“There is no logical way to the discovery of elemental laws. There is only the way of intuition, which is helped by a feeling for the order lying behind the appearance. The intuitive mind is a sacred gift and the rational mind is a faithful servant. God does not play dice with the universe.”
Based on my cycle work, at some point in time — sooner than most think possible — society and financial markets will convulse.
We have simply seen the first shot over the bow in a secular bear market.
The accumulated excesses created over the last 90 years will be wrung out.
Allow me to explain.
WD Gann wrote that he considered the Bible a scientific text and that his book Tunnel Thru the Air uses biblical concepts to demonstrate “the process by which man may know all there is to know, including the stock market.”
Gann also revealed in his coded novel, Tunnel, that his market predictions are based on “geometry and mathematics, just as an astronomer does, based on immutable laws… calculations based on the cycle theory and on mathematical sequences.”
I have come to understand and prove that the Square of 9 Wheel is the key to decode Gann’s novel The Tunnel Thru The Air.
Not too surprisingly, Gann makes no reference to the Square of 9 in Tunnel.
This is typical of Gann’s inclination to obscure and conceal his discoveries.
There are two reasons why Gann did this:
Firstly, as a student of the Bible, Gann believed that people needed to be seekers (“knock and you shall receive).
Secondly, Gann had private students and was selling courses so he didn’t want to give away all his discoveries to the general public.
For example, Gann writes in “The Tunnel” “it is not my aim to explain the cause of cycles.”
He gives us the pieces to the puzzle and points us in the direction to let seekers put the pieces together.
So, while there is no specific mention of the Square of 9 Spiral in “The Tunnel” Gann makes numerous references to “wheels within wheels” in the book, an allusion to the Square of 9 Spiral.
That said on page 331 of his Master Commodities Course, Gann refers to the Square of 9, saying: it is “important because nine digits are used for measuring everything. If we divide 360 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.”
Check this out:
Following the 1929 crash, the DJIA intraday bottom occurred on July 8th, 1932 at 40.56, right on this 40 degree point.
On my Square of 9 Wheel, 40.56 aligns with/vectors March 6-9th the bear market low in 2009 following the 2008 Great Recession Crash.
Consider that the first week of March is 180 degrees straight across and opposite the first week of September, the pre-crash high in 1929.
A high that lasted 5 squared years.
So the high prior to the Great Depression is straight across and opposition the low of the Great Recession 80 years or two cycles of Gann’s 40 years later.
You can’t make this stuff up.
Gann clearly gleaned from stories in the Bible that the 7 years of famine followed by another 7 years of plenty and the 40 nights and 40 days of the Great Flood, indicated a 360 degree revolution in time.
360 degrees divided by 9 = 40.
40 vectors/vibrates with March 21st…the Vernal Equinox and the natural beginning of the year.
This is the basis for WD Gann’s Master Time Cycle and the division of 360 degrees of time in years, months, weeks, days.
Consider that 360 weeks ties to 7 years.
Consider that 52 (weeks in a year) X 7 (days in a week) is 364 which ties to the number of days in a year.
W D Gann was the giant of Wall Street that discovered that the time factor discovers the behavior of markets.
Let’s take a look at the 360 division of time from this decade.
The seeds of discontent and rebellion in the Colonies was sown 360 years ago in the mid-1660’s preceding the Revolutionary War.
180 years ago starting in the 1840’s, the seeds of the Civil War were sown.
90 years ago when the dollar was good as gold and the U.S. was the biggest creditor nation on the planet the seeds of our Debt Bubble were sown.
The stock market top in September 1929 is past the half-way point of the year, therefore we “round” off and call the top year 1930 according to Gann’s methods. Using Gann’s counting methodology in starting the year after the Top or Bottom we get 2021 for a top. In dealing with major cycles it is always + or – 1.
The NAZ topped on November 22, 2021. The SPX topped on January 4, 2022.
Splitting the difference we get December 2021.
Gann wrote that the most money is made at the end of cycles.
This fits with the ramp up from March 2020 when many stocks went parabolic.
This underpins the notion that we are in a Secular Bear Market.
A geometric 120 years ago was the Rich Man’s Panic in 1903.
On November 9th 1903 the DJIA stuck a panic low close of 42.15.
Roughly a geometric 30 years later it traded to 41.
Never say never.
Where will the SPX be in 2032-2033 some 30 years from the 2002-2003 low of 768 as well as 100 years from the 1932 low.
The primary/internal low in November 2008 at 741 SPX ties to the 2002 low.
It was 7 years from the primary low in October 2002 to the secondary low in March 2009.
As individual investors and traders we must view the aforesaid societal and financial convulsion from a distance to gain perspective.
This is why I walked through the above big picture cycles.
In tandem with the idea of a secular bear market, gold and silver retain an explosive long-term upside potential.
Hit and Run nailed the low in precious metals n the fall of 2022 and the pullback low in March 2023.
Another buyable low is on deck.
Long term uptrends in precious metals are likely to dominate near term corrections.
We must be mindful of the possibility that we already in the heart of a dramatic Wave 3 launch to the topside.
Whether that ascent has already started or is around the corner is irrelevant based on the upside potential and that yes, once that advance ignites, it will be very difficult to 1) climb aboard and 2) to hold on.
Third of thirds wave gains in gold typically coincide with major macro-economic and/or geopolitical events.
This is consistent with the current backdrop.
Consequently, a downdraft in markets may not correlate to a downturn in precious metals.
Reports this week for Hit and Run members will update our current projections in gold/GLD and silver.
Suffice to say that a $100 up day in metals looms.
The big question is what will the metals do if the stock market gets hit.
Notably, while the precious metals dropped initially in 2008, they bottomed in October, five months ahead of the SPX.
GLD rallied from 66 to 186 over the next three years.
Turning to the SPX shows what looks like 3 Drives to a Test of a key region.
The midpoint of the closing range of the bear market is 4186.79.
This ties to the Breakaway Gap from August 22, 2022.
In summation, this is a big week with FANG reporting. FANG as an index was up 51% from the October lows into the end of the 1st quarter.
The above SPX shows what may be a Stein & Handle pattern from the early February high.
However, the 3 Day Chart turned down on Friday mirroring the turndown on April 6.
The implication is that the current structure of the SPX is not impulsive.
Breakage below a trend line connecting these two short-term lows at 4113, Friday’s lows, also ties to a rising trend line up from the March 13 lows opening the door to key support at the 4070 region.
However, since the SPX shows a full 5 wave rally up from the March 13 low, any impulsive decline from this juncture, 180 degrees/days opposite the October 2022 low warrants caution.