What is it about rocket blast offs that you don’t understand?

Most readers (most professionals) are unaware of the four percent system.  To oversimplify, when the index (various including mainly Value Line) surges by four percent in a week, buy.  When the index drops by four percent in a week, sell.  Mechanics and engineers can see the specifics of this system in our GGU folder:  http://www.edwards-magee.com/files/ggu/systemfourpercent.pdf.  The Dow rocket just shot into space in a week that recorded over 5% gains, snapping shut the bear trap with a clang (or a ka-ching).  Does this make sense?  No.  It’s just musical chairs and the Old Maid card being handed out to traders who believe their own opinions that they are going to see a bear market.  Solly, Chalie.

We reentered in anticipation of the a line were spooked by the power bar down, reentered again on the b line.  Older les bolder traders can use the same techniques with successively less risk using the c, d,e, and f lines.  We discussed this technique in a classic letter we called the A-B-C -D letter :  http://www.edwards-magee.com/files/ggu/a-b-c-d.pdf.  The theoretical underpinnings of this thinking is in our letter on the Alpha-beta-gamma and A-B-C wave patterns:  http://www.edwards-magee.com/files/ggu/alphabetazetawaves.pdf.

There.  That ought to keep those who love complexity busy for the weekend.  For those of our readers who love simplicity Wimbledon is on, unfortunately without Roger Federer.  Well, the Swiss franc is in eclipse (or at least a new moon) also.  Nadal rules.  VIVA ESPAÑA.

 

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