Why The Stock Market Is Exact And Not Random

Daily Chart May 7th InvestWithAlex

5/7/2015 – A positive day with the Dow Jones up 83 points (+0.47%) and the Nasdaq up 26 points (+0.53%).

Over the last few months the stock market has been about as exciting as a day at the dentist. So much so that the Dow of today trades exactly where it was on November 21st, 2014. The NYSE is where it was in July of 2014. But do not despair, this period of low volatility will soon end.

Most investors believe that the stock market is random, volatile, and cannot be predicted. Nonsense. If anything, the market is exact. Once you understand how it works behind the scenes (The Secret Behind The Stock Market), exact calculations can be made.

That is precisely what the charts below show.

S&P Symmetry InvestWithAlex

Here is one of my charts showing something similar, but much more accurate.

Long Term Dow Structure35

I cannot overstate how amazing this chart is. Just a few points.

  • As we have already discussed, the move between 1994 bottom and 2000 top was 11,832 3-DV UNITS. The Dow topped at exactly 11,866 in January of 2000. Amazing!!!
  • The up move between 1994 bottom and 2000 top was 11,832 3-DV UNITS. The down move between 2000 top and 2002 bottom was 6,483 3-DV UNITS. When you combine both values together you end up with a value of 18,315 3-DV UNITS. The move took 9 years.
  • The up move between 2002 bottom and 2007 top was 10,156 3-DV UNITS. The down move between 2007 top and 2009 bottom was 8,137 3-DV UNITS. When you combine both values together you end up with a value of 18,293 3-DV UNITS. The move took 7 years.

To summarize, the combined move took 16 years and there was only 22 3-DV UNITS of variance between two sections. This variance over the 16 year period of time can be attributed to as little as 2 trading days and a few hundred points on the Dow. This example alone should put to rest all claims that the stock market is random and unpredictable. Once again, when we identify the exact structure of the stock market through using our 3-Dimensional analysis we can time the market with great precision.

For example, if we understand the structure above we know that the move between 2002 bottom and 2009 bottom will be identical in 3-DV UNITS of the move between 1994 bottom and 2002 bottom. Just by having this information alone one should be able to figure out the stock market with great precision. Further, once we have hit the 2007 top on the DOW, any analyst using this technique knows that the upcoming down move will be exactly 8,127 3-DV UNITS. (18283-10156=8,127)

That would mean that once the 2007 top is confirmed you would know exactly where the market would bottom. So, while everyone is freaking out in the late 2008 and early 2009 you are either shorting the market and making a lot of money or you are setting yourself up for the upcoming bull market that you know will start in March of 2009.

I hope this clearly illustrates how powerful this 3-Dimensional analysis can be. Also, please keep in mind that the example above is just a tiny sample of the information available to you once 3-Dimensional analysis is performed. Again, once the market structure is fully understood you would know not only where but WHEN the market would turn.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. May 7th, 2015  InvestWithAlex.com

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Why The Stock Market Is Exact And Not Random  Google