By: Jeff Cooper

Hit and Run Morning Stock Report: April 12, 2023

The Tension Is on the Tape

“Time Is More Important Than Price”
-WD Gann

“Synchronicity: A meaningful coincidence of two or more events where something other than the probability of chance is involved.”
-Carl Jung

Gann’s consummate books on the stock market is 45 Years In Wall Street and How To Make Profits in Commodities.

The common feature of both books is their emphasis on the importance of anniversary dates and seasonal tendencies as the following quotations reflect:

“My object in writing this book 45 Years In Wall Street is to give you some new and valuable rules on time periods which will help to guide you in determining high and low prices in the future. In my research work I have discovered that stocks make an important change in trend in the months when they reach extreme high and low. These are what I call anniversary dates, and these important dates should be watched each year for important changes in trend.”

“It is very important to watch the date when an individual commodity makes extreme high or low. The first important time period to watch from any anniversary date is the third or fourth month, then around the sixth or seventh month. Where many important tops and bottoms are reached.”

The esoteric meaning behind these statements is that certain points on the zodiac relate to specific stocks and specific commodity markets. The sun is unique amongst the planets in that it completes one revolution of the zodiac every year.

Moreover ,on any given day of the year the sun is in exactly the same position in the zodiac as it was on that day one year earlier, 10 years earlier, or 100 years earlier. Consequently, the sun will aspect a particular point on the zodiac on the same day every year.

This is The Cause of seasonal tendencies in the stock and commodity markets. This is The Cause of all seasonal tendencies on Earth.

The important point to note is that Gann emphasized the seasonal tendencies in the stock and commodity markets to encourage his students to think about and to identify The Cause.

The Cause is the position of the planets and in particular their angles to a specific point on the zodiac.

Before you think you need to become an astrologer, it is important to know that Gann stated that math is more important than astrology.

For example, the illustration on the back cover of Gann’s coded novel The Tunnel Thru The Air shows two sets of interlocking squares stretching to the horizon.

There is always a major and a minor cycle operating concurrently. This is the tension on the tape.

In this illustration, the squares in the sky symbolize astrological squares or aspects (when the planets form an angle of 90 degrees to each other).

The squares on the earth symbolize the unfolding price action of the stock and commodity markets in the form of interlocking price squares.

Here Gann is illustrating the age old saying, “As above, so below.”

We have natural or geo-cosmic cycles and market cycles.

There is much symbolism regarding their being two squares. Something I go into with consulting students.

But for the moment consider that when you place the corner of one square at the center of another square and then connect the corners you have a cube, a true square.

Allow me to explain. In 2005, I created a DVD called Unlocking the Profits of the New Swing Chart Method.

It was in doing research for this seminar that tracks all the major swings in the SPX from 1941 that I noticed how many moves of 540 degrees in Time and Price there were.

I used to think a full cycle was 360 degrees until I actually measured the price and time moves over that 64 year period.

A 540 degree price move is 360 + 180 degrees.

A 540 degree move in time is 1 ½ years or 18 months.

May 2023 is 18 months from the NAZ high in November 2021.

July 4, 2023 is 18 months from the SPX high in January 2022.

540 degrees is relevant because a cube has 6 angles of 90 degrees with 90 X 6 being 540 degrees.

Think of the symbolism of how you create a cube by placing the corner of 1 square in the center of a second square.

In essence. this is an Eclipse of one square over the other.

I bring this up now because we have a Solar Eclipse on April 20 and a Lunar Eclipse on May 5.

These two eclipses coincide with the  Lehman Brother’s pre-crash high in May 2008.

A 15-year Anniversary.

Gann thought the period around eclipses tend to magnify price moves.

As shown several times in this space, April 1930 and the supposed mother of returns to normal was 93 years ago.

I think it is significant that on my Square of 9 Wheel, the number 93 is square April’s eclipse.

Yesterday we took a look at the synchronicity of time/price vibrations from 349 (3490 SPX), last October’s low and showed the synergy to April 11, yesterday.
Now let’s take a look at the significance of 4818, the all-time high.

Moving the decimal point to work with the Square of 9 Wheel we see that 481 aligns with May 17.

May 17 is the birth of the NYSE.

It was also the pre-crash Lehman high in 2008.

April through May looks momentous.

An hourly SPX shows the pivot at the 4070 region.

This is where a micro triple bottom (red) intersects with a trend channel (blue) from March 13th.

Underscoring the significance of 4070 is that today, April 12. “points” to/aligns with 4070.

A square of 9 below shows that 407 (for 4070) vectors April 12.

The index is coiled at resistance as shown in yesterday’s daily SPX.

Yesterday the SPX left an NR 7 Day, the narrowest range in 7 Days. These contractions in volatility are usually followed by expansions in volatility within a few days.

With the 4070 “vibration” perched below and today’s CPI, it would not be surprising to see the SPX magnetized to this 4070 pivot should the CPI be “hotter” than anticipated.

Breakage below 4070 over the coming hours/days opens the door to the 4000 region.

This is where there is where the 20 and 50 week moving averages “pinch”.

Will the SPX be magnetized to this weekly 20/50 Bowtie?

The SPX 3 Week Chart turned up last week.

If the trajectory is lower in the near-term, this turn up of the 3 Week Chart should define a high.

Last week’s low is 4069.84.

This week’s low is 4072.55.

There is a lot of synchronicity pointing to this 4070 pivot…today.

Happenstance?