate on finding that same sign at the next junction and if is not there, then you'll back track to the previous junction and take the alternate path.  On that alternate path you find the sign that you had decided to follow.  You find the sign you for which are looking as if they were put there for you to find.  By who?

Ultimately, you reach a dead end.  

But its not a failure, you've eliminated a path.  Now, with the time you have left in your life (however long that is), is there time to follow all the sequences of signs to get where you think you want to go?

And really, is it all so important that you get there?  Or is the challenge more the end in itself?  Thinking and knowing the small but not inconsequential part of the whole that you might represent if you simply go about doing what you feel you were intended to do.

Sadly, I doubt I'll ever see the structure of the maze as I believe Mr. Gann saw it.  But, like the golfer whose terrible round is ended with a birdie that brings him back for another round, I have the "aha's."

Jim Ross

Saturday, April 1, 2017

Current Market: The cube, DJIA and WD Gann's beans

Why would WD Gann, who I've read, had his own seat on the NYSE, spend so much time with beans?  I'm sure there are many rationales that one might posit, but I have a new one...or I say 'new' but know its only new to me.

Before I spill my beans, I'll boil down about a half dozen essays I've written on my laboratory experiments for the last week, but haven't published, to a couple generalized supposed insights I think I have.  First, there will be a new high in DJIA and my present projection is April 20, 2017 at 22073.  From there, DJIA should drop to just over 16000 in the December 2017 timeframe.

Yes, I know I made that projection a couple weeks ago and then changed it to May 2, 2017 at above 22000.  But I've made some mathematic discoveries since then that I find compelling.  You know when the first time you discovered the market reacting to was shazaam!  Those mathematic wonderments have been happening to me nearly daily.  I don't understand the structure of the math as yet and as always, but my wonderment at first seeing Phi presents itself is now excitement to an exponential degree.  And it happens every day as I experiment with the math of these charts and every night as I try to make sense of it in half sleep.

My latest elaboration of the cubes formed in DJIA are not the pretty little boxes that you might see in Bradley Cowan's "Four Dimensional Stock Market Cycles and Structures" "Charts" V B.  Two nicely angularly envisioned cubes.  I've drawn an early offering of the two adjacent "pretty" cubes of the current market that are similar to Mr. Cowan's depiction of the circa 1929 markets:

The cubes aren't that way.  The math proves it.  I suspect Mr. Cowan knows and left it to the reader to figure out 'the rest of the story.'  But I don't know what he knows; maybe he does maybe he doesn't.  And but again, the math says it is not as depicted above.  Above is a nice suggestion but hardly the reality.

The math says the true four-dimensional twin cubes depiction in two dimensions is ugly.  Sometimes there might be only one not conjoined with another but I don't know that either.  I do know there are two gosh awful ugly cubes from the DJIA 2000 to the present (nearing point K) and until the end of the entire structure in the fall of 2017 (point L):

The thing I got right about the above is that they were twin cubes conjoined at the common square face EFGH (the blue square).  The thing I got wrong was we needed to identify that common square between the cubes.  Why?  By segmenting the twin cubes a mathematic comparison of their growth can be made.  And the comparison of their perimeters and diagonals will give us vast opportunities to find mathematically logical places to find root 2, root 3, Phi....  There will be many places to reprise that simple "Aha, I found Phi" moment.

Every point on the above chart is mathematically determinable except points K and L.  Points A, B, C, D, I and J have happened in time and space.  Point E has and never will happen in time and space but it is known; it is simply the perfect midpoint in time and price between the known points A and I.  The midpoint is very easy to compute; take the dates of points A and I and half the number of days between.   Same for price.  Points F, G and H have never happened in time or space but are easily determinable IF points K and L are known.  For the moment, let's assume K and L are known, and, given that, points F, G and H are as easily determinable as point E.

Now it gets tricky.  There are two points, K and L, in time and space that are not known but when they are known, they will complete the perfect mathematic structure of two cubes.  How do I find those two points?  Its tough.  The two points are, themselves, functions of four unknowns; the price at point K and the price at point L and the date at each of those two points.  Simultaneous linear equations.  Hmm, we're dealing with exponents and roots in Pythagoras' equation...simultaneous non linear equations?  Not good for a finite mathematician.

This is where we either guess and try to optimize the structure of the twin cubes with successive guesses (simulation) or we solve it analytically via simultaneous equations, four dimensional Cartesian transformations or other methods I haven't mastered or even have hear of.  So what's an educated guess?

Point K and the "camera obscura".  One might derive future point K using John Dee's "camera obscura."  Consider the simple camera of 150 years ago receiving light through an aperture with it being imaged on a film...upside down and reversed left to right.  Now consider square with known points ABCD is "imaged" through the perfect infinitesimally small center of square EFGH to square IJKL.  Can we propose that mathematically? Can we recognize values in an already complete "square" ABCD that are near to our heart?  Here's how I'd propose to image the magnitudes of the vectors of IJKL:

It would seem I want to "obscure" a very simple math operation of extrapolation the magnitudes (PTV values) of known ABCD to three unknown magnitudes of IJKL.  The math is simple but the reason hardly; its the camera obscura.  That there future "wants" to repeat the past in the fourth dimension but it does it not with perfection but with increasing perfection and it does not do it with the order that occurs in the third dimension.  First, you see ABCD is close to the geometric ideals of 2 (the square of the hypotenuse of the 1X1 cube), close to Phi and close to root Phi.  I don't believe it is coincidence.  And second, the "camera obscura" reflection of ABCD onto IJKL will again be close to geometric ideals but not quite there.  

How many times did WD Gann cite "nothing new under the sun," "history repeats," and variants.  How many times and in how many ways did WD Gann tell us, beginning with the all important Ticker Interview, the initial impulse resolves itself into periodic rhythm?  

We have an initial impulse in PTV AB which imperfectly reflects itself onto AC, BD and CD according to known geometric key numbers.  We have that PTV AB imperfectly halving itself to become PTV IJ.  And then we have that new initial impulse IJ, in concept at least, replicating itself to JL, KL and IK via those same geometric keys.

So how did that work out for me?  Pretty well.  Remember, every vector and square in the twin cubes is mathematically determinable as long as we know the presently unknown future top K and future bottom L.  Since I think I know them, I plugged them into my deterministic model of vectors that comprise the twin cubes (that whole structure seen in the most recent chart above) and the bold italics values are what is created.  Compare the three bold italic numbers to the red numbers which are the ideal extrapolation of the initial impulse, IJ.  They are darn close.

But how did I get points K and L?  Again, we know the PTV IJ, we think we know the values of the other three sides of IJKL, but four sides do not make a structure.  Three sides do make a determined and firm structure in the triangle, but four side values do not make a firm structure at all; you need a diagonal.  And to get a diagonal, you've got to know either point K or L.  I'll leave how I found point K for the next essay.


Why beans Mr. Gann?  While I tout the stock market as Mr. Gann's laboratory for study of spacetime, it was not the ideal subject.  Back then, the early 1900s, stocks could be manipulated by powerful men.  Arguably, even the then young Dow Jones Industrials could be manipulated.  And its structure as the Dow 30 was ever changing.  And even now, DJIA is rebalanced.  Its an index and not a natural set of data created by natural interaction.

Beans, cotton, wheat....essentials to life, markets that are everywhere in the world and this time, arguably, bigger than the ability of any single person to manipulate their value.  How'd it work out for Bunky Hunt and bro when they tried to corner the much narrower and less essential to life silver market in the early '70s.  Not so good when the oil billionaire was reduced to taking a bankruptcy's court fee to help sell his stockpile of art; then owned by the bankruptcy court trustee.

Beans and the DJIA...and here I am using the DJIA as my lab.  Well, the DJIA and equity markets are how I got to this dance and there's a lot of conveniently accessed history for DJIA.  Beans not so much.  

There are three problems with projecting point K as April 20, 2017.  First, the history of DJIA is manipulated, at least, by rebalancing if not by large speculator efforts.  Second, given that points K and L remain unknown, we have an infirm square.  The two points are the result of four variables; two dates and two prices.  Its a very complex integration or iteration to perfection or set of equations that would give us those dates.  

And most important, the subject of the experiment, the DJIA, is not a natural phenomenon.  Its an imperfect reflection of 30 natural markets.  I believe it will lead me to the right model of the market's space time.  But its imperfection must be recognized.  

As recounted in "The Ticker Interview," WD Gann did not say, for example, GM would touch some price on exactly a certain day or all this theories would be disproven.  But he did with wheat.  For those who do not know the story:

Maybe there's a fourth problem; perhaps my emerging theories of spacetime (as if they are "mine" while I know others sense the correct formulations that I'm struggling to find) are wrong.  That's my odd's on favorite.  Still, I think I'm down the right path.

Wow, closing at 20663 yesterday, DJIA would have to go 6.8% in 15 trading days to reach 22073.

Jim Ross