Meetup_2006!06!22_Illustrated_text Putting the Pieces Together

8/10/2019 Meetup_2006!06!22_Illustrated_text Putting the Pieces Together

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IBD MeetUp Number Five: Putting the Pieces Together

For

Building Wealth

A Background Paper for IBD MeetUp Tucson

By

John T. Hershey

Meeting Five

Adobe Llamingos 22 JUN 2006


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IBD MeetUp Number 5 22JUN06 Putting the Pieces Together

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Scheduling

OK the ball is changing color. Here we go, but were tardy arent we, were a little late

starting tonight, I apologize to everybody for starting a little late tonight (if I had a watch,

but I dont have one.) Liz is going to bring over the scanner, which I forgot, so we can

plug it in here if anybody has a chart they want to go over. Let me give you the schedule

for the next couple of months.

First Meeting in August: Spydertrader

August schedule: for the first meeting in August Spydertrader will be here and will be

here for quite awhile, so he will be the speaker for the entire meeting of the first Thursday

of August, so load up on Spydertrader stuff and by that time you will be collecting a lot

of things: from little stuff, like if youve been doing 30 minute charts and pro rata

volume, you know, like you want to see how its going; we have a software sub routine

called the bouncing that actually gives you the answer of the pro rata volume as the bar is

forming. We also have a lot of other little things that are kind of nifty for you. And if

you recall, not going off topic, but, I dont know if you all have this, this is the unusual

volume correlation table. Do you all have that? I'm handing out a color copy of it in full

color tonight and the rules are one liners here, and I will explain them to you

momentarily, OK, that is, after it gets handed out (See page 15.) If there arent enough

copies I apologize but I'm operating on who registers and everything, I'm just kidding, I

try to make extra copies. I dont care if you sign up later, thats just that MeetUp stuff

which we are immune to by now. So that's the situation.


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Second Meeting in July: Martel Firing, Signal Trading, LLC

In July, the second meeting, Martel, whos sitting at the table to the left here, will handle

the entire two hours.. in the usual way. Were projecting stuff up here simply because

my conversation can be transcribed then if anybody has anything to show everybody can

see it so we dont have to do the dumb handout thing. So, Martel is a very experienced

person and his relationship to the world that were in now is this, and this is very

important to you for the second week in July, second Thursday in July. (I misspoke here)

It goes like this, how many people here have heard of Collective 2? OK, hands are

halfway up. Collective 2 is where all the black boxes live in the world. Do you know

what a black box is for trading? Right, very good. A black box for trading is something

that you dont know what's in it, but it works. Data apparently flowing into it and its

screaming, buy this, buy this, sell that and so on, and you make a lot of money, because

the guy who invented the black box knows what hes doing. Now, take the average really

hotshot trader, he cant program at all, so hes got to get somebody who can hear him and

the words he speaks to get the black box built as a consequence of programming. Now

this group here has coding people who are working for it and they were here last month

after a month or so of preparation and they're coding up a lot of things and building a

website which is more archival of information but it will have some neat little things like

the bouncing ball for the volume an PRV and so on. Martel, who I'm introducing ahead

of time because I can do this introduction when he comes up to speak, cause it would

take so long. Martel has spent many, many years, since living in San Francisco in the

70s and stuff like that and trading commodities, he is the person that the black box

people come to, to get the programming done. Now, the other half of programming, to


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make sure something is really working, is back testing, and maybe some of you have seen

my comments on that in ET when I used to be there (I'm no longer there which is

causing some kind of hemorrhage, what can I say, at this particular point I hear, I dont

look.)

OK. Back testing doesnt work if you dont know what the heck you're back testing.

You see that? So for me, a lot of the back testing and some of the things I have suggested

here is varied by an order of magnitude. So, were just in the ballpark talking right now,

oh, whered she go?

(In and Out).

Theyll be a deep expense for that one. Not saying thank you is a thing I never want to

miss. ( I thanked her for you) OH, Thank God (laughter from audience) So, what well

have in July, the second Thursday is some really great conversation about how it is to

work with people who are good traders, who are part of Collective 2 and with whom

Martel has worked with in terms of getting their program to the place where it is a

saleable product that allows people to make money using something that they dont have

the details of and hes the man who can come up with that in his many buildings on his

property, one of which houses the place where he thinks all of this stuff up. And,

Hershey Pot is something you will never see but it is basically how you are savoring what

we do here? (Yes) More or less,(talking in audience)


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So you will actually see Hershey Plot, which is his notes on these meetings translated into

code and software about how everything really works. So you will have an entertaining

hours of a person who has taken a thorough look at what is going on here and who can

answer a lot of your questions and its really neat because hes a third party. Dont you

like that? OK. They're back.

Web Site Teams

I am starting a lot of Steno pads, which you can see, and they all have different names

and stuff on them. This is the Building the Website. I am currently setting up, we set up

the codification on 1440 answers today, (Jack laughs) youve got questions, you now can

go get: no, not now, but soon youll be able to get 1440 answers which have a string

attached to them. If its the wrong answer for the question it takes you to a place to

explain why thats the wrong answer, and then brings you back to the place where then

you can work in 5 different zones around that question which go down two levels of

detail. God has spoken. (Jack laughs really loud) Really, 40 days and 40 nights floating

in a boat is the same it took me to make this thing up. Anyway, we have that in the

works and we do have small teams of people which overlap each other a little bit, all

working on different kinds of things, and I'm giving assignments and I'm now working,

almost fulltime, on my tasks for the group here. So you probably noticed that, you sent

out some e-mails, right, Ron sent out some e-mails, and the associates here, and I know

its been confusing, and I apologize, the fact that you dont get a response to the e-mails

you send me is a case of my frustration.


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I spent 7 hours today doing Camtasias, where the machine grabbed the thing away from

me each time I completed it and threw it in the garbage can. I'm working on a double

screen thing showing the market live and I'm doing drills for you, but the machine has

been grabbing them and tomorrow morning we are going to have a shootout with the

manufacturer of the software and it will get straightened out. We now work, the group of

people you saw here is called the PhDs, and I think it stand for Pile higher and Deeper,

but (laughter) they have another expression for it and I dont remember what it is, but

there are 8 basic divisions on a working site where the tasking is being done for you and

we will probably have, within another 3 weeks, 25 writers doing compilation and editing

to dump the stuff in through an FTP place, OK. So youll begin to see what youve

always been looking for are the downloads, and because were getting the thing

organized, as I spoke, through these question and answer things, you will begin to see a

hierarchy of an archival thing set up. It will be huge. (See next page).


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Pic 1


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Bigmooses Efforts

Now, there is a person named Moose, from somewhere, I'm sorry about this folks, are

you Moose? No, OK. I dont know who Moose is, but Moose apparently spent several

years doing what were trying to do, already. OK, so he took his sons server; do your

children have servers? (laughter)

So this guy is a highly organized person and Moose has volunteered to let us use his

sons server and we will be able to link you over to it to get all the Moose work. OK, so

that will be handy for you as another resource. (It is a rather large and comprehensive file

of past postings) And we will start attacking (there are also many Universities that do

archives on this). We attack those, probably in September and get their results of those

shoved in there.

Site passwords

So, I've been watching you guys all day, and I noticed that the first person signed up,

John Dorsey, John OHare, Ron signed up, Dave signed up and then on my second pass

later this evening I saw that Virginia, cool, you made it, and Martel is hooked in now.

You are all automatically given passwords. See, everyone whos ever been to a meeting

who put an e-mail down, that was sent to NY and the NY guys are sitting there

(whenever you get into the registration process and so on); they automatically give you a

password and approve you. Now, you have a friend in Oklahoma, right. No, well I guess

I'm screwed up, I lost track of everything.

(Virginia: I didnt get a password. Are they coming from some)


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You have the ability to get into the site where the downloads are now being assembled in

a miscellaneous way.

(Virginia: Just by registering)

You did register.

(I know)

Yes, you have a name in the sense of, yeah, youre number 21 (laughter) Yes, were

numbering people, so dont give up, and again, with Darrel, I though I was all pre

registered, what that meant was you dont get a phone call to verify that youre not

a., and that will be deleted from the tape, of course. What I'm saying is, there

is this thing of flaming and scamming and all those things, and weve spent a lot of time

dealing with that and all the legal relationships and all those crazy things that are going

on right now. Were trying to work this out so it is extremely beneficial to everyone and

we have this crossover chart thats building, just like I told you, 1440 answers.

The trading Crossover Chart

We have a crossover chart so that the vocabularies of the 10 or 9 other systems of trading

that are most common can be interrelated. Its like going to Auto Zone and saying. I

dont want this Sunoco Oil any more, I know Sunoco doesnt exist, but I want to get

some new oil, from some new company, like a Russian oil manufacturer and they have a

skew in there for those two products, but what they represent by specification, you know

like 10-40W, (cross reference), yeah, its a cross referencing system, and so were

building an entire cross referencing system for what were doing here plus 9 other most

commonly used, in the world, trading systems. We feel that anyone who comes into this


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with their own vocabulary can continue to use it and gradually shift over into the unique

and unsophisticated vocabulary that I use (like rockets and all that other corny stuff).

So weve got these things going now and there has been a recognition around. I'm just

announcing this to you because I think its really good news, that the Pascal/Fermat part

of trading (you know the probability part in betting): make a bet, enter; set a target for

exiting based on that entry; put a stop underneath it in case it goes wrong (you know,

risky business); and only put a percentage of money (your total money into that trade);

and then do a lot of trades with the same percentage where there is a strongly established

no relationship among any of the individual trades (lets say 5 percent is the limit, so

you have to do 20 concurrent trades, i. e. , transactions, where you make the bet), This is

all Pascal/Fermat; go for a target either hit it or miss it based on a protective stop; and

then you have a risk reward and sharp ratio that works.

OK, thats what the other 9 sort ways of trading have as a partial characteristic. So this is

where were coming from. You may have noticed the tall drink of water that was sitting

here by the name of Doug Victor. He will be here in July as well as August and

September.

September meetings (this has since changed to October)

And then the people coming in, in September, that havent been here, they're coming in

from the East, and youll meet them at that time too. They will take the first meeting. So,

I'm not doing first meetings of the month any more, these guys are all doing those. But,

about Doug Victor, he is the person who is doing the alternative coding for the alternative


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to Pascal/Fermat. Now what would that be if you imagined the world having two ways

of doing things?

(Surety) Huh? (Surety) Surety (in other words a deterministic world rather than a

probabilistic one.)

DING

The alternative to the Pascal/ Fermat Approaches.

What were looking for here is trying to get to the place where were looking at how the

market actually works, so we build a coded system that is of the character of the marke.,

Were not placing bets anymore; were not hitting targets and were not having to use

protection. What were trying to do is get signals from the market as the markets

responsibility to communicate to us what is cooking. I did the sequencething last time

and it is all transcribed, not illustrated as yet, but it will be on the site, probably in a

couple of days. What you will see there is how all of those things that we talked about.

Putting the Pieces Together

When you put them together and interrelate them. it makes a rather strong framework of

how the price valuation system works in correspondence to the psychological action of

the people, the behavior of people. Thats what we were talking about tonight. Those

four parts of the annual system (seasons), but one doesnt work very well, and its called

Summer. Were in that place where things are kinda messy, kind of messy; but we know

why. We know that uncertainty is where the major risk occursand what we have to

do then is really buckle down and not let anything go on that has flaws in it or omissions

or anything like that. Its got to be pure for us. Now, if you have your universerunning,


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your hot list running, your owned list running and you got that unusual volume thing

working for you there you are beginning to get into the groove.

THE GLUE

So tonight, probably, we will do a lot of these little slide (graphics) things, scanning, and

post them up there. The rest of the time, when were not doing that this evening, Im

going to be doing GLUE. I'm going to be trying really hard to make sure that I can take

you through a day (even if you're and EOD trader who has a job). Just go through the

process with me tonight, by letting me show you how all of these things interconnectas

a non-probabilistic routine

See, what I'm saying to you is: I'm taking you over to that place, you called it surety.

Right. What were talking about is the partnership that we have with the market

where we dont care about predicting the future to make a bet . What we know is the

near term past; we live inNOW(all the time) and the future moves intoNOWfor us.

See, we turned it all around. (Conventional Wisdom) OK, so its really cool. And we

know: what wasnt that;we know what should be thereand if it isnt changing or

anything like that. We know how to grasp that mentallybecause of things that were

doing.

Drills

Now, I am building, in the next two months 50 drills that will be on Camtasias and

transcribed and illustrated and I'm going to try and knock out several a day for the future.

And you cant see it on this web thing now but we literally have a website that isnt going

to be our website to get the tasking done, to get the three parts, the three websites built for


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Have you ever taken $45,000 and turned it into a quarter of a million dollars, tax free?

OK, so there are 20 some instruments there that can be used to solve the kind of problems

those different generations of people face. And were putting it out there as a very

benevolent thing. Apparently there are people out there who are willing to sponsor this

kind of thinking. You should see a refreshing kind of thing going on here.

I hope that you can then see that this little piece that we work on every two weeks is

the replacement for savings because its doing better than a savings account. So,

you can handle these sudden events that come up but also you can take and spin off a

little bit of this stuff thats coming your way and say, alright Ill divert it over there, Ill

throw 180 bucks at this, like I'm paying for software or something every month, .

Ill pay that over there cause that gets me 300,000 bucks now and three quarters of a

million 20 years from now. And its worth peeling it off of my trading account to make

sure that I do have the ability to let my legacy go to where we want it to go.

Now, you can do all the financial planning in the world but if you dont have all the

pieces in the plan, its very disruptive when youre disabled. Oh, my financial plan isnt

working this week. So you need to know the plus and minus of disability insurance and

how it could; like if you're an executive of a corporation and you lose a few key people

because something happened, and they all got the valley sickness (fever) or something or

whatever its called, and they have to take off for six months. There are all kinds of


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financial considerations. So were building that into the philanthropic part of it where

you can think of how nice you can be to your family by not saddling them with stuff and

the positive side, making sure the legacy works for them. So I'm giving you a major

context for what weve been doing and how it all, the pieces, fit together. And that stuff

is more like website stuff. OK, so I said a major piece of GLUE, I've done a lot of

gluinghere for you. You ought to feel like I can sit back in my chair three more inches.

There is just some other nice stuff that is coming down the pipe here and weve got some

really super teams of people working on that kind of thing and one of those people is Liz.

She is on several of the teams and as you know she is licensed. She is a very good in-

putter for this kind of stuff, so if you want to see power points on this that and the other

thing we can give you links to various corporations of power-point-ness, so you can get

some actual, whatever you need to take a more thorough look at things.

So now, does anybody have any charts they want to do as sort of a mental break?

(Virginia: Jack, could I just recap for a minute, please.

(Jack: Sure)

I know it appears to be different from a later statement you made, when is Martel

speaking, on the first or the second meeting in July?)


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Hes speaking at the first meeting of July, which is the second Thursday. Thats where

the confusion came in. I called the first meeting the second Thursday, a little inaccurate,

but it will do. OK, so everybodys there?

Reviewing charts

Alright, here we go, anybody have any charts they want to review? Otherwise I'm going

into a real gluing operation here. OK, we are adopting Trade Station. How many are on

Trade Station? OK, great, were adopting Trade Station and Q charts as our two primary

platforms. Who is on other platforms, I just need to know that. (garbled, E Station, Stock

Trader) OK, well pick up those three also. Do you understand what I'm saying to you?

We will get you fixed in each of those programs. Now you probably notice that when

you change fractals on something like Trade Stations it throws away all your lines.

Anybody notice that? Yea, so thats a thing thats a problem. The unusual volume,

though, on Trade Station you can get in there, its just called percent volume. Its not

unusual there. So well have that one and well get the E signal version, etc, etc. Well

get all that to work for you if we have to do special coding to attach it to your thing, it

will be an add in, or an add on, whatever they're calling it this week, that will work on

that platform for you well just code it up for you. But what I'm going to say now, is it

6:15 yet? Huh, you still dont have a watch, OK, great. Did it go off, we can leave it off

cant we? You dont have to look, there's nothing going to go up here for awhile, at all.

Oh, what can I do? Do you like the moonscape? There you go, mooning it up for you.

See, it takes awhile to think up these things.


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A day in the market

What I want you to do is see the day in the market regardless if you got a job and you do

the EOD or not. I'm going to go through a very thorough post indicator assemblage of

things tonight. Its very important, its the summertime the markets a little **** and

messy, messy is my standard word for it. So, here we start the day. You're at work and

you're going to get the results of this day, and in the evening you pull up the results of

this day. From now on instead of just looking at the daily charts you can look at the 30

minute charts also. Because I'm really tying this thing together tonight because I do not

want anyone in a situation where they're feeling uncomfortable, puzzled, anxious or gee,

I dont know what to do.

I'm going to, and we will transcribe this, and Ill think up some real neat illustrations for

it by actually putting in the thing I'm talking about as an illustration in the narration. And

I thought about making sure I could do it tonight, its an impossibility to flash from one

illustration to another because I have to talk about this, that and the other thing in rapid

succession, but I can illustrate it after its been transcribed for me.

Editorial Note: There will be many illustrations inserted and a commentary on

them. The commentary will be in bold and the setting is Sunday and Monday

October 8th and 9th

, respectively. The objective is to follow the trading day after the

prep before the trading.

Here is the prep and the scene for the trader as of Sunday, 08OCT06:

Four streams are traded using a rotation of stocks in each stream. The streams are

A, B, C, and D. Within each stream, the plan is to rotate through three stocks each

in a batting order of 1, 2, 3. There are two pinch hitters.


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Pic 2


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Thus above you see 14 stocks are on the rotation list. This is a hand written sheet

that is made by doing the DAS (on two pages where stream A and B are on page one

and C and D are on page two) and then taking some notes on what the game plan is

for Monday October 9th

.

You can see that the 1s are at bat and the 2s are on deck taking some practice

swings in the batters circle. Four Batter, one per stream are always at bat and they

are taking pitches from the market. They hit and score percentages as the days go

by.

We will look at the setting as depicted by the Qcharts lists starting with Sunday

after the cose of Friday the 6th

of October. Look for illustrations and bold text

related to the illustrations.

The camtasia continues:

So this will be a long piece when you get it because of the illustrations. When the day

starts you have three things that you can be looking at on your screen. Lets say you own

six stocks thats how well operate the whole evening. How long is your hot listthese

days? How many stocks are on it? Anybody else willing to admit how many are on their

list? You have a list? How many? No list, OK. So youre working with a long list and

thats OK.

What I say to people is that when you cant get down to a small number, I say, OK,

youre going to have to work harder and think harder. You're going to have to work


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Pic 3 The universe as shown by Spydertrader on ET for 06OCT06 close:


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Pic 4 The Universe of our trader:


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Pic 5 Our traders HOT list

Pic 6 This is the streams and batting list of 14 stocks, some owned and others in the

line up to be owned as stated on the handwritten sheet.

To recap: The four batters (owned) who are at the plate are: A-1 FTEK (3.45), B-1

CMED (3.35), C-1 EZPW (0.40), and D-1 TIE (.83). They all have to be above DU

(.25) at the end of the day. They all have to be in FRV (.60) or peaking (1.80) during

the day (end of the day numbers shown).


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EZPW is not doing well as a batter and he needs to be replaced (see note saying to

send him down to pinch hitter status as well.

harder and think harder. OK, so weve reached an agreement here. Its very hard to get

down to just a few stocks and then say to yourself later, Ooh, I missed one. But why

not have a few extras and we will put them in their place as the day goes along

automatically. Thats what the unusual volume will do for the lists. This is what

you're looking at during the day, when you're trading, and we now call it Position Vector

Trading, PVT.

When you're trading that way you are primarily looking at how the stocks are lining up

relative to each other for making money. So what do you have on your ownedlist? You

have looked at the graphs, youve done your daily analysis sheet. The last part of the

sheet is the general view. When you see the piano playing, the music thing, the music

drill, youll see what I'm asking you to do there is go from a chart, - - - - - - , over to the

daily analysis sheet and were talking about playing music. The score is the chart and

were asking you to play by simply recording the score, the volume, and stating

whether its dry up, first rising or peaking. Very comfortable! Its all done, thats

your owned list and you know where you are. Now the thing called the dancing the

Tangopart of it is where I'm going to ask you to deal with formations, OK, that kind of

stuff where well look at the 5 basic things we have and the channels, and the next

column next to that on the daily analysis sheet, I cant remember what its called..

TREND!!!!. Gotcha! The trend part of it is where you put all the indicator stuff.


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In other words, the formation is more the channeling stuff and the trending stuff is

where were taking a look at indicators and where they are in their sequences . And

thats why it takes two lines to do each stock. See, youve got all of that lined up. Now

I'm doing, in commodities, for people a pre flight check which is 32 things I do before the

market opens, every day. And if you do them every day you know how the markets

gonna go that day. 32 of them! Now, your daily analysis sheet incorporates many, many

items and you do it in the evening, and you do it for your ownedlist. You do your sorting

and all that kinda stuff every once in awhile cull a new list and so on and you're looking

at things and you have your 10 to 12 stocks, 10 stocks or so on your hotlist. Now, when

the actual day begins (which I'm taking you through) which if you're working you dont

see it, but youll see the results, and Ill point those out to you later. But let me take you

through the day. Your owned list and the hot list and your universe, they're all zeroed

out in two of the columns that you're looking at, all these rows and columns, two columns

are zeroed out on each of the sheets, or each of the tables.

Which ones are they?

OK, you're not concentrating folks. Dont tell me, I wont ask any more questions

tonight.

The unusual volume is all reading what, just before the market?


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Zero.

Now what's the other one?

The net percent increase in price or decrease. The net price change, is what its called, is

all zero.

Now, if you want to, just for the fun of it, why not make all your tables alphabetical

before the day starts? Because its fun. Make them alphabetical, youve got your owned

list and your hot list and you know they all appear on your universe somewhere. This is

Pic 7

great! The market opens, the bell rings and what happens? The computer is calculating

like crazy, because data is coming in and if youve got two charts with yellow spots all

over the thing, OK, its spotting us out. Then the stocks start arranging themselves.

All of these columns arezeroed out before theopen.

You can set your

symbols alphabeticallyand then at openbeginning to sort by

unusual volume


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Pic 8 A minute or two after open on Monday and arranged alphabetically. This is

how the world sees lists.


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Pic 9 Now we see Toms list the same way:

BUT, it is better to make the unusual volume sort arrangement after open; it does

a job for us that is very important. That is, to use volume, the leading indicator of

price, to be the INDICATOR arranges the order of the stock list. We do this with

unusual volume as expressed as a decimal percentage of the 65 day average.

Ideally, it would be nice to have monitoring platforms have the flexibility for the

user to be able to set up columns backed by maths for any personal use. It would be

nice to be able to fill in cells with data in columns as well.


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Pic 10a Unusual volume a few minutes into the open.

The list is now arranged by unusual volume and some stocks have a lot of opening

volume and there is a beginning relationship between the unusual volume and the

percent change in price as measured against the previous closing price.


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Pic 10b Our batting list at the same time (just after open)

We are checking things out. We have four batters at bat (OWNED) and they need

to be at the plate getting the job done. A-1 FTEK (.34), is at the top of both lists and

is green (the steroids are working) B-1 CMED (11) is near the top and is red. This is

the end of hold. Done deal. We Say: a flag is up and we need to check out who is

going to bat next for CMED (it is GROW) and MAKE THE CHANGE NOW. C-1

EZPW , whom we bought a little early, is green and has a low volume start (.03) so

is mid universe on the list. We have two available and we put IAAC into EZPWs

place immediately. D-1 TIE is same as EZPW BUT TIE is up over 1% to start so

we know TIE is ahead of the pitcher already. We sit tight with TIE.

Also, we look at the guys in the batters circle who are next to bat (a BUY signal

triggers them immediately). ALJ, GROW, RACK, and TWPG. We want these


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Pic 11 Unusual Volume Correlation Table.


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If it doesnt have a name I will make sure its coded up for you within a month and then

you'll have that to attach to your software, your platform, OK. Can you visualize, as the

morning goes along that by 10:30 or 11:00 what happened? (garbled from audience)

Youve got a pretty good picture of what the hecks going on. Did we hand those out?

So now we get out our unusual volume sheets. If you dont have one, if there's not

enough, look on somebody elses. Can I have yours back? You see at the bottom of the

page there's a table that shows you how the various percentages of the whole days

volume are divided up.

Pic 12

Now if you are building bridges and you're a civil engineer you would call that formation

a catenary, like a suspension bridge. Now the tallest cathedral in the world is tall because


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of what? The designer turned the catenaries upside down and he was able to support the

architecture in a narrow building. Taller than anybody else, because he made a stiff,

upside down catenary that finally pushed the load straight down in the column. Isn't that

neat? He had to beat everybody else cause he was the head God man.

OK, here we go. The catenary is there and you see, right after lunch, 7, 8, do you see

that? These are 30 minute periods that are numbered. This is the way we operate here,

right after lunch you see a little surge that settles back down again, and then the rest of

the day it gets higher and higher. What I did was this, I took this distribution ..and I

distributed that volume in relationship to dry up, first rising and peaking by saying to you

Pic 13 The decimal percentages part of the chart.

These are the values you see in the UNUSUAL VOLUME

column of charts


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that the percent of the 65 day average that DU represents, see, youve got a 65 day

average in the volume, on a dry up day that represents the average, you see the .25

underneath the DU, that is 25 percent of the 65 day average. Everybody get that? Its

small. 6/10 or more than twice the dry up is the first rising volume and 1.8 is the

peaking volume. So then what I did, I took these 13 things, 13 percentages, I took those

percentages of those three things; dry up, first rising and peak and I wrote in the value

that you see before you on the screen under unusual volume. So lets say we are at

11:00 and you see a .22 there. Youve got first rising volume. Neat, kinda neat, huh?

You know, I had to do this three times before I got it right. Let me just reveal to you, I'm

looking at the catenary, trying to get it straight, and I'm trying to look at the distribution

and get things right in my mind about how this all works and everything and so we

finally did get the bottom chart done really well. We really worked on that. We looked a

lot of graphs and then what we did was, we got the ratio to the dry up, first rising and

peaking to the average cause the computer wouldnt give us the column to write in those

values. See, if I could have written dry up in for all those stocks then at 11:00 it would be

reading 1.0, but I cant. I have to work off the 65 day average on Q charts you have to

work off volume percentage which is a percentage of the 65 day average. Its the same

competitive thing, two software programs. So youve got a table here that tells you

anytime of the day what the value is for any of those conditions, dry up, first rising and

peaking. Ah, cool, its cool!

Now, if you're going through the day and you want to look at a chart, look at a 30 minute

if you're looking all day and this table still applies to your tables that you have showing


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from your software, meaning the universe is all there, your owned stocks are all there and

the hot list is there. Three different tables that are driven by the unusual percentage and

thats what raises and lowers the stocks in the table. Now as we go through the day, 9:30

starts it, everything is zeroed out. Can you imagine what happens to every stock that

gaps? What happens to it? (garbled) No, you dont get a huge volume from a gap. That

was a trick question, first one tonight. When they're dropping it only affects the percent

of price as measured from yesterdays close. So, youve got some high percentages

showing here and you see that in the column of the percent change in net, of price. So,

you're looking up and down your sheet saying have I got any gapers here, any high

percentages right off? Theyll be green if they're going up, and thats what we trade.

And you will probably see, at that point with the gapping that also the unusual volume

starts to rise rapidly. So, as your charts unfold for you, and they spread out, in terms of

those numbers in the columns you will see that the cream rises to the top right off. Now,

isnt that the damnedest thing.

Pic 14 Timing instructions for using the decimal percentage values:

Now your own list is all green and its showing you a high unusual volume percentage

that is running on t his chart in the FRV and peaking column. Green and blue: The

instructions here are, under blue, when you are peaking you still have another day to get


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out after the peak volume. Why, because a 4 is a 1, 0, 0, scoring, meaning price is up,

volume is down and the thing is no longer in accumulation.

Pic 15 Scoring chart

See thats when you go right over the crest of the peak youre going into disagreement,

see, were up at R and people are no longer agreeing on the price, so the volume is going

down. So what I'm saying to you is that as you watch those stocks go to the top of the

sheet that you own and they're really moving on up there you have to get out your graph,

your chart, you're looking at the tables. You get your graph out and you take a look on

the 30 minute and well now look at the indicator thing what's cooking, and we look for

Here is the 4(1, 0 , 0) whichis at the top just

before the peak


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the curl in the indicator. All the indicator lines are changing direction. Remember that

vector thing? They're going to be changing direction and where they are is going to be

Pic 16 The cycle showing the scores.

changing direction too. They're all going to be reverting to the mean, were going home,

were migrating, does everybody get that? Because youre getting past the best of

everything and you only have one more day to make the money in that stock. Now the

guys that are still going up, you remember the rank on the daily analysis sheet, the

percentage that youre seeing in the net change per day, and if youve got a 4.8 there that

thing is going to hit 4.8, when? Yeah, buy the end of the day actually. But its got to be

creeping up there pretty seriously. Now, are you beginning to hone in on this as a person

who can watch a drill during the day? Thats really great.


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EDIT: This is another series of insertions to show the day unfolding as seen on the

traders lists. Just look at the time passing in the successive tabular lists. We started

snagging these lists just after 6:30 Tucson time which is 9:30 NYSE time.

Thus, I am taking snap shots from open to 11:00 am NYSE time; this is the first 1

hours of the market. We are already very tuned in from the first snap shots and

some camtasia intervening text is now under your belt(s).

For expert traders the first few minutes give a whole view of the upcoming day in a

pro rata manner. The preparation for the game happens before a person comes out

of the locker room onto the playing field (Before open). From the time we get on the

field, we mostly lean forward on the rail and chew tobacco.

Pic 17 About 6:45 at SYNCH

Line up:

A 1 owned (batting)B 2 batters circ

Pinch for TWPGB 1 owned (batting)C 3D 1 owned (batting)A 2 batters circleB 3C- 1 Frown owned (batting)A 3C 2 batters circlePinchD 3 hit HR a week agoD 2 put back on benchReally NVEC

Chew mail pouch


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Pic 18 About 6:45 at Synch

Chart of batting order @ open to 6:35 to 6:40:

Team At Bat Action Batters Circle BC action

A FTEK Go (Hold) ALJ Watch

B CMED Done (SELL) GROW BUY NOW

C EZPW Replace (SELL) RACK Watch

With IAAC (BUY)

D TIE Go (Hold) replace TWPG SMSI watch


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We have completed four actions at this point as the market synchronizes.

Pic 19 This is 6:50 twenty minutes into the open and we have pulled TWPG (sold)

and put in IAAC (bought). CMED left the plate (took profits) and GROW has

stepped up (bought) for the rest of the day. The rest of the 1s (FTEK and TIE) and

2s (ALJ, RACK, and SMSI) in the batting orders are doing their jobs.


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Pic 20 This is 6:55am and we glance at the 7:00 entry on the Unusual Volume chart

to remind ourselves of the expected values for DU, FRV and peaking. Several

actions have been taken and we are doing surveillance to make sure of things.

Pic 21 AM unusual volume values


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Pic 22 7:00 AM. We see that our batters (FTEK, Grow, IAAC and TIE are doing

well. the next to bat (ALJ, BTUI, RACK, and SMSI are all at less than .06 on

cecimal percent of unusual volume, so they are calm, collected and ready. One 3

batter (GMXR) is breaking out of the line up ahead of time. We note this with a

smile. We are 30 minutes into the day with more than 2% net gain over all for our

batters so far. We want to have 10% every 3 or four days.


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Pic 23 7:08 AM. Some improvements. TIE is strong (Up in price on low PRV

volume). The unusual volume has split into two basic groups: High volume and low

volume. Our batters are in thr high volume group and our next to bat are in the low

volume group.


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Pic 24 7:15 AM. RACK (batters circle) moved up past TIE (Batter). We are

taking snapshots twice every 15 minutes; the day is going well.


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Pic 25 7:22 AM. We are looking ahead a little since the market will be hitting one

hour open soon. We have second chances (old owned stocks) to consider and lift

offs on the table. FTEK are in the former group and our new buys, GROW and

pinch hitter IAAC are lift offs. IAAC is going up 1% more every 7 to 8 minutes;

so is GROW.


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Pic 26 7:30 AM. TIE is strong. FTEK is active and flat in price. Grow is a rocket

and IAAC has gotten in the groove. Time to get some cash ready for tomorrow;

11:00AM NYSE time is 30 minutes away.


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Pic 27 7:37 AM. Past first hour.


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Pic 28 7:47 AM. TIE picked up. Sending TWPG back down to the minors even

though M and A is in the wings (News of CANSLIM)


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Pic 31 10:47 below . This is 1:47 pm NYSE time and we are in the afternoon and

the lunch break is over. You can look at the 11:00 entry on the unusual volume for

a reference set of values for DU (.17), FRV (.40) and peaking (1.21). Our universe

has 7 peaking stocks and we own 3 of them out of our four streams. SMSI has some

volume (from DU to FRV).

Pic 32 Midday unusual Volume values

NYSE Tucson bar % Cumm % DU FRV peaking


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Pic 33 12:03 PM. An hour to go. In 15 minutes the EOD (End of Day) three effects

come into play: last computer big trades; day traders retire; and bottom fishing

occurs. SMSI is over FRV and going into peaking.

Pic 34 afternoon unusual volume values

NYSE Tucson bar % Cumm % DU FRV peaking


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Pic 35 End effects going into play (3:15 to 4:00PM). Snapped @ 12:35 (3:35 NYSE)


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Pic 36 End of day charts (1:00pm Tucson ;4:00 NYSE) I took four pic here @

about 1:00 or thereafter. This is the last of the four.

Edit: the day is over and we return to the camtasia transcript (29:30 or so):

Im going to skip to the end of the day right now, when everybody comes home and cant

wait to eat dinner. No, I'm not eating until I look at my computer. I'm in there, arent

you going to play with the kids? NO, I've got to look at my computer.

At the end of the day when it closes you can print out those three charts very quickly,

bing, bing, bing. You put those in a three ring binder. Now we take a look at those, and if

youve been at work all day, you're not worried, youve got some neat stuff. Some of the

Stocks above.60 are in FRV.Those below

didnt make it.


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hot stocks you decided to buy and you put your order in at 9:45 or whatever, eastern time,

right after the opening you can get your order in and everything takes off and is working

really well. So, you see at the end of the day what really happened, what's different in

my world. Those charts at the end of the day show you what happened all day long in

table form, in the form of a table. Everything you owned should be well up there. You

should have unusual volumes that are up there near this 1.8. Did it get there? Did it

finally get there by the end of the day? Well, it had to, thats my ratio. Do you see

between 1.6 and 1.8, on your chart, you can just go down the chart? Its all organized.

Draw a line at .6 and everything you owned will be above that line. Is this getting easier?

Edit:

Lets look at the traders list and see how his batting order is working out. We

started the day with four streams A, B, C, and D and each had a batting order of 1,

2, and 3 where the OWNED stocks are 1s. these we are holding and getting ready

to sell in order that we have cash to buy the next stock in the batting order. We

examined the open and determined several things in short order. If you were not

looking because you are at work, then you pass on adjusting things until the next

morning as a direct consequence of looking at the closing tables and your charts.

We can compare here to see what some of the differences are for traders who watch

during the day and those who just do debriefing and prep in the evening after

hours. The differences are there and they are not too great. Below we can see the

markups on the prep sheet from Sunday . This shows actions during the AM

adjustments at open.


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Pic 37 AM adjustments (Heliotrope arrows) Checks for steady as we go. All

marked in Red on copy of original.


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Pic 38 Excel file of Sunday prep.

So lets debrief. We sold CMED to buy GROW at the open. We dumped (sold)

EZPW and put it in pinch hitters at the open; and we put IAAC right in there to

pinch hit for EZPW.

During the day we looks at the lists and the charts on a 30 minute fractal. We look

to get max dollars on owns and we look to get into the #2 batters when we have a

better deal than what our money is in, in that stream. This is trade off thinking.

What would a person who couldnt watch do here?

Nothing until tonight and now (After close) We review our owned stocks and fill

in the DAS. The decisions on our batters take place much later than full time

traders. We exit FTEK, CMED and TIE tomorrow morning and we have missed a

day on GROW and IAAC. SMSI and GMRX were missed as well but we DO give

them consideration since they are strong and strting cycle. We now look over the

Universe, recently owned stocks and the 7s, 0s and 1s and set up the Tuesday

batting orders by using everything available. All of this goes on DAS sheets.


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With the batting orders set up for tomorrow, including the three SELLS to take

profits, we are debriefed and prepped.

Periodically, we do stocktables.com to keep our universe fresh. The weekend is a

good time for this and, perhaps, mid-week is too.

Edit: Back to the camtasia. (43:26) Original illustrated transcript page 53

Now, if you see one day its way up there and the next day its not quite so high you're

beginning to see, and cast your attention on the idea, that this thing is getting ready to be

the top for me, OK. And all of the indicators and their sequences are going on for you

just that way. Remember how the histogram goes positive the day you buy it. Then you

have that divergence of the fast and slow line going along for three days. Hey were

looking good, what's the unusual volume say. Hey its up around .8, .9, 1.2, its up there.

This thing is being pushed to the left side of the channel that you drew ahead of time for

the channel to move into the present from the future where you extended it.

And as that thing gets up to the top of that line you say, hey I think I'm gonna get

something off my hot list. So I'm saying, gradually, like six months from now, you're in

a situation where you have three lists. Now watch this, watch these lists. You will see

that the stocks that are finished for you are at the bottom of your ownedlist. You see the

unusual volume is not up there anymore. See, were getting to a four, were going from 5

to 4, 1, 0, 0, on your daily analysis sheet, its dropping down. If you're using the new, not


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new, but recent stock tables thing called accumulation distribution put it at the very

bottom and you will find that the accumulation/distribution volume, which has been very

high, begins to fade. See that, cause its the end of the deal. People are going out of

accumulation, between 5 down to 4. Thank you. You got it.

So, six months down the road, you made a few bucks here and there> You're sitting in a

situation where you see my owned list is telling me, by where the stocks are relatively

speaking, of what I own, I'm trying to buy the highest ranked ones that are working, and

you become sensitive to it. You say Ooh, I want to get a high ranked one up there

because I want my percent nets to be high every day.

Do some of you notice that your percent nets in your universes are running 8, 10, 12, and

14 percent at the end of the day? See, were past the 4 to7 percent range.

Pic 39 Examples of the top of the universe: 6OCT06 and 9OCT06

6OCT06


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9OCT06

Whats AKAM today, what was its percentage? Well, what's that mean?

(Youre holding)

Right.

(Garbled, I know, I got greedy)

Because of what?

(I dont like this market)

OK, what's going on here is a guy is saying I've got a better place for my money if that

thing is going to stall out in the middle of the channel, is that what you just said to

yourself?

(No, I'm going to go with cash (loud laughter)

Its okay with me that you, I just have to check and see which way my mouse if facing,

where you are is great because you're coming from someplace and its different than it

was three months ago. Isn't it? Are you feeling better about the world or not? No he

isnt, you dont like the summer (laughter) No one really likes the summer, OK. If


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you're going to cash that is something that has happened to a lot of people in this world,

and it happens in June, July and August.

Martel, will you confirm that we had that conversation over there today.

(July, August was the range)

June works just as well as July. So, it is summertime and were meeting every two weeks

and we get to cry in our beer and always have round, because I can take care of that for

you. Now, what I want you to do is get used to the idea that these three lists are very

workable for you in terms of how you process information and how you think about

things. Now, when you take a look at that stock, AKAM, it was red and was very low on

the list, wasnt it, on your universe list? See, it turned red today and started down the list,

see, thats what I'm saying to you. Its green to a certain point and its a high green when

its coming into the peak. And then it begins to fade off a little bit and turn red and go

down to the bottom. See, I'm trying to give you a dynamic view of a universal list that

has that has stock moving down in red and up in green in terms of the net percent change

because they color all the charts, the stock tables according to whether youve got a

positive or a negative thing. Like, when we had a picnic for these guys that were here we

used cups that were red and green (chuckle) and they caught the note. It was fun, Ill

jiggle my mouse every once in awhile. OK, what I'm saying to you is you can use those

three lists very effectively and six months from now youll be seeing how your own

stocks work their way down the list just before you sell them, on your own list. Now

your hot stocks will sort themselves and your best buys, by what time of the day. You

see this, every half hour, 9:30, 10:00, 10:30 and 11:00. You will begin to see, and I put

the green on there at 11:00, youll see that the first rising volume has occurred, .22 by


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11:00 in the morning, and then those guys you will see move up from the .22 place, see,

they're way behind all the peaking stocks and so on. See, the .29 was there at 10:00 for a

peaking stock, so first rising volume stock doesnt make it till 11:00, an hour later. You

see that, its an hour later.

But the next day you see, it moves into higher gear as it makes its rise from the trough to

the peak. So, I'm saying to you, at any time during the day this gives you a reference

where everything should be on all of your lists. So, on the hot list, by 10:30 you're

looking at a .17 on your hot list and thats telling you that by 11:00, youve got A GO

here.

If you come home at night after working all day you're just drawing a line on your

universe at .6 and looking at everything above that. See, everything above that is in the

trough to peak range. Everybody got that? Great! If they're green, what about the 3s,

2s, and 1s? They have high numbers here, but they're red. Does everybody understand

that, they're coming down the list? Like the three starts pretty high up there and then

works its way down so they come in for a landing. So you will begin to see that the stock

tables sort what you do and how the lists of your universe look at the end of the day on

the computer are exact replicas. See at the end of the day it winds up in the same place as

your stock tables do.

OK, question (I'm sure everyone already knows the answer to this, but is the 3, 4 and 5 a

minor representation of the trend number and then it comes back do those indicating to


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take some profist?) Yea, the 5 is like a 1, 0, 1, and I'm talking about price, the score is 1

if its increasing (its green). The middle score is volume, if its scoring up its a 1, if the

volume is decreasing, relative to the prior day, its a 0. And the last one we do is

accumulation/distribution which you can now, on Q charts, you can actually represent

that so you dont have to think it out. And that one (A/D), when you are in accumulation

its a 1 and its a 0 when you are in distribution. (Alright) So a 4 is right at the peak

(garbled), right decreasing and people are getting rid of it.

(So then you move, you might say naturally, from 0 to 7)

What you naturally do is this; the trough is at 0 when you come in with the dry up, no

price increase, and no volume and you are in Distribution. And then a breakout, which

starts the cycle, which is the long half of this cycle, is when everything flips. For

example: 0, 0, 0 becomes 1, 1, 1, see that big flip there? Its like on a one armed bandit

youve got 3 of a kind here, the 1s came in and before it was sitting there at 0, 0, 0.

They all changed. When you go from 4 to 3, which is the peak, notice that all three of

them change too. A 4 is a 1, 0, , 0 and a 3 is a 0, 1, 1 and that is just showing you the

symmetry of the scoring system.

When the cycle goes through the axis of symmetry, I'm going the other way OK.

Periodic function, you can draw it just as easily as triangle, it doesnt really matter OK,

and its the exact same thing. When you go through the axis two of the three are

changing. At the peak in trough all three values going into the score are changing. When


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you are at the point where the acceleration becomes deceleration, see youve been

accelerating out of the trough . Then you start decelerating into the peak, two of the

variables change when you cross the axis. Its just like when our histogram goes

positive, and all those things, you know, convergence, crossover, divergence, you get the

maximum separating, then you start back into the convergence on the MACD. All of

those cycles, and some of them are below the axis and some are above it. When were

trading, were on the upper half of that thing.

If you go into a stock thats had a crossover and divergence on the MACD you're in a

short trend doing a non-dominant traverse across that trend, meaning that you're in a

retrace. See, there's this is a big thing about markets: is this thing reversing or doing a

retrace in a given trend? You people sitting in this room know the difference by looking

at all these components (and of course I wont ask you what the difference is). But, if

you're in a long trend where you're taking the rising cycle, its a long trend like this,

you're trading across, from the trend line to the other side of the channel. And then the

stock retraces, the retrace ends and it starts up again, you're still in the long trend. I call

those volume Gaussians, i. e., where the volume is increasing where you go across that

channel to make money the volume peaks and you come back down the other way as the

volumes declining and then it repeats again.


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Pic 40 The example of a Gaussian for price and volume cycle

This is an example fromChannels for Building Wealth.Where Gaussians are discussed in

detail.

Here you see a long channel fordoing trades. The channel didincrease in volatility as well.See pink additional width.

The Gaussian applies to the shapeof the volume graph and exhibitsthe P, V relationship. Seebelow.

In a long trading channel, thevolume increases as price goesfrom right to left. This is thedominant traverse. It is notperfect but it is excellent for

making money.

Right channel

trend line.

Leftchannel

line

Non-dominant

traverse

Perfect Gaussian is in pink.The actual is in thinner green.

The volume goes from DU toFRV as the dominant traverse

begins. It is a rocket it turnsout. And it continues for threemore bars to the peakingvolume of the traverse. We seesome breathers (lowervolume bars) as the trverse iscompleted.

On the return to the right side

(Gods will in action), thevolume declines (with

breathers).

When DU is reached, pricerides the right (TL) side of

the channel


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so weve had a long run before we had to hit the boards and really learn how to do it. So,

the stuff that will be on the site for your review and also in the form of transcriptions and

illustrations, as documents, allow you to, repeatedly, go through this process. Now, I've

taken a long time to talk through three lousy charts on your screen which you can print

out as you go through this. But, youve gotta be moved by the idea that you're watching

it all day, you can actually see the dynamics happen and that weve built this thing for

you as a way of looking at how to quantify the unusual volume. And then you look over

in that column of percent change, the net price change, and you can actually see these

guys on a chart, not even having to look at a graph because you have gotten them now

arranged in a way, a relative way, that shows what's happening to what's cooking. And

you will see that your own stocks move in the universe right to the top when you own

them. When you're not owning them when they're elsewhere.

Your hot list is breaking through the .22 at 10:30 or 11:00. The hot lists are the stocks

that are coming up and breaking out so that the percent nets are high. So your looking

down your universe, lets imagine it, and you see around .22 at 11:00 in the morning,

several stocks whose percentages are better than the other stocks right there and what

you're seeing is those stocks are all on your hot list. When you get that picture that you

prepared the hot list the night before and when you look at that time of the day and see

those stocks performing very well, relative to the others, you know you got the good deal.

You will begin to see that your hot list is when the stocks are bouncing off the trend line,

the right side of the channel; youll begin to see that. Youll begin to see that you're

beginning to pick this stuff off a day or so ahead of time. Now, we know that its coming


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and one and one reason your stocks make the hot list a day or so ahead of time is because

we put the fast stochastic down there for you, the 5, 2, 3 stochastic. We put it down there

so the fast line of the fast stochastic is going through the 50, see its 0 to 100, 0 to 50 is

short 50 to 100 is long. When that thing comes up through there and is divergent relative

to the slow line as a backup indicator you have one more day before it breaks out.

Tomorrows newspaper today, thats where that came from. So those stocks can make

your hot list. Then when the market opens the next day youve got your three tables there

and you see that it works. Now I declined to make a Camtasia on Tuesday of this week

but I did a 6 hour stint on this coaching one on one with a person. But I am telling you

what I described here this evening, in detail, that person actually went through seeing that

and I am not kidding you in the first six hours of seeing it for the first time, you know

arranged on the screen properly and all that stuff, it was like unbelievable. And the

comment was, I've got to get that contracting job finished up so I can, you know, get rid

of my people and everything, so I can do this.

Is there anyone in this room who feels fogged, right now? Isn't this pretty clear? See

what we have done is said to hell with the betting, the hell with having to do with money

management, the hell with protective stops as a strategy. We have said, we are

characterizing how the market works, and we see the rhythm of the market and we see

how all of these things fit together. Now all the indicators and so on, weve tweaked

them by making the defaults work according to the electronic information transmission in

this world that we live in. It is really something.


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Now, I need to spend the rest of the evening talking to you about one thing. What

problems are you willing to admit you're having? I'm saying to you, all of this stuff is

easy for me to talk to you about.

Can you really begin to implement this without fail?

I dont care if you trade or anything, but can you just get down where you can start

mentally processing this stuff over and over again? Because if you do, you will move out

of where you are because you will have surrounded your historical myths and

background and all that stuff; see once youve surrounded that with new pathways of

consideration, it gets more reasonable. I have to tell you that a lot of people have

irrational reasoning processes go on when I first meet them.

Does anybody notice this is different than what youve been hearing about?

I mean this would drive your broker nuts if you had a real broker that you talk to on the

phone. But after 6 months hes telling all the other brokers what the hell you're doing,

and you're getting invited to all these chicken lunches. (Laughter) So lets just

casually talk about anything you want to talk about.

(I have trouble getting a reliable hot list)


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Oh, well, you're not skilled. Is it okay if I say those things to you? (Sure) OK, its just a

skill problem, so let me give you some skills. I have trouble getting a hot list. See when

I sat there for those 6 hours the hot list I was working with wasnt hot. But what did we

do? We were able to observe by bringing up chart, after chart, after chart as to what's

cooking. So he has raised the key question to get you in gear . Before a stock breaks

out we have to know very thoroughly what its doing, did you just get that?

See, we want to see it break out so weve got to study, understand and be able to use the

information of what a stock looks like before it breaks out. Now thats where DU came

from. So, when you're looking at everything and you're doing stocktables.com, thats

what we call it right? I have been on the phone and all these guys are saying, Hershey,

we want to get it done tomorrow. Its like we have this huge crew of people working

and then youve got, well you all met Spyder right and how great he is. Spyder has a lot

of buddies, (Jack laughing) and its quite amazing, the camaraderie thats going on in

terms of: my email looks like a roller on a player piano; I mean it is constantly doing

things, and I do apologize to you about not getting you in the groove registration wise.

You have to just do what they tell you, there will not be a phone call to you and once you

do the typing you'll be there and then you can start going places. See, you're actually

going into the site that these guys have, you know that name is not name of the real site.

It takes you to a special place thats under test like the people who signed up before you

in the last two days were called ring a ding, or something like that, it was all test at the

time. But you are the first people to come into this.


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Oh, Spyder is arranging a meeting, a three day meeting; he used to be in the

pharmaceutical business. He's calling in some chips where he will arrange a three day

meeting and invite 100 people to kick off the website, and it will be free, you know, its

like a three day conference, no charge for it, its a free thing and you people will be part

of that, of course, if you wish. You know, take off a couple days from work; well let

you know ahead of time. But were just going to do three days of how you would launch

Viagra or something, I dont know, a pill. Oh, can I interrupt for one minute? I've had

all my medications changed and I got too tired at that time when the guys were here, so

my doctor has figured out, this is really incredible for me, how to get my oxygen level to

work, he thinks. (chuckle) My heart will get better pumping so that the oxygen will be

picked up. It will stop leaking because he has figured out by putting me in various

positions that if I do the sidestroke, with a fishing pole attached to me, and a bungee,

(laughter) where I dont have to do turns. If I do sidestroke for so many minutes in so

many hours for the next six months he thinks that by getting my heart to lay in the right

position, so it doesnt leak very much, that if I can get super muscle tone in my heart we

may get me back to the place where it isnt regurgitating.

(Loud clapping)

I regard it as a miracle. But the guy really did a job on me. I mean, can you imagine

how a Dr. can be so thorough when he's got all the sonograms and all that crap and hes

got all the lung things, and he's got all the charts and tables and all those things, but he's

got me laying there in all these various positions, you know, listening to all the noises


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that I make and figuring that he's got these valves just about closed if I'm in a sidestroke

position, and Hershey, we dont want you doing laps. Well put a fishing pole on you

and so on and the recent **** that manufactures those things and you screw them into the

side of your swimming pool and he feels that in six months, at my age of 73, I probably

can get enough muscle tone, you know, just regular old muscle tone in my heart so it

wont leak so much. OK, so well go back to the three hour routine (laugh). I just feel so

comfortable that I'm surrounded by all these great people helping out on this thing, and

my doctor is really just on my case. I mean, he's got me scheduled for everything,

everywhere. I probably already told you this, I'm getting implants in early July so that

my glandular balance in my system is primed as well. So were going for broke on this

thing to reverse the former path that I was on. OK, so I'm going through my trough, and

I'm gonna head for the peaks. Oh, there it is. I knew it was here somewhere.

Now, let me do the other 90 percent of developing the skills for getting the hot list done,

OK. What I'm saying to you is, when that thing is coming down into DU you're headed

for the trend line which youve drawn in advance. Now, one of the things that people

hate is that one they finally get a stock set up it reaches the end of the long trend that its

been traveling in. You're saying to yourself all the time, why dont I pick these up when

they start. OK, weve got the answer for you.

If youve been doing this for a few months, like 3 or 4 months you are going to get to the

place where youve tested the resistance youve have an intermediate term where it


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comes back down, in the long term channels, and youll get to the place where you will

have the most unusual experience in your life. Its called, hitting home runs. Youve

heard about that, right? When you get that turn out of that intermediate term short, when

you're traveling in this long term with these high quality stocks, its tipped up, you start

back across that intermediate term long where you are trading, the up part of that

watching it retrace and then go up again. And you have that very steep money making

thing that doesnt take very long. OK, so heres what were looking for. Were looking

for, on your universe, that youve assembled over many months, but if you havent been

here you got a problem, right? Except for the fact that we will put on the website a

universe thats well established.

See, you did all your sweat, youve already been through it so why dont we just get that

universe in there for you thats really super and excellent. Because then you can see

those places. So thats one of the greatest handicaps that people have in the beginning.

Because they're building their universe, they're building their stock tables thing and so on

and as you go along with all these hot stocks and stuff like that, they come to the end

where they meet this. This is resistance where you're at a place where the PE ratio of that

stock relative to that sector is as high as PE ratios in that sector. Thats fundamental

analysis talk. OK, so thats not exactly where you want to be. I mean its mulch; we had a

stock last time that we talked about, thats up there doing that. And DRIV is a stock that

hit the resistance and it did about 5 trades for you up there. It came back down and now

its in its cycle of starting another long again and to head back to the resistance level

which will probably be higher next time. So there's a hot one for you but its not, its just

about finished hitting the left side of the channel, so in 5 or 6 days put it on your hot list.


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Now, we are probably not going to post, except in the chat room, see we set up a chat

room, which is a fake one right now, where were talking every day. But in a couple of

months on our websites there will be this daily chat on an international basis where there

is a commonality of the people who will be there and be part of that they will be telling

you their hot list every day. But were not saying to you that you should skip the work,

were saying to you we want you to post your stuff too. An so at that time it will be like

the Spyder thing on ET right now where there are some good stocks posted.

Now, we will have stepped into the picture a little bit and cleaned up the messiness of

picking a hot list, OK, cause some of them are flaky. Well take the flaky ness out of that

for you. So, what I'm saying to you, what I want you to do is to try to build that universe

assiduously. Just work like hell to get that thing build and well be supplying along side

that some really good universe stocks, OK, so youll have those. That changes the

problem from I dont have any raw material, to how can I get the raw material to be

working for me at just the right time? So that brings the focus down to this; if you have

patterns and stuff that are showing up on the indicators that are crummy, not regular, not

repeatable that stock cant make the hot list.

So that brings up a fourth list. Within your universe you will have stocks that have traded

repeatedly. OK, has anyone traded BTUI more than once? OK, I just mentioned one,

suppose I mentioned 25 more? That means that you have been able to see the

repeatability and reliability of that stock and it will be put on your hot list frequently. Do


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you see how you're developing the skill now? I said, a stock named, hands went up

immediately. These people did not lose money on those trades. By the second or third or

4thtime youve traded this stock its nice, I mean you really feel pretty comfortable. And

it has been going along on the long term, were talking years now, where the long term

trend on these stocks is going through a phase maybe every two years. You will see that

the intermediate term traverses, long and short, long and short, OK, you will favor those

on the long traverse of the long term, when the intermediate term is going across there.

Thats another skill thing. To be able to pick those guys off when they start that long

traverse across the long term, which is the intermediate term channel, and that is what we

actually trade are the traverses on the intermediate term channel and the short term stuff

that wiggles through there. So, what I'm saying to you is, you're zooming in on this and I

have given you the major clues of when things are favorable and what to look for in

being able to do 5 or 6 trades in those things in a matter of 5 or 6 months, right? Were

back to the initial analysis sheet. Now were just saying those guys who make the initial

analysis sheet are in the long movement that you see on your charts. Youve got the

biggest zone there, the Columbus Story, falling off the edge of the earth, and in that you

have these nice things that are going on and were tending to trade just the long part of

those, when they're there, in the long, and we are looking closely at when they are hitting

the trend line and coming off of those. Now when you go through that, it came down and

now its going this way, youve hit that first home run. I mean thats a four bagger.

Because that first shot, the beginning of the long intermediate term trend makes a lot of

money and those are the guys you are looking at that are doing that 10, 12 percent a day.


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It is nothing, when youve got your universe set and when you're using the universe that

will cooperatively be generated here to not see 8 percenters and better at the top of that

list. Lets say you go down the first 12 that are green, 2/3 of those will be more than 8

percent every day of the week, except sometimes in the summer when it is really rotten.

(laughter) So what you did get to do, you actually did get to go through it, a two week

period when it was just totally rotten and discouraging and everything and being in cash

is not a problem. Cause what

Documents

Meetup_2006!06!22_Illustrated_text Putting the Pieces Together