Thursday, December 10, 2009

Chart of the Decade

SPX Monthly

"A great sage who was a very close adviser to a powerful king had an argument one day with some of the king's other advisers. He felt that it was not possible to change the nature of an animal, whereas the others thought it was possible, through practice and teaching.  They decided that they were going to prove this to him by training an animal.

"A few months later they sat down with the sage before the king and at the clap of their hands a cat came in, carrying trays of food.  It carried the food onto the tables.  After they had finished the first course, it removed their dishes and throughout the whole meal acted as a human waiter.

"At this point they were sure that they had finally proven the sage wrong. 'See,' they said, 'you can change the nature of an animal.' 

"The sage then reached into his bag and pulled out a small box. He opened the box and out jumped a mouse.  The cat dropped all the dishes and all the trays and started running after the mouse.

"Smiling, the sage looked at the other advisers and said, 'You can make the cat or any other animal act differently, buy you cannot change the internal nature of a cat or any other animal."

Excerpt from:
The Way; Using the Wisdom of Kabbalah for Spiritual Transformation and Fulfillment, by Michael Berg, John Wiley & Sons, Inc. 2001


Anonymous said...

What would have been the Cumulation in % if you had traded this? =)


Anonymous said...

If everyone listens really hard you can hear the mutual fund industry grinding their teeth at Allan's creation.

I can hear the (non-fee based) advisors now. "We're in for the long-run like Warren Buffett, timing the market is impossible".


A said...

Re: Liz Ann

I had a dream once, woke up in the middle of the night, turned over and there was Liz Ann. The rest is very private.

Anonymous said...,TIP,TBT,%5Edji,%5EGSPC,FNM,FRE

Anonymous said...

Rogers is a brilliant investor.

However, he has stated 21st century will belong to China and put his money where his mouth is.

Not to mention teaching his kid Chinese!

Why wouldn't he want to audit the Fed? :-)

George W.

A said...

Re: TZA trading system

BUY at $11.35

Will recap table eventually, but I want the Chart of the Decade article to be lead blog a little longer.

Anonymous said...

Perhaps this is a misinterpretation of the Kabbalah, but that excerpt reminds me of THIS SONG

Giacomo C.

A said...

As long as we are waxing eloquent:

Ed said...

A companion chart to Allan's


Anonymous said...

I see the monthly chart showing a top at 1200,and june 2010 as the critical time for something and december 2010 as the final reckoning time for whatever is developing.

Anonymous said...

Audra McDonald

Anonymous said...

Today I want to share a rather rare chart formation with you. The pattern known as "Three Peaks and a Domed House" was made known by George Lindsay.

e.g., today's Russell-2000 chart

The world is independent of my will.
- Ludwig Wittgenstein

John said...

Hi Allan - I have been backtesting your ATR setting on FX and it looks good so far. Do you trade FX with these settings? If yes then what time frame would you suggest?



Anonymous said...

Hi Allan,

USD is very strong, but the market is "strong" too. what's going on? Hope you can comment on it...

Many thanks!

Anonymous said...


I've been observing Allan's ATR settings with many different instruments and chart settings.

As long as the instrument you choose moves in chosen time frame and we apply fractional betting position sizing, I think its hard to make this system look bad.

Whip and consolidation are the enemy.

Lastly, lets not forget Allan basically challenged us to try and come up with something more than marginally better.

I've been reading up on market values areas.(Interesting volume approach).

If anyone expert in this area would like to combine this with Allan's ATR, I'm sure we'd all love to hear from you.

Lucky Luc

A said...

Re: something more then marginally better

Using combination of a 5 minute ATR and a 2 period RSI, using 75 for overbought/sells and 25 for oversold/buys.

(1) Take RSI trades, but only trade on side of current ATR signal;


(2) Use a 15 minute ATR and take RSI trades, only trading on side of current ATR signal.

This comes up with some very high probability scalps, a few every day, but mostly winners that add up by end of day.

A lot of work, but, if it was easy, everyone would be a trader.



Anonymous said...


You keep talking sexy like that your gonna make Connors jealous! Excellent idea!

Followers, 'the man' is challenging us and we aren't rising to the challenge yet!'

We need some BIG TIME inspiration and get creative.

Thanks once again Allan.


Ubreako said...

Thank you once again for telling me about NNVC. The web update was just amazing and 2010 is the year that makes it all happen. Look forward to your rapid fire session plus the new website from the company. Many thanks allan

Anonymous said...

Hi Allan, will you be updating the NNVC News on the blog?....hope so!!

Anonymous said...

Meredith Whitney

T said...

Having recently studied NNVC's chart in fine detail,I also believe this would be a good time to update the NNVC.
It appears to be finishing the formation of a triangle from the last few weeks...centered at the price point of 0.84

with a resistance and trendline break point around .86 and support breakpoint at .80

Its been trading within the range of 80 and 92 in recent weeks....but wave action showing higher highs and higher lows,and momentum indicators are showing an upturning angle since the lowest lows of november 16 to dec.1 area.

Based on price and technical data I wouldnt be surprized to see NNVC make another big break soon as next week.
I see a target for the move maybe 2 motions,first to 92 and then to 1.00 area.
I would expect some selling by those special rights sellers at 1.00,might bring the price back to the .92 area but that .90 area might become the new support zone. the way .80 has been currently.

On the chart,technically,with my trendlines and s/r points..... the lines I see showing me the dominant bottom level at .70

I believe the recent larger drop down to below .50 and bottoming around .41 was orchestrated market manipulation by automatic systems,as documented by those watching what happened.

True price level ,in an unmanipulated market should remain above .70 for the near term movement of waves and trendlines.

These are not the words of god.
they just sound like it.

Anonymous said...

* NNVC *
if you look at the Insider Transactions, then you will see why NNVC slid to $0.40 and why it is in a sideways channel currently.

related --
we should start getting more flu buzz in about a week or so (seasonally & the winter storm deluge now). As the normal seasonal flu kicks into high gear, concern will develop how does joe sixpack know which flu he's got, etc. Plus, the Operators like to stir up volatility and trade these stocks.

watch the action in other flu stocks, which have made significant corrections: E.g., APT, HEB, these.

Lascia ch'io pianga

Lascia ch'io pianga mia cruda sorte
E che sospiri la liberta

Let me weep over my cruel fate
And sigh for my lost freedom