Zig Was Wrong, But Anti Zig Isn't Right 11/22/21

[DrStool]

13 minutes ago, PullMyFinger said:

This morning's high to low in NQ was a 312.25 point decline. A standard Murrey Math trading frame is 156 points. Because Murrey Math is fartcall in nature, the decline was 2-156 point trading frames, 1-312 point trading frame, .5-625 point trading frame, and so on. Then, on the first rebound attempt, we went to 16,561, which was just one point shy of the 4/8 line in the current trading frame of 625 points (78 points between each 1/8 line). Frames within frames. Even after all these years, I still marvel at the precision of the markets. Waiting to see whether we get a retest, or if we continue to carve out higher lows. Other than that, I got nothin'. 

 

Are Murray's fartcalls due to fiber nachos. 

[PullMyFinger]

8 minutes ago, DrStool said:

Are Murray's fartcalls due to fiber nachos. 

Close, but no. Closer to Gann, I think, but I'm not really a Gann expert. Depending how you want to count, it is either an 8 or 12 note octave or trading frame. For example in a 12 note octave, -.25 = -2/8 line; -.125 = -1/8 line; 0 = 0/8 line, .125= 1/8 line; etc., up to +1.25 = 10/8 line instead of .236, .381, .618, etc. as you would get with fiber nachos. They are so close to one another .236 vs. 25, .381 vs. .375, .618 vs .625 that it may be why it seems to work so well, but I find it makes the math easier to use 1/8ths instead of fiber nachos. 

Going past +1.25 (10/8) or below -.25 (-2/8) lines moves it into the next larger trading frame or octave. In essence, the distance between the 1/8 lines will double upon crossing +1.25 or -.25. So if there are currently 78 points between 1/8 lines, it will double to 156 points between each 1/8 line upon crossing the +10/8 or -2/8 lines.  

If you divide 100 by 2 repeatedly, you get 100, 50, 25, 12.5, 6.25, 3.125, 1.5625, .78125, .390625, etc. Given its fartcall nature, you simply move decimals to arrive at the distance between 1/8 lines for a trading frame. 39 points between 1/8 lines is a 312 point octave (39 * 8), 78 points between each 1/8 line is a 625 point octave (78 * 8), and so forth. That's what I was trying (inartfully) to say when i mentioned the morning decline of 312 points in a larger 625 point trading frame.

Although 3/8 and 5/8 moves are the most common, markets also seem to want to reverse for at least 1/8 if not more the first time it comes up or down to a 4/8, or midpoint line. This is shown in the chart above where it reversed right at the 4/8 line at 16,562 after bouncing off the low at 16,455. I think it was Gann that said the greatest area of support and resistance is at 50%.

I don't think Murrey ever said so directly, but it feels to me as if a market is always seeking the 4/8 line or balance/midpoint but can never quite stay there so it is always reacting on one side of the 4/8 line or another. And, given its fartcall nature, the 4/8 line in one trading frame is 8/8 in another, and 0/8 in yet another. So, I tend to expect reversals or reactions at those levels. 

Way too much info, apologies for being long-winded and likely confusing. I made it sound way more complicated than it is. T.H. Murrey always told me all you need is 8th grade math to use it. Which is perfect for my limited ability to add, subtract, multiply, and divide. 🙂

[PullMyFinger]

Class action lawyers are lining up to pick PTON's carcass. Perhaps not coincidentally, PTON is down about 6% today.

Here is a pic from the court hearing where they are fighting over becoming the lead plaintiff. 

[BreakOut]

6 hours ago, DrStool said:

10 year Treasury Yield still holding on to that uptrend despite the limitation in supply imposed by the debt ceiling. 

Isn't it interesting how the 10 year Treasury yield and BTC continue to mimic each other. I have no doubt that both will break out topside. 

Beware- Debt Ceiling Uncertainty Darkens the Outlook

Zafar, Zagood.

[GregFokker]

40 pernts in 30 minutes?

[MisFit Kid]

WTF