The Law of Cause and Effect
Planetary Price-Time Map Of Market Action
Through Sympathetic Resonance
Breakthroughs in W. D. Gann's Price-Time Relationships
MARKET Forecasts From DANIELE Prandelli’S Online Blog
This Blog (“I Am in Borsa”) was started in March, 2010 and I have posted some forecasts for the last 4 months, up to the end of June. At that point I started a Private Blog (“I Love I Am Inside”) where those who are interested and want to continue following it, can do so with a small contribution (Free Donation). This is absolutely not an Advisor Service, but only my private trading diary where I explain my reasoning to take positions, principally in the S&P500. At times, I also take positions in Gold, Forex or Italian Stocks, but I use most of my time to study, and I do not have time to write everything, and so on my Blog, I concentrate on the S&P500, which is a good guide for all the Western Indexes. I have also added updates below for July and August 2010. All of these forecasts and analysis are documented with original dates on my blog, these are not after the fact forecasts.
The Blog “I Am in Borsa” is open now, but I update it only 2 or 3 times/month only to give some of my thought and to report the results of my forecasts that I have written in the Private Blog, “I Love I Am Inside”.
It is obvious that, in my Blog, I do not explain my methods, but have elaborated the techniques that I use for this forecasting and trading in my trading course: “The Law of Cause and Effect”.
In this English Section on my Blog, I will provide a track record so that you can better understand my forecasts and trades over the last 6 months. I know that for those who do not read Italian, is difficult to use a translator to read all my post, so I want help clarify my past calls and charts which were made during crucial top or bottom periods, and have translated them and posted them here.
On this Blog, I would like for people to be able to see the proof that I have made some important forecasts using the methods presented in The Law of Cause and Effect. Every Post contains a date defining when the post was made, so that you can confirm that these posts were done in advance or in real-time.
charts are showed on the indicated dates, here on this blog, which you can find on the calendar section in the right
April 15, 2010
In this Post I showed a chart and I wrote:
“…we are near to a strong resistance, AND WE ARE COMING UP ON TOPS THAT CAN REMAIN FOR MORE WEEK.”
“… I would enter SHORT when the market hits 1216 on the S&P500, with a stop-loss at 1224/1225.”
April 19, 2010
“If we overcome 1220 on the S&P500, we will have a confirm that we will go to 1250, but if we stay under this price, we must consider the possibility that we will need 2 months before we can see the Low from where we can than restart…”
April 28, 2010
… I wait to take Long position until June…”
May 3, 2010
“… I forecast more down movement because the monthly chart shows a reversal that could push the market under the April Low, at least under the 1060 point.”
May 5, 2010
“… my forecast was to see a Low in June, and then buy.”
May 13, 2010
“… after May 17/18, could restart the down move…”
May 20, 2010
“ if we break 1100 point, than I forecast more down move. And sincerely, I think it is what will happen.”
May 21, 2010
“The Accumulation area would be not over 1072/1040 point”
May 25, 2010
“My ideal play? A Low in the first hour and then a up move for the Markets. If I see a Low around 1045 with a successive recovery, it would be a confirm (to buy) for me, with a Stop-Loss under the Low.”
In a comment from this day also I replied to one question saying that in my opinion I could wait to buy on the dates of 10 June or 29 June.
May 28, 2010
“I conclude saying that a weekly cycle obliged me to take in consideration the possibility that we must wait until the second half of June. Also June 29 is a possible Low…”
I Insert this Chart June 16, 2010:
Monday 14 June I said:
“Now we are near first resistances, to see the power of this up move. Area 1106 point (and then 1116)”
I posted this Chart 25 June, 2010:
In June 17, 2010 I said:
“The S&P500 seems to have the power to break 1116 point, so the next price to take attention is area 1129/1130”
And June 14, 2010 I said:
“We can move up for more days, maybe up to June 21/22. After June 21/22 I forecast another weak period, for June 29 I expect a Low…”
point the Blog is transferred in the Private Blog, from June 28, 2010.
You can appreciate the important Price I give in my calls. After the break of 1035 in the end of June, I say that next target was 1010 and then area 988/992. The July 1, 2010 Low is at 1010,91 point. And in my book, "The Low of Cause & Effect" I forecast one years ago a important weekly reversal from end of June/beginning of July 2010.
This entire precise time-price example, and how individualize this very important prices, are explained in my book, so you will be able to understand why Gold made a Top at 1265 and why the S&P500 made a Top at 1219.
US $/JAPAN YEN
Friday July 16, 2010 I said:
The US $/ Japan Yen now broken 87, and is possible that it arrive to hit 84,7
Now let’s look at the Chart:
The Low is exactly 84,710!!! This is the proof that we are in the right way to understand the REAL CAUSE that define the Price.
I explain in "The Low of Cause and Effect" all of this calculus to define this Price.
July & August Updates
In July I took a position from 1011 on the S&P500, exactly on 1 July 2010. I didn’t take a large trade because I was expecting a low on 29 June. The breakout down making a new low price gave me an alert, and I forecasted that it would rally after we touched 1010 point. Now we know that this was the July Low, and I exited from this trade only 45 days later.
Also I give a buy signal after we break through the 1043 and 1080 points.
On the morning of the 1st of July, I said:
“…but we must wait because now the inversion of the trend has some doubt. The break out down of yesterday can bring the S&P500 index in area 1010 and then 988-992.”
And 2 hours after the S&P500 open, I say:
“The S&P500 Low at 1011 can be the start to see a rally in the next 1-2 days. My analysis forecast a rally. After we broke down through the 1030 point, my first level that I give was 1010, which we reached with a fast descent.”
Here is the chart:
Then I forecast that the down move from 15 July was only a pullback, and it was an opportunity to take a Long position. So I give a buy signal on Monday.
Here what I wrote on Thursday, 15 July 2010:
“The forecast says to me that this is only a pullback, so an opportunity to buy from lower prices, but I could be wrong, so it is better to wait for some confirmation. For this reason I will wait until tomorrow, but I prefer to wait until Monday to enter long.
Here is the chart:
Then we arrived in August. I forecast a rally in the first 2 weeks and than a bad last 2 weeks period with a possible low in the 27 August-2 September window.
In particular I forecast a important price in the area of 1128/1130, like a top.
Then I was awaiting an intermediate high on 6 August, and a lateral period for some days, but in the update of Wednesday, 11 August, I alerted all my subscribers that the gap-down open was a signal to see a downward acceleration, and there was not a buy confirmation. My analysis was right.
I think that if you know where the real energy of the price is, the gap can help very much to identify price acceleration.
In the second half of August, like I said weeks back, I was waiting for weakness, and so I took a Long position only where the price gave me a good probability to see a little rally. (I don’t always take short positions because my work is easier if I trade in only one direction. This permits me to remain concentrated without being in a hurry, and it is easier for my subscribers to follow the trades, though they can make their own choice as to whether to trade long, short or both after I give my information).
I can do this because I think that I have found an important law that permits me to know where to look for high energy response points in price. So I take long positions when the Index meets this energy.
Last August, I alerted my subscribers to pay attention to the area 1035-1040.
Here is what I wrote:
“My First Target Price is 1055, but I think that we will break this. Beneath it we see area 1035-1040 (PAY ATTENTION TO THIS LEVEL) and then area 1010-1012. If it were to break under 990-1000, then I expect to see a free fall”
“I started some buying here, but not heavy. I will wait until the last moment, because I see weakness at least until tomorrow, before I enter more heavily.”
And here you can see all my operations on the chart (on the green points I entered Long and on the red points I exited my Long position):
When I bought at 1051 on the 31st of August, I divided this trade into 3 parts: 1/3 of my trade exit at 1181 for a first profit (+30 point). Then I exited at 1104 with the next 1/3 of my trade (+53 point), and I leave my last 1/3 part to follow the trend. (Then I closed it at 1122 = +71 point).
My book explains how to calculate these important price points and time cycles, so you can understand WHERE to pay attention! Price provides a map for your trading when you know where the energy points occur.
For full course details, contents, and more, see this link:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. There is no assurance that the strategies and methods presented in this book will be successful for you. Past results are not necessarily indicative of future performance. The examples presented in this book are for educational purposes only. The data used is believed to be from reliable sources but cannot be guaranteed. The methods presented are not solicitations of any order to buy or sell. The author, publisher, and all affiliates assume no responsibility for your trading or investment results, and will not be liable for any loss, damage or liability directly or indirectly caused by the usage of this material.. There is considerable risk of loss in Futures, Stock and Options trading. You should only use risk capital in all such endeavors. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
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