Tuesday, August 5, 2008

Calamity, What, When & Why, Simplicity & Systems

What possibly could have happened to create this climate in the USD or Gold?

Perhaps the recent article in the Brisbane Australia Courier-Mail would address it.

In an article titled “CUT RATES or FACE RECESSION”, it outlined ‘cooperation between central banks, specifically naming the ECB, the FED, and the Swiss Central Bank, of being desirous of seeing the ‘dollar-burnout’ so nefariously planned by Paulson, et al., stopped before it took everything else with it.

Familiarity with calamitous drops in gold prices about the time of the open of the NYMX, often make one reflect as to its suddenness and intensity. Black Boxes? Coordinated Actions? Does anyone really care WHY ?

So my answer to why this has happened in gold and the USD is that it was planned this way, IMO, and that is supported by the publically available article in the Brisbane Courier-Mail.

Now to some "NEWS YOU CAN USE":

I guess some would care WHY even if they knew WHAT. I used to care WHY. But it was an impossible task, sorting out the reasons from the volumes of material out there. That’s what I decided after taking the time to do the reading. It wasn’t a lightning bolt, it was fatigue that led me to the conclusion, that without simplicity I was lost. LOST in reams of reading. Don’t even go there, the ‘boards’ with their endless controversy and ‘bashers’, oh yeah. NO !

We can live with knowing WHAT, without knowing WHY, if we know or have a hint or a clue as to WHAT is sometime before it manifests. Its kinda like having a pioneer treasure map with landmarks but no measurable distances. You’ll know it when 1/ You see it ; 2/ When you arrive at a landmark. To be useful it would have to be a system, to be a useful system it has to be simple, fast, measurable and repeatable !!

To that end I propose that we look at the following stocks and see what the commonality is amongst: ENI ; CMP; MCF; ABB; MIG; FRG; ALY; TRA; PVX; AEZ; NFLX; NAK; ML.to; GW ; EGO. This is one of those deals where I have forgotten more than I remembered, but these ones that I have recollected will serve us well. The one-word hint here is “QUADS”.

We will explore “QUADS” as a system that helps with two of the three important parameters, WHAT and HOW MUCH. WHEN is not included in the information “QUADS” makes available, but the WHAT and HOW MUCH will do to make you very happy, if you can read this treasure map of “Quads”. Kinda like the “Mark of ZORRO” don’t ya think?? Maybe if Harrison Ford had not done his last Indiana Jones movie, he could make something of the “Mystery Treasure of the Quads”, or

is that too “out there”?

Here is a link to a graphic representation of a number of these issues:


Suffice it to say that I am learning how to place items on my blog posts.

The commonality amongst these four securities, is that sometime between now and 2002, all of them were either in, or emerged breaking upwards out of a QUADRUPLE TOP formation, meaning that they had attempted to breach the upper boundry of their trading range, and succeeded on their FOURTH try.

In the case of Enersis and Cotango Oil and Gas, the breakouts were UNDER $5.00. In conversation with a friend, I explained that QUADRUPLE TOP BREAKOUTS were of particular interest to me, for their subsequent moves could last YEARS. Multi-Year moves in QUAD TOPS, or QUADS as I refer to them often morph into many different bullish formations, but continue to move upwards for long periods of time. Most of all, this particular formation, IMO, is one of the most reliable for producing significant moves. For me, it has the fewest catastrophic failures in Technical Analysis, as far as I have seen. To be sure, it has failures and dissapointments, but for those who want a simple system to find a group of potential winners and spread their funds out amongst them, and concentrate those funds over time into the strongest issues, QUADS offer the simplest effective approach I have found.