Gann Master Cycle - Oct 7 2022
$DJIA, $SPX and $COMPX following the Gann Master Cycle
Introduction
The US Indices continued to follow the Gann Master Cycle. W.D. Gann called the Gann Master Cycle – The Great Cycle – The Master Time Factor. In his own words:
“This is the greatest and most important cycle of all, which repeats every 60 years or at the end of the third 20-year cycle. You will see the importance of this by referring to the war period from 1861 to 1869 and the panic following 1869; also 60 years later- 1921 to 1929 the greatest bull market in history and the greatest panic in history followed. This proves the accuracy and value of this great time period.” W.D. Gann Stock Market Course
Why did W.D. Gann call this a master Cycle? The seven planets - that our days of the week are named after- will return to approximately the same sign of the zodiac. So, you can imagine that the planetary influences may have a similar effect on our behavior and thus on the stock market. Themes in society every 60 years seem to repeat. Compare Russia Cuba missile crisis of 1962 with the current Russia-Ukraine crisis. The 120- and 180- year multiples are equally important as well.
This cycle can invert but not so often. It is 3x the Jupiter Saturn cycle of 20 years, discovered by Kepler in 1606. Since 2008 the correlation with past cycle amplitude deviates at times from 10-50%, probably due to inversions, hence the cycle forecast accuracy will deviate from time to time.
The last Jupiter Saturn conjunction was on December 20th 2020. It was Professor Weston who discovered that, in general, the stock market goes to maximum height when the distance between Jupiter and Saturn is about 18°. On Dec 24th 2021 Jupiter Saturn angle was on 18°, just 10 days before the DJIA and the SPX made their highs. He also published how the stock market evolved over a period of twice 10 years, which creates the decennial pattern.
Approximately every 19.85 years the Jupiter Saturn conjunction takes place. This creates the decennial pattern as each 10 years the pattern repeats from conjunct (0 °) to opposition (180 ° ) and from opposition back to conjunct.
Note: W.D. Gann’s had a similar idea based on the Moon North Node cycle, which completes a full cycle every 18.6 years. In his Financial Time table, he used a alternating sequence of 18 and 19 years to approximate the 18.6 years cycle. The Saros cycle has the same eclipse 18 years 11 days; the Metonic cycle has an eclipse as well every 19 years but not the same one.
This is why we follow the 10-, 20- and 60- year cycles that were part of our composite cycle forecast in our planetary harmonic models.
Apart from this we publish weekly the 60-year Gann Master Cycle forecast for the DJIA and the SPX which forecast is dynamically adjusted on a weekly basis. From time to time the 60-year Gann Master Cycle inverts, and when it happens it may then help to look at twice the cycle (120 year) as they highs and lows may alternate.
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 49-year cycle on the Nasdaq Composite. I also consider an alternative scenario based on geometry and measured moves. You 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.