Introduction
In last week’s post I mentioned the seasonal date of August 23rd as of importance to watch for a change in trend. The fractal highlighted seems promising, but further looking into this I noticed that the low of September 20th 2021 was even more interesting. Let’s dive into this.
W.D. Gann kept records on past highs and bottoms and following his example I do as well. I do not know how he did this without Excel, but I configured all meaningful highs and lows in an Excel database for future reference and finding relevant links to the past and future periods of interest.
In his course W.D. Gann also mentioned particular cycles in days, weeks and months in his courses. He in particular mentioned the fatal number “7”, and “49” (7 times 7).
“The number “7” is a fatal number referred to many times in the Bible, which brings about contraction, depression and panics. Seven times seven equal 49, which is known as the fatal evil year, causing extreme fluctuation.” W.D. Gann Commodities course
As there are 7 days in a week and seven times seven equals 49 days or 7 weeks, this often marks an important turning point. Therefore, you should watch for top or bottom around the 49th to 52nd day, although at times a change will start on the 42nd to 45th day, because a period of 45 days is 1/8 of a year. Also watch for culminations at the end of 90 to 98 days. W.D. Gann Stock Market Course
Yesterday, the market dived all of a sudden as in a panic everybody started to sell there stocks. I call it the 49 degree panic.
The 7th period, is often the period in which the largest moves and panics are seen. August 29th is the 7th anniversary of 49 days (49 weeks: 7x7 weeks). This is in the week that Uranus also started its Retrograde move and Venus is at a T-square of Saturn and Uranus.
This may all have caused the panic although some of you will argue this was caused by the Federal Reserve Chairman Jerome Powell on his Yesterday’ speech that he will continue raising interest rates in a way that will cause “some pain” to the U.S. economy until inflation is under control.
The above chart also contains an idea to find square outs in price and time on the square of integer or natural numbers. I have added the links (looking at weeks) to the first 7 squared natural numbers. The number eight (64 weeks (8x8) is due December 12th 2022 from the lows of September 20th 2021.
Of course the 20 and 60 year cycle also made important pivots around mid August 2022. Some other cycles like the 49 year cycle have different pivot points.
One can argue that the the recent August high is the end of an Elliott Wave 4 or C of some degree. But this is not yet confirmed with a move below the July low. So, there may still be room for a short term trend up before the decline in the fall of this year will probably set in.
In the past few weeks we have showed our premium subscribers that the current period into the next few months can be quite volatile. There are many planetary intersections that may cause quite some volatility and we have highlighted the most important date to watch for a possible change in trend.
For the SPX we publish in this week’s Newsletter a Gann inspired Planetary Harmonic Model (configured at the start of 2022), which shows the 10, 20 and 60 year cycles forecast into the end of this year (without any bias). If the past repeats again this may be a valuable reference for possible changes in trends.
The paid subscribers can read further from here on the above analysis in more detail and where we expect possible support in the next few weeks. In this post you also find the latest Gann Master Cycle dynamic updates for the DJIA, the S&P 500 and the Nasdaq Composite.
Each week we update the S&P 100 stocks in this post that are expecting cyclical turns in the next few weeks. This analysis showed that last Friday 69% of the S&P stocks turned into a bearish momentum.
Hypothetical or simulated performance based on past cycles have many limitations. Cycles can contract, extend and invert. Anomalies can occur. Hence, past performance is no guarantee for the future. No advice. Read our disclaimer.