By: Jeff Cooper

### Hit and Run Trading Morning Report - November 22, 2023

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### They Say It’s Your Birthday

"Take a cha-cha-cha-chance”
-Birthday, The Beatles

In 1927, W.D. wrote a coded novel The Tunnel Thru The Air Or Looking Back From 1940.

While Gann said the book veils a valuable secret, he only alludes to it on page 69.

To put the puzzle together we must refer to Gann’s Master Course where Gann refers to (again vaguely) the Square, saying it is “important because nine digits are used for measuring everything.

If we divide 360 degrees by nine, we get 40, which measures 40 degrees, 40 days, 40 weeks and 40 months, and shows why bottoms often come out on angles measuring one-ninth of the circle.”

In his course, Gann elaborates on the strength of the 180 and 360 degree angles, saying: the 360 degree angle is strong because it ends the circle and returns to the beginning degree, and because it is opposite the 180 degree---the angle that equals half of the circle. As summer becomes hot and winter reaches frigid temperature extremes, so too does stock market action reach volatile extremes.”

This is as far as Gann ever went to show the connection between the Square of 9 Wheel and the 360 degree angles.

Gann wrote voluminously. To allude to the Square of 9 just once tells you how important he thought it was.

This is because Gann had private students he taught charging as much as \$5,000 in the 1930’s, the cost of a house at the time.

For example, Gann wrote in “Tunnel” that “it is not my aim to explain the cause of cycles.”

He goes on to add that “the general public is not yet ready for it and probably would not understand or believe it if I explained it.”

This sounds a lot like someone not wanting to reveal something he was getting paid a fortune for.

Something valuable it took me years to grasp.

Gann taught us that the behavior or markets is subject to the “time factor” and the Law of Vibration and that] as the wisest man to live, Solomon, stated,  in Ecclesiastes 1:9 “What has been is what will be and what has been done is what will be done and there is nothing new under the sun.”

In a word, HISTORY REPEATS.

This is a cycle. In order to have a cycle you have to have repetition.

This Gann’s Law Of Vibration.

On page 69 in Gann’s Tunnel he states that the story of Jonah in the belly of the whale for 3 days and 3 nights  is the key to interpretation of the future, The Key Of Jonah.

You have to understand that Gann was a student of the Bible and believed it to be a coded book of cycles…just as was his novel The Tunnel Thru The Air.

Why does the Bible say  Jonah was in the belly of the whale “3 days and 3 nights”? Just as Jesus was in the heart of the earth for 3 days and 3 nights.

What is the symbolism of the whale? Gann understood this geometry of which the Fibonacci Spiral is based.

Why not just 3 days. Same thing.

3 days and 3 nights is a “vibration”.

3 X 3 is 9 as in the Square of 9.

9 is the number of completion.

It is the “last” number before we “recount”.

3 + 3 is 6.

Hence we have the numbers 3, 6 and 9.

“If you only knew the magnificence of the 3, 6, and 9, then you would have a key to the universe.”
-Nikola Tesla

If you divide the circle/cycle of 360 degrees by 3 you get 120 degrees.

Divide by 6 you get 60 degrees.

Divide by 9 and you get 40 degrees.

In turn dividing the circle of 360 degrees by 40 gives the 90 degree Square.

These are geometric time and price components by which Gann mapped the market.

For example, while the price low following the 1929 top was in 1932, the Bear market did not end until 1942.

40 years later was the Bear market low in 1982.

40 years later is 2022 and a Bull market top.

A Low to Low to High Cycle.

180 degrees or half this 40 years is 20 years.

1982 plus 20 years is 2002 and a Bear market low in October.

20 years back from 1982 is 1962 and a major low in October.

Because of this 40 year cycle, caution is warranted on a failure by the SPX to eclipse the July 2023 high as this would indicate that was a secondary high within the context of an ongoing Bear market.

For example, today we are 2 cycles of 360 degrees from the November 22, 2021 all-time high.

But you say, the SPX topped on January 4th, 2022

A daily SPX shows that November 22, 2021 was the internal high.

The market broke trend from that point, and essentially broke out for 1 day after that…on December 27th. The following days into January 4th were “throwaway days”.

The low in March 2009 was 666 SPX.

It is 663 weeks from that low to November 22, 2021.

It is 669 weeks from that low to January 4th, 2022 high.

If you split the difference you get 666 weeks from the 666 price low in 2009 defined the Bull Market top.

This is just one example of Time and Price equalization or squaring out.

When price along the X axis meets price along the Y axis of a chart, we have a “square-out”.

W.D. Gann said when time and price meet expect a change in trend.

The market exploded on October 30th, 2023.

From January 4h, 2022 top to October 30th, 2023 is 664 days which ties closely to the 666 “vibration”

Price low at THE BOTTOM on March 6th, 2009.

Time and price balance out today.

Why?

The all-time high is 481 (4818 SPX).

The most accurate tool for mapping the markets is called the Square of 9 Wheel. It shows that 481 is 180 degrees opposite November 22.

The Square of 9 allowed me to call the 2009 low to the day.

The 2002 low to the week.

The March 2000 top to the day.

The September 1, 2000 secondary top to the day.

The 2007 top to the day.

The November 21st crash low to the day.

The pre-crash high in 2000.

The March 23rd Covid Crash low.

The January 2022 top

The October 13, 2022 low.

I have been studying and working with the Square of 9 Wheel for 30 years and teaching others how to use it to profit in the market.

I never cease to be amazed by its power.

The Square of 9’s critical feature is that when pulled from the center, it morphs into a pyramid.

This square is a linear representation of a tree-dimensional l pyramid and its SPIRAL is a replica mimicking the shape of the Milky Way.

In sum, time and price are not linear but a spiral progression that repeats.

Stephen Hawking wrote that “…a model is good if it is elegant and makes detailed predictions about the future which can disprove or falsify if they are not borne out.”

As a forecasting tool, the Square of 9 Wheel is that elegant market predictive model.