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[Master Che]

11/8/11 ESZ11: No major change from the last update, but on the same hand we could well have a drastic change, it’s going to be real tricky today. Last update 11/7/11 4:00EST ESZ11: Above 1264.25 we go parabolic up to 1283.00 Now: 6:33EST (a.m.) on yesterdays close we reached 1264.00 and immediately pulled back (1248.50) the reason being; 1264.50 is an infliction level (break-upside) infliction levels are also potential failure levels, its impossible to have one without the other. Upon last nights dip; we pushed off exactly from the patterns pivotal support (1264.25) In addition on last nights decline we pushed off from the floating OAV (BB), which is quite bullish (now term) (1279/1283.00) The tricky part is this 1) yesterday we developed an Irregular C/T (circle pattern) these patterns are reversal patterns with a high accuracy level (81%); here’s the pattern Pointing down Up Price Target: 1291.50 Down Price Target: 1209.00 Majority of the time this pattern functions as such, we immediately head up towards the up price target; not reaching it; and THEN begin the reversal; in others a major head fake 2) These patterns always show up near the end or the beginning of the manipulation, meaning if we fail to reach 1291.50 it’s the end of the manipulation meaning we’re in the early stages of the move down (1150 1st stop); or if we reach 1291.50 the manipulation resets or begins again. Regarding the above 1264.25 we go parabolic up to 1283.00, normally this type of parabolic move (manipulation) starts off with a bang and then slowly trades straight up; slowly. The bang we got this morning at 1248.50 Currently the highest possible manipulative up target is 1305.50, although I was expecting it to reach 1282/1284 terminating the manipulation, but now in light of the new Irregular C/T pattern; I prefer to wait and watch. C/T = circle turn Manipulation: 11/3/11 ESZ11: Confirmation of manipulation (upside) on the larger time frames, not related to yesterdays compression detachment. The manipulation pattern’s immediate 1st level up price target is 1264.25; 1296.00 is the 2nd level up price target. Failing to reach either of these up price targets, will result in an immediate decline, and potential sell-off (prop-support determines the difference) Why is manipulation important to note for a trader? It’s like this, rather than a fair fight 1 against 1, its 1 against a small gang, majority of the time the one loses the fight. I had to dust off the manipulation pattern file, because the last confirmed manipulation pattern was on 4/10/11 in fact the pattern failed ushering in the down trend; everyone has their explanation why we sold off from 5/2/11 down to 8/9/11; the brute of the down move was from 7/22/11 (1341.50) to 8/9/11 (1070.75) 270 points in 277 hours; a sell-off not a crash as many describe ( 1.50pts an hour (min.) velocity factor is classified as a crash; never the less from 9/2011 (1075/1077 SPX) up until 1370 was not organic, meaning more than 90% of the move was manipulated, therefore the recent decline simply corrected or naturally weeded out the inorganic element in the marketplace; nothing more or less. Manipulation takes 2 different forms 1) either the last week or the beginning week of the expiring front month contract, the big boys join forces in order to only ride a one sided trade, meaning they only buy and never sell (cash settlement) propping it up until the expiration date. 2) Direct Government intervention; the manipulation occurs in the equity futures markets; bear in mind the government was heavily in the stock market (banks, insurance, automobile production), therefore they protected their investment The current manipulation was a number 2; which I find quite interesting due to the fact it occurred during Bernankes press conference; “various tools at hand” In conclusion From 1070 (last year) up to 1370, the manipulation had an 85% accuracy ratio. Manipulation doesn’t always work, although in fact when it fails it opens the SHARP sell-off door, but the point is this; in light of the potential bearish European implications; traders simply be aware that the FEDS will be supporting the market. Crude: Up to 96.99 I’ll update the gold and euro later (no major change on either from the last update