By: Jeff Cooper
Hit and Run Trading Morning Report - October 16, 2023
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Sword Of Damocles Cycle
In May 1990 a friend sent me a small pamphlet he found in an old book store.
It was about the secret trading methods of W.D. Gann and had no author.
In the last chapter it mentioned an age or eon being 22,228 years.I thought this an unusually specific number and also thought it strange because I always had heard an age or eon was close to the precession of the equinoxes or near 25,000 years.
I divided 22,228 by 360 for a circle or cycle and got 61.74.
Rounding gives you the Fibonacci golden ratio of 61.8.
On a hunch I took 22,228 days from the 25 year top of September 3, 1929 and got
July 13th, 1990. Friday, the 13th.
The SPX went slightly higher on Monday July 16th 1990 and then started a collapse, dropping from 369 to 294 on October 11th---a 20% decline.
Checking an astrological ephemeris shows that on July 14th, the big planets Jupiter, Saturn and Uranus were at 22 degrees, 22 degrees and 8 degrees respectively.
22, 22, 8---mirroring the number of days from September 3, 1929.
You can’t make this stuff up.
Of course on August 2nd, 1990 Saddam invaded Kuwait, the lead-in to the Gulf War.
The aftermath of the Gulf War started the modern cycle of Islamic Terrorism which led to 9/11 in 2001---11 years later.
Another 11 years is 2012 where the SPX struck a low that led to the breakout above the 2007 high
Another 11 years is 2023..
A Biblical 33 years from 1990 is 2023.
This shows a link between 1929, 1990 and potentially 2023.
This further underscores the synchronicity between 1929 being 94 years ago and 94 pointing to July 14th on the Square of 9 Wheel---July 13/14 being the pre-crash high in 1990.
If this cycle exerts its influence, there is a declining bottoms line connecting the 2002 low and the 2009 low that comes in at around 450-500 SPX anytime in the next few years.
This mirrors the bottoms line connecting the 1916 and 1919 low that ‘caught the crash’ in 1932.
Interestingly, it is 7 years from 2002 to 2009 with another 7 years defining the low in 2016.
Another 7 years gives 2023.Just as GLD weeklies Jackknifed back above the plunge on the week of 9/25, so too, if the SPX knifes back below the large range reversal day of October 6th, the likelihood is it will be telegraphing a crash, be it an elevator or an escalator.