Making Sense of Time & Price

“There’s a blue bird at my window

I can’t hear the songs he sings” – Guess I’m Doing Fine, Beck

“We put thirty spokes together and call it a wheel; but it is on the space where there is nothing that the utility of the wheel depends.” – Carl Jung

“I know that there is a reason for everything. Perhaps at the moment that an event occurs we have neither the insight nor the foresight to comprehend the reason, but with time and patience it will come to light.” – Brian Weiss

Richard Nisbett wrote a book entitled The Geography of Thought: How Asians and Westerners Think Differently.

His inspiration for the book was a comment by a Chinese student who said to him, “You know, the difference between you and me is that I think the world is a circle, and you think it’s a line.”

This reminds me very much of the concept behind the Square of 9 Wheel, which is a way to measure things in a logarithmic natural spiral progression — Archimedes Spiral or the Fibonacci Spiral — versus a straight line.

The Square of 9 Time & Price Calculator reveals turning points when time and price meet or square-out.

W.D. Gann wrote that when time and price square-out to expect a change in trend.

This is an important concept to understand to grasp the idea of time and price squaring out.

If as Einstein said, time is curvo-linear versus straight, then time comes back to price and when time and price “meet” again. Time and price can be said to be one and the same at certain junctures.

Richard Nisbett quotes the student: “The Chinese believe in constant change, but with things always moving back to some prior state. They pay attention to a wide range of events, they search for relationships between things; and they think you can’t understand the part without understanding the whole. Westerners live in a simple, more deterministic world, they focus on salient objects or people instead of larger picture, and they think they can control events because they know the rules that govern the behavior of objects.”

Nisbett wrote that Asian culture has instinctively understood the cyclical movement of TIME.

In Western culture, we tend to think linearly, not dynamically. When we look at events, we try to reduce them to a single cause and effect. This thinking produces confusion when things do not follow that chosen path and false beliefs arise by not recognizing the world is a far more complex place. Things are never a single cause and effect.

There is a hidden order behind everything that is far more complex than meets Western eye.

I get concerned when I show folks the power of the Square of 9 Wheel because often they think that there is one deterministic target carved in stone.

There are no absolute reconciliations and correspondences and synchronicities with cyclical behavior (time and price are both cyclical… especially if you consider them as one in the same — when they “meet:) despite the fact that everything in the universe functions cyclically — brainwaves, heartbeats.

This is what W.D. Gann referred to as the Law of Vibration.

One must make mistakes in order to gain knowledge and one must be in the game a long time to learn the twists the market throws at us. There are vibrations (harmonics) and then there are vibrations. What I am saying is the #1 golden rule of the market is that it can do anything. One cannot assume a date or a price is written in stone. Concern yourself more with the reality of the setup and let it tell its story rather than insisting on knowing the outcome by having a target price or a target date.

Having a projection is different than a “target.” It is the BEHAVIOR around a presumed cycle turn date or price region where the market tells its tale.

With the above in mind, let’s go down the rabbit hole and take a look at something that presented this weekend.

Since we’re in the Fall and we had a blow-off (at least for the time being) into early September a la 1987 and 1929, let’s see if there are any “vibrations.”

From the 1929 crash to the 1987 crash was 58 years.

From the crash in 1987 to 2020 is 33 years.

The Square of 9 below shows that 33 aligns with October 8.

Notice that 33 (red) is square October 8 (green).

In addition to aligning to the last pivot high in October 1987 when extreme selling pressure presented itself, this early October period also was the bear market low in 2002 and the bull market top in 2007.

This is a dynamic time period.

This sets up a possible vibration for this week.

The Square of 9 below shows that 58 is square October 29.

Red is 58
Green is October 29

The big crash in 1929 was on October 29.

58 years later off this vibration with October 29, the market crashed in late October 1987.

As this week vibrates off 33 years ago and the 1987 crash, the takeaway is there is potential for an abrupt turning point.

Likewise, this October is 91 years from the October 1929 crash.

The following Square of 9 shows that 91 is square November 5/6… just a few days after the election.

Red is 91
Green is Nov 5/6

In the last week or so, the market has shrugged off rising cases of Covid and new lockdowns.

It has shrugged off the White House being a “Super Spreader” of the virus and Trump becoming infected.

It has shrugged off the lack of a stimulus bill in the face of rising outbreaks.

It has shrugged off an air-pocket in tech with several glamours exploding to challenge or exceed their early September highs

Names include ENPH, SQ, CRWD, TWLO and FVRR to mention a few.

In the following daily NAZ, I connected the February high with the September high.

Paralleling a line off the March low (not shown) gives the low 8000 region.

A mid-channel comes in at 10,000, which ties to the February high.

The red trendline connects the February high to the August high 180 days/degrees later.

This is the breakout point that perpetuated the final fling into September 2.

The bottom of this region is where resistance resides.

If the NAZ is rejected from the 11,300 area, it suggests a right shoulder of a Head & Shoulders top may be on the table.

That puts the level represented by the green line and the September 24 low in the cross-hairs.

Breakage below the September 24 low issues a projection to the 9000 region, snapping the mid-channel and opening the door to the 8000 region and potentially a round trip to the March low if the wheels come off.

The talented Mr. Market is like a chameleon. He can shrug off a lot of uncertainty until all of a sudden his complexion changes.

Of course, as a Republican, Powell knows that the market is Trump's bell-weather and may have its hand on the till.

What if the market flies through October and market participants heave a sigh of relief going into November — at exactly the wrong time?

Is it possible that after the election, no matter who wins, the Fed stands back and lets the market go where it wants to go?

What a concept.

In sum, there are a lot of synchronous anniversary dates the market has to chew through to get through this fall… anyone of which could see the plug get pulled.

“Synchronicity is an ever present reality for those who have eyes to see.” – Carl Jung