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Archive for the ‘W.D. Gann’ Category

In the segment of S&P 500 chart pictured here, the various swing points have been labeled. The movement from point I through J is equal to 123% of the quantity H to I. The movement I to J is 100% of J to K. The quantity K to L is 78.6% of J to K. The quantity L to M is 68.1% of K to L. The move L to M is 61.8% of K to L.

The S&P has been rallying during this Mercury retrograde period. How much more can it go? One possible answer is it can move up until it tests the point L. This will be a 61.8% move of the quantity K to L. Notice also at this time that price action is just poking above the 200 day average. The Fast Stochastic is now over the ’80’ mark. The coming few days after the Jan 16 MLK Day holiday will be crucial.

After reaching a high of 4808 at the start of 2022, it was a downward journey for the rest of the year. At least, to a casual observer, that is how it appeared. Looking deeper at the S&P behavior reveals something humbling. The declines on the S&P 500 were occurring in harmony with science and Nature. Consider the following chart segment of the S&P from early 2022. In particular, consider the move lower from A to B. The recovery attempt from B to C was an amount equal to 61.8% of the A to B amount. The move lower (C to D) was an amount equal to 78.6% of the A to B amount. The move higher (E to F) was 78.6% of the A-B amount. The substantial move lower F to G was 161.8% of the A-B amount.

What do these various numbers (61.8%, 78.6%, 161.8%) have in common? They are all Fibonacci retracements/extensions. The Fibonacci recursive sequence is 1,1,2,3,5,8,13,21,34,55,89,144…. Taking one of these terms and dividing it by the prior term gives figure that converges on 1.618. This is known in science and Nature as the Golden Mean. Taking the inverse of 1.618 yields a value 61.8%. Taking the inverse of the root of 1.618 gives 78.6%.

So while the price action of a stock, a commodity, or an index might appear to be random and nasty, peel back the layers of the veil and you will all too often find price moves that are in alignment with the Golden Mean.

Two bad puke-offs in 2 days on the S&P? What gives? The perennial optimists are saying this is just an orderly bit of profit taking. The screaming hot inflation data rearing its head around the globe US says something else is going on. Markets are getting afraid. An inflation-stressed consumer is a problem, especially when so much of GDP activity is consumer spending driven.

From my vantage point, I use technical astrology methods to try to spot turning points on the markets. While my work identifies a number of sensitive points each year that could deliver trend changes, I take a step back and look at the bigger picture. The bigger picture since March 2020 has been dominated by government spending and central banker liquidity injections. But that is changing rapidly. Central bankers are taking steps to drain the party punch bowl. Governments have all but stopped support payments to people economically affected by Covid.

Now the turning points I identify are taking on a new sense of urgency.

Venus and Mars are speaking in loud volumes. Both planets are at their minimum declination levels. When either one is at a declination max or min, there is potential for a trend change. When both at once are at a declination extreme…be prepared for some unsettling behavior, like the sell offs of the past 2 days.

Using Kaballah sacred math, I have learned to identify some Venus cycles across time. The end of each cycle holds potential for a trend change on equity markets. A key Venus interval is hitting right now! The starting point for the application of these Venus intervals is the March 2009 lows. Along the way, over the past 12 years, the accuracy to which these Venus cycles have aligned to short term trend inflections is staggering.

I also keep a close eye on the Bradley Model which was created in 1946 by astrologer Donald Bradley (a.k.a. Garth Allan). The following image shows that this model is pointing to a severe hairpin inflection right now! We could see prices weaken for the next couple weeks, provided central bankers do not step in to stop the damage.

If the market is to endure a sell-off for the next couple weeks, I say good! Bring it on! The major social trends that are in play right now are not going away. The move to Electric Vehicles will march on. The move to AI will move forward. New, faster chipsets will be created. Copper mining activities will not be curtailed. A good sell-off will present a new set of buying opportunities on stocks aligned to these future trends.

In my Astrology Letter, I go to great lengths to introduce readers to stocks poised to benefit from the major changes that are set to sweep society. In recent issues, I have highlighted the start of a shift to indoor agriculture and the entrenchment of DNA genome analysis in the health care sector. These are only two themes. I have much more to share as 2022 dawns. I do hope you will consider joining my growing list of subscribers at $20 per month.

When one develops the skills to apply astrology to the financial markets, the markets start to take on a rather different appearance. Levels of support and resistance come into clear focus.

The Astrology Letter is all about imparting skills to subscribers so that they can develop a new perspective of the markets. Take for example the Nasdaq Index. After some in depth research and mathematical investigating, what has emerged is the following chart. Suddenly, the Nasdaq does not seem so daunting. Astrology and esoteric math have created a roadmap of what to expect. This is exactly how WD Gann, Louise McWhirter, Evangeline Adams and others did in the 1920s, 30s and 40s in New York.

Learn their secrets. Learn to apply Astrology and esoteric math to the markets. Take your trading and investing to a whole new level. Become a subscriber to the Astrology Letter.

The above horoscope shows planetary positions on February 11, 2021 overlaid on horoscope wheel with the Asc at 14 Cancer and the MH at 24 Pisces.

Observations are:

• No planets in the 10^th House.
• There are no planets in the 1^st House.
• There are no planets in the 4^th House.
• Pluto is the lone occupant of the 7^th House (least important House).
• Saturn and Uranus are square (this is a serious McWhirter angle of interest).
• The New Moon is 90 degrees square to NYSE co-ruler Mars (un-favorable).
• Neptune is conjunct the NYSE MH point at 24 Pisces.

Interpretation of McWhirter requires some deliberation. One significant planet in the 7th argues for at least some pressure on the market. Saturn square Uranus argues in the negative. Neptune at the MH argues for pressure. Therefore, the month of March (or sooner) should see downward pressure on the market. How much pressure is the burning question.

From February 11 through to the next New Moon event, the Moon will pass by some key points of the horoscope. These key points are: the MH at 24 Pisces, the Asc at 14 Cancer, the planets in the 1st, 4th or 7th House, and lastly the position of Mars and Neptune which are the co-rulers of the NYSE.

Moon passes Neptune and the MH on February 13-14, Mars on the 18^th, 14 of Cancer on the 23^rd, and Pluto on March 8-9.

If downward pressure does not manifest itself, then we shall have further evidence that the Federal Reserve stimulus ($120 billion per month) is overwhelming the market structure. We desperately need at least a 10% correction to cool off the over-zealous behavior and to get stock prices back closer in line with fundamental ratios.  A 10% correction on the Dow Jones Average would fill a gap made back on Nov 5, 2020. Such a pullback (if it occurred) would be a 61.8% retracement of the October 30, 2020 to February 12, 2021 move.

To most people, price action on a stock is often regarded as a random event. Many years ago, W.D. Gann recognized that price action was not random. He realized that price action was related to the square root.

Take a significant price high (or low). Express that price as either a 3 or a 4 digit number. For example, $43.25 would be 4325.

Take the square root. Subtract 2. Re-square the resulting number. Repeat. Repeat. Each time, draw a horizontal line across the chart at the calculated price. If dealing with a significant low price as a start point, you will add 2 each time.

Take the significant price start point and take the square root. This value will be your time factor (in chart bars). Draw a vertical line at these intervals. For example the root of 4325 in round figures is 66. Every 66 bars on the chart, draw a vertical line.

Here is an example of Micron Technology (MU) using a significant high as a start point.

Notice how many of the subsequent high and low swing points touch (or nearly touch) one of the horizontal lines. Such is the harmony between price action and Nature.

Take a significant low point on a stock’s chart. Calculate the square root of that value after converting it to a 3 or 4 digit number. For example, suppose the low price was $3.00. Express that as 300 and the square root is 17.3, which can be rounded off to 17. From the low point on the chart, add a vertical line every 17 trading days (or have a software program do it for you).

Next take the square root of 300 and to that value add 2. Re-square the sum. Example, 300 root = 17.3. Add 2 gives 19.3. Squaring that value gives 372 or $3.72. Draw a horizontal line across the price chart at $3.72. Keep repeating this exercise and keep adding horizontal lines.

After some hard work, you will have something that looks like:

The above chart is that of Bloom Energy (NYSE:BE). Note the dark arrows on the chart. These are times when price action exactly hit a horizontal line. I did not add all the lines to this chart because I wanted to keep it clean looking. Of course, you have to also use things like MAC-D and a moving average to help with your decision making. But, the Square of Nine lines certainly add to one’s confidence. As for here and now, the MAC-D is hinting that it might wish to cross over negative. Meantime price is having trouble penetrating a horizontal line. A clear signal to be cautious.

This is exactly the type of material you will learn about through my Astrology Letter subscription. No subscriber is ever with me forever. Once people learn the basics of Astrology and learn how to apply it, they tend to move on and fly solo knowing that they now have some powerful astrology techniques to take their trading and investing to a new level.

Astrology is suggesting the next few years could be volatile. Volatility creates excellent trading opportunities, for those that are comfortable trading in and out of stock positions. Here is a sampling of what might be headed our way:

As 2020 ends, Saturn is now in the sign of Aquarius. With Saturn in Aquarius (enters the sign once every 29 years), the USA is entering a period of reform (educational reform, rights and freedoms reform, prison reform, and so on…). You have been no doubt following societal events of late, so you can envision as well as I can areas that are ripe for reform. Reform can cause divisions between those in favor of the reform and those against it. Division will make headlines on CNN and Fox. News headlines can move markets.

Starting in March 2021, Neptune will transit 180 degrees opposite to the Neptune location in the 1776 USA natal chart. Thanks to its slow movement and thanks to retrograde it will take into 2023 for the 180-degree aspect to fully conclude itself. Neptune last made a 180-degree aspect to natal Neptune in the time immediately ahead of the onset of the US Civil War. Having Neptune making this 180-degree aspect again along with the activity of Saturn and Pluto surely does not bode well. The start of this Neptune transit will be heralded by Mars moving 0 degrees to the USA natal Uranus and then natal Mars.

At the January 20th Oath of Office swearing in ceremony, Mars will be conjunct the USA natal Uranus and square the Jupiter/Saturn pair. Another less than positive sign of things to come.

Moreover, Mars and Uranus will be conjunct and also on the Ascendant a mere 30 minutes before the swearing in occurs. Sun will be at the Mid-Heaven (of course it will…it’s Noon after all) and Pluto will be with 5 degrees of the Mid-Heaven. Author and astrologer Frank Clifford goes so far as to suggest this all to be a sign of social rebellion and economic turmoil to come.

In early 2022, Pluto will transit conjunct to the USA 1776 natal Pluto location. Probably not a fortuitous event.

As Saturn eventually moves into Pisces (early 2023), the USA will be utterly chaotic and the potential for a revolution will be visible. Some of the early seeds for a potential revolution have already been sown in 2020.

In 2023, Pluto will ingress into the sign of Aquarius. Pluto will take 20 years to work its way through Aquarius. The last time Pluto was in the reforming sign of Aquarius was in 1778 when revolutionary fervor was at a maximum. So, in two-years time we will have Pluto and Saturn together in Aquarius which will prove unsettling.

In my travels, I recently came across an old book in a used bookstore that was all about planetary declination. So, first off – what is declination?

The planets orbit the Sun each in their own pattern but they are confined to a plane of motion called the ecliptic plane. As the planets orbit the Sun, they move up and down slightly relative to the ecliptic. This is what we call declination. Let’s say Mars was 10 degrees above the ecliptic. We would say Mars was at +10 degrees of declination. Let’s say Neptune was 5 degrees below the ecliptic. we would say it was at -5 degrees of declination.

Now, let’s take a look at planet pairs. Let’s say that on a given day, Mars was at +10 degrees of declination and Pluto was also at +10 degrees of declination. We would say that at that time, these two planets were at “parallel”. Let’s say on a given day, Jupiter was at +20 degrees of declination and Mars was at -20 degrees. We would say that at that time, these two planets were at “contra-parallel”.

Now, here is where it gets weird.Take a commodity – Gold, Cotton, Oil etc… Take a look at the declinations of the planets at the day in history when that commodity first started trading (the first trade date). Make a note of which pairs of planets were at parallel and contra-parallel.

Now, fast forward to here and now. Using tables of declination data (or a suitable software program), look for times when these very same parallel and contra-parallel events occur. Now, look at the price chart for the commodity. What you might see will shock you. All too often, sharp pivotal trend changes can be seen to initiate at the start or sometime finish of these parallel and contra-parallel events.

Now ask yourself – is this the power of Nature? Or, is this men in dark suits at hedge funds and investment banks manipulating the markets? If it is the latter – how evil-genius, brilliant of them. Very few people on the street are aware of declination. It is almost like declination is a timing mechanism and if people are unaware of it, then the men in dark suits will be free to swing the markets around to their benefit. The mainstream media will backstop the situation with their usual inept storymaking. ( …and in other news, the price of Gold was down today after blah, blah, from the Federal Reserve said blah, blah in a speech….).

So far, I am seeing a correlation between declination events and Gold, Cotton and Crude Oil. In the coming weeks, I will systematically look at all the commodities that I currently review in my Astrology Almanac. I would not be shocked to see the correlations extend across all commodities that trade in Chicago and New York.

When it comes to financial astrology, there is more to the subject than just planets appearing in certain signs. One must also be cognizant of the concept of declination, where declination is the amount (above or below) that a planet deviates from the ecliptic plane during orbit of the Sun. Think of the planets as race cars going around a track. Think of the race cars periodically rising above the track. That would be positive (or northerly) declination. The opposite would be negative (or southerly) declination.

Declination then opens itself to the notion of parallel and contra-parallel. Suppose two planets on a given day were both exhibiting positive declination. Suppose that on that day they were both at the same number of degrees of declination. That would be a parallel event. Suppose that two planets on a given day were experiencing declination – one positive and the other planet at negative declination. Suppose that at a particular day, one planet was at 12 degrees positive declination and the other planet at -12 degrees declination. That would be a contra-parallel event.

Consider now, some events involving Pluto and Jupiter that had significant bearing on the financial markets.

February 9 through mid-March, 2009: Jupiter and Pluto approached each other in declination, were at exact parallel (same degree of declination) on February 23 and then slowly drifted apart in degrees of declination until they were more than 2 degrees apart by mid-March. Leading up to this event, Gold prices had chopped sideways for 8 trading sessions prior. But, at February 9, a rally started that took Gold from $892 to $1004. Oddly enough, at February 23 when Jupiter and Pluto were exactly at parallel (the same degree of declination), the price of Gold peaked at $1004 and proceeded to fall all the way to year end where it traded at $867.

Significant price peak in Gold price August-September 2011: In 2011, Gold exhibited a massive price rally. But this all came to a halt in late August / early September 2011. I remember this time well as I found myself intrigued by the sudden failure of this rally that many were forecasting would take Gold to much higher prices. So what happened? Jupiter recorded a maxima point in its declination path is what happened.

May 19, 2012 through July 12, 2012: During this time span, Jupiter and Pluto were contra-parallel to each other. The price of Gold had reached $1800 in late February, 2012 before running out of steam. By mid-May, Gold price was back in the mid-$1500 range. On May 16, price recorded an inflection low point at $1526. What happened to trigger this? The answer is, on May 19 Jupiter and Pluto officially came into a contra-parallel declination setup. This contra-parallel event lasted until mid-July with Gold price thrashing about wildly. Price stayed firm and by the early days of October was setting up to test $1800 again. But, the price rally failed. Why? The answer is – Jupiter recorded another of its declination maxima levels.

January 1 through early April 2013: During this time span, Gold prices were trending lower and had been since Jupiter made its maxima declination in October 2012. Jupiter and Pluto were contra-parallel in the opening part of 2013. This situation ended in early April when their declinations moved more than 1.5 degrees apart. Just as contra-parallel was ending, Gold price exhibited a severe plunge from $1590 to $1321.

Late October 2013: Jupiter and Pluto briefly made another contra-parallel event in late October. Gold price was at $1361 at the date of contra-parallel, but could not hold. By year end (Dec 31 is the McWhirter first trade date for Gold), Gold prices had made an inflection low point of $1202.

June 17-July 20, 2014: Jupiter and Pluto were contra-parallel in declination. Two trading sessions ahead of the date when contra-parallel ended, Gold prices hit $1346. After this, prices steadily fell into November eventually hitting $1132.

June 17-July 20, 2014: Jupiter and Pluto were contra-parallel in declination. The 10 Year Treasury market drifted sideways to higher during this time. At the very day the contra-parallel ended, the 10 Year Treasury market recorded a peak and promptly proceeded to fall from 127.00 to 123.50.

And such is the power of declination. Whether the declination in and of itself is influencing mankind’s emotions or whether these parallel and contra-parallel events are being used to manipulate markets remains a hot topic for discussion. I am tending towards the latter idea…

There are software programs out there that will assist you in generating declination plots. In the absence of a software program, consider the data at the following link:

https://cafeastrology.com/declinationsephem.html