September 2009 – T Theory® Update

…Of everything I read Terry Laundry’s Magic T Theory made the most sense to me. …Terry was an eccentric genius living out on Nantucket Island. He was a fellow Marine, a jughead, who’d graduated from MIT and was now using his considerable engineering skills to analyze the market. Terry believed that the market spent the same amount of time going up as it did going down…When you look at the letter T, hence, the Magic T Theory…With the Magic T there was order in the universe a high and low tide every…The Magic T and I became as one.

– Marty Schwartz, legendary trader and author of the “Pit Bull”

Update for Thursday October 1 2009

5pm: arms closed at 3.6 a very bullish reading. Market should stabilize then turn up to mid Oct peak.

11am If today’s opening weakness gathers strength it is possible the market will find an oversold low near the 55 Day MA( S&P 1007). However that is a worst case.  Either way look for a rally to a mid October final top.

Update for Sunday September 27 2009  

See PDF Chart and listen to Audio Commentary. See also

American Shareholders OnLine

Chart Download SRT20090925

srt20090925

Audio Commentary Download TTO20090927

Update for Thursday morning September 24 2009

Sell off on Wed produced a favorable  Arms of 2.3 and we still have upside left time-wise. Upper channel at S&P 1089 cash price and rising.

Update for Sunday September 20 2009

Question; Last week you drew in a new Short-Term T on the Daily Chart and said it expires about the end of the 3rd week of Sept.  You appeared to draft the T from the Volume Oscillator, with a Center post at the 9/2 low in the VO and the left side of the T looking back to the recent 8/5 high in the VO.  I calculate 20 TRADING DAYS between the two dates, taking the right side of the T to OCTOBER 1st — not the third week in Sept. 

ALTERNATIVE METHOD:  Drafting the T from A-D Line high on 8/13 to its low on 9/2 counts out to 14 TRADING DAYS, placing the terminal date on A-D T @ 9/21 — three weeks into September.

I’m trying to chart these Ts, and I’m confused.  The T you drew on the Daily Short-Term Chart was clearly drafted off the Volume Oscillator.  WHICH IS THE RIGHT WAY TO CALCULATE THE “T”.  I know this isn’t a pure science, but being off a week or more on a T lasting less than a month, seems a little too much.  I’m concerned that I’m calculating these Ts incorrectly.

I hope you can cover this in Sunday’s Audio.  I greatly appreciate the work you do.  Sincerely, Alex 

Download ADLine 20090918 with notes

adline-20090918-with-notes

Download Daily chart   Download SRT20090918

srt20090918

Todays audio commentary   Download TTO20090920

Update for Wednesday September 16 2009

The TRIN closed yesterday at 1.74 which is bullish now. This update will answer questions on trin or Arms Ratio. Note the info taken from this page:

Markets Diary: Closing Snapshot – Markets Data Center – WSJ.com

which for Tuesday, the day in question was  Download WSJData20090915

with Arms/Trin defined as   Download Arms Definition

Then listen to Terry’s Audio Commentary on how to interpret ARMS/TRIN Data;

Commentary Download TTO20090916

Update for Sunday September 13 2009

Good Question from Jon;

Terry: I greatly appreciate the work you do and wonder if you might address the possibility you mentioned a while back that the seasonality and mystery t might advance the top date a bit from the projected OCT 15 date.  There are a cluster of fib and phi mate dates in end of September.We are in what appears to be a rising wedge. Shouldn’t one be gradually selling into strength here as a possibility exists the two tops might lead to a very fast decline and trap us?    Thanks, Jon

Chart Download SRT20090911

srt20090911

Audio Commentary Download TTO20090913

Update for Sunday September 6 2009 

Daily Chart Download SRT20090906

srt20090906

Audio Commentary Download TTO20090906

Good thoughts from Jeffery Young    

Download NYSE Volume Oscillator

nyse-volume-oscillator

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All Rights Reserved By The T Theory® Foundation ©

Order the T Theory® Encyclopedia

For a complete understanding of the T Theory® and how to successfully use Terry’s unique methods, order the Encyclopedia from Paula at the above link.  There is additional material in the encyclopedia not covered here.  Paula will be more than happy to answer your questions too.

Many thanks to Paula Burke for her permission to re-post Terry’s old T Theory® explanations.  The period re-blogged on these pages are some of Terry Laundry’s best work and was published here from public domain.

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I claim no credit for the material found under T Theory® on this blog.  All of this material is the creation of Terry Laundry and was downloaded from Terry’s free blog site (TypePad).  I have created a mirror of Terry’s original material and now there is a second site containing Terry’s T Theory®.  One or both of these websites hopefully will survive through time as Terry’s material is too important to be lost to the ravages of time.  This site is simply a memorial to his lifetime work.

The page content re-blogged here is exactly as Terry created on his original webpages (saved on my computer with ScrapBook)).  Nothing has been left out from the period Dec 2003 to June 2011.  From Terry’s site, I made a lot of formatting changes, creating a more easily readable webpage appearance.  The PDF chart duplicates of the JPEGs have been omitted for ease and speed of recreating Terry’s pages.  References to PDF charts should be ignored (but no chart was left out).

After June 2011, Terry created a paid subscription website. None of that material is found here.

There were many many, many hours spent on this project; downloading Terry’s individual charts & audio files, followed by the uploading of Terry’s charts and audio to my WordPress blog library, after which I had to insert the uploaded material into my new T Theory® webpages (hopefully in the correct places).  This was a dull and arduous project and I hope you enjoy it.  I don’t believe there remains any more of Terry’s material in free domain, so my T Theory® project is probably finished.  If I’ve missed something, you can leave me a comment.

If you find an uploaded reference error (chart or audio in the wrong place), please note the month and year of the webpage, plus the exact name of the referenced error file.  Include any other info that will help me locate the problem file and where it occurs on the webpage.  Leave a comment for me with the info and I’ll fix it.

Terry’s material is very long and will take many weeks for you to finish.  Don’t hurry, it’s not a marathon and you will absorb more if you go through it at a reasonable rate.  This is especially true for those who don’t invest in the T Theory® reference encyclopedia.  The encyclopedia is a written reference for T Theory® and includes everything of importance for Terry’s T Theory®.  Without the reference encyclopedia you must depend on your memory and Terry’s method carries some rules that you could easily violate.  The encyclopedia also includes new information never seen on his website.

You are welcome to save any or all of my blog material to your computer.  You also have my permission to re-blog my information, but you must (1) credit me and my blog in an obvious manner and (2) don’t change my material.

FYI – I find the best way to save a webpage is using “ScrapBook” (it’s an add-on for the FireFox browser).  ScrapBook saves a webpage to your computer EXACTLY as it appears on the day you saved it.  You can’t tell the difference between the internet webpage and your ScrapBook saved webpage.  The saved pages are not pictures.  Instead the pages consist of HTML and page functionality remains identical on your computer.   There is also a second method for using ScrapBook, where you can save all of the webpages down to a defined link depth.  This optional method means all links will function on your computer to the link depth specified (meaning you can click on links on your saved webpages and tunnel down into pages within pages).  Saving the normal way will only save the top webpage but the links that exist could continue to  function by taking you to the website on the internet instead of on your computer.  But sometimes the linked website doesn’t exist anymore.  I’ve had this happen on some very good webpages with unique information (they just disappear into the internet void).  That’s a bummer when you lost some really good info and thus rose my need for ScrapBook.  You can also filter the pages saved using the optional ScrapBook method, which can exclude all pages not coming directly from the specified website (filtering is recommended using this method otherwise you wind up with a LOT of useless stuff).

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