MPW 2/11/2022

MPW Bamboo Scroll No. 2

[02/11/2022; weekly review & preview]

Weekly Review & Preview (2/7-11 & 2/14-18)

We started the week like this (see the chart below) :

And we ended the week like this (see the chart below)

Comparing these two charts, the key takeaway is this: THE BLUE FLAT A-B-C wave in the
middle, has been extended; but it still fits nicely as a W-2 to the BLACK impulsive series (see
the blue arrow, which points to a typical W-2 retracement: 61.8%--you bet, that is 4408!

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If the above SPX chart is not clear enough, let’s take a look at DJI (The Dow Jones Index)’s daily
chart:

Now, if you are familiar with EWT, you should realize what I mean here: YES, this is a super-
bullish BULL-NEST. Also, the retrace of the light-blue small w-(ii), although looks scary, actually
stopped at the 61.8% level of the light-blue w-(i), a perfect zone for a normal W-2 corrective
wave to rest itself. The overlap with the Black W-1 would most likely convince the bears that
the previous waves are corrective. IMO, they were wrong.
Some followers ask me whether the ongoing whipsaw over the last week should be counted as
a corrective W-4. No, that is a wrong way to count it—frankly, MOST EWT “experts” that I
follow almost always commit this vital mistake: they count an ongoing series as 1, 2, 3, 4, 5---
yeah, that is what the textbook instructs you to count. However, in real-live trading, when you
begin to count a large degree wave series, the most proper way to count them is: 1, 2; 1, 2; 1,
2—of course, the second 1, 2 waves are at a lower degree (see the above DJI chart for
reference—the blue is a lower-level 5-wave series; it is the W-3 of the black 5-wave). As simple
as that, to reach the ultimate final target, the longest wave—most often the third wave—HAS
TO EXTEND. In other words, we are talking about a super-bullish scenario: A BULL NEST.

• Retest of 4440 & Change of Pattern

In the mid-week update, I mentioned that the CPI numbers, to be released on Thursday
morning before market open, would have big impact on the next step forward. Based on the
overall structure that I outlined in the update, I expected a gap-up & go to kick off the 3rd of 3rd
wave to follow my roadmap. Also, I added that even if it gaps down, the gap would be filled on
the same day and the index should “skyrocket from there.”

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The market gapped down hugely that morning and dropped all the way to 4530. I bought calls
at the low and DM some friends to BUY in the first few minutes—as I saw that as a golden
opportunity to go long. Within an hour, SPX filled the 60 points gap, a stunning feat. Then, it
stalled a bit, and began to decline in a very clearly impulsive pattern. This got me concerned;
and within the next 30-min, I sent out a couple of tweets, to WARN all my followers to SET UP
STOP at 4550 for long position, as the pattern may have changed. When I sent out the tweet,
SPX was around 4580.

Then, I posted an updated chart—which I drew in a minute and marked 4492 as a potential
target for this decline. Indeed, SPX dropped into the zone—a 100+ points warning ahead of the
market moves. I began to short the market as soon as I saw the tape, and did well in the down
draft.
So, what is wrong with the previous pattern? You may ask. Great Question! Here is WHY:
Remember the Bullish Pennant / Bull flag chart I posted in the mid-week update?

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For a bullish pennant to fulfill its potential, it can briefly back-test the break-out point; BUT,
AFTER THIS, IT HAS TO IMMEDIATELY get back to the original direction without looking back. On
Thursday, up until Bulltard’s “timely” comment, the market already did TWO things wrong:
1. The gap is too large, which violated the maximum low I was looking for: 4550.
2. After filling the gap, instead of steaming forward, it stalled and dropped in an
impulsive pattern.

Now what? How about next week?

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As the above chart shows, the market is sitting on a do-or-die zone, with no margin of error for
both camps. Bulls need to reconquer the Yellow Zone (support-turn-into-resistance) AND the
Super important BLACK TREND LINE—and it has to do it by Feb. 15 (by Tuesday’s close),
otherwise, it is too late. For bears, they have to punch through the 4400 zone, to certify that
the entire decline from 4818 is not over.
My answer: without doubt, bulls will win—in the following scrolls, I will explain my entire logic
step-by-step, as I have this TEACT—a five-factor system to validate or reject a call. Now, all
things still point to ATH in the near future.
The ugly close of SPX already factored in a full-blown invasion of Ukraine by Russian army over
the weekend. That, IMO, is highly UNLIKELY TO HAPPEN—AT least not DURING THIS WEEKEND.
Putin was the ONLY MAJOR WORLD LEADER to attend the BEIJING Olympic Games and talked
with Chinese President Xi Jinping in close session for six hours. To get him there, China signed a
bunch of lucrative gas and energy deals with Russia, worth well over 100 billion of dollars. OK,
as a favor, I guarantee you that Xi asked Putin to postpone the inevitable invasion until after the
Games (Feb. 24). Whether Putin promised to do it or not, I don’t know. But, I do know, if Putin
issues the attack order during Beijing’s BIG PARTY, Xi will not be happy.
So, on Monday, a relief rally is due. Regaining the YELLOW ZONE (4440-4450) is easy; and
getting to the Black Line, roughly around 4500, is doable too.

TEACT MODEL EDUCATIONAL CENTER

• Astrological Factor: Eclipse, Mercury Retro & “Crash Setting”
Among the five factors of my TEACT model, Astrological Factor has been the most loathed by
U.S. investors. Over the last 2 years, whenever I posted something related to the “STAR
FORMATION” and market prediction, I lost a number of followers—you bet, before they de-
follow me, they left some nasty comments as well.
Whatever predisposition or prejudice you may have toward the connection between astrology
and market behavior, I can guarantee you one thing: after reading the next chapter, you will
have a totally different perspective about it.
OK, let’s revisit one of the most talked-about tweets of my account over the last two months—
the “famous” “mini-crash warning” I tweeted out on Dec. 27th (it got 300K total impressions). I
pinned that tweet to my homepage for a month, and it got quite a big exposure. Then, two
weeks later, on Jan. 11th, after market close, I officially sent out the WARNING, as promised.
You may notice the conviction and certainty of my call—as well as the timing.

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See what happened afterwards—pay attention to [WHEN] I posted this chart: 1/24 (below).

Oh, the timing!

In my view, without timing, any market prediction is just meaningless. Like I joked often, IN THE
REALLY LONG RUN, WE ARE ALL DEAD. So, what is the point to say the market will rise or fall, if
you don’t provide a time span for that to happen. Especially for option trading, if you know
where the market would go, AND WHEN IT WOULD GET THERE, wow, that is a golden key to
financial freedom.

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That is where/when astrological aspects come into play the irreplaceable role. However,
believe me, it IS REALLY TOUGH TO CRACK THIS NUT.
Long-story short, I did find some very reliable astrological aspects that have strong correlations
to strong market behaviors, esp. before and during the major market events. For an investor
who wants to protect one’s financial nest, the most important thing is to avoid the Black Swan
Event, or the so-called “Rogue Wave”, or the widow-maker big crashes.
Over the last century or so, astrologers who are also well-versed in stock market trading have
noticed that the solar & lunar eclipses are always prelude to or near major market crashes. One
of the most notable findings is from Steve Puetz (mathematician, statistician, and financial
expert), who published a book “The Unified Cycle Theory: How Cycles Dominate the Structure
of the Universe and Influence Life on Earth;” (not recommended for reading, though; trust me).
Here are some interesting facts that caught my attention and I have fine-tuned and
incorporated it into my trading, with HUGE SUCCESS.
“He emphasized that he is not contending that full moons close to solar eclipses cause
market crashes. But he does conclude that a full moon in general and a lunar (eclipse) full
moon close to solar eclipses, in particular, seem to be the triggering device that allows for
the rapid transformation of investor psychology from manic greed to paranoia. He asks
what the odds are that eight of the greatest market crashes in history would accidentally
fall within a time period of six days before to three days after a full moon that occurred
within six weeks of a solar eclipse? His answer is that for all eight crashes to accidentally
fall within the required intervals would be less than one chance in 127,000.”
“. . .Puetz used eight previous crashes in various markets from the Holland Tulip Mania in
1637 through the Tokyo crash in 1990. He noted that market crashes tend to be lumped
near the full moons that are also lunar eclipses. In fact, he states, the greatest number of
crashes start after the first full moon after a solar eclipse when that full moon is also a
lunar eclipse . . Once the panic starts, Puetz notes, it generally lasts from two to four
weeks. The tendency has been for the markets to peak a few days ahead of the full moon,
move flat to slightly lower –waiting for the full moon to pass. Then on the day of the full
moon or slightly after, the brunt of the crash hits the marketplace.”

OK, Wait a minute—when was the solar eclipse and full-moon late last year: The last total solar
eclipse took place on Dec. 4, 2021—the full moon within 6 weeks would be on January 17/18!
So, the crash window would be January 11 to January 21 (six day before & three days after a
full moon).

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Now, with the newly enlightened eyes, take a look at AGAIN!! what has transpired from January
11th to January 21st (due to the fact that January 17 is MLK holiday, so we have to extend the
period to one more day—you bet, the BOTTOM DATE OF Jan. 24, when SPX hit 4222).
More than this, actually—as I mentioned in the TEACT backgrounder, the mid-point of Mercury
retrograde is on Jan. 24—over the past 100 years, whenever a stock market started a new trend
near the beginning of Mercury Retro, it has a 82% chance of making a turn at the mid-point.
THAT, MY FRIEND, is the reason I bought PUTS on Jan. 11th with the expiration date of Jan. 24.
OK, here is the sad part, at least for me—I took profits way earlier—should I kept that 465 puts
till Jan. 24, the $35,000 investment would turn into > 2M. (here is my position on JAN. 13,
posted on twitter).

I know what you are thinking now: so what? Maybe just a coincidence, right? It doesn’t mean
anything.
OK, NOW, take a deep breath, and then TAKE A LOOK AT WHAT HAPPENED OVER THE LAST
THREE YEARS, WHEN THIS SETTING WAS ALSO IN EFFECT. By the way, the GREATEST trade of
my life happened between June 5-10, 2020, when I made a killing, was under the exact setting.
The market, for no other apparent reasons, suddenly crashed!

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Of course, not every solar eclipse will lead to a market crash—there are several pre-conditions:
such as a run-up to a parabolic top near the full moon, TA indicators, EWT, etc. However, its
frequency and direct hit has enough credence to warrant it a major market parameter, esp. in
preparation for THE CRASH. By the way, the major portion of the 2008-2009 crash also occurred
in this solar eclipse setting as well.
Stay tuned—this is just one of the MANY astrological settings that have high correlations with
dramatic market moves. I will introduce what I have found out as we move along. J.P. Morgan
once said, “Millionaires don't need astrologers, but billionaires do.” I am not sure about you,
but I want to know more about astrology.

MPW
2/11/2022

Disclaimer: all these writings by MasterPandaWu (MPW) about the stock market analysis and the TEACT
prediction model are for educational purpose only. Any of the statement or writings here are not for
trading advice. Manage your own risk properly. Also, without written permission by MPW, all writings
cannot be used, transferred or distributed to other platforms other than TKL. Unless otherwise specified,
all copyright of these writings belongs to MPW.