Trading Against the Reversals


COMMENT: So guess what. I’ve always played the gaps when one elects and it’s a decent size and it lines up with the arrays and technicals I’ll get in and sell at the touch of the next reversal after the gap. Easy. But last month for the first time I tried trading against the reversal and it worked out amazingly. There was a quadruple bullish reversal in Cisco and a direction change the week and month after and I shorted it a few cents away from that reversal and basically got the high in a very strong uptrend. AM even thought I was crazy shorting it. The very next day it started falling and fell straight to the last major weekly yesterday.

Maybe not “Marty” type amazing trade, but I saw it unfolding the way Socrates said and I thought Damn haha

First time against a reversal!!! And a quadruple at that. Wanted to share that with you.

REPLY: Excellent. That was a good trade. Notice the energy. It peaked well before, so as the market is making new highs and failing to get through the reversals, look at the energy. If you see divergence and the stochastic, the odds are in your favor.

The divergences in those two indicators with the Array and the Reversal System allows for low-risk trades. Always know where you are wrong on a trade. In that case, the other side of the Reversals you are selling against. The declining energy with a rising market warns that the rally is not sustainable.

 

Decline in Craftsmanship Between the 1st and 3rd Centuries


COMMENT: I took the tour of the Vatican museum and the sculpture collection is unsurpassed. It was great that a pope told the people to bring statues to the Vatican rather than destroy them as some pagan god. The guide also pointed out how the best art was the first century and the quality diminished into the third and fourth century. I remember the mug from the WEC. It was interesting how the quality of art declined following your chart on the collapse of the monetary system.

I can get an extra mug?

KW

ANSWER: Yes, several people took that same tour. The quality of art declined with the collapse of the monetary system as well as the artistic quality of coins. Each die was hand engraved back then, so you can also see the decline in craftsmanship. Sculptures are the same. The details in the face, hair, and clothing during the 1st century is easily distinguishable from the 3rd century as we see in the coinage.

The quality of craftsmanship declines with the economy. Buildings constructed today are far cheaper in construction materials than you see even decades before. Most historians claim that Emperor Augustus’ right-hand man, Agrippa, built the first Pantheon in 27 BC. It burned in the great fire of 80 AD, was rebuilt by Emperor Domitian, and then was struck by lightning and burned again in 110 AD. The Pantheon as we know it today was built in 120 AD by Emperor Hadrian who was passionate about architecture and design. The inscription states that it was attributed to Marcus Agrippa. Nevertheless, this is a building that has stood almost 2,000 years.

As for the mugs, sorry, they are all gone. People have been making collections of them. Even I have only have one myself. I didn’t even have any leftover to give to Nigel.