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Sunday, November 30, 2014

Gas Prices have fallen to 2.80/gallon. This is Bad News.

You might be very happy that the price of gas has dropped so sharply. Some estimates have it as people in the United States are saving over 300 million per day, down from the almost 4 dollars a gallon it was earlier in the year. More money in your pocket means more you can spend and put back in the economy and less for OPEC, right?
Well as it turns out, it actually is a bad thing. Falling gas prices are an indicator of a sick global economy.
Gas prices in 1988 from the movie 'Die Hard'
when the cop got the call at a gas station
to check out Nagatomi Plaza

The price of oil depends on several global factors...supply, demand, economic forecasts, speculation, and political unrest and or turmoil. Gas prices are figured on world demand. If the world demand is dropping, that means that there is a slowing world economy. And if there is a slowing world economy, there is going to be a big problem in the world markets, and that also includes our markets here in the United States.
Whats happening is OPEC is still producing the same amount of oil as it has been during the last several years, but the buyers are scaling back due to weaker economies. This creates an imbalance between supply and demand and that is whats driving the prices lower. Seeing that 50 percent of oil now goes to other countries such as China some economists are seeing this as a big world problem as China's economy is also slowing down as well as India and a  few other big countries. The economies of the United States and China and India are already having problems, this is a global red flag and perhaps a prelude to a big stock market crash.

Trade Cautiously,
Mark

Update for upcoming week 12/1

The Nasdaq is now on a last gasp runaway train going up to one of its final stops before it turns around and heads back south. And I believe its going to be a pretty big downer. I'm going to do this in reverse and look at the foundation of the problem by looking at the weekly:

As you can see there is a pretty big foundation problem that is building right now. Take a look at the RSI, it is spooling downward and you can see this by looking at the overtops...from left to right the tops are descending as the RSI is losing steam. Now look at the MACD below, its more subtle, look very carefully at the peaks. Do you see where it says '14' near the middle left top? Look at the measurement of the peak of the rsi to the top of the indicator where it says 14. Now look at the other top peak, just right to the S (sept) between S and O. Now with your eye measure the top of that peak to the top of the indicator and compare that to the previous peak distance. Yes, its small, but there is a decending difference.
I understand that Ive been calling wolf about the top for about two weeks now. But since the Nasdaq has been running like a runaway train way beyond the topside, I cannot recommend that you get into anything long at this time. I know its coming, and the more this thing chugs north, the harder its going to slam back. And as a matter of fact, I think the price of fuel is a red flag signifying the problem. I made a call about 3 months ago when it was $3.30/g that once fuel gets down to about $2.80 a gallon, watch out for a stock market crash. Well that point is now.OPEC is still cranking out the same supply but the buyers worldwide are dwindling. Everything fine? No. There is a problem brewing, and I cover this here. Now lets take a look at the immediate QQQ chart:

I see the cubes are still in overtime. See the above two circles in the RSI? We have gone over the top of the chart twice, and look for comparison what happened last time.
The only timing I can glean off this is from the weekly, as the daily gives us no timing clues, we have to look at the weekly. And by looking at the weekly, I see about 1 to 2 weeks before a big bust.
I cannot do the two week climb at this time. Its really a ticking bomb. When it goes off, I want to be on the right side of it. I am going to have to keep doing the 3 day climb drop and doing the gainers list planning on a drop or chop coming in the next few days. At the very least I might do the two week climb srategy but only be in it for 2-3 days.

Be wary and be cautious. Heres a good idea if you like leaps. Get into something like a blue chip tech and purchase a few leaps, maybe 6 months to a year out and just hold. Maybe purchase one of these things in a few days, like wed or thurs. Because I feel that once this thing blows out, there could be a pretty sizable drop, and you could make some pretty good coin.
Storm clouds brewing.

Mark

Pick Analysis for the last three months and site redesign

Hi everyone. I am going to go over all my picks and reboot my system for long term success in the market. I know know what works and what doesn't work.
What you are going to see below is likened to a computer readout and analysis of my mind based on my picks for the last three months. What I am doing is openly processing them and from them, amending my list of working rules for my trading. I do this every three months in order to fine tune and to tweak and hopefully keep increasing my winning percentage.


8/27- CBK-  3 weeks earnings climb- big numbers quarter/est growth- 30% gain
8/27- FRAN- 3 day drop- numbers light (-20 growthest -5,-7,-4% suprises quarter) in.95 out 1.45 +34%
9/2- shoe carnival- 3 day drop - 3 day drop  numbers unknown- pre climb up before earnings-Profit
9/3- INFI- news pick- Phase 3 testing-run up on news..bought put- success
9/11 DRI - 3 day short- waited for last minute push up due to technicals then bought cheap put-
 unknown as to the numbers from analysts estimates. Main investor intervened. Got out even money.
9/15 ANVR phase 2 news bounce...stock jumped way up out of current options range so put I bought too far out of the money (strike price) so when stock cranked down next day (6%+) where my put should have made money it did not..too far out of money. Play with at the money or right next to with options strike prices. Underlying philosophy was correct though. Big drop next day on news.
9/18- MTN- got upgrade. Violated 2 week upgrade/downgrade stock earnings rule. 3 day drop combined with news. -5.40% growth earn and only 2 neg quarters of less than neg 2%. Not enough bad numbers to drive down. Then a unicorn case happened. There was huge forward looking news on buying another ski resort that would start making money in a year. This caused Zacks to upgrade it. It raged up for 3 days. Then I bought another put right before it reported a less than lackluster earnings, causing it to blow out back down. +45% profit on the put.
(Note..people LOVE the QQQ direction and outlook for the weeks with watch lists)
9/22- AA -price dilution and downgrade. Yet I attempted to bounce it anyway. What was I smoking? For some reason it worked out at the 11th hour. Took the money and run. Another in depth unicorn situation developed: insiders sold before a big news announcement, the stock went down and was downgraded right after the announcement. Then there was an upgraded price target and then there was a glowing review in the Wall Street Journal with an price target that was 2-3 dollars higher than the current price. So I figured that there was bounce pressure upwards after an insider and house downgrade as it is rare you have downward force immediately met with 2 cases of upward price target force. I played this and won.
( I apparently have an advanced ability to read news situations and the forces underlying them with a contrarian lens)
(I also need to develop more choices while going down the news/or earnings and not take the first one that looks kinda good. Maybe there is more down the list that is better. I owe it to myself and everyone else to fully explore all choices)
9/26- AGIO- news bounce-Phase 1 study. Reconned a short. Success. +8.4% on the short.
9/30 DWA- news bounce- Advanced read on underlying forces and the 2 big personalities behind possible buyout. I read it correctly and profited. 2.00 to 2.25. Not huge, but money., about 12%
10/1-TKM- combination of news and technicals- the news plus the past technical patterns and current RSI and MACD levels. I pull it off...2.45 to 3.00. Also important that I watched the market..the move happened in the first 20 minutes with a small window. Cant sleep in..gotta be there open to close.
10/3-DTRX- bought put on phase 2 results then took it up the ass as suddenly another company bought them out and price jumped way up. Nothing that can be done about that. Having that strange timing was like being in stuck in traffic because a UFO landed on the tollway. Its just a price of the game, and why I have 20 different piles of money in play.
10/6- PBR..news bounce based on campaign election results. Read the situation about the campaign itself. Investors arrogant that thier Romney man will win so I doubled down, even though the news said that the Obama like candidate would win which would suppress this stock. We exit with a profit as the stock does collapse. I doubled down with 2 different strike prices because the public continued to be erroneously enthralled with the wrong candidate that was behind (pro business)
10/6 RXII- stock announces a phase 2 result fast track. I short it and win.
10/9- IXPL- short on news. Made error. Company bought 2 companies already up and running and making profits, expected profits even in 2014. Plus, the technicals show a sudden break out, even though there is a top tail showing a top. I have found out that a breakout overrides that. Seeing that the company already bought existing companies that were generating profit, an analysit upgraded it. -3.5%
10/13- ALNY- News phase 2 study and Ebola panic. Big Gap up with long strong white candle. However RSI was near top, and it was a sector panic. The stock went down over the next three days. No immediate product, RSI maxed. Made a profit.
10/15 IDRA-possible insider action. News bounce- Phase 1 trial. New concept: Better result from a bounce if RSI is already kind of high, not at the bottom ready for a fresh jump up. When grading stocks to bounce, a low RSI is a minus for a put and a positive for a call. Grade accordingly.
10/16 LAKE- Oversold overhyped stock forms a coiled spring at height of Ebola panic. Coiled springs can spring in either direction. Pick the most likely direction. This direction will probably go down. The coil spring explodes to the downside by over 20 percent.
10/15- ESI- 3 day drop mistake...plus did it the day before earnings.
1) I was unclear of why there was a sudden jump in price yesterday. They released some prelim's yesterday but that didn't warrant the price jump. That shows that there was a group of insiders who were in the know what was going to be announced today and they acted on it.

2) There was no normal run up with a stock that was going to announce that was for several days previous. Thats how I usually do it...by looking at the earnings calendar and finding a stock that has bad analysts expectations and then observe the stock climbing (crowd wrong) then purchasing a put or shorting it. Instead, the stock was falling and falling and then suddenly as in the above point, the day before there was a sudden jump. That shows insider trading. I should have stayed away from that. No contrarian action here...need a pump up to deflate the opposite way.


(rewrite rules for 3 days gain/drop as well as news up/down bounces. Also re-calibrate rules on coiled springs. Attempt to make a call one side or the other. Most of the coiled springs could have been called one way or another.) 207159
10/20-EGHT- -16%, -22% last 2 out of 4 quarters, -40% on est earnings, plus 40 on industry bench. Actually got out a day before earnings because a sell off started. Made a profit.
10/22- 3M- 3 day earnings drop- attempt to do this with not even a negative on the growth est  and just one negative on last 4 quarters. Not even a negative percent. The bigger the red in the negative, the more the power of the upcoming drop. Dont play with lukewarm. It takes all the explosive power out.
More on my actions of MMM(3M):
1. Through technical analysis I knew that the market was in an upswing. When the market is in an upswing I never do the 3 day drop system. I'm supposed to do my two week climb system. The three day drop system in part relies on the stock market is in a downswing which will further aid in a stocks downward momentum making money on my put. The market this time was in a upswing which made the positive surprise worse, pulling the stock upwards even harder.
2. When I do the 3 day drop system, I usually pick a stock that has numbers hard in the red in its earnings est and the last 2 out of 4 quarter surprises. This time I took a stock that was a bit to the positive, even though the industry benchmark was high. I need more of a discrepancy between the stock estimates and the benchmark...and I need them in the red.
3. One thing that led to such a hard upside explosion with numbers that weren't THAT great was all the positive news items that was coming out in the previous week. That led to a combustive mixture with earnings. From now on, when Im picking a stock to do the 3 day drop with and I see numbers in the red (good) I will then also look at the headlines during the last weeks run-up. I don't want to see a bunch of great news items that will positively shine on the stock, or that will add to its bottom line in the public's mind.
4. The RSI and MACD were in strong buy territory. These technical indicators showed that the stock was in under-bought territory and had a lot of room to jump upward.

FAI OCT 24- I tried to bounce a stock that just reported. Absolutely not. We do not bounce play anything that reported earnings or received an upgrade/downgrade within two weeks.
However, this was an advanced advanced situation. It just announced positive results:
1. There was a climb up to earnings. They announced, and it deflated.
2. However, it was a pretty good announcement then they added on a sweet bonus: a dividend!
3. forward said 20% increase by next year due to acquisition
4. RSI and MACD in position where they could climb 75% in angle and position

Analysis: I dont believe I would have done the 3 day drop with this stock ahead of its earnings because they last 4 quarters and the growth est probably wasn't in the red enough, so this stock would have never been on my radar. Then how would I have seen this if it just reported? I dont look at current day reporting stocks either. How did I see this? This would have been a very complicated find. I suppose I could check all stocks that reported, but I would say finds like this are pretty rare. One thing I could do is check all stocks that reported a dividend, as it was the dividend that really helped the upward force the day after the earnings announcement. I think that is what I will do. It would make sense that a stock reports a dividend right when it reports a decent earnings in order to light a fire under the stock price. 
(check dividends reports upgrades downgrades daily)

COILED SPRING 10/30-APL: A true coiled spring with a huge upside with the growth est and two huge downsides and 2 huge upsides in the 4 quarterly surprises. Cant even make a call with this one. So it would be a true coiled spring that I could not call. It seems that in order to truly take advantage of a real coiled spring its just under two weeks then you dump your positions. I tend to get out of coiled springs too early after just a few days and then don't make enough from them.

YRCW- 10/31- News just reported earnings. That was the first violation. Also, 


As you can see above, the gap up cancels the top signal. That and addition to the RSI and the MACD being in hungry territory with a lot more room to climb. Plus

I went against the market like a dumbass. The QQQ was trending UP. What was I doing with a put in this situation. Never go against the waves of the beach. I should have been looking for calls. Look at what the QQQ was doing that day:

So this is a learning example of stay with the market trend. Going against the market is a bozo no no.

11/3- CSIQ AAOI- 2 week climb- Nasdaq in climb mode, 4 quarter suprise check and growth est checked out 100-200% over benchmark on growth ests. Both stocks popped Nicely.


11/6- ASEI- 3 day drop. crowd climbed it up to earnings. 3 decent misses on last 3 quarters, -30, -40- -60, and a HUGE discrepancy between the growth est and the benchmark -126% growth est vs benchmark 190,200%. wow. Nasdaq looked like it was topped out so good call. This pick made money. A LOT of money.

COILED SPRING #2 11/16- BRKS real coiled spring. Contrasting last 4 quarters (big up) with -50% growth expectation. So didn't know which way would go. Did a spread and it blew to the upside. However instead of average 2 week coil growth, it was for two days only. Why? Look at the RSI and MACD, over bought, even in the spring bounce. 
(When coiled springs blow, pay attention and follow the RSI and MACD to determine how long. They follow it.)
Coiled Spring #3 11/16 VLCCF...Terrible -200% red growth est compared to way high industry expectation. 2 out of 4 in the red for last 4 quarters. This coiled spring should have been called. If you can call the coiled spring, make the call. This one should have been a put. And if I had watched the RSI and the MACD I would have noticed I could have rode it down for three weeks.
(Again, watch the RSI and MACD for Coiled spring timing to determine how long to hold the spring)
11/14- NBS- news bounce/3 day drop hybrid. Announced news on phase 2 results 2-3 days before earnings. Should have shorted it, but huge white candle no tails. Rsi near top, Macd had some room up to run...lots of room. Decided that there would be a bit more run up before the actual earnings,maybe one more day. Call only goes up 6% the next day then bailed on the put because they announced conferences for the following month all month...and that means hype. I was correct on the next day jump. (The stock actually did collapse though, I was right about that as well, though I got out early.)
11/17- SNSS- News bounce. Phase 3 results. So what. I bought a put. Did drop the next day, but hardly, though made a bit on the put. In at .30 and out .35. Looking at the rsi and the macd the next day, glad I took the money, there was still a bit to go up, and the MACD was in a strong trend upward.. This begins the period of the market in a runaway configuration and I went against the tide. Perhaps I should have stuck with the opposite, the most down list in a true contrarian fashion. But I don't know where the ceiling is going to be. 
(I have decided that the ceiling isn't going to be for about 2 weeks or so by looking at the weekly. The MACD and RSI are strong indicators even when bouncing stocks the next day, so be aware of that if you are going to hold more than one day. News bounce stocks...I prefer to be out the next day.)
11/19- AGIO- News (phase 1 test) plus three day drop hybrid like NBS on the 14th. Did a 1:10 call/put However, why the put? Because of the phase 1 test? Incorrect spread ratio, because this was never based on any analysts expectations.  So it wanst a three day drop then, this was just a news bounce. The put was the correct action, not the call. If you felt there was too much action upwards due to Cramer, you never should have bounced the put on this. But it made money.
11/20- CLDX. was the correct move to bounce this the next day after the announcement on the 14 with it showing up on the 17th to purchase put on the 18th. What was I doing with this on the 20th? Thats why I lost. RECENT news events, react to that days uplist/downlist ONLY
(Dont bounce old news. Only bounce new news, ie the stocks on up/downlist..CHECK when that news originally was or else you could be getting after draft which is operating on different principles.
Coiled Spring 11/24 VtNET...bad expectations last 3 out of 4 quarters, -40%, -60%-80% etc. but the growth expectation was only at 2% to the positive. That leans to the way bad side. The correct action on this would have been to issue puts, not a straddle. It then dropped two dollars could have made money. That is while watching the technicals, because thats what we now do with coiled springs. Also a reversal is showing with two inverted handles, by the way.
11/21 ETNA coiled spring. No information on its estimates. Thus stricken from record.
11/25- NES- News bounce. Breakout white candle with long upper tail showing top. RSI and MACD near top however. Did a 90/10 put/call which was correct. Made money. Put went from .50 to .90. Call a loss. Made about 40% after the entire spring.
(news trumps technicals. Unless the technicals are extreame to a breakout. Extreme techs only)
----------------------------------------------------------------------
3 Month Tweak Analysis

*Follow the market. Only contrarian actions on the inverse.

*When doing three day bounce and 2 week gain, only BIG numbers. Big est growth, big minus est growth big or horrible last 4 quarter estimates
*Double check when the actual news was when bouncing news
*If news jumps a stock out of money bounds for strike prices, short/purchase stock directly for the next day bounce. Dont leave the money
*Analyst upgrade/downgrade dont touch 2 week window: UNLESS helps 3 day drop system (helped pump up the stock up to unsustainable high RSI/MACD levels right before a drop) or UNLESS the upgrade is in our direction of purchasing a call. Sort of an "I before E except after C" rule.
*Whipsaw force: Downgrade and RSI and MACD oversold suddenly new 3 dollar higher price target and review in WSJ. Overrides downgrade. Can bounce this news successfully.
*Go down the ENTIRE list and make a rating system. Just dont stumble upon the first one. Better and more thorough to go down the entire list. Might find even better options.
*Advanced reading between the lines on news stories such as Dreamworks and Katz. Good
Dont short/put company that purchases companies already up and running making money. They will provide instant cash.
BREAKOUTS...only if extreame opposite news. Other than that, if breakout to the upside and your RSI and MACD is low and has room to climb, dont do it. If a big breakout, check the technicals for final confirmation. WOuld it have room to go up/go down. MACD has more wieght than rsi. if MACD has room to climb hard, RSI will just smoke the ceiling. Typically, news trumps technicals in ALNY's case, the rsi was at the ceiling, the MACD was in strong climb mode. So, the stock dropped 2 days, then the MACD took over. The jury is still out on this one. Lets just say if the MACD and RSI are wrong against what you are trying to bounce, think twice.

If the next day the stock goes down just slightly after a huge up day and you are doing a put, and the RSI and MACD are in under-bought territories and things can climb, while news DOES trump technicals it will only trump for a day. Bail the next day no matter what.


Coiled Springs- Pick the most likely direction of the coiled spring as they are most likely right before an earnings announcement. Look at analysts expectations to determine likely direction. If there is a contradiction, as in the last 4 quarters of surprises one way, and growth est another, THEN do a straddle. Hold the straddles for a week and a half UNLESS the RSI and MACD say the party is over.


Unclear why price jump? Dont touch it.

3 day drop system only if climbing for week or so before hand. Do NOT do three day drop system if dropping leading up to it then sudden climb the day before. Sudden climb the day before signals not the crowd but INSIDERS. 
Dont play with lukewarm numbers to the up or the downside.
Dont go against the market (3M!)
Dividend stock list: overrides recent earnings only if crushed to the downside already from poor earnings and RSI and MACD are in strong climb position.

Conclusion: If I follow the above tweaks, I can generate 75%-80% wins in the long term which means I will always make money in the long term.


Site redesign and relaunch coming soon.


Mark

Wednesday, November 26, 2014

We sell NES spring for profit, ENTA calls

So we are out of NES. We had a 10:1 ratio on our call/put, and we made some money. First our outs:

NES Dec 2014 10.000 put (NES141220P00010000)

 -OPR
0.65 0.00(0.00%) 1:53PM EST
Prev Close:0.65
Open:0.40
Bid:0.40
Ask:0.85
Strike:10.00
Expire Date:20-Dec-14









That was the put at 100% and now for the 10% call:

NES Dec 2014 10.000 call (NES141220C00010000)

 -OPR  
0.91 Down 0.54(37.24%) 1:53PM EST
Prev Close:1.45
Open:0.91
Bid:0.50
Ask:1.15
Strike:10.00
Expire Date:20-Dec-14
Day's Range:0.91 - 0.91
Contract Range:N/A - N/A
Volume:10
Open Interest:1,458









We took a 37% loss on our 10% option, and a 25% gain on our 100% put option. This means if we invested 100 dollars on the call, we were left with 63 dollars of our original. And if we entered in with 1000 dollars, we made 250 dollars on our grand. Our profit if we were using 1000:100 in our 10:1 ratio is 187 dollars clear. If you were using 10000:1000, the profit is 1,187.

Today we continue to hold VNET and also ENTA. ENTA is rocketing up, so we sell the call for a middle point of the spread in the bid and the ask, which is 3.85. ENTA is up almost 2 dollars today.

ENTA Dec 2014 44.000 call (ENTA141220C00044000)

 -OPR  
2.40 0.00(0.00%) 2:21PM EST
Prev Close:2.40
Open:1.75
Bid:1.90
Ask:5.80
Strike:44.00
Expire Date:20-Dec-14









Looking at the spread above, it is pretty wide, we get out in the middle as the stock is moving up today quick out of the spring. We got in at 2.40 and exited at 3.75 and that is a 41% gain. We continue to hold our put. And our call and put from VNET.

Thats all for today,
Mark

Tuesday, November 25, 2014

The God Code for Gambling

I have always been a gambling enthusiast. What really sparked my interest in gambling was the new riverboat legislation in illinois/chicago area that allowed gambling riverboats in the Chicago area.
As soon as craps, roulette and blackjack showed up I went out and bought a slew of books on how to beat them.
It turns out that most of them were crap, and even some of them quite possibly were working with the casinos. I would say that once every 3 or 4 years a book would come out that was a true ground-breaker such as Frank Sclobete's five count method, or a dice control book by Sharpshooter, things that could eventually through practice give the player a slight edge.
For the most part I was going to the casino and still leaving my donation.
 Most people never develop the skills to control the dice as it takes several years to really become proficient at it. Many people have practiced and attempted to make a living at it with the reality of it showing them still at a negative expectation and them having to come back to thier full time regular job.
Then I made a discovery last week. I found the God Code.

Math in Nature


It turns out in nature, there is a sequence of numbers that repeat over and over again. This was rediscovered from Indian Mathematicians by an Italian looking to describe the population growth of rabbits. The following is from Wikipedia:


A tiling with squares whose side lengths are successive Fibonacci numbers
In mathematics, the Fibonacci numbers or Fibonacci sequence are the numbers in the following integer sequence:[1][2]
1,\;1,\;2,\;3,\;5,\;8,\;13,\;21,\;34,\;55,\;89,\;144,\; \ldots\;
or (often, in modern usage):
0,\;1,\;1,\;2,\;3,\;5,\;8,\;13,\;21,\;34,\;55,\;89,\;144,\; \ldots\; (sequence A000045 in OEIS).
The Fibonacci spiral: an approximation of the golden spiral created by drawing circular arcs connecting the opposite corners of squares in the Fibonacci tiling;[3] this one uses squares of sizes 1, 1, 2, 3, 5, 8, 13, 21, and 34.
By definition, the first two numbers in the Fibonacci sequence are 1 and 1, or 0 and 1, depending on the chosen starting point of the sequence, and each subsequent number is the sum of the previous two.
In mathematical terms, the sequence Fn of Fibonacci numbers is defined by the recurrence relation
F_n = F_{n-1} + F_{n-2},\!\,
with seed values[1][2]
F_1 = 1,\; F_2 = 1
or[4]
F_0 = 0,\; F_1 = 1.
The Fibonacci sequence is named after Fibonacci. His 1202 book Liber Abaci introduced the sequence to Western European mathematics,[5]although the sequence had been described earlier in Indian mathematics.[6][7][8] By modern convention, the sequence begins either with F0 = 0 or with F1 = 1. The Liber Abaci began the sequence with F1 = 1, without an initial 0.
Fibonacci numbers are closely related to Lucas numbers in that they are a complementary pair of Lucas sequences. They are intimately connected with the golden ratio; for example, the closest rational approximations to the ratio are 2/1, 3/2, 5/3, 8/5, ... . Applications include computer algorithms such as the Fibonacci search technique and the Fibonacci heap data structure, and graphs called Fibonacci cubes used for interconnecting parallel and distributed systems. They also appear in biological settings,[9] such as branching in trees, phyllotaxis (the arrangement of leaves on a stem), the fruit sprouts of a pineapple,[10] the flowering of an artichoke, an uncurling fern and the arrangement of a pine cone.[11]
This sequence can be found in pretty much everything. Lets look at a few examples:

Here is the sequence drawn out and below to it notice that it manifests in nature such as a nautilous shell:
The Fibonacci number sequence in physical representation

This shell is basically designed as a Fibonacci sequence

This also manafests in how the human body is designed:

The numbers are everything...from how our hands to the poportions of the construction of our bodies.
Every Aspect of the proportions of our body...Fibonacci sequence.

relationship of arm to hand to fingers

make up of your face

make a fist...yup, Fibonacci all the way

Even how the ear is designed

It is also found in plants and nature:
The reproduction of rabbits follows a Fibonacci sequence in nature

Fibonacci number in the spiral design of this plants center


Yes, even the very spiral in Galaxies: Fibonacci spirals.

Plants branch out using Fibonacci numbers

It is also found in the petal allocation in a rose or any flower for that matter


Fibonacci numbers are found in hurricanes and rotations of storms


Yes, it is even encoded in our very DNA

Not only is this the underlying developmental matrix in the physical world, but it also as it turns out regulates our behaviors and supposed chance events. Wait, are you friggin kidding me? I smell something big coming....

The Elliot Wave

Some people think that the stock market is random fluctuations. Its not. Its behaviors are actually following a Fibonacci sequence and this was discovered by Ralph Nelson Elliot. From wikki:
The Elliott wave principle is a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature’s Laws: The Secret of the Universe in 1946. Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable." 
But wait, there is more:
From R.N. Elliott's essay,
 "The Basis of the Wave Principle," October 1940.
The Elliott Wave Principle posits that collective investor psychology, or crowd psychology, moves between optimism and pessimism in natural sequences. These mood swings create patterns evidenced in the price movements of markets at every degree of trend or time scale.
In Elliott's model, market prices alternate between an impulsive, or motive phase, and a corrective bear market the dominant trend is downward, so the pattern is reversed—five waves down and three up. Motive waves always move with the trend, while corrective waves move against it.
phase on all time scales of trend, as the illustration shows. Impulses are always subdivided into a set of 5 lower-degree waves, alternating again between motive and corrective character, so that waves 1, 3, and 5 are impulses, and waves 2 and 4 are smaller retraces of waves 1 and 3. Corrective waves subdivide into 3 smaller-degree waves starting with a five-wave counter-trend impulse, a retrace, and another impulse. In a
What is the underlying foundation of this? Fibonacci numbers:
R. N. Elliott's analysis of the mathematical properties of waves and patterns eventually led him to conclude that "The Fibonacci Summation Series is the basis of The Wave Principle".[1] Numbers from the Fibonacci sequence surface repeatedly in Elliott wave structures, including motive waves (1, 3, 5), a single full cycle (8 waves), and the completed motive (89 waves) and corrective (55 waves) patterns. Elliott developed his market model before he realized that it reflects the Fibonacci sequence. "When I discovered The Wave Principle action of market trends, I had never heard of either the Fibonacci Series or the Pythagorean Diagram".[1]
The Fibonacci sequence is also closely connected to the Golden ratio (1.618). Practitioners commonly use this ratio and related ratios to establish support and resistance levels for market waves, namely the price points which help define the parameters of a trend.[5] See Fibonacci retracement.
Robert Prechter replied to the Batchelor–Ramyar study, saying that it "does not challenge the validity of any aspect of the Wave Principle...it supports wave theorists' observations," and that because the authors had examined ratios between prices achieved in filtered trends rather than Elliott waves, "their method does not address actual claims by wave theorists".[7] The Socionomics Institute also reviewed data in the Batchelor–Ramyar study, and said these data show "Fibonacci ratios do occur more often in the stock market than would be expected in a random environment".[8]
Extracted from the same relationship between Elliott Waves and Fibbonacci ratio, a 78.6% retracement level is identified as a best place for buying or selling (in continuation to the larger trend) as it increases the risk to reward ratio up to 1:3.
It has been suggested that Fibonacci relationships are not the only irrational number based relationships evident in waves.[9]
So the supposed random events of the market aren't actually so random after all. I then started to think. Where else in human events does this pop up in? Can this be a predictive light in sequences of events previously thought to be non predictive? I then started to look at past events to see if fibonnachi was an underlying foundation:

The above is a sequence of major events in history..and yes, the code can be overlayed over it. Lets look at another one..

Matthew has "Alright alright alright."
Keanu has "Woah."
Woah..this is getting either creepy or more amazing. Not only is this the building block to everything in the physical world, we are also adhering to it in our behaviors? Do you know what this means?
This means that the entire world of chaos that we thought we lived in actually is more ordered than we thought. And, I further reasoned, perhaps a bit more predictive.
AND, I REASONED, MAYBE I CAN APPLY THIS TO GAMBLING.

God's Code: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946, 17711, 28657, 46368, 75025, 121393, 196418, 317811, ...


God's Code and Craps

I then had to figure out how to use this information and be able to apply it to craps. Many people have attempted to overlay this Ferrari over a Yugo and failed. For example, people would go up to the table and right on the line start betting the sequence and then run right up to unsustainable bankroll numbers and walk away wearing thier ass for a hat. You see, the dice table is very streaky. You would think that the dice would be going back and forth but that is actually not the case. I estimate that 60-70% of the time dice tables are cold. I personally have been at dice tables where no one was able to hit their point for over two hours. Just "7 out! Line away!" over and over again, with people groaning and looking around exasperated, everyone losing thier money. It looks as though there is a funeral when there is a table like this. Not a good time. Ive tried it all. Last win post, 2 in a row, 3 in a row, double after a win, etc. It seems to work temporarily, but then the mathematical edge from the dice begin to manifest in the sequence of events at the table and then the dice start to work against you. You bet lasts, then the table starts to reverse follow your bets almost as if there is a guy working for the casino with a magnet under the table. Same thing if you walk up to a cold table and try the sequence on the dark side..suddenly the table will heat up. No, there had to be something else.
Well after a few weeks, I finally found it. Below are the 4 systems that I use in order of bankroll starting with the most bankroll ($10,000) all the way to a starter bankroll ($500).

1) $10,000 Starting Bankroll: The reason why this bankroll is so big is to handle the statistical deviation that occurs when playing this system. The first thing you might think of is, "Yeah, right. 10 grand." But not to worry, you are going to build up to 10 grand by using the lessor steps below. Kind of like Poker steps when you were allowed to legally play poker online, building up your bankroll. But I digress
To begin with, when I play this system, I always use last. That is, if the last decision was "7 out, line away!" I bet on the don't pass. If the last call was "winner! Pay the line!" I bet on the pass line. Lets say the last bet was a winner. Most tables now are a 10 dollars minimum bet. The fibbonachi numbers are as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377... The first number of this sequence is a zero, and that in our case is implied. We are at a table with a 10 dollar minimum bet so we are going to be using the numbers here times 10. So every number you see in the above sequence just add a zero on the end of it. This is because there are no longer any tables with a minimum bet of 1 dollar. So we are just going to modify the Fibonacci sequence using a base 10 system, ie mult everything by 10. Same factor, same effect. We put 10 down on the line. Any wins we just take and we stay the same point in the system. Any losses such as craps where the line bet gets taken, we move one more step down the progression. Then when a point gets established, we place a bet on the come with one more step up the progression, and then for the next roll we place another come bet one more step up the progression again, and finally another come bet with one more step up the progression. What we want to end up with here is one line bet and 3 come bets out there. Every time one of our bets gets taken down by a win on a number, we want to replace it with a new come bet one more step up the progression until we go three more steps up the current spot in the progression and then we just stop betting and if we are still winning, letting all the numbers hit and get paid off and taken down until we are just left with one number working out there whereupon we start back over again at the first step in the progression if the shooter has not yet sevened out. Sounds pretty confusing, so lets play one out, step by step.
The last decision was a win, the line was paid out. So we are going to be betting right. I place 10 dollars on the line (first fibbonachi number is 1, am just multiplying it by 10 as there are no tables with a 1 dollar minimum bet. Since I am converting the Fibonacci sequence x10, all of the Fibonacci numbers in the sequence have to also be multiplied by 10). The shooter throws the dice, and he throws a 7. The pass line wins. I take the win money, and leave my bet up on the line, I am still at the first spot (first 1) in the sequence. The shooter then throws an 11. Pass line winner. I take the winnings and my 10 dollar bet remains on the line, I am still at the first spot of the Fibonacci sequence. Next the shooter then rolls a 3 and I lose my line bet with a craps number. I then advance things one more bet up the Fibonacci sequence and move ahead to the second 1 (multiplied here by 10) so again I have 10 dollars on the pass line. Shooter rolls a 2 (craps) and the bet gets taken by the dealer. I then advance one more bet up the sequence and now I have 20 dollars on the passline. Shooter rolls a 5. The point is now 5 and I make a come bet one more number up the sequence of 30 dollars. The shooter now rolls a 9 and now I make another come bet of 50 dollars. The shooter rolls a 10 and I make another come bet of 80 dollars (another move up the fibbinochi sequence).
Now I have all the bets up that I want up for now, I have one line bet and 3 come bets working, for a total of 4 numbers working. Each time a number wins and gets paid off and taken down, I want to make another come or line bet to keep 4 numbers working for 3 more times. So if any number hits and gets paid off  (whether it is the 20, 50, 30 or 80 dollars) I bet one more up the fibbonachi list. So for example, the 10 hits, and my 50 dollars gets paid and comes down. Seeing that my last biggest bet on the fibbonachi sequence is 80 dollars, I now place 130 dollars in the come or on the line to get 4 numbers back up working. As more numbers hit, my next bet would here be 210 and then 340. I would then stop going up the ladder, and stop adding more bets, letting numbers hit and get paid off or having the shooter shoot a 7 and lose all my bets. Hopefully no 7 will be thrown and the shooter will keep cranking off numbers and my numbers will all hit and get paid off. I will then wait for either or and if all my numbers are being hit and paid off, I will wait until I just have one number working out there and then start all over again and build up to 4 working numbers not including the one thats already sitting out there in case it hasnt paid off as of yet. I like to only go +3 to +4 bets up the fibbonachi sequence past the point where I finally have 4 numbers working. Most of the time you will have 10 dollars, 10 dollars, 20 dollars and 30 dollars up and working. In my previous example, we lost the first two bets in the sequence so we were at 20 dollars, 30 dollars, 50 dollars and 80 dollars out there. From that point, seeing that I only want +3 or so more bets up the fibbonachi sequence, after each bet came down by being hit and paid off, seeing our last current bet was at 80 dollars, we continued making bets keeping 4 points working by placing 130 dollars, 210 dollars and then 340 dollars. We stop there because its uncomfortable to really go further and its not nessesary. At point we just stop and wait: Either we will have our numbers hit and we get paid off or the shooter is going to seven out and then we would start this entire thing over but on the Dont Pass side. Unless of course there was a lot of crap outs at the beginning advancing us on up the fibbonachi list. But that is very rare.
Now lets say the shooter 7s out. In this case, we are now going to be betting on the Don't Pass Line.
Here we are going to be doing the same but on the dont pass with a +3 or +4 additional climb up the fibboanchi ladder if any of our four dont bets get hit. Lets get started. We put 10 dollars on the dont line. The shooter is coming out. He rolls a 7. We lose our bet. So now we go one more bet up the fibbonacchi line and the second bet up is also 10 dollars. He throws a 3. We get paid, we leave our current bet up and do not progress up the ladder. The next toss is a 5. Now since we were already at the second step on the ladder, we now place 20 bucks, the third step up the ladder, in the dont come box. The next roll is 9, and the 20 slides over to the dont 9. We then place 30 dollars in the dont and that slides to the 6, then we bet 80 on the dont and that slides to the 8. Now we have 4 points working. Now that we have 4 working, if we lose three more numbers we will go three more steps up the rung if nessesary. Such as next roll, the 6 gets hit, so your dont six gets taken down, so we then put up 120 dollars  in the dont and the shooter just so happens to roll a 6, and the 120 goes over to that. I will go two more steps up like this then stop no matter what happens or the shooter could go ahead and roll a 7 and then I could get massively paid off.
Now what could happen is I have 4 donts working and suddenly the dont pass goes down, as in the shooter makes his point. Then we switch over to the do side while our dont bets are still out there on the board. We start over the fibbonachi sequence on the first step, at step one with 10 bucks on the pass line. The shooter rolls a 7. BOOM. Suddenly not only is the line paid, but all the dont bets that were hanging out there are also paid in an avalanche.
So basically you are going to be following the side that won last, switching back and forth as needed while using a fibonachi sequence climbing up the ladder until you have 4 points working and as an additional 3 points are either lost (on the dont) or won ( on the do) you then continue up the ladder and place three more bets up the ladder then stop and let whatever happens or get hit or paid or knocked off happens. Of course, if you get action before you add three more steps up the ladder when you already have 4 points working out there such as a 7 out, you just start over with the first step, 10 dollars on the side that just one the last decision.
I am going to post some videos of me playing this live on the wizard of odds to give you a live example of the above so you can follow it while I play. When you are actually able to see me play while I explain it it will become clear. Those videos should be up in several days.

                                Video one will go here                                 Video two will go here

2. $2000 starting bankroll:   This one is actually a little bit easier. Whereas the last one above it didnt matter how many people were at the table, if it was cold or hot, with this one we want to stay away from cold tables. A cold table could be a hardship. So with this one, we are only at tables that are half full or more. As soon as just one person walks away that makes the table slightly under half full, stop and either wait or move to another hotter table. The rationale behind this is when a table is going good, nobody goes anywhere. Are you kidding me? Walk away from money? Nobody moves, everyone is rooted. When a table sucks, and there is 7 out after 7 out, it looks like a funeral. People are looking around with disgusted looks on thier faces, kinda half into things, looking around the casino, and there wont be much chips on the felt. At a hot or warm table, there will be a lot of chips on the felt and people will be happy and paying attention. So for a quick ID, only tables half full or more.
With hardways bets, you can start at one dollar, the table min doesnt apply here. So we are going to use the fibbonachi sequence literally with the hardways.
Shooter comes out, point is whatever. We place 1 dollar on all of 4 of the hardways. Every time an easy way takes down one of our hardways, we place the same amount back up on that hardway...we always have the 4 hardways covered. We take all payoffs while leaving our 4 hardways numbers up. Every time there is a 7 out and our hardways get taken down, we go one more step up the ladder. So at the 7 out, we go one more step up the fibonacchi ladder and that is again 1 (the second step). We place a dollar on all 4 of our hardways after the come out. (hardways dont work on comeouts. If a 7 is thrown during a comeout, we do not lose our money, so we do not have to advance one more step up the ladder, only on a true working 7 out that makes the dice go to the next shooter do we go one more step up the ladder. As easyways take down any number, we place that amount bet we are at back up no matter how many times. Hopefully we are hitting hardways now and then.
The next 7 out gets us up to the bet of 2. We bet 2 bucks on all 4 of the hardways. We are again replacing any of the 2 dollar bets that go down while we are working due to easy way throws and taking any payoffs. And so on.
Any time after a 7 out you are 60 bucks ahead of where you started or the last point you were 60 bucks ahead, you start over at the beginning of the progression. I myself have been using 50 dollar bets on all 4 hardways and even 80 dollar bets. But by that time it was like 130 rolls later and statistically, I got a clump of hardways that came through and suddenly I was up 240 dollars. I also will put up a video by the end of the week right here so you can see me playing it live so you can follow along.

                                                                  Video here    
I have never gotten through 150 rolls without a clump of hardways. Heres a good way to get into this system based on statistical compression. Seeing that hardways tend to come through lumpy in clumps, wait until you see no hardways rolled for 30 rolls, then jump in. It would have to get to roll 180 with no hardways and thats probably not happening.

What the? Why does this work to the point where I can profit long term?

Its a hack. Its hacking the universe. I suppose in this universe as well as every other universe (if you subscribe to the emerging multiverse theory) there are sets of underlying laws of gravity, motion, time, that allows something of a three dimensional space to exist. Scientists working on string theory have even speculated that this universe has 11+ dimensions to it, over-rapped on top of each other occupying the same space. Some have even speculated that we are living in a big quantum hologram. Whatever the case, the foundation, the very fabric of this universe has physical structure and rules. There is an order out of the chaos. Because in TRUE chaos mass as we know it wouldn't exist and therefore gravity, light or physical beings. Planets and stars wouldnt have been able to be formed. If they were initially formed, they wouldn't stay together long as they would fall apart. So there is an order, or an underlying matrix. Look at those pictures above. Our physical structures, plants structures, weather, galaxies are all based on that mathematical sequence. And so it would seem human interaction is guided by this as we exist in this physical world.
Can I profit from this long term? Studies have been done using Elliot Wave theory and they have found that a certain point in the wave retracement that there is a permanent 1:3 (risk reward)  advantage gain if all trading is conducted at that point. I am not sure at what point of these two systems there is an edge over the casino, but I will tell you this: I have built up some pretty sizable bankrolls and have had some pitbosses giving me the stink eye wondering why I'm gaining when everyone else is donating.
What I do is start with two other systems I use because they require a lower amount of money to utilize and as a variant of Scolblete's 5 count and Doey-Don't system to get the odds way down.

3. $1000 Dollars starting bankroll: When the dice are passed to a new shooter, place a 10 dollar bet on the passline and 10 dollars on the Dont pass. You want the shooter to get through the comeout shoot and establish a point number. While this is happening, he might throw a 7, 3, 11, 2, etc which will result in the pass or dont pass winning and the other side having your bet taken. Thats fine, because it will be a wash, you have a bet up on the pass line and the dont pass line. This greatly reduces your edge against the casino down to a 1 in 36 when a 12 is rolled.
So here is the concept: You are going to be 5 counting shooters, qualifying them. While you are 5 counting them, you do not have money at risk as you have 10 bucks on the pass and dont pass. If during the time you are counting 5 rolls after they establish thier point number the shooter loses (7s out) or wins (makes thier point number) it will be a wash for you as you are betting do or dont.
The reason you are doing the 5 count is to eliminate shitty shooters that 7 out before they hold the dice for 5 rolls. And that tends to be a little over half the shooters at the table. The 5 count is kind of a guided missle for you to seek out all warm and hot shooters and skip cold shooters. This is how it works. When the shooter finally makes a point on the come out, thats 1. Now next any number the shooter throws (execpt for 7) is 2. Next any number (besides 7) they throw is 3. The next roll they do, again, any number they throw is 4 (besides 7).
For the 5th number, it has to be a point number and not 11,2,3,or 12. If the fifth roll they roll a 4,5,6,8,9, or 10, then thats "5". If you made it past 4, and then they roll a 2, That would be 4 and holding. Then if they rolled a 3, its still 4 and holding. Then they throw a 12? Still 4 and holding. The next number they throw is an 8. There you go. "5". Our five count is completed, and we
place odds backing up our Line bet.
Now, the concept here is we leave our odds up until we either win by the shooter making his point, or we lose, with the shooter 7 ening out.
If we lose, its the same thing again. 10 on the do, 10 on the dont pass, and do a 5 count. Each time a shooter 7s out before our five count, fine. You lost or made nothing, just avoided a bad shooter, and the dice slides over to the next guy and we start over again with our 5 count with our dice on the pass line and the dont pass line.
Our odds bet starts at 10 dollars. Every time we get past the 5 count and then put down odds and then lose, the next time we put odds down, its +1 on the odds. So, we lost our starting odds bet of 10 dollars, the next time we put down 11 dollars in odds and up it +1 every time we lose. We could eventually wander up into the 35, 30, or even 70 dollar territory.
Now, every time we win our odds bet, (that is, we made it past the 5 count and put odds down and left them out there until we won/ lost) and get paid, we will now be laying odds on the Dont Pass line.
Why is that?
Because if you look at statistics, winning two points in a row is not as common as just one point being made. Most of the time, a table will follow a win by a lose.
So, after you just won an odds bet on the pass line, we put up our 10 dollar bet on the pass line and our 10 dollar bet on the dont pass line and again, we wait for a point to be established. Once a point is established, we dont do any five count, statistics here say that it is unlikely for 2 points in a roll to be made and right away we lay odds on the dont pass at whatever point we were at in our progression (remember, every time we lost it was +1 dollar chip on our odds pile). Now remember, laying odds is different from puting odds down behind a pass bet. Lets say we were at 20 dollars in our progression. Seeing that 4 and 10 are double, we have to lay 40 dollars behind our dont pass bet if the point is 4 or 10. If the point is 5 or 9, we would have to lay 30 bucks behind our dont pass bet, and so on .
And we just leave the dont odds out there until there is a decision. If we lose, that means you have a hot shooter, and there was just 2 points in a row made. If we won the dont pass bet, we simply revert back to the do odds after doing a 5 count on the new shooter. So for example, we had a dont odds bet out there and the shooter 7ed out. That means we won our dont odds bet. We take the money, everything comes down or gets paid off, and its a new shooter. We place 10 bucks on the pass line and 10 bucks on the dont pass line and we once again 5 count our new shooter before we place odds on the pass line bet.
Now if the shooter beat your dont pass odds, that means he just made 2 points in a row. Which means you are at a hot table, or the shooter has some shooting skills and can influence the dice or maybe its just his lucky day. This means that you would then place 10 on the pass line and 10 on the dont pass and as soon as the point was established, you would immediately go up by placing pass line odds (at whatever point you were on the progression) behind your 10 dollar pass line bet.
If the shooter wins two more times (your pass line odds gets paid again 2 more times) place an additional place bet on any number of the same amount you are currently on for your odds bets. I myself put a place bet on its mirror number. For example, 4 and 10 are mirrors, 9 and 5 are mirrors, and 6 and 8 are also mirrors due to their same odds and payoffs. From that point if the shooter is hot, I will leave things out there, and let it ride and take the payoffs. If things keep hitting like 4 or 5 times, you might want to put a third place bet out there also the same amount as your currently bet odds bet.
You will find statistical deviation with this system, your chips on your rack will go up and down a bit and you could even be down 300-400 dollars. But you will see things correct and crawl back up for 2 reasons. 1) You are really cutting back the house edge by only playing odds bets, which the house has no edge on. The only thing that can hurt you on the pass line is a 12 being thrown on the come out. 2) Tables arent too often seen having 2 points in a row thrown. 3) You will be steering by not being at a table that is less than 1/2 full. No cold tables. Only be at a table that is half full or more. Shitty cold tables will have people cashing in thier chips and walking away.

4) $500 dollars starting bankroll: You will do the above system but with a twist. You will not take any action on anything until you see a shooter make two points in a row. This automatically puts you in a select group of shooters, with a good part of them being shooters that are hot, are precision shooters, or shooters that are just so happen to be having a good day. With this, you are really only going down the road of positive expectation.
You might say, well why would I then put odds on the dont after I win a bet on my pass line odds? Because if I won a bet on my passline odds, that would mean that the shooter just made 3 points in a row. True, but 4 points in a row are really rare, UNLESS YOU HAVE A TRUE PRECISION SHOOTER that can really roll long term to beat the house. Those guys/gals arent too commom. So after you win your first odds bet on the do, just like in #3 above, you bet on the dont. If you lose that as well, back to the do odds without a 5 count like above. Yes, you will 5 count a shooter after you see him win 2 points in a row when you are just starting out, as well. Ive been using this #4 system and have seen a lot of shooters who Ive seen just win 2 point in a row then bust out during the middle of my 5 count as I qualify them to jump in with an odds bet.

Well, thats it for now. Give it a try on the wizardofodds.com. Use the new craps version, V2.
Good luck,
Mark