The Delta Phenomenon or the Hidden Order in All Markets

196 Pages·1991·8.4 MB·English

by  Welles Wilder

PROLOGUE
I never thought, even in my wildest dreams, that I would ever write this
book ... much less publish it.
However, an almost unnoticed ad in a national newspaper in the sum-
mer of 1990 started a chain of events that resulted in the publication of
this book.
On the day the ad was published, two of the Delta Directors (from dif-
ferent parts of the world) called me regarding the ad. They were con-
cerned that the Delta secret, for which they had each paid $35,000 to
learn was out! •
One of them faxed the ad to me and I must admit I was shocked and
alarmed by what I saw. Someone (whom I shall call Gary Mackhan) was
looking at me, stating that he was offering a book for sale which revealed
the secret of "the most important discovery ever made about the
markets."
The ad layout and wording was almost exactly like the ad I had pub-
lished in newspapers and magazines all over the world in 1985 and 1986
regarding THE DELTA SOCIETY INTERNATIONAL. The picture of
George Marachal's chart ... the statement that the turning points on the
same two time frames could be predicted ten years or more ahead . . .
and even the accuracy ratings (slightly changed) were all as in my previ-
ous ad. I knew immediately that nothing on this planet but The Delta
Phenomenon could make the claims that were in that ad.
Not only was I astonished that someone was publishing a book about
Delta, but he had the audacity to use my ad to try to sell it!
First, I tried to obtain a copy of the book, but was told that it would not
be ready for three or four weeks. Next I tried to contact Gary Mackhan,
but was unsuccessful. Then I called an emergency meeting with my attor-
neys and we set out a course of action. We sent Mr. Mackhan a regis-
tered letter demanding that he cease immediately from publishing my ad
and expressed our fears that he was knowingly involved in an illegal
scheme that involved a breach of contract . . . etc. We also asked for
a book.
i
This book is published by and available from
LANOITANRETNI YTEICOS ATLED EHT
P.O. Box 128
5615 McLeansville Road
10372 CN ,ellivsnaeLcM
LANOITANRETNI YTEICOS ATLED EHT fo tnetni eht si tI
to publish and maintain the availability of
THE DELTA PHENOMENON
or
THE HIDDEN ORDER IN ALL MARKETS
in perpetuity.
.srallod evif-ytneves dna derdnuh eno si ecirp ehT
IMPORTANT NOTICE!
GNIDNEP TNETAP
The technique for utilizing the concept and underlying
gnidnep fo tcejbus eht si niereh desolcsid sa slairetam
patent applications. Such patent rights will be strictly
.srotaloiv tsniaga decrofne
©Copyright 1991 The Delta Society International
devreser era niereh slairetam dna txet eht ni sthgir llA
to the copyright owner. Reproduction of these materi-
als in whole or in part is prohibited without the written
consent of The Delta Society International.
We informed all appropriate magazines and newspapers that Mr.
Mackhan was about to be enjoined in litigation regarding plagiarism of
ni meht evlovni thgim da eht fo noitacilbup taht denraw dna ypoc da ym
the litigation.
.syenrotta ym htiw srettel degnahcxe ohw reywal a derih nahkcaM .rM
He admitted nothing and tried to defuse the issues. He would not send us
od ot dediced dah nahkcaM .rM taht detats yllanif dna koob eht fo ypoc a
more research and rewrite the book . . . whatever that means!
It was obvious to all involved that the secret was out and it was only a
matter of time until someone would try to capitalize on it. It was also obvi-
ous that one of the Delta Directors had broken his contract not to reveal
the secret.
I must admit that at first I was devastated by this turn of events. Then,
.epahs ekat ot nageb nalp a ,snoitpo eht redisnoc ot nageb I sa ,yllaudarg
First, I would obtain a patent on the Delta secret. Then I would write
evig dluow I .yteritne sti ni ti gnilaever koob reporp dna lanigiro ylno eht
back to the Delta Directors three-fourths of the profit from the book.
Although the book would fully reveal everything I had taught to each
ton dluow ti ,terces eht nrael ot orobsneerG ot emac ohw rotceriD atleD
.stekram lia rof stniop gninrut erutuf ro snoitulos evig
ATLED EHT fo srebmem eht ot tsurt fo hcaerb a eb dluow os od oT
SOCIETY INTERNATIONAL who get this information every year until the
year 2000.
The book would enable anyone who purchased it to duplicate the
no atleD rof tekram yna gnivlos ni enod dah I dna namolS miJ taht krow
poleved ot mih elbane neht dluow sihT .semarf emit atleD evif eht fo yna
-woH .tekram yna rof setad erutuf evig dluow taht smargorp retupmoc
-sid ton dluoc eh ,detnetap si nonemonehP atleD eht ecnis ,reve
.flesmih rof ti esu dluoc eh tub ... noitamrofni siht lles ro etubirt
2
ot sniag eht taht deraeppa ti erom eht ,nalp siht deredisnoc I erom ehT
everyone outweighed the losses.
The Delta members would continue to be the only exclusive group to
get the future Delta turning points and my monthly members letter
which maintains a constant update on all markets and points out the best
atleD mreT trohS eht tub lla no stekram lla ni gnipoleved snoitautis gnidart
eht meht evig dluow hcihw koob eht fo ypoc a teg dluow yehT .emarf emit
secret of Delta. They would also have the information on the Short Term
Delta time frame as shown in this book.
evah dluow ohw puorg evisulcxe eht eb llits dluow srotceriD atleD ehT
all the solutions to all markets that I had solved, for both stocks and com-
modities. They also would be the only exclusive group to have all the
future Delta dates on all time frames on all commodities and stocks as far
revo ,dluow osla yehT .emitefil rieht rof tnaw yeht sa erutuf eht otni
time, probably get back as much or more from the proceeds of this book
.yllaitini tsoc pihsrebmem rieht naht
detcetorp eb dluow ,srotceriD dna srebmem atleD eht ,spuorg htoB
(remain exclusive groups) by the patent. Obviously, the readers of this
yam osla yeht ,emit a roF .htrof tup snoitalever eht morf tifeneb lliw koob
become Members or Directors of the Society. However, the total member-
.detimil eb ot eunitnoc lliw pihs
To be brief, I sent a comprehensive report to each Director detailing
the action I had taken and was continuing to take against Gary Mackhan. I
dna reporp eht hsilbup dna etirw ot evoba deniltuo sa nalp ym tuo dial
only Delta book. I asked them to supply their comments and suggestions
.deecorp dluohs I rehtehw etov ot dna
tsomla saw etov ehT .detaicerppa yrev saw dna doog saw tupni riehT
.koob siht gnidaer era uoy yhw si tahT .suominanu
3
FOREWORD
saw htnom eht kniht I .3891 fo llaf eht ni llac enohp a htiw detrats lla tI
September.
I came back from a trip and among my calls to return was a call from
erom eht dedleif I os namolS miJ fo draeh reven dah I .namolS miJ eno
miJ ot llac eht denruter I noonretfa-dim drawoT .tsrif sllac tnatropmi
Sloman. My life has not been the same since!
Rather than trying to give you a history of what happened next, in the
following pages I have included the two brochures that I wrote in 1984 and
.sredart ot elbaliava YTEICOS ATLED EHT ni pihsrebmem ekam ot 5891
tsrif esoht deneppah tahw fo yrotsih eht revoc ylno ton seruhcorb esehT
.daer ot tuoba era uoy tahw fo weiverp kciuq a uoy evig lliw tub ,sraey owt
ni dehsilbup saw taht weivretni na dedulcni evah I ,seruhcorb eht retfA
the national magazine, TECHNICAL ANALYSIS OF STOCKS AND COM-
snoitseuq rewsna ot deirt I ti nI .eussi 6891 yraurbeF eht ni SEITIDOM
atleD ehT tuoba snoitseuq dna dnuorgkcab dna ecneirepxe ym gnidrager
Society.
.snigeb koob eht neht dna stnetnoC fo elbaT a si weivretni eht retfA
elyts lanoitasrevnoc nosrep tsrif lausu ym ni koob siht nettirw evah I
and I have tried to tell the story of how it all happened as I move through
the material. I believe this adds an element of interest and excitement to
the learning process.
laitnesse dna tnaveler ylno edulcni ot deirt evah I ,skoob ym lla htiw sA
.elbissop yaw esicerp tsom eht ni noitamrofni
To make it easier to read, I have often deviated from the grammatically
cibarA eht desu dna sdrow sa srebmun niatrec gnitats fo egasu tcerroc
numbers instead of word numbers.
4
...SI SIHT .STSYLANA TEKRAM & SREDART SERUTUF
EDAM REVE YREVOCSID TNATROPMI TSOM EHT
ABOUT THE MARKETS.
THERE IS PERFECT ORDER BEHIND THE MARKETS...
It makes no difference whether the markets are
stocks, commodities, or any other freely traded
markets. This perfect order is the basis of all
markets.
GEORGE MARECHAL DISCOVERED THIS FIFTY YEARS AGO...
eht tahw fo noitcejorp a werd lahceraM 3391 nI
stock market would do for the next fifteen years.
(See below.) George Marechal lived to be almost
deid terces sih ,deid eh nehw tub dlo sraey ytenin
with him. One man working alone in Chicago in
eveileb I tahw derevocsider 3891 fo remmus eht
.terces s'lahceraM saw
THIS SECRET HAS JUST BEEN REDISCOVERED...
ATLED eht fo srebmem ot elbaliava won si tI
snoitacilppA .)ISD( LANOITANRETNI YTEICOS
for membership are currently being accepted.
The top line of price fluctua-
tions is an actual reproduc-
neetfif dethgirypoc a fo noit
sa tsacerof tekram raey
calculated and drawn in
.lahceraM egroeG yb 3391
The bottom line of price fluc-
-woD lautca eht si snoitaut
Jones Industrial average from
1934 to 1948—the same fif-
teen years as projected by
Marechal.
rof ediw-dlrow nwonk si redliW selleW systems in use today utilize some of
his innovative and original concepts for Wilder's originally published concepts.
-ulover siH .smetsys gnidart lacinhcet
-da dnani stpecrnoC weeN ,koobd yranoitart evitca na si redliW .rM
Techndicnaal sTmraedtsiynsg gSnyidsatret mlacsi nish cleetg neon -rosiv
dary, in technical circles. FORBES methods. He has authored many ar-
MAGAZINE (Oct. '80) singled Mr. Wilder ticles on trading techniques and makes
out as "The premier technical trader appearances on radio and television
SEBROF ".yadot krow sih gnihsilbup programs. Around the world, there are
goes on to say, "For those of you who probably more traders using Mr.
,smetsys lanoitnevnoc eht lla nees evah yna naht sdohtem dna smetsys s'redliW
".trats ot ecalp eht si koob siht .enilpicsid elgnis rehto
Wilder's "Relative Strength Index" Mr. Wilder has presented his methods
gib ynam yb yliad derotinom si )ISR( and systems at technical trading
brokerage firms and is charted by most seminars in Asia, Australia, Canada, the
chart service.rsM f o.erp eoarucEh fcoo smlamtipoacd ietyh.t Hdnisa .S.U
"Directional Movement" system and Wilder's company, Trend Research,
evah metsys "ecirP/emiT cilobaraP" Ud., McLeansville, N.C. develops com-
sredart lacinhcet ot sdrowyb emocerebtupmoc dna smargorp gnidart retup
gnidart retupmoc tsoM .ediw-dlrow .koob sih setubirtsid dna ,erawtfos
evah uoy nehw tuB .yas ot tuoba ma I tahw ot "paceR etuniM enO" on si erehT
dna. . .hguorht siht daer dna nwod tis dluohs uoy ,setunim detpurretninu wef a
ot ediced uoy ton ro rehtehw )stekram yna( ,stekram eht dedart reve evah uoy fi
apply for membership, you will never forget what you are about to read.
For example, I am going to tell you that all markets are predictable. . . not just
the next intermediate swing or major swing, but all future major and intermediate
hguorht smottob dna spot rojam dna etaidemretni lla detaluclac evah I .sgniws
the year 2000 for all COMMODITIES, STOCK INDICES, FINANCIALS and
YTEICOS ATLED EHT fo rebmem a sa uoy ot elbaliava won si sihT .SEICNERRUC
INTERNATIONAL
HTURT EHT SI TI TUB ,EVEILEB OT DRAH S'TI esohc I yhw s'tahT .eveileb ot drah si siht wonk I
-xe rof. . .ytidommoc a kcip neht. . .raey a kciP three people to show this to...people whose in-
etaidemretni yreve trahc nac 1.4991 slliB-T ,elpma tegrity would not be questioned. On the back
.etuurrnt insgi t ip toaihntt naondit aecvifeirrey vm riaejohrt stui r,nrientgte pl osiinhtt tfhoa etgap
T-Bills will make in 1994. Or better yet, pick a
date. . .any date. . .say March 22, 1988. I can
punch that date into my Apple or IBM Computer
fo tuo-tnirp ypoc-drah a niatbo yletaidemmi dna HOW DID THIS THING COME ABOUT?
txedn elhut ,tnoiopc gnin rIut ettaaidemhretnti suhoivesrp iewht I .redliW selleW si eman yM
-ni gniwollof eht dna tniop gninrut etaidemretni ton m'I tub ,nonemonehp siht derevocsid I taht yas
termediate turning point. . .for every commodi- that smart. It all began with a phone call. It was
.esoohc I oiloftrop yna rof ro. . .yt the second week in September, 1983. The
:siht ekil tnew noitasrevnoc eht fo ecnesse
mret gnol eht htiw ksid margorp taht gnicalpeR
niatbo dna etad yna ni hcnup nac I .niaga ,ksid evah I .namolS miJ si eman ym ,redliW .rM"
mret gnol suoiverp eht fo tuo-tnirp ypoc-drah a discovered something about the markets that I
gninrut mret gnol owt txen eht dna ,tniop gninrut ".uoy ot tneserp ot tnaw
denimretederp yna ro seitidommoc lla rof stniop
"?metsyspo rgtfonliiod oaf rcto mam".o d.i ti.eds.eilper I ",ti si tahW"
-llor frus eht raeh dluoc eW .ekal eht dekoolrevo eht ni redro gnidnif ot hcaorppa ym saw sihT"
saw evitagen cihpargoloingh in .eht esoppuS .stekram
,kaeps ot os ,fI .noisufnoc ssam. . .stekram eht
.deksa I "?tnemtrapa siht teg reve uoy did woH" taht hguorht enihs ot resal thgir eht dnif dluoc I
negative, if there was order there, it would be im-
eht otni emoc ot em deksa eH ".suoivbo yletaidem
a ni gnivil saw I taht dezilausiv I" ,dias miJ
kitchen and sit down at the table. "Here is a regular
.nagihciM ekaL gnikoolrevo tnemtrapa lufituaeb
bar chart of the last nine months of the S & P's.
ylgnimees fo seires a hguorht ,retfa yltrohS
It's mass confusion. Now look at the same chart
accidental circumstances, it happened."
rof ti yduts tsuJ .trahc eht no noitcejorp siht htiw
a minute."
We were sitting in the living room chatting and
I was scheduled to catch the 5:30 flight back to
-loc htiw deyalrevo saw tI .trahc eht ta dekool I
Greensboro.
sdnoces evif tuoba koot tI .srebmun dna senil dero
-ees saw I tahw dneherpmoc ot ...em tih ot ti rof
"How long will it take to show me your
taht saw rewsna eht eveileb ton dluoc ylpmis I .gni
discovery?"
ym ekil . . .ewa fo esnes a tlef ylneddus I .elpmis
gnihtemos gniees saw I dna denepo erew seye
t'ndluow uoy fi tsrif tub" ,miJ dias ",gnol toN" -rep eht ekil tlef I .nees reve dah esle eno on taht
,gniht siht woh uoy llet ot ekil dluow I ,dnim son who had spent a lifetime searching for
kcab n".tuoba emwac ,ATLED o sih ni ti gnidnif pu dedne dna ,gnihtemos
ytilaer ot kcab em thguorb miJ ,ylnedduS .dray
"Is that what you call it, DELTA?" with a question.
a morf devired rettel keerG ae si AhTLEtD .sreYo" f tniop gninrut txen eht si erehw .selleW"
eht ot rood a esac siht ni ',rood' gninaem drow & SP's?"
drow eht em rof snaem osla tI .nwonknu
wef A .stekram eht fo sisongaid a ',sisongaid' "Why, it's right here," I exclaimed, pointing to
months ago I begaenru ttuhf ienhtk nini sgke eawb oowut ttu otbhae tr amhc aehrkt neot secalp a
ot detpmetta I .em rof tnereffid saw taht yaw a ni from the last daily bar. It was suddenly so clear
lla ni redro fo dnik emos saw ereht fi tuo dnif why it had to be there.
markets. I visualized the markets as being a
hologram. Do you know what a hologram is,
"Right," said Jim, "and obviously it will be a top.
Welles?"
Now where will the next bottom come after that
top?"
"Yes, a hologram is a projection in three
dimensions."
"Right here," I answered, feeling a spine-tingling
sense of wonder. It was obvious that I was shaken
"?edam si eno woh wonk uoy oD .thgiR" by what I was seeing. "Let's see some other
charts."
"No."
For the next several hours Jim explained the
thgil resal gnitcejorp yb edam si margoloh A" discovery to me. I looked at fifteen different bar
through a holographic negative. . .much like a charts of fifteen different commodities under the
photographic negativtIe .s.r eHbmouwn ednvae sre,n ili fd eoronloec sl'omoiJ kfos n oaittcejorp
eht taht redro nthae h osloagwrap heicr neehgattiv tea whitht nsourmoali vligbhoting s, ait w
-orp si thgil resal nehW .noisufnoc ssam ekil skool markets followed. Each turning point did not
jected through the negative, then the three dimen- necessarily come on the exact day that it should
si noisufnoc eht. ..sraeppa margoloh lanois have, but it was incredibly close. . . within two or
".redro tcefrep yb decalper redro siht tahw wenk I .sesac tsom ni syad eerht
"Marechal, by mathematical methods of his own, was the first to demonstrate that there is order
underlying the so-called random changes in price fluctuations. No professor at any university, no govern-
ment economists, have ever been able to produce a similar chart showing, as Marecnal's famous chart,
sA .daeha sraey 51 od dluow segareva kcots lairtsudnI senoJ-woD eht tahw ,ecnavda ni dethgirypoc
,secirp kcots fo wolf eht gnitaluger ssenilredro lacitamehtam siht fo selpmas rehto ynam fo eno
the writer received from this remarkable man, now approaching 90, several months before President
Nixon's election, an accurate prognostication of what the D.J. Industrial Average would do the day
".noitcele s'noxiN retfa
(Alan H. Andrews, Director - THE FOUNDATION FOR ECONOMIC STABILIZATION, Boston,
Massachusetts — 1969.) (Emphasis added.)
"The top line of price fluctuations is an exact reproduction of a copyrighted forecast as calculated
and drawn in late 1933 by George Marechal, formerly of Montreal, Canada. One of the original copies
lautca eht ,strap xis otni dedivid saw raey hcae sA .5391 ecnis noissessop s'rohtua eht ni neeb sah
gnikat yb sisab emas eht no woleb dedda neeb evah egarevA lairtsudnI senoJ-woD eht fo snoitautculf
the high and low for two month's periods."
liated ni semit ynam ssinr tekram eht fo nrettap lautca eht dna stsacerof fo nrettap eht ,ylraelC"
si ,tsael ta ,7491 hguorht 4391 morf sdnert eht fo erutcip daorb eht ,sselehtreveN .gnimit tcaxe dna
".ralimis ylbakramer
sserP flacteM ehT .161 .pp ,werD dleifraG yb TEKRAM KCOTS eht ni TIFORP rof SDOHTEM WEN(
).8491 ,noitidE degralnE — sttesuhcassaM ,notsoB —