August 8, 1908 is the day Gann said he discovered his Master Time Factor.
The likelihood is he was being cryptic, as usual.
You have to remember that Gann sold courses back in the 1930's for as much as $5,000, equivalent to the price of a big house.
There is a significant cyclical signature in 1908 but it occurs in the spring.
I believe that is when Gann's discovery occurred.
Gann also used the word ‘square' and square-out frequently in his works.
However, I don't ever recall reading the word cube which is unusual since a true square is a 6 sided cube not a two dimensional square.
I think one of the riddles of 888 is that he is pointing to this cube factor and that 8 is symbolic of time since 8 is the symbol for infinity.
An 8 on its side is also a sinusoidal wave, ie two cycles of 360 degrees interlaced.
So a complete cycle is an up, down, up, down sequence of 720 degrees in effect.
For example the last major low was late January/early February 2016.
What happened two years later?
Interestingly the high close after the February '16 low was the week of August 8, 2016
Here we are two years and 720 degrees later.
It doesn't look like a low with most of the FAANNG's hitting new highs and/or hitting sinkholes in recent weeks.
Ditto many growth glamour leadership names.
This year August 8th sets up as a turning point for several reasons.
It is 180 days/degrees from the February 9 low.
On the Decennial Cycle, the week of August 8, 2008 was the last pivot high prior to the Lehman Crash.
In addition to being a math genius and market seer, there is evidence to indicate Gann had the gift of foresight.
He did forecast the panic in the fall of 1929 and WW2.
Is it possible that he was pointing to August 2008 as well?
After all, the crisis in 2008 was the worst since the 1930's with the Central Banks banning together to avert a depression….
On the EIGHT decade following the Great Depression.
Be that as it may, yesterday was a time/price square-out on the SPX as 2863 points to August 8.
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(click here to enlarge)
With the vast majority of market participants looking for a new record high on the SPX as a fait accompli, it may be that the perverse Mr. Market stops shy.
Maybe something, maybe nothing but curiously, yesterday's NAZ high was 7888…a lower high than whiplash high in late July.
Oil got hit hard yesterday breaking to new swing lows.
This may hold an important message for the market as the major square-out low in oil at 26 in February 2016 marked a major low in the SPX.
It is worth considering that this July's high in oil may coincide with a high in the leading NDX/NAZ.
Oil topped in July at my 73-74 square-out and has never gone higher.
This high follows the Decennial Cycle to a tee with July 2008 being the all time high in crude.
So oils slide yesterday may be a canary for the stock market.
This years high in oil was 50% of the 2008 high in oil…just as this years SPX high has been 100% higher than the key 1440 level from 2008 shown in this space recently.
1440 was the pre-crash pivot high in 2008.
When 1440 was cleared in late 2012 it was the gateway to new all-time highs and the beginning of a persistent advance.
The SPX spiked to the 2863 square-out level on Tuesday and went sideways the rest of the session with Wednesday tracing out a mixed session in stocks and a narrow range day.
The narrow range day suggests an expansion in volatility within the next few sessions.
Conclusion.
Gapism punctuates the tape with Earning's Rocket's and Earnings Air Pockets whiplashing investors.
But more often than not, opening spikes on good earnings have been selling opportunities underpinning the distribution on the tape.
Whiplash on the tape often breeds complacency; when investors/traders can't navigate the volatility they get more passive riding out the volatility. After all wasn't that the lesion from the February shake-out?
It is important to remember that crashes come from too much complacency, not from too much bullishness.
The bottom line is there are many ugly charts out there even though the market is hovering at record highs.
Unless it's earnings related, there is little driving stocks.
Strategy.
The SPX tested the 20 m.a. on the hourly yesterday for the first time since August 2. Its behavior there will have a lot to say about whether 2863 and August 8 are important.
99.999% of traders have never even seen the Square of 9... let alone understand its potential.
Do you dare to be different?
