Gann Master Cycle - Oct 21 2022
$DJIA, $SPX and $COMPX following the Gann Master Cycles
In Shakespeare's 'Julius Caesar', where Brutus talks to Cassius there is a saying:
“There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune”.
We are probably all aware of the waves in our lives, at times when there is good fortune and times when we lack good luck. There seems to be a tide in our affairs. What may be causing this?
Years ago, in 1983 Jim Sloman lived around the beach of California and as a trader notices the relation of ebb and flood of the sea and the stock market highs and lows. Based upon his observation and in discussion with Welles Wilder they developed the Delta Phenomenon theory. We all know that ebb and flood is due to the gravitational forces of the Sun and Moon upon the earth. There is a cycle, a season when these forces are the greatest, and you could measure it through for e.g. the tides. As our bodies consists of a approximately 60% of water, you may imagine that the gravitational pull of the moon (like on the sea) may have an effect on humans as well. The term ‘lunatic’ is derived from this effect of the moon (Luna). You may want to read some research around this phenomenon as well.
Apart from Jim Sloman, later on in 1996 Arnold Lieber published a book “How the Moon Affects You” and Robert Taylor published a thesis “The Taylor Effect” documenting the effect of the gravitational pool of the Moon and the Sun on the Stock Market highs and Lows. He documented this in his book Paradigm in 2006.
Looking at this year’s Stock Market Indices the highs and lows seems to correlate with the tides. I have used the Reedy Point station tidal information as this is a harmonic point in longitude and latitude that seem to work best as it is the closest point to the USA Stock exchange and that of the rest of the world.
In above chart(s) you can clearly see, on the low tides that the lowest gravitational pull was a high in the stock market and the highest gravitational pull (high tide) was caused around June 14th (which was a low just a few days later in the stock market) and around September and mid-October (which may be the secondary low for this year in the USA stock market).
There are other factors as well that may have an influence on how we behave on the stock market. Anomalies can occur and with many uncertainties brewing around the war in Ukraine we have to stay cautious.
However, from now on the gravitational pull until the end of year will diminish and this may help for a rebound in the USA stock market.
The premium subscribers can read further from here and find the latest Gann Master Cycle dynamic updates for the DJIA, the S&P 500 and the 49-year cycle on the Nasdaq Composite. Our premium can review an updated list of stocks from the S&P100 which stocks may have a cyclical turn in the next few weeks in this post as well.
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.