A novel model is presented of DNA-water interactions within the cell nucleus, proposing a mechanism for continuous self-reorganization of water structures around DNA. The model suggests that DNA sequences may imprint information onto water through stepwise shifting water layers. A key consequence of this model is the proposed prevalence of homologous sequence-specific adhesion of repetitive DNA elements, particularly transposons. In this, two identical double-helical DNA sequences stick to each other in head-to-head orientation via transverse water layers, without unwinding or separating their strands. This adhesion is proposed to drive perpetual dynamic chromatin refolding by pairing identical transposons to form large DNA loops and helices and thus create 30nm fibers and higher-order chromatin structures. Further, the model postulates the existence of a transposon code based on the positions of transposons in introns and intergenic sequences. This way positions of transposons are proposed to program chromatin refolding patterns. It is proposed that sequence-specific refolding dance of chromatin defined by transposons is a mechanism how the cell processes information, performs logical operations and ultimately, thinks. Predictions based on this structural model were tested using genome sequence data, revealing specific patterns in purine sequence distribution and nucleotide homology that provide preliminary support for the model. While largely theoretical, the model generates testable predictions. The potential applications of the proposed model include gene regulation, developmental biology, regenerative medicine and cancer research.