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Posts Tagged ‘Gann’

This is an excerpt from the April 5, 2024 Astrology Letter….

As more data centers embrace Artificial Intelligence, the additional computing power will require more electrical energy. Who generates this electricity? Is there an investment opportunity for us?

This week I had an inquiry from a subscriber asking if I could look at a few power generation utility stocks. Thank you for this….I wish I could get more inquiries like this….

The first thing that must be understood is that utility companies are regulated by state/provincial/local authorities as to how much they can charge consumers for electricity. As interest rates have risen thanks to Central Banks fighting inflation, investors have looked away from the dividends on utility stocks and embraced the rising yields on Treasury bonds. Utility stocks do not usually perform well when interest rates are rising.

However, Central Banks are now done raising rates. Rates may not come down quickly from here, but rates will not go up. We could start seeing utility stocks make a bottoming pattern soon. In some cases, certain utility-type stocks have just recently made a bottom.

In this issue I will take a look at TC Energy (Toronto: TRP), Duke Energy (N:DUK), and American Electric Power (Q:AEP).

TC Energy ( TSX: TRP): TC Energy owns or has an interest in 7 natural gas power plants, 2 wind projects, and a 48% interest in the Bruce Power nuclear plant in Ontario. In total, TC Energy has 7000 MW of electrical generating capacity. In addition, when it comes to natural gas pipeline distribution systems, TC Energy is the biggest player in Canada and also in parts of the USA.

Trans Canada Energy seems to function on long cycles of 401 weeks (blue arcs) and 597 weeks (red arcs).

Within these longer cycles, I am seeing smaller 79 week cycles (yellow arcs), and 22 week cycles (pink arcs – see chart on next page).

The 79 week cycle will end in November. The 22 week cycle will end in May.

This chart has been fitted with the Slow Stochastic trend indicator. Times when the Stochastic gave a buy or sell signal can be seen aligning to the action of the Moon relative to key points in the 1952 natal horoscope.

Here and now, the trend is drifting sideways to lower. IF price takes out the dashed purple resistance line shown at the top right of the chart, price will advance to possibly the $63 level (a Fibonacci 61.8% retrace of the 2022-2023 decline).

In the meantime, watch the Stochastic for a more attractive buy signal and for that buy signal to align to Moon passing a key point on the 1952 natal horoscope.

Note also – in the coming May-June timeframe, Jupiter will pass by the natal Moon. This should be a positive development. In the July timeframe, Mars will pass the natal Moon point. This should also be a favorable development.

The stock pays an annual dividend of $3.84 per share. At current prices, this is a 7.2% yield. The 2023 financial statements show that this dividend is sustainable and supported by earnings and cash flows.

Full disclosure to subscribers – I am getting ready to personally buy TC Energy on any  further weakness in price…..

Retail

Welcome to the March 15^th issue of the Astrology Letter.

This is a special issue with a focus on consumer retail. I am writing this special issue thanks to a request from a Canadian subscriber.

Using the Periodogram function (cosine mathematics), I have determined that Canadian Tire functions on 88, 101, 118, and 142 bar cycles on the weekly chart. The price chart above has been overlaid with these cycles. Notice that in April 2021, a 118 bar cycle ended. The trend changed at the time as well.

A counter-trend rally in early 2023 tried to reverse the trend, but ultimately failed. Here and now, Canadian Tire has retraced Fibonacci 61.8% of the move from March 2020 to June 2021. The trend still remains bearish here and now.

A Fibonacci 61.8% retracement of the move from 2020 to mid-2021 will put share price in the $127 range. Canadian Tire could be getting close to a bottom.

At current share price, one would be paying a little over $5 to buy $1 of operating cash flow. Analyst targets range from $120 to $195. The average analyst target is $152 per share.

Canadian Tire became a publicly traded company on Jan 2, 1944. The first trade horoscope has two unique geometric patterns embedded in it. Events of Sun, Mars, and Moon passing these key points could be of interest.

As I have suggested many times in my writing, back in the 1940s, the stock exchange authorities knew about astrology. Take a look at the planetary positions in the above horoscope wheel. Notice the green and yellow triangles. Together they form a shape called a “Merkaba”. In the Hebrew faith, this shape is called the “Star of David”. When you see unique shapes and patterns in a first trade horoscope, those shapes are no accident. First trade dates are carefully picked. This was very much the case in the 1940s.

The above chart has been annotated with several astrology events related to Sun, Moon, and Mars passing key points in the natal horoscope. No question about it – astrology is a good tool to navigate the Canadian Tire price chart.

A Fibonacci 61.8% retracement of the entire 2022 to 2021 move will bring the $127 level into focus.

If contemplating buying shares of Canadian Tire, watch for price to potentially bottom at the Fibonacci 61.8% retracement level of $127. Forward looking analyst targets are in the $120-$195 range with a $152 average

And….so….what did happen?, you ask…..

As the following chart shows, in mid-April Canadian Tire stock did hit $127 as I suggested it might. As price was probing the $127 level, Moon was passing the natal Mars point and shortly later the natal Node point.

George Bayer was a German immigrant who arrived in New York around 1900. He arrived well versed in astrology. Soon enough he had found a broker in New York whom he would use to enter trades on Chicago Wheat futures. In the late 1930s, he took the time to document the various rules and techniques he had used over the years to earn a living trading Wheat. In the early 1940s, Bayer “retired” and was seldom heard from again. Whether he knew W.D. Gann, he never did say in any of his writings.

The following is an excerpt from the Feb 25 issue of the Astrology Letter….

Venus latitude

The planets orbit the Sun following a plane of motion called the ecliptic plane. To an observer positioned on the Sun (heliocentric astrology system), the planets will be seen to wander slightly above and below the ecliptic plane. Bayer noticed a correlation between price on stocks and commodities and the time when Venus was at maximum latitude, minimum latitude, or zero latitude.

This chart illustrates Gold prices with Venus latitude displayed in  the lower pane on the chart. I have used the drawing tool on my Optuma software to overlay the times when latitude is zero. Do you see trend changes? Using your eye, take a look at the mid-way point of the red arcs. Ask yourself – does the trend change at these mid-points? Early April should give a trend change on Gold futures price.

And….so what happened? you ask…

Well….the trend on Gold went from being generally sideways to being seriously bullish. And this happened in early April just as Venus latitude reached a low point.

Thank You ! George Bayer – whoever you were…..

An excerpt from the Feb 10, 2024 issue of the Astrology Letter…

Search around the internet and you will find people promoting the concept of seasonality. The above chart of Wheat price is a typical example.

Look towards left side of this seasonality chart.

The suggestion is that Wheat prices will decline sharply every year in the month of March after having made a peak in late February/early March. Surely this must mean that here and now I should be planning to take a short position on Chicago Wheat futures once the month of March arrives?

Well….not exactly….

These seasonality charts are based on many years of price data. The above chart is based on 20 years of price data. Over the scope of 20 years, if several years posted strong declines during the month of March, those points would mathematically more than compensate for multiple years of modest or no significant price declines. Hence, the person viewing a seasonality chart at face value can be led astray.

As a trader or investor, how do you use these seasonality charts and at the same time stay out of trouble? The answer is to use some basic astrology.

The starting point for the application of basic astrology is to look at the first trade horoscope. In the case of Wheat, we need to study the natal horoscope for Wheat futures which started trading on January 2, 1877. (Note – Corn and Oats share this same first trade date).

The above horoscope wheel from Jan 2, 1877 shows the position of the planets. What is curiously interesting is how the Mid Heaven, Mercury, Pluto and Moon form a 4-sided parallellogram shape. I am convinced that traders such as W.D. Gann watched for bodies like the Sun, Moon, and Mars to transit past the corner points in this 4-sided geometric shape.

In 2023, the price of Wheat peaked on February 13. To the student of seasonality, this would have been unexpected because the seasonality chart calls for a peak at the end of February. So, why did Wheat peak in mid-February? At February 13, Moon was passing the natal Mid-Heaven point (and the natal Mars point). Mercury was passing the natal Mercury point in the 1877 horoscope. Two corner points in the geometric pattern in the 1877 chart! No wonder price peaked as human emotion changed.

More recently, in 2024, the price of Wheat had been trending down. In mid-January, a countertrend started but failed around Jan 24-26. Taking this to be the seasonal top, means the student of seasonality was once again tripped up because price peaked before it should have. Why did price peak in late January? Sun had just passed the natal Mercury location. Mars was passing the 1877 natal Ascendant point and Saturn was at the natal Saturn point.

The next time you see a Seasonal chart, do not just blindly accept the price turning points illustrated on the chart. The chart itself will be based on 20-30 years of data which gives a somewhat mis-leading view of things.

Instead, look at underlying planetary transit events that align to the natal first trade horoscope. These events will cause the seasonal price trend turning points to shift slightly from year to year. The strength of any planetary aspects will also play a role in the voracity of what price does at a trend turning point.

An excerpt from the January 30, 2024 issue of the Astrology Report …..

‘M’ Patterns

I will conclude this issue with a quick look at the letter ‘M’. Very often, topping patterns on a price chart will resemble the letter ‘M’.

The above S&P 500 chart is presented in monthly format. Sometimes taking a step back and looking at a monthly chart will reveal valuable information.

If the current leg of the ‘M’ pattern wants to extend by Fibonacci 1.382 X the length of the 2022 down leg, this implies a target of 5300 on the S&P 500.