Mystery Chart

Here’s a little Berk style puzzler for you rats (from Mole):

First up – does this wave pattern/fractal look familiar to you? Secondly, what is it?

4:10pm EDT: Here’s the (shocking) answer:

Does this mean the same thing will happen this time again? Absolutely not! Fractals form everywhere and I wanted to demonstrate this to the rest of you guys. This is in part the issue I have with T.K.’s 1938 analogy – here is a very similar pattern and it resolves completely different.

Food for thought indeed.

On the Zero side of things I have been warning subs about a slowly developing divergence on the Lite. They don’t always play out but they have kept us out of big trouble in the past. For the record: I am short this market but I’m only about 15% exposed with December puts I intend to hold through any developing spike – they’ll get sold ITM or will expire worthless.

Program Trading Update:

geronimo/ES (old): -7.75
geronimo/ES (new): -5.75

We are officially in a drawdown cycle, which is why Eric and I worked all evening yesterday to finalize a version with 30% smaller stops. This new version of Geronimo has only been tested internally today and we plan to put it into production tomorrow morning. However, as we are still experiencing empty alerts on both versions we are now pushing hard to either upgrade to NinjaTrader 7 or to shift over to MultiCharts. It’s become clear that this empty alert bug won’t be easily fixed and I’m sure that the subs are sick of seeing them – even though we emailed the full trade info right away (allowing subs potentially to get better entries – sometimes it works in our favor). But I am rapidly losing patience with NinjaTrader and if v.7 doesn’t fix this problem we will switch over to MultiCharts. Eric and I have been running it for weeks now and it’s extremely stable – we are currently finishing up the notification module in C++ which is a recode of what I did in NinjaTrader. More info on all this forthcoming shortly.

Cheers,

Mole