Thursday, May 28, 2009

SRS update

Hello Gang!

Many know I have been stalking this trade for a while. Notice the SRS is beginning to squeeze the bands now (sig volatility coming). the housing index is now breaking down out of a HS pattern (this may lead to an overall pull back in the market as well. I will be buying SRS on a breakout.

Hit em Hard












Friday, May 22, 2009

Numbers

"'Bezaleel, the builder of the Tabernacle in the Wilderness,' says the Talmud,
'knew how to combine the letters by which the heavens and the earth were created.'"
[1]
After reading this comment the other day, I realized that in ancient Hebrew, there are no separate symbols for numbers other than letters themselves. Therefore, I reasoned, this Talmudic statement might also be read as follows: "Bezaleel, the builder of the Tabernacle in the Wilderness, knew how to combine the NUMBERS by which the heavens and the earth were created."
W. D. Gann also cites a tradition according striking prominence to numbers at the beginning of his course "The Basis of My Forecasting Method": "Pythagoras, one of the greatest mathematicians that ever lived, after experimenting with numbers and finding the proofs of all natural laws, said: 'Before God was numbers.'" As a result, I decided to investigate further into Bezaleel. The following snippets, somewhat random perhaps, are the fruit of those labors.
WHO ENTERS HERE
STANDS ON HOLY GROUND

"The Torah was at the same time God's architect and the building plan that God consulted when he created the world. Accordingly, the first verse of the Bible does not mean, 'In the beginning God created,' but rather 'By means of reshit (sc. the Torah) God created.' The Torah was God's amon, his architect and building plan, through which God created the world. Whoever looks at the Torah thus sees the building plan of the world. It is through the Torah that God reveals the structure of the world --and himself as the Creator --to all human beings." [2]
"God looked in the Torah to see, as it were, how He should create the world (Bereshit Rabba 1:1), and the construction of the Tabernacle during Israel's stay in the desert could be done only by Bezallel, 'who knew how to combine the letters by which Heaven and Earth were created' (Berakhot 55a). Thus the Torah became the acme of sanctity and an object of great reverence." [3]
"Midrash Tehillim states: R. Eleazar said, 'The sections of the Torah were not given in order for, had they been given in order, anyone who would read them would be able to create a universe, to resurrect the dead and to perform wonders. Therefore the order of the Torah was concealed.'" [4]
"Thus Sepher Yetsira 2.2: 'The twenty-two letters: God carved them and shaped them, weighed them and changed them round and combined them and then created with them all that has been created and all that will be created.'" [5]
"The operational significance of this doctrine is that, because creation involves a process predicated on the sounds, shapes, relative positions, and numerical values of the Hebrew alphabet, this creative process could be replicated by man if he but knew the proper technique for combining and manipulating the letters. ... because Bezalel was divinely inspired, he ... attained some knowledge of how the world was created through manipulation of the letters of the Hebrew alphabet. " [6]
"The letters were understood by the rabbinic commentators to be the letters of the divine name." [7]
"Rashi ... states that the creation was performed by means of mystic combinations of the Divine Name, which does not come under the ban of witchcraft. Its basic idea is that the Creation was accomplished by means of the power inherent in those letters (Cf. Rab's saying: ‘Bezalel knew how to combine the letters by which heaven and earth were created’. Ber. 55a. Cf. also Enoch LXI, 3 et seq.; Prayer of Manasseh: Ecc. R. III, 11 on the magic power of the letters of the Divine Name), and that this same power could be utilised in further creation." [8]
"III ENOCH: Chapter Forty One
"'Metatron Shows Rabbi Ishmael the Letters Engraved on the Throne of Glory by Which Letters Everything In The Earth Has Been Created.'
"Rabbi Ishmael said: Metatron, the Angel, the Prince of the Presence said to me:
"1. 'Come and behold the letters by which heaven and the earth were created,[']
"[footnote:] This verse reflects the teaching in Qabalah (shared by Sufism and the Tantras) that the universe and everything in it is literally created from the letters of the alphabet as vibrational differentiations of the Alef of Unity." [9]
"Ramban's commentary provides additional insight into the essence of Betzalel's special wisdom:
"[']… They [the Sages?] also said: Betzalel knew how to combine the letters by which the heavens and the earth were created, for the Mishkan [the Tabernacle] was meant to allude to these, and it was he who knew and understood their secret.[']
"Thus, the building of the Mishkan was not just skillful workmanship, but rather a spiritual undertaking, just like the creation of the world." [10]
"The volume of the Sacred Law is the record of the Creator's revelation of Himself. 'The Almighty has been pleased to reveal more of His Divine will in that holy Book than by any other means.' Even in that record, through a large portion of it, the symbolic method is used for guidance and instruction. The construction of the Tabernacle in the wilderness by the skill of Bezaleel and Aholiab, was carried out according to the plan revealed to Moses on the Mount, and included squares, angles, and oblongs, as well as sacred numbers and figures.
"The secrets of a Master Mason which were given to Hiram the widow's son, consisted of geometrical knowledge, and of the mystic value of sacred numbers and proportions; so that the building of the Temple was a setting forth of the Divine plan of Creation. The sacrificial system of the Temple ritual served to inculcate a conscientious dread of sin, and a desire for righteousness and purity. The prophets preached the righteous glory of God, and the awful retribution which is the inevitable nemesis of wilful sin." [11]
"All the Masonic ritual, its Egyptian signs, its Chaldean grips, its Sanskrit passwords, its ancient Hebrew symbols, its cabalistic allusions and its historical records are supremely scientific and a survival through long ages, by various underground channels, of the knowledge of the universe which was gained by Sabean astronomers from the temple tops of Chaldea, India and China and recorded by the equally learned geometers and mathematicians of the ancient Orient. ...
"The key to the entire secret system is to be found in the ancient method, preserved from ages long anterior to their reputed time by the Israelites, of using identical characters for letters and numbers, a system called gematria, and upon which a simple mathematical formula, 10-5-6-5 ... is shown to be the basic source of all manifested existence --that formula when presented in the Hebrew letters corresponding to the numbers being 'Jod-Ha-Vv-Ha, ' or in English 'J-H-V-H,' or Jehovah. ...
"The crowning secret of the ancients, as well as of our own time, is that the study of the structural proportions of our universe as evinced in lines of force and direction, cyclic time periods, celestial areas and visible parts, reveals the fact that it is of definite form, perfectly balanced proportion and just such a synthesis of the principles of pure geometry as to show that the features exhibited are from the same causative source as that which geometrizes the snowflake, the crystal and the blossom. Hence the expressions used in Masonry of the Grand Architect and the Great Geometrician of the Universe." [12]
“Rabbi Meir, one of the most important teachers of the Mishnah [early part of the Talmud], relates: 'When I was studying with Rabbi Akiba, I used to put vitriol in the ink and he said nothing. But when I went to Rabbi Ishmael, he asked me: My son, what is your occupation? I answered: I am a scribe [of the Torah]. And he said to me: My son, be careful in your work, for it is the work of God; if you omit a single letter, or write a letter too many, you will destroy the whole world…'" [13]
"The Pythagorean concept of the creative power of numbers and letters was known in Tannaitic times; the famous Amora Rab (about 200 C. E.) said of Bezalel that 'he knew how to combine the letters by which heaven and earth were created.' The Geonic mystic lore made much of this doctrine, and in the Sefer YeZirah it was elevated into one of the pillars of the Kabbalah. It was especially popular in the German Kabbalah of the thirteenth century which above all insisted upon the mysterious powers inherent in the letters of the Hebrew alphabet and developed a fine art of combining and recombining these letters to evoke from them their highest potency." [14]
"Indeed, he [Bezaleel] was said to be filled with God's Spirit and with divine, secret knowledge, by means of which the 'heavens were established' and the 'depths broken up' (Prov. 3:19-20). Clearly, Bezaleel was already a well-known figure for the Creator." [15]
"There are two main strands in the Jewish mystical tradition. One of these, Ma'aseh Bereshit, concerns the work of creation. Ma'aseh means 'work' and Bereshit, the first word in the Bible, means 'in the beginning': this strand of the tradition originates in a meditation on the first chapter of Genesis. Ma'aseh Merkabah, the second strand, originates in a meditation on the first chapter of Ezekiel. (The word merkabah means chariot --the chariot of God.)" [16]
"We know that in the period of the Second Temple an esoteric doctrine was already taught in Pharisaic circles. The first chapter of Genesis, the story of Creation (Maasch Bereshith), and the first chapter of Ezekiel, the vision of God's throne-chariot (the 'Merkabah'), were the favorite subjects of discussion and interpretation which it was apparently considered inadvisable to make public." [17]
"In the Merkabah schools, the role of the divinely inspired architect took on increasingly magical connotations. It was now claimed that Bezalel, the archetypal master mason, knew the secrets of creation and the magical names and numbers of God ... Bezalel could body forth the body of God; in fact he and his Merkabah brothers could see and manipulate the 'measure of the body' of God (called the Shi'ur Komah). By duplicating Bezalel's magical Gematria, the adept could ascend through the celestial architecture of gates and palaces. ... Having mastered the difficult passage through the gates and palaces, the adept finally stood before God's supernal throne. There, he was granted a vision of God in quasi-bodily form, which was daringly identified with the 'figure in the form of a man' whom Ezekiel had seen on the throne (Ezekiel 1:26)." [18]
"There arose a mysticism that sought to explore the secret world behind the letters. And out of this came the 'Merkabah' mysticism, in which the journey to the 'Throne of God' (merkabah) is a central concept in creation mysticism and, some centuries later, in the Kabbalah." [19]
"1. Merkabah mysticism is the name of a mystical movement within Judaism’s Talmudic and Gaonic Periods (ca. 100-1000 c. e.). This school produced what is called the Hekhalot literature.
"2. This mysticism, ma’aseh merkabah (work of the chariot), is mentioned in the Mishna itself (in Hagigah 2:1): The work of creation (ma’aseh bereshit) may not be expounded in the presence of two or more. The description of the chariot (merkabah) may not be expounded even in the presence of one, unless he is a sage who already understands out of his own insights. (quoted from Lipman, Eugene. THE MISHNAH, ORAL TEACHING OF JUDAISM. [New York:] Schocken, 1974, p. 150)
"3. Implied in this quote is that merkabah mysticism, though guarded, was not outside of the rabbinic tradition. One gets the impression that it was even thought of as the supreme mystery.
"4. Just as the work of creation comprised mystical speculation on the first part of Genesis, work of the chariot comprised mystical speculation on, and amplification of, the first chapter of Ezekiel.
"5. The literature of this school describes the mystical journey through various heavens and palaces (hekhalot) leading to the ultimate vision of the throne and chariot, and, in some cases, 'the figure in the form of a man' (Ezekiel 1:26)." [20]
"Before the end of the second century CE, the rabbis had excluded most of the apocalyptic literature from the Jewish canon of scripture, and placed restrictions upon the study of the two Biblical texts most used by early Jewish mystics, Genesis 1 (cosmology) and Ezekiel 1 (merkavah)." [21]
"Origen writes in the prologue to his Commentary on the Song of Songs that 'it is a practice among the Hebrews that no one is permitted so much as to hold [the Song of Songs] in his hands, unless he has reached a full and mature age.' The Jewish sages, he continues, teach all the Scripture to the young, but keep four passages to the end: 'the beginning of Genesis, in which the creation of the world is described; the beginning of Ezekiel the prophet, which tells of the cherubim; the end [of Ezekiel], which deals with the building of the Temple; and this book of the Song of Songs' …" [22]

Cycles

Many cyles are playing out today. One that looks interesting is GS which is at 180 degrees in time from its trading low. I'm looking to short on a break of 136

Thursday, May 21, 2009

SPX and a 2b reversal lesson

One of the great trading books written are Victor Sperandeo Trader Vic series...below is a lesson from and one of his favs the 2B rule...

I believe the SPX has given this sig and possibly confirmed today.

2B Rule

Point 2 above is essentially a failure of prices to carry past a previous rally (or previous selloff). Sometimes prices go just past then immediately reverse. Such a case is Sperandeo's rule 2B,

  • 2B. If prices rise just above the previous rally high but then immediately fall back down.

Or for a downtrend change,

  • 2B. If prices fall just below the previous low but then immediately rise back up.

Sperandeo regards 2B as a powerful pattern, and in assessing the probability of a trend change he weighs it higher than any other single criterion. The advantage of a 2B is that it lets the trader get almost the exact top (or bottom) of a move (with a stop-loss at the failed high or low). Even if it worked only 1 in 3 times the reward side is excellent due to getting in early.

Tuesday, May 19, 2009

Winds of Change
















Walk softly through the
Desert sands
Careful where you tread
Underfoot are the visions lost
Sleeping not yet dead

Hang on - winds starting to howl
Hang on - the beast is on the prowl
Hang on - can you hear the
Strange cry
Winds of change are blowing by

Mountains crumble and cities fall
Don't come to an end
Just lie scattered on the
Desert floor
Waiting for the wind

- Jefferson Starship


I have put up the daily and weekly charts with Gann square levels. One from the low and one from the 930 high. If the 930 high is taken out I feel we are in for 1012 or 1080 degrees up. If we take out last weeks low a train tracks sell sig will trigger on the weeklies and the low 800s are the first target. Mr. Market is trying to find its way here. 6/5 is 90 degrees in time from the 666 low. If we get a correction will it end there and a new leg up begins?

Friday, May 15, 2009

Train keeps a runnin


Notice the 4 sets of train tracks on the SPX. Watching if we turn the weekly swing chart down and the subsequent action that follows.

Thursday, May 14, 2009

Tornado watch

US 'sham' bank bail-outs enrich speculators, says buy-out chief Mark Patterson


The US Treasury’s effort to stabilise the banking system through the TARP programme is a hopelessly ill-conceived policy that enriches speculators at public expense, according to the buy-out firm supposed to be pioneering the joint public-private bank rescues.

MatlinPatterson took advantage of Tim Geithner's TARP matching funds to buy Flagstar Bancorp in Michigan - he now owns 80pc of the shares and the US government under 10pc.
MatlinPatterson took advantage of Tim Geithner's TARP matching funds to buy Flagstar Bancorp in Michigan - he now owns 80pc of the shares and the US government under 10pc. Photo: AP

“The taxpayers ought to know that we are in effect receiving a subsidy. They put in 40pc of the money but get little of the equity upside,” said Mark Patterson, chairman of MatlinPatterson Advisers.

The comments are likely to infuriate Tim Geithner, the US Treasury Secretary, because MatlinPatterson took advantage of the TARP’s matching funds to buy Flagstar Bancorp in Michigan. His confession appears to validate concerns that the bail-out strategy is geared towards Wall Street.

Under the convoluted deal agreed earlier this year, MatlinPatterson has come to own 80pc of the shares while the US government has ended up with under 10pc.

Mr Patterson said the US Treasury is out of its depth and seems to be trying to put off drastic action by pretending that the banking system is still viable.

“It’s a sham. The banks are insolvent. The US government is trying to sedate the public because they are down to the last $100bn (£66bn) of the $700bn TARP funds. They think they’re doing this for the greater good of society,” he said, speaking at the Qatar Global Investment Forum.

Mr Patterson said it would be better for the US to bite the bullet as Britain has done, accepting that crippled lenders must be nationalised. “At least the British are not hiding the bail-out,” he said.

MatlinPatterson said private equity and hedge funds were deluding themselves in hoping to go back to business as usual after the trauma of the last 18 months.

“This is not a normal recession and there will be no V-shaped recovery. The crisis has destroyed leveraged companies. We’re going to see a catastrophic increase in the number of LBO’s (leveraged buyouts) going into default because they’re knee-deep in debt and no solution exists since they can’t refinance,” he said.

“Alfa hedge funds have been making their money by gambling with excessive leverage, so the knife that cuts off leverage is going to cut off their heads as well,” he said.

Like many bears, Mr Patterson expects the great crunch to end in deliberate inflation, deemed a lesser evil than outright depression.

“The US government has thrown 29pc of GDP at this crisis compared to 8pc in the early 1930s. The Fed’s balance sheet has risen from $900bn to $2.7 trillion to bail out the system. America has to do it because the only way out is to debase the currency, but that is going to lead to some very high inflation three years down the road,” he said.

Matlin Patterson, however, has missed the Spring rebound, the most powerful rise in equities in over 70 years. “We shorted the equity rally because we thought it was lunatic. We’ve kept adding positions seven times, and we’re still holding,” he said. Ouch!

Wednesday, May 13, 2009

SPX



The SPX is testing the 888/889 number or 720 degrees up from the low of 666. This would be a natural pause point to observe. My feeling is if we accelerate from 888 down the correction would be confirmed and downside bias would dominate and 830 or 540 degrees would be target. The 10 min chart of spx show the market trying to hold. Hit em Hard!

Tuesday, May 12, 2009

Thoughts from the Vortex

The invisible hand is laying her cards on the table:

1. equity offerings galore
Ford 300 million offering
All the banks floating new equity...COF trading under offering
I believe the offerings that are not getting the attention are the REIT secondaries

Hmmm...are the reits and the banks taking in sucker money before coming collapse in CRE?

2. Soc Security announced today it is 8 yrs early on its deficit projections. Surplus down 95%
3. Government printing faster and faster
4. Tax tax tax

PSA short


shorting PSA at 62.55 off the NR7 day... further strengthens the SRS trade as well. NR7 patterns suggest volatility ahead

Monday, May 11, 2009

SRS update


Looking like we are getting angular breakout now on the hourlies.

Friday, May 8, 2009

DX


This chart of King $ is playing as predicted. SPX is full rally mode

Thursday, May 7, 2009

SRS trigger

I took this srs trade early, but as I mentioned 23 was a trigger and we r breaking the channel. I'm in at 21.10 as posted on twitter. One can take a position here 2pt stop. Take half off +2 target 30 or 180 degrees up from low

twitter working now

I will post my trades on twitter now

Wednesday, May 6, 2009

ES

Last hour will be fun. Watching for a close below 900. NQ is printing a LROD (large range outside day down) NQ has been the leader and again the AAPL looks rotten with a worm

SRS

Today looks to be setting up the SRS that I have on the radar. A high risk trade would be enter on a trade of 23 with a 2 pt stop on anticipation of the market breaking. . less risk would be for the trend line to break. Everyone notice all on TV saying that all the banks are going to go up on the release of the stress test? HMMM. AAPL down 2 and leading market. 180 degree pullback on AAPL is 111. Watching GS for an ORB break to the downside to get momo on board. A signal that I'm not very good with is the TD Demark signals. SPX generated a sell signal with target at 493 completion.

AAPL

Keep an eye on AAPL (represents all things speculative) down today in an up market. Respecting the 133 corner on the Square of 9 calculator.

Tuesday, May 5, 2009

SRS trade setting up


If commercial RE is to crack this etf on CRACK should explode out of the channel.

Monday, May 4, 2009

This is the the Wheel of Time and Price....notice 901 is on the corner and at the May 6 date it is also in opposition of the 840/841 number of the Oct 2002 bear low....We will see if the square out comes today or tomorrow.

Friday, May 1, 2009

Rule of 4 coming?


We got the 888 square out I have been mentioning ad nausea. Now we must see if the momentum changes. These numbers are a point to watch. the reason I took the short was the 3 drives that coincided with the number. On the chart a break of the 860 level would get us going as it was the level of the previous breakout.