Number 9
Number nine, number nine
Industry allows financial imbalance
-The Beatles, Revolution 9
The most important dimension or ‘tell‘ in trading is price itself. There is much to be gleaned from price and price alone. Where is the price? Where was the price? Is the trend up or is the trend down? Price and it’s history are an ever-evolving sketch of this picture.
The second dimension is the voting mechanism: volume. Volume is a very important glimpse into the persuasion of the masses. Without a good read on volume, you may be swimming against the tide–and many a bankroll have been ruined by speculators who throw discipline to the wind in their reckless and futile plunge against the tide.
With price and volume in my quiver, I can now add the third–and possibly the most important–tool in my arsenal: time. Time is a powerful and fundamental implement of the market.
When we look at history, we find rhyming in the timing of things. As I have stated before, and will continue to state, nothing changes in the markets–just the participants.
To weave together some important timing points, I must delve deeper into some specific points in history. Note as we recap some significant market events, that there is definitely a synchronicity in the timing. Reflect further still on the intrigue relevance of the
number 9.
From a religious and philosophical standpoint, 9 has tremendous significance. The number 9 is revered in Hinduism and considered a complete, perfected and divine number because it represents the end of a cycle in the decimal system.
Revolution 9
Revolution 9 was the longest track on the 1968 Beatles Album commonly known as the “White Album.” It played a very crucial role in the infamous “Paul is Dead” controversy. Playing the album backwards as a child, I noticed the oft repeated “number nine” is heard as “Turn me on, dead man.”
Black Friday, 1869
During the American Civil War, the United States government issued a large amount of money that was backed by nothing but credit. After the war ended, people commonly believed that the U.S. Government would buy back the “greenbacks” with gold. -Wikipedia
Sound familiar? THE GOVERNMENT ISSUED A LARGE AMOUNT OF MONEY THAT WAS BACKED BY NOTHING BUT CREDIT. There is certainly a familiar ring to those words in the headlines we read today.
The Crash of 1929
No need to elaborate on this one.
The Day the Music Died
The day the Music died, February 3rd, 1959. Rest in Peace Buddy Holly, Ritchie Valens, The Big Bopper and Roger Peterson.
The spirit of Buddy lives on. He is up there–right where he belongs–with the rest of the stars.
Top Three Buddy Holly (and the Crickets) songs:
1) Not Fade Away
2) Oh Boy!
3) Quando, Quando, Quando
Friday the 13th, 1989
Friday the 13th, 1989 is also known as the Friday the 13th mini crash. It was caused when the $6.75 billion leveraged buyout deal for UAL Corporation, the parent company of United Airlines, fell through.
Which word seems most familiar to todays markets? How about LEVERAGED.
Number 9, Number 9, History doesn’t repeat, but it often rhymes.
Which brings us here, to 2009. History can only be recalled in hindsight, but the number 9 sure has a ton of rhythm. And rhyme.
Peace

The Crash of 1869





