This is from the May 1996 Cash In On Chaos Newsletter.
I recently showed how the XGO chart for an individual often looked very much like the XGO chart of the market they liked to trade. Recall that XGO is a computation of the energy absorbed from the universe by a market or an individual. It can be computed for all time given the date of birth, incorporation, or first trade.
While discussing this with client JS, he asked me what Jesse Livermore's XGO looked like. Jesse Livermore is a famous trader written about in "Reminiscences of a Stock Operator", by Edwin Lefevre. It came as no surprise at all that Jesse's XGO looks like the S&P XGO. In fact, so does mine. But when I place my XGO and Jesse's together, they look like one line!
I can often "feel" a major top coming in the S&P. One of the best recorded "hunches" is Jesse Livermore's feeling that the market was about to break in 1906. The chart shows Jesse's XGO on the top line and the Dow Industrials on the bottom line. Jesse was on vacation, not intending to trade. He stopped by a brokerage office with a friend, and started selling. He couldn't explain why. That was at point A on the chart. He cut his vacation short and returned to New York. Then came the 8.6 earthquake in San Francisco, and a sharp market drop. Jesse CASHED IN ON CHAOS. He "felt it coming." His XGO was up along C, then down along D.
You have an XGO function too. See our product section to get a chart of it. Products & Services for Sale
Your personal XGO function can affect how you trade. Be sure to read about that in Why Johnny Can't Trade
The book is available from Fraser Publishing, 309 South Willar, Burlington VT 05402.
