Full Moon Spando Thrust ???

Here is a screenshot of the s&p eminis (ES 60 minute) annotated with a spattering of lunar points of interest, projected tidal turns and even some quick and dirty trend lines. I guess the more technical folks might call the smaller trend envelope a running correction or a consolidation pattern.....but what of the larger envelope? Is it possible that we are inside of a larger degree spando (courtesy of Don Wolanchuk) of some sort? Now, let it be known that although I do own a technical background, I am by no means a master of technical analysis, not even close. I know there are rules and regulations and proper techniques in the world of market technical analysis....far beyond the scope of this blog...but, I'm just thinking out loud here and considering.

I've also "projected" a couple of weeks ahead here.....with options expiration coming up shortly, it should be interesting to see how this resolves. Others are of the opinion that we should see a high coming into September 18th, which coincidentally corresponds to both a new moon and options expirations. My tide data suggests otherwise, but I could be fairly easily convinced that a run up right past the 9-11 date does occur and we end closing even higher on the 18th, especially the way this market feels right now....we shall sea...:)

Just a note about future interpretation of data. My goal will generally be to project turning points and trends based upon my raw data. In my opinion, there is something meaningful and a direct correlation between the tides and the markets. However, there are times when that correlation seems to go down the tubes so to speak. Nothing's perfect....certainly the injection of other's opinions and other methodologies makes perfect sense.

Back to the Basics

A very simple primer on the moon but with some important concepts and facts. While we wait to see what the markets want to do on this full moon day. Good one to just stash away......
http://www.enchantedlearning.com/subjects/astronomy/moon/

Past Performance Is No Guarantee.....

So they say. But history does tend to repeat itself. Anyway, here's some history from December of 2008 through July 2009.

Getting Ahead of Ourselves......But

Originally I had wanted to start at the beginning with tide basics, but at the risk of jumping ahead, I thought I should post the most recent tide chart here as a record and go from there.

The chart above is a plot of the s&p emini contract (esu09) using 60 minute data courtesy of Tradestation. On the chart you see several up and down arrows. Look at the green up arrows and the red down arrows. Clicking on the chart actually makes it readable.

The red and green arrows represent turning points in the markets as revealed by my tidal data. The upward sloping green lines and downward sloping red lines are up trends and down trends respectively taken from the turning points. You can see the tight correlation between the market movement and the tidal trends. This is the basis for my trading.....the beauty of which is that we know in advance when to expect change in trends. Now, understand these are more or less weekly trends, but the advantage to the trader is obvious. If you, as a trader, can enter and exit the market on these trend change days, even if you dont get the best price for the day, you're making money on almost all trends. I say almost because no system of trading is perfect, no system is infallible, but if you can be happy being on the right side of the trend about 80% of the time, this may just be your ticket to profitable trading.

More on how it works, entrys and exits, and the start of real time tracking of the results later. For now, we have just entered (as of last friday) a downtrend with the expected low of this trend on Tuesday, September 8, 2009.