Viene la Tormenta - There's A Storm Coming
From Tulips to South Seas, from Dot Coms to Houses, all manias have something in common. Assets rise gently, largely unnoticed by the great unwashed, as the easy money is made and price rises above historical norms they become more popular by mainstream, then they become overvalued as their price rises way above "intrinsic value" and when the mania finally matures overvalued grows to extremely overvalued. And then at some point in time at some price level on the chart the market exhausts itself and collapses back to and often below it's starting point. These collapses tend to be sudden, out of the blue and violent and usually happen without any obvious cause or reason. What was made during the boom gets lost in the bust. Only the smart money has greater odds of surviving ending manias but only if it does not get outsmarted.
What we as Danielcode members are interested in is markets turns. As we said above manias end at some point in time and at some price. Think about that for a minute. A mania pushes up price to a certain level and at one specific point on the chart it all collapses under its own weight for no obvious reason. Whatever reason is pinpointed to the start of the crash by financial journalists is merely linking an event or piece of news that happened after the top was made. The real question on our mind is "Why is a specific price THE top and why did that top happen in that specific week or even on that specific day?" And God help us, what if we could foresee these points on the chart and have a good idea where and when they should happen. Is that even possible? The truth is that God does help us, the sad truth is that no one listens and even less are interested.
The Danielcode is a mathematical matrix of numbers straight from the book of Daniel discovered by our mentor John Needham. How these numbers are calculated is beyond my time schedule to write here but you can discover all of that in the "Live at the Springs" audio under the articles tabs at the Danielcode website. The Danielcode ratios are 29.7 , 37.5 , 44.5 , 50 , 62.5 , 59.3 , 74.2 and the powerful 89 number. And these numbers are important folks. Very important. They rule all markets in both time and price, they even rule all life and death in the universe. Or do you think it is a coincidence that the synodial month, the average length of a month, is 29.7 days or that the orbit of Saturn (referred to by the ancients as Cronus or Kronos the Roman Deity of Time) is 29.7 earth years or that the orbital velocity of Mercury is 29.7 miles per second?
Maybe. But our mentor has shown us so many charts where price has recognized so many Danielcode numbers always with precision down to a few ticks that I have completely sworn off Random Walk theory a long time ago. Nothing is random in a chart my friends. Markets are not random, they are perfectly mathematically organized, and sometimes even perfectly predictable. Let me show you what I mean.
This is a 24 day chart of the US Dollar Index DX. Non-daily Danielcode charts are always composed of bars that contain 6 trading days or multiples of that (12, 24 and 48 trading days). The reason for that is beyond the scope of this article but it all comes straight from the Bible. You can read about it in the two "Master Class" articles on the Danielcode website under the articles tab. (Master Class I and II). Notice how the strong rally in DX since 2014 found it's perfect top at 100.51 just 3 ticks shy of the 59.3% retracement from the 2008 low to the 2001 high. And how this happened on a 59 time cycle. Yes, that's right, these numbers can also be projected on the time axis of the chart where they become time cycles instead of price levels.
If you think this is complex, let me tell you that I had never seen a trading chart before I met the Needham family in Taupo, New Zealand for a Danielcode Tutorial a few years ago. That was the first time that Mr Needham had taught The 4th Seal, and since then I have loved, lived and worked with it every day. It is indeed a marvel.
Now take a look at the next long term DX chart and how this market reacts to known Danielcode numbers in the form of price extensions. Does this seem random?
I don't think so. The precision with which the price levels from the Danielcode sequence are recognized is stunning. Markets recognize these numbers all the time and if you draw the right DC sequence that a market is following on your chart you will see that markets lock on to these sequences for months sometimes even years in a row before switching to another DC sequence. It's truly amazing how precisely all markets vibrate on the Danielcode sequence. And it happens all the time right before your eyes and totally unnoticed by even the biggest and smartest traders on the planet.
The current state of the market
A question many financial experts are asking themselves is: "What's next?". In fact it is the most important question on every mind that cares about the market. The truth is, we don't know. Nobody does. Only our Creator has foreknowledge. But there are clues and chance favors the prepared mind. Allow me to help prepare your mind.
Here at the Danielcode we try to become experts at timing market turns and we approach this from a totally different angle. We use the numbers from the Danielcode straight from the Book of Daniel in the Bible. Sounds scary right? It's not. In fact it's quite a miracle.
Below is a 24 day chart of the NASDAQ NDX. It has a DC regression channel drawn on it that is constructed on the important 59.3 DC ratio.
This chart shows The Death Cycle on NASDAQ. The last Death Cycle we saw was on the S&P in October 2007 and you know how that turned out!!
Notice how this market is at the 3rd standard deviation of the DC regression channel. This means that this market is 3 standard deviations away from the median of its uptrend. This in and of itself is a sign of extreme speculation and tells us NDX is on a unsustainable path. Markets rarely go beyond the 3rd standard deviation. But there is more. Both the 24 day chart and the 6 day chart have a 59 death cycle expiring early April. Death cycles are 59 topping cycles expiring from the first hub. When they bite they kill the market and turn its trend around to clear whatever excess was build up during the boom. On the 6 day chart of NDX we already broke the low of the previous bar which means this 59 death cycle is alive and kicking. Once the 24 day chart does the same odds are that this market has a serious meeting with mother nature's laws of gravity and that my friends should get you on high alert for the potential end of this bull market and the start of a financial storm. When the Danielcode 59 death cycle bites there is no interest rate or central bank liquidity injection that can save the market. Markets turn on Danielcode ratios of time and price and when they do, nothing or nobody can change that. Markets do not turn because they are overbought or because some event happens. They turn on a specific time and price because it's in their DNA to turn there and that DNA is ruled by the Danielcode numbers hidden in the old testament. Amazed? You should be.
The 3rd Day
Remember I just showed you how NDX was at the 3rd standard deviation of the mean? 3 is a fractal of 6 and 6 days is a DC week ("6 days you shall work and on the 7th day you shall rest"). The number 3 is important all across the Bible and since it's Easter today let me remind you what is written in Luke 24:7
Luke 24: 7 "The Son of Man must be delivered over to the hands of sinners, be crucified and on the third day be raised again."
Well folks, take a look at the next long term 24 day chart of NDX. The 59 time cycle comes from the 59.3 Danielcode number and that number comes from 1335/45 which is 29.666 half of 59.333. If you multiply that number by 3 you get exactly 178. Well in early April we were 178 bars away from the 2000 peak in NDX.
And that my friends should get you exited. The Danielcode is the biggest discovery in financial markets ever made. I know that is a big statement but I also know it's true. I do not wish to impress you nor do I care whether you believe me or not. But I know that you cannot deny the charts I just showed you and I hope that is enough information to get your investigative mind stimulated so you can do some digging around on the Danielcode website yourself. There is a ton of information there just waiting to be discovered and I promise you that the believer's mind will be blown away. And remember, markets are ruled by the Danielcode. They always have been, they always will be. Even Isaac Newton knew that there was major knowledge hidden in the book of Daniel.