The Non-Randomness Of the Market As Defined By TSLA
“Such harmony is in immortal souls,
But, while this muddy vesture of decap
Doth grossly close it in, we cannot hear it.”
– William Shakespeare, The Merchant of Venice
“After exhaustive research and investigations of the know sciences, I discovered that the Law of Vibration enabled me to accurately determine the exact points to which stocks or commodities should rise and fall within a given time. The working out of this law determines the cause and predicts the effect long before the Street is aware of either.” W. D. Gann
There are few stocks that embody the heart and soul of speculative sentiment in recent years like TSLA.
TSLA set its all-time high in early September 2014 at 291 leaving a weekly Topping Tail in the process.
Following a 100 plus point decline into the end of March 2015 (180 days/degrees later), TSLA rallied to test the highs in June/July 2015 (90 days/degrees later) leaving another weekly Topping Tail.
From there TSLA mirrored the waterfall decline in the broad market into January/February 2016 (B on the daily TSLA below).
TSLA set a square-out low at 141 on February 9, 2016.
It was a time/price square-out because 141 is 90 degrees square early September, the all-time high in 2014.
The benefit of my Square of 9 Wheel is that it reveals a visual representation of when time points to price and when price points to time.
This is what is referred to as a ‘square-out' or balancing of time and price in keeping with the Law of Vibration which the legendary W.D.
Gann stated was the cause of all market movements.
From the 141 low one year ago TSLA exploded to 269 (90 degrees/days later).
252 ties to 2 full cycles of 360 degrees up from 141 with another 90 degree overthrow giving 269.
Approximately 90 degrees/days later, TSLA hit a pivot low in late June.
Note that 90 degrees/days from the August 1, 2016 pivot high ties to early November 2016 where a major low played out following an important pattern.
This pattern is 3 drives that tests/holds a major low. In this case that was the February 2016 low.
It is important to know that sometimes there is a 4th section or drive that completes the pattern.
3 drives to a low sets up the possibility for an Angular Rule of 4 Breakout over a 3 point declining trendline.
This is exactly what played out in December 2016 when a other meteoric rise in TSLA played out mirroring the move off the February 2016 low.
The current move has run 90 days/degrees—from mid-November to mid-February with TSLA hitting 287.39 last week before tailing off.
On the Square of 9 Wheel 287 is 90 degrees square mid-February and as offered TSLA left a weekly Topping Tail in mid-February.
TSLA turned the important 3 Day Chart down last week and tailed back up.
If the recent 287 high is eclipsed, the likelihood is TSLA will push to 300.
Why?
300 is precisely 2 squares of 360 degrees up from the mid-November 2016 low (178). Interestingly, 300 and 178 are straight across and opposite March 6th, the bear market low in stocks in 2009.
271 ties to 90 degrees down from high. TSLA is trying to hold that level.
255 ties to 180 degrees down from 287.
Strategy.
With TSLA testing triple tops from September 2014, July 2015 and April 2016, it will be important to see how TSLA, as the heart and soul of speculative sentiment, behaves over the next two weeks.
Conclusion.
As W.D. Gann stated, all major highs and lows are related in time and price. The geometry of the market telegraphs trends and turning points.
As you can see with the above example with TSLA, decrements of 90 degrees in both time and price often underpin trend. When time and price resonate or balance out, an important trend change is often on the table.
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