Everything in nature has a natural oscillating rythmn to it based on the fibonacci principal and that includes the stock market as it is in part governed by human emotion. It's ironic, but all those unpredictable events you mentioned actually fit into the cycle. Think about it....why does the market react to bad news in a positive manner, whereas a short time ago, the reaction was negative? It's all in the mass psychological rythmn of human emotion. Look at any chart and you will find more often than not relationships in distances between peaks and bottoms of different trends in ALL time scales based on fibonacci ratios: 0.382, 0.5, 0.618, 0.786, 1.0, 1.618, etc. It's simply amazing. I seriously doubt governments, Greenspan, or whatever, takes all this into consideration when events occur. It just happens, and it fits. Turn dates are accurate, but what they don't give you is what direction the change in trend will be at any time in the future, nor will it give you specific targets. It's just another tool, but when used in combination with other tools can be quite powerful.
The following book can give you a good explanation of the principal and it's methodology.
booksamillion.com |
