July 11, 2022

MarketMap-2022 Issue #15 Scenario Planner

A falling S&P compared to declining fear of risk is cognitive dissonance.

Therefore, when sensory overload hits with the sudden realization
that accounts are underwater panic selling will follow.

Hard and fast rules based on success and failure

Two related topics that I want to touch on here. One is the rule that there is nothing more effective to capitalize on is an entry signal that fails. The below screen capture depicts several examples of that hard and fast rule. Any reliable system can be used. Here it is buying low tide (red dot) and flipping to sell and sell short high tide (high dot.)

It’s easy to see the failure coming off the high pivot on April 13. Taking out the cycle low was a trigger point propelling prices lower. Given the downtrend, the low tides have provided nice reversal points as the same event hit in May.  The most recent low tide was more of a wipe saw, but they held. The most recent series of tidal highs have been on the money.

The high pivot on June 28 was more than a high tide, it was also a combination of geo-cosmic events, of which there are more on the way this second week of July, more on that below. So based on this logic, the late June high is important on a Short-Term basis.

This work by Jack Cahn is licensed under a Creative Commons Attribution-NonCommercial 4.0 International