QUESTION: Mr. Armstrong; Your analysis is really remarkable. When the Dow was making new highs in October you said it was not breaking out. Then you said it would correct to retest the monthly support. You even warned that the bulk of the decline was always before the holiday as fears would grow for what would happen after the market reopened. You always get the highs and you even named the day of the low this week the week before. How can your arrays do this? I know that they do. My question is have you put any effort into discovering why cycles work in the first place?
ANSWER: That is a question I get often and it seems to me to be up there with is there God and what is the meaning of life? All I can say is the foundation of EVERYTHING is a cycle. Here is how sound travels known as the Doppler effect.
Sunlight also travels in waves. Change the frequency and you get a different effect. There is a cycle to absolutely everything around us. The Arrays are composed of a correlation of 72 individual models. Then there is a global correlation to the frequencies of all other markets. So there is not a single cycle that you can reverse-engineer from an array. It just does not work that way. We simply do cycles differently than most people in the cyclical analysis arena.
So why do they work? Perhaps that is just the key to the universe itself. The earth travels around the universe and reaches the same spot once every 250 million years or so and the precession of the Earth is one cycle of 25,800 years. We also are born, we live, and then we die – the cycle of life. Then at the core of everything lies the fractal design within nature. It is more than just a Mandelbrot Set. We have children who are copies of ourselves taking bits of both parent’s DNA and combining them. That is the process of cyclical reproduction by self-referral – the offspring is a DNA copy referring back to the source.
Then there is the Lorenz Stange Attractor which was the fascinating cyclical behavior of weather systems, which of course are ignored by the Global Warming people. In effect, they are no different from the people who executed others who dared to say the earth was round instead of flat. They demonize anyone who denies Global Warming.
Absolutely everywhere we turn, we are confronted with cyclical behavior no matter what the system we have under study.
Just go to the beach and pay attention to the waves which crash upon the shore. Count the number of waves between a large wave and you will suddenly be confronted with a pattern.
Cycle are the blueprint of the Universe. It is how energy even moves. You have brain waves and your heart beats to a cycle. The absence of a cycle means you are dead.