Electronic Wisdom Cycles and Global Futures Presents a LIVE Webinar – Part 1


Author Patrick MontesDeOca, Director of CMT Group

Posted: 19 Feb 2012

Thank you for spending this time with me and I hope that I can live up to your expectations in sharing this incredible tool I discovered for the application of trading in the financial markets.

I also wanted to thank Global Futures for sponsoring this event and hopefully we can capture some informative quality time. I hope you had a chance to read how the Vedic Code Price Momentum Indicator came about.  It was through meeting, a chance meeting with Swami Ram Charran, a physicist, mathematician and experienced consultant in Vedic mathematics.

In sharing this information I was able to take this mathematical formula – that is basically an ancient formula that uses Vedic mathematics, and applies the basic Hindu Arabic mathematical system of 1 to 9. This form of mathematics is the basis of western mathematics, enabling me to integrate it with Elliot Wave principles and Fibonacci sequences, thus creating a proprietary algorithm for trading in the financial markets.

In using this formula I was able to essentially make an incredible discovery.  The application of this formula for the financial markets increased the standard deviation ratio from 50% to anywhere from 85 to 90%, which is phenomenal.

Let’s move on to taking a look at the beginning of the long-term cycle which started back in the 2008.  Basically what we’re looking at is a nine year cycle. The basis of this mathematical formula uses the nine year cycle you see on the chart below.

 

At the bottom of 2008, we experienced this massive financial meltdown, causing all class assets to collapse in value during the month of September of 2008.

I remember clearly… I’ve never had a gut feeling such as the one that I experienced in 2008, and that told me as a trader that we were beginning to experience something really unusual.   Since then, basically the market has followed through with the bullish energy pattern into 2009, as expected and as we look at the acceleration pattern in 2010, it exceeded the objective of 1,800 in 2011.

Now, what you need to understand is that this information is produced twelve months in advance on the yearly charts.  On the long-term charts it is produced nine years in advance.  And on the thirty day chart it is produced thirty days in advance. So, this information is prospective information that you would have been able to have access to before 2008, recommending you hold onto your position all the way till you met your objective and target of 1,800 in 2011.

This is where we are right now.  If we take a look at the long-term chart pattern in 2011, this is a second wave corrective pattern by integrating Elliot Wave formulas.  We have gone into a second wave ABC correction which according to this chart appears to be completed by the end of 2014.  We are in this first leg down from the 2011 highs above 1,800 made on September 6, and within this corrective pattern ever since.

Obviously in following this pattern, what I can say to you is that I have really some serious doubts, based on the recent resolution of the energy of this leg whether we will be able to get down to 1,300 level as opposed to what it appears to be developing, is possibly one of the strongest moves for this particular wave cycle year.

We will take a look at the yearly chart in a minute, but in completing this nine wave cycle gives us an idea in terms of the wave pattern that this code is following and it’s indicating that the completion of this corrective wave pattern should take place sometime in 2014, from which we are going to experience probably the biggest and the longest rally in this market prior to the culmination of what could be the completion of this long term wave cycle top in 2020 above 3,200.  We are looking at prices in 2016 to reach minimum levels of more than 2,500 dollars an ounce.

As you can see, the chart pattern in 2016 completes wave number IV, which is essentially setting the market up for what I believe to be a massive correction to the downside, very similar like the one we saw in 2008.

Let’s move on to basically a comparison of the Gold Vedic Code Price Momentum indicator for 2011, with the real-time chart comparison below and you can see that the actual energy of the real time chart is very accurate or similar to the Vedic Code energy chart that was anticipated twelve months in advance.

Here you can take a look at the top in April… the end of April, and in fact silver got up to about fifty dollars an ounce.  Look at the double top formation that gold made as of September 6, at 1,923.70, before the major downturn unfolded the rest of September.  What we see here basically is that the correction that we saw in April, 2011, was not as deep for gold as it was for silver. Silver came down about 8% while gold was down about 30%, then we saw this massive rally from around late June, early July lasting all the way to September.

I hope that most of you were able to capture this up move and were also able to capture the top of the market that was made on September 6, at 1,923.70.

In fact we documented this trade on our first YouTube tape posted on September 7.  You can follow the recommendations, confirmations that documented what this phenomenal code has produced since.

I want to move on to the next chart above and compare the chart to the real thirty days cycles that we use to capture tops or bottoms in the market as well as the acceleration patterns daily.

If we use the index which is the 1 to 9 axis on the left of chart, anything above 9 is completely overbought.  As the momentum indicator shows anything at 1 is oversold.
So, if you’re taking a look at the 9 year cycle and you are buying long term you would be buying into the corrections.  If you see the previous chart again, the long-term chart for a second, and the yearly chart, I want to point out to you that from this correction that ended December 15, it is the ABC completion of the 5 wave pattern in 2011, and essentially picks the bottom or the beginning of the wave currently unfolding as the first wave pattern for 2012.

 

Okay.   So let’s go back to the 30 day daily action chart above and I want to point out to you how accurate this was in today’s action.  If everybody was watching we saw a massive move to the upside today.  In fact we are looking at the 25th of January and the code is saying to cover short and reverse to long.  So if you are trading the long side of the market, use the low entry points or the lows of these cycles to buy into your positions.  If you are selling to take some profits use the high points in the chart to shave some profits.  Or if you want to add to your position based on the trend use the acceleration mode patterns.

I want to the move on to the real-time chart above, the weekly Gold Fibonacci Retracement that we published in Seeking Alpha Jan 22, which essentially reflects the Vedic Code Price Momentum chart using a line chart.  And you can see here just on the surface the first impression is very similar to the Vedic Code Chart produced twelve months in advance for the yearly charts.

So, it is pointing to us that here on this chart for example, using Fibonacci Retracements and breaking out of this pattern which seems to be a descending wedge, is a very bullish formation on the bigger picture.  Here from the high made in September to the low made on December 29, we have a bearish flag formation which is a highly technical indicator anticipating the market is about to break out to the upside with the 2011 high as a short term target.

Ladies and Gentlemen, this is indicating to us that we’re about to experience the most historical part of the gold market.  This is a historical buying opportunity and we are beginning to see the price and charts aligning themselves to the energy that has been prospectively forecasted months in advance.

Let’s take a look at the silver market in comparison to the gold Vedic chart above.  Now here let me show you how I am personally using the Vedic Code gold price momentum indicator to trade in the silver market.

To be continued…

WILLIAM GANN AND VEDIC MARKET CYCLES


Author Patrick MontesDeOca, Director of CMT Group

Posted: 18 Feb 2012

THE ONLY MAN TO EVER HAVE MADE ENORMOUS AND QUICK PROFITS IN THE STOCK MARKET HISTORY USING CYCLES

William D. Gann was a trader of the early 20th century. His abilities for profiting from the stock and commodity markets remain unchallenged. Gann’s methods of technical analysis for projecting both price and time targets are unique. Even today, his methods have yet to be fully duplicated.
Known as “The Master Trader”, W.D. Gann was born in 1878, in Lufkin, Texas. Gann netted over 50 million $ from the markets during his trading career, averaging a success rate for trades of more than 90%. It has been said that Gann could very well have been right ALL the time. Any losses incurred by him were only there by his own design and not because of any faults with his methods.
His successes are legendary. Gann literally converted small accounts into fortunes, increasing their net balances by several hundred percent. There are numerous examples of his trading successes, among which are these:
1908 – a $130 account increased to $12.000 in 30 days.
1923 – a $973 account increased to $30.000 in 60 days.
1933 – 479 trades were made with 422 being profitable. This is an accuracy of 88% and 4000% profit.
1946 – A 3-month net profit of $13.000 from starting capital of $4500 – a 400% profit.
The following paragraph appeared in the December 1909 issue of “Ticket” Magazine. It was written by R.D. Wyckoff, the former owner and editor of the “Ticket”, and describes Gann’s proficiency for projecting price targets forward in time:

“One of the most astonishing calculations made by Mr. Gann was during last summer (1909) when he predicted that September Wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o’clock, Chicago time, on September 30th (the last day) the option was selling bellow $1.08 and it looked as though his prediction would not be fulfilled. Mr. Gann said, ‘If it does not touch $1.20 by the close of the market, it will prove that there is something wrong with my whole method of calculations. I do not care what the price is now, it must go there’. It is common history that September Wheat surprised the whole country but selling at $1.20 and no high in the very last hour of trading, closing at that figure”.  Gann’s trading methods are based on personal beliefs of a natural order existing for everything in the universe.

Gann was part of a family with strong religious beliefs. As a result, Gann would often use Biblical passages as a basis for not only his life, but his trading methods. A passage often quoted by Gann was this from Ecclesiastes 1:9 – 10: “What has been, that will be; what has been done, that will be done. Nothing is new under the sun. Even the thing of which we say, ‘See, this is new!’ has already existed in the ages that preceded us.”
This universal order of nature also existed, Gann determined, and we have the same opinion now, in the stock and commodity markets. Price movements occurred, not in a random manner, but in a manner that can be pre-determined. The predictable movements of prices result from the influence of mathematical points of forces found in nature… And what is the cause for all this points of forces? Right… cosmos…universe… all planets around us. This Gann could say at that time.
These points of force were felt to cause prices to not only move, but move in a manner that can be anticipated. Future targets for both price and time can be confidently projected by reducing these mathematical points of forces to terms of mathematical equations and relationships.
The mathematical equations of Gann are not complex. They result in lines of support and resistance which prices invariably will follow.  Gann held that time is the most important element of trading. Time is the factor that determines the length of a commodity’s price trend. When time dictates that trending prices should react, prices may stabilize for a short period, or they may fluctuate within a tight range, but eventually they will react by reversing direction.

SPROTT 2012 FLOW-THROUGH LIMITED PARTNERSHIP RAISES $23,104,525 ON FIRST CLOSING


Author Patrick MontesDeOca, Director of CMT Group

Posted: 16 Feb 2012

TORONTO, February 15, 2012 – Sprott 2012 Corporation (the “General Partner”) is pleased to announce that Sprott 2012 Flow-Through Limited Partnership (the “Partnership”) has completed the first closing of its initial public offering of limited partnership units. The Partnership sold 924,181 units for gross proceeds of $23,104,525. The Partnership will have a second closing on or about March 15, 2012. The price per unit is $25.00 and the offering will be capped at $100 million.

Investment Objective of the Partnership

The Partnership’s investment objective is to provide for a tax-assisted investment in a diversified portfolio of flow-through shares and other securities, if any, of resource issuers with a view to achieving capital appreciation and significant tax benefits for limited partners.

Attractive Tax-Reduction Benefits

Flow-through partnerships are one of the most effective tax-reduction strategies that remain available to Canadians. Sprott Asset Management LP (“Sprott” or the “Manager”), the manager of the Partnership, anticipates that investors purchasing Units of the Partnership will be eligible to receive a tax deduction in 2012 that is approximately 100% of the amount invested in the Partnership, based on certain assumptions set forth in the Partnership’s prospectus dated January 27, 2012.

Resource Expertise

The Partnership will be managed by Sprott, an independent asset management company that is dedicated to achieving superior returns for its clients over the long term. Portfolio managers Allan Jacobs, Eric Nuttall and Jamie Horvat will co-manage the Partnership and will be supported by Eric Sprott, Charles Oliver, Paul Wong and Rick Rule. As at December 31, 2011, Sprott had $9.1 billion in assets under management in various mutual funds and hedge funds, including approximately $8.0 billion dedicated to investments in natural resources. Sprott specializes in investing in small and mid-cap stocks, and searches for opportunities that have material potential upside. Sprott emphasizes independent thinking and seeks consistently to be a leader in understanding macro trends and their implication for specific industries. The Manager also manages the Sprott 2011 Flow-Through Limited Partnership which had an investment portfolio with a net asset value of approximately $46 million as at December 31, 2011.

Agents

The offering is being made through a syndicate of agents led by RBC Capital Markets and included, CIBC World Markets Inc., TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Scotia Capital Inc., Desjardins Securities Inc., Dundee Securities Ltd., Macquarie Private Wealth Inc., Manulife Securities Incorporated, Raymond James Ltd. and Sprott Private Wealth LP.

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HOW DOES ELLIOTT WAVE RELATE TO THE VEDIC CODE WAVE THEORY?


Author Patrick MontesDeOca, Director of CMT Group

Posted: 13 Feb 2012

Click Here to Contact Us for More Information

The following was excerpted from R. N Elliott’s book “Nature of Things”

Human emotions, as mentioned in the preceding discussion, are rhythmical. They move in waves of a definite number and direction. The phenomenon occurs in all human activities, whether it is business, politics, or the pursuit of pleasure. It is particularly evident in those free markets where public participation in price movements is extensive. Bond, stock and commodity price trends are therefore especially subject to examination and demonstration of the wave movement. 

This treatise has made use of price movements in stocks to illustrate the phenomenon, but all the principles laid down herein are equally applicable to the wave movement in every field where human endeavor is registered.

A completed movement consists of five waves. Why this should be five rather than some other number is one of the secrets of the universe. No attempt will be made to explain it, although, in passing, it might be observed that the figure five is prominent in other basic patterns of nature. 

Taking the human body, for example, there are five extensions from the torso – head, two legs, two arms; five extension form head – two ears, two eyes, the nose; five extensions in the form of fingers, from each arms, and in the form of toes, from each leg; five physical senses – taste, smell, sight, touch, hearing; and so the story might be repeated elsewhere. 

In any event, five waves are basic to a completed social movement and can be accepted without necessity of reasoning the matter out.

Three of the five waves that form any completed movement will be in the direction of the movement; two of the waves will be in a contrary direction. The first, third and fifth waves represent the forward impulse; the second and fourth waves, the contrary, or corrective. Stated otherwise, the odd numbered waves are in the main direction; the even numbered waves, against the main direction.

 It is generally accepted as a truth that law rules the universe. Even if we do not understand why or how an exactly every event happens, we can use observation to predict the re-occurrence of an event. For example, we expect that the sun will rise every day, and by observing the changes in seasons, we can predict the time when it will rise. Man is a natural object, just like the sun, and his actions are also very predictable based on certain criteria (like the seasons).

Elliott’s Wave Principle is based on this scientific knowledge and additionally on the knowledge developed by Fibonacci on his sequence. What everyone does not know is where Fibonacci got the basis for his sequence.

The base of his knowledge comes from observations made and recorded thousands of years ago in the Vedas. The Vedas are the scientific and sacred books of the Hindus.

They are scientific treatises that systematically expose knowledge about mathematics, science, government and religion.  In Vedic Mathematics the energy of everything in the universe is measured in a scale from 1-9. These energies are called Vedic Wave Cycles.

These numbers represent the particular energy associated with every natural object including stocks of companies.

The complete understanding of this energy has been reserved for thousands of years to Hindu Sages and Priests. As our world changes, there is an opening of consciousness and knowledge and the opportunity exists to share this wisdom with a larger audience worthy of receiving it.

It’s obvious  from the above that Elliott had an idea of the Vedic Wave Cycles which represents the movement of all of life in 9 waves. Elliott as you can see above counted only EIGHT waves not NINE. He seemed very sure of the first 5 waves but careful observation of his writings will show that he was unsure about the movements of the last three, that is because he was missing a 9th wave movement in his theory. This affected his final conclusions about the nature of the universe and so was never able to accurately predict the full movement of the waves.

If we are going to track the movements of the universe in the form of waves we must consider the factor of “death” or “the end” or else we will never have a beginning.

Everything happens because of life and death which are the main points of any system that exists in the universe. Consider a complete line A-B at rest with no wave movement

                A    _______________________________________ B

A can be considered the birth of any system and B can be considered the death of that system. What happens in that system is a “rhythm” decided by the energy of the starting point. If A is a company that was formed at Point A then all the expenses, the employees, the funding and the players will depend on whether point A was aligned and began with good universal energy at that point.

If Point A was started at a negative “time” then it will affect the length of its life in such a way that point B can be shorter or longer relative to A. For greater understanding let us take a baby born on point A. Depending on the “time” it took birth when the mother was abused constantly by the husband, then obviously the success of the kid would be short-lived or difficult.  However if the mother was romanced and loved greatly by the husband, then the Point A conditions would be so energized with positivity that the length of the “Time Line” between A and B will be longer and much more prosperous for the Kid.

So as you can see the 9th wave determines the death point of the whole system. This final wave is missing in “Elliott Wave Theory” and so the death wave point is not identified in the system, so at some point the theory will advance perfectly up to the 5th wave but will fail in the 6th to the 8th. This will leave two unknown values: the starting point of the new system as well as the ending point of the old system after the 8th wave.

Between Point A which is ZERO and the last point B there will be only 8 wave movements which Elliott did identify but was unable to see the birthing point A and the death point B. If these points are identified then the 8 waves are easy to identify and analyze. An energy condition will be identified accurately.

Before we proceed to examine the method of finding these points we must first understand “TIME”, as waves cannot operate without it. If there is no time then the wave movement is just a dot (or particle). As you might have observed in the above writings , we placed the word time in quotations because this is a crucial factor to determining point A and Point B.

Time is not a tangible factor that can be identified easily as it is value is not fixed nor is it determined by a ruler of any kind. It is a perceptive value. It is this very factor called time that causes scientists in quantum physics get confused by the fact that Light energy photons acts as waves sometimes or as a particle other times. It is because when time is absent, it acts like a particle and when time is present it acts like a wave. Now we must look at how time affects all of life as well as the waves in the stock market.

A death point is determined by the perception of the observer. In any experiment the observer cannot take his perceptions out of the experiment, therefore every time an observation is made the result of that experiment would include the perceptions of the observer.

This is why scientists are confused with Nuclear and Particle Physics experiments. Their conclusions involve also the observer’s perception. The perception of the observer is further affected by his or her knowledge and what measurements he used to determine his or her results of the experiment. The same way the investor will have to measure the results by his method of measurement. He will have to determine the up and down movements of his investments by inserting the factor of time based on the type of measurement he wants to perceive those up and down movements of his investments.

For example if he is a weekly investor, only the beginning of the week or the end of the week matters. What happens in the middle week is immaterial. If the wave movement is from up to down then he will lose and if it is from down to up he will gain.

The same procedure would apply when if the Point A and B represented a month or period of one year or ten years. Whether the stock goes up or down the movement will not be considered part of the “time” perception.

It must always be remembered that the complete system is made up of the Vedic Code movements of 9 waves with the point B being the end of the system measurement choosen. The ending point being determined by the beginning point in a 9-wave system called the Vedic Code Waves.

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