...I'm Laughing all the Way to the Bank!

Last Friday I wrote.....(yes I'm bragging)


Well, I was really asking about the engine, the AJ-10. Fishing around it
looks like that engine isn't entirely dependent on Orion. So I bought in to
this stock early Friday, ticker GY, and can't wait till Monday. Looks like a
short squeeze is about to happen. And there's nothing more exciting in
stock trading. [market was closed on Monday]

Q; How did I know the bottom, of a /panic sell/ was last Friday
once it briefly dropped below $3.6? Note; panics are not
supposed to be predictable.

http://www.prophet.net/quotes/quoteP...d&frequency=i5


A; I set the buy order at a continuous fall of 40% (give or take), within a
pattern having a scale-independent continuous slope of -1 (give or take).
Having purchased the stock, I then maintain a loose stop order
until the bounce exceeds 10% (give or take), then tighten
the stop order until the bounce ends. The average bounce is
between 10% and 15%.

But this pattern is especially pretty, so twice that is quite possible.

For those with a greedy bone, I suggest printing this chart out while
you can and placing it upon the wall. Paying attention to volume also.
It's a template of the pattern which defines the point where /volatility
and predictability/ converge to simultaneous maximums. A theoretical
point which isn't supposed to exist, since classical views equate increasing
volatility with greatly declining predictability.

However, when a complex adaptive system is suddenly driven to it's
very highest possible dynamical state, to The Edge, steadily less
predictability suddenly, and briefly, transitions to highly predictable.
And it does so at the point of maximum volatility. At the point
of a continuous 40% loss. (give or take) with a slope of -1.
(give or take)

Or in layman's terms, the slope indicates the uncertainty in the recent news
is causing all the little guys to cash out.(many iterations) While the big guys
are staying. If the institutions were selling off first it would be s single
spike down (few iterations) then the little guys would sell off too
and death to the system.

But when the little guys sell first, and the big guys hold, it's bargain hunting
time. When Obama announced the end to the moon mission, the little guys
couldn't quickly judge the effect the loss of the Orion contract should have.
So the panic selling began, combined with heavy shorting.

In this stock a high 80% of the float is owned by institutions. When the bad
NASA news hit, about 15% of the remaining float suddenly became short.
So now the insiders are gobbling up as much of the float
as they can which squeezes the shorts to cash out.

When the little guys panic first, it's gotta bounce.

So how does one find these patterns in time?

Daily screen the 10,000 or so complex adaptive systems
running each day for complex behavior by going here....
http://www.zacks.com/screening/custom/index.php

And setting the screened to

Current Price = 2
Average volume(20 days) = 300000
% Price Change = -20


Note, giving away screened settings is like giving away a business plan.

And if anyone wants to see how I...derived this chart pattern, the
highest possible dynamical state, from theory, which requires solving
9 variables, and using those 9 values to sketch the chart. Just ask, but
that's a rather long post. As I have to explain how to ....quantify
...uncertainty.

Something else which isn't supposed to be possible.

As the highest system dynamical state, or volatility, is found
when some disturbance generates the highest level of system
uncertainty possible.

Note, these patterns are best seen in the ....20 day charts under
snapcharts here..
http://www.prophet.net/quotes/index.jsp

And the (give or take) is adjusted for specific circumstances
by inspecting the points of support or resistance, and level
of oversold here....
http://www.stockconsultant.com/consu...ymbol=IBM#ttop



Jonathan


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