Taiji Symbol VS S&P 500 (25 years chart)

The above is the 25 year chart for S&P 500
Based on my Taiji Symbol analysis:
Red portion: Body of white fish
Blue portion: Eye of white fish
Green portion: Head of white fish
Yellow portion: Tail of black fish.
So what is next? Will body of black fish come next? If that happen, the index may break 600, and that is terrible.

There is a Technical Term called "M pattern" which is showing in the chart and that is a very bearish pattern. After "M pattern" it will be followed by a "V" pattern up (Currently forming), and next will be a "A pattern" down.

Taiji Symbol VS US Dollar Index

In the last post, I have said that Taiji Symbol is my favorite symbol. For this post, I am using Taiji Symbol to analyse US Dollar Index. US Dollar Index is the measurement of US Dollar value compared to other major currencies. It is important for non-US investors to know this index when they invest in US stock markets. Why? If their stock goes up 10%, but dollar index goes down 10%, basically they are not making money.

Red highlighted portion of both charts represents the tail of the black fish in Taiji symbol. The index started to weaken slowly at this stage.

Blue highlighted portion of both charts represents the body of the black fish in Taiji symbol. The index falls a lot at this stage.

Green highlighted portion of both charts represents the eye of the black fish in Taiji symbol. The index starts to rebound strongly at this stage.

Grey highlighted portion of both charts represents the head of the black fish in Taiji symbol. The index will again fall at this stage. It is hard to tell whether will it break new low but the fall is significant.

The two charts above show my two predictions. The first prediction shows that Dollar index will go up very soon (starting the tail of the white fish). The second prediction shows that Dollar index will still go down (continue the head of the black fish) and break new low before it will go up.

Taiji Symbol VS S&P 500 Chart (Sep 07 - Oct 09)

The above shows the S&P chart from the start of current bear market to now. For Oct 07 to May 08, signified the start of the bear market(tail of the black fish of the Taiji Symbol). For May 08 to Mar 09, signified the bear market is in the mid stage(body of the black fish). For Mar 09 to now, signified that some recovery on the way(Eye of the black fish). My guess the last stage will be a downtrend that will bring the index lower than Mar 09(Head of the black fish). This is just my own interpretation, so there is no right or wrong for it.

This symbol tells me that everything will have a slow start, accelerated growth and peak. Remember the important point is slow start, whether it is a bear or bull market. If you can identify the start points, you will be slowly be rich. For market that goes up or down too quickly, there will be a reverse in direction in no time. If you see that, it is important to clear your postion(whether long or short) before the reverse in direction.

Taiji Symbol is my favorite symbol

One of my favorite symbol is the Taiji Symbol. The symbol is make up of two fish, one with white body and black eyes and another with black body and white eyes. The white body fish or yang fish represents brightness, strength, life. The black body fish or yin fish represents darkness, weakness and death. The eyes of each fish has the opposite colours as their body. This shows that within a yang there is yin, within a yin fish is yang. The symbol shows that thing move in cycle over and over again.

A lot of things can be related with this symobl, and one of it is life. The tail of the yang fish represents new life is borned. The head of the yang fish represents the strongest point of life. The tail of the yin fish represents weakness in life started to show out. The head of the yin fish represents death. The cycle continues when new life is borned.

If you apply the symbol to show the strength or weakness of a country, you can see that a country cannot be strong or weak forever. You can look into history book, there is no country that can dominate the world forever. There are times when a country is strong, and after that it will become weak.

For economy or stock market, the yang portion represents bull markets, and the yin portion represents bear markets. If you expose to stock markets, you will know that after a bull run, bear market will come eventually. After a bear run, bull markets will come eventually.

Remember the eye of the fish are of opposite colours than the body. It means there will be a strong signal telling us that the cycle is about to change. After the signal, the yang will become "yanger" intially and then slowly go toward the yin side. For the yin, it will become "yiner" intially and then slow go toward yang side.