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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?


To: accountclosed who wrote (1082)3/30/1999 3:03:00 PM
From: ahhaha  Read Replies (3) | Respond to of 3558
 
Recall your basic quantum mechanics. The state equation of electrons in orbits around the Helium nucleus don't tell you where each electron is. It only tells you what the energy and spatial bounds of its orbitals are. It tells you where the electron will probably be approximately. With that information you can achieve quite a lot, but you can't try to benefit from what you can't know.

Simply stated if the basis of price, money is exiting stocks, but price is holding up or advancing, you know that if the money persists in going out, that price will eventually asymptotically approach money. This is true because price inflation is only built on belief. If you move the b/a around a lot and it gets people to be fools and believe (which it doesn't, but I'm trying to find some reason for the current stock market advance) while money is exiting, then sooner or later people will say, "oh my god, interest rates are rising", even though the FED is fighting the rate rise, and you will see price reverse and catch up with money. My machinery does not tell you when the "oh my god" is going to occur. Nothing tells you that. It is not possible. It is like specifying where the electron exactly is. That would take infinite energy.

My machinery does suggest the degree of re-convergence and it is a log function of the time-price-money flow divergence product before the break. There is a power law governing the approach of the break which is related to growing price amplitudes like the pattern of a Dirac delta function. The successive expected amplitudes have to be sufficiently large to attract traders to accept the implied risk when they suspect a bust is coming. It is this regime that we seem to be in now. Currently the DOW has a downside instantaneous risk of 2000 points.