The $VIX and the Gann Master Cycle

Is the $VIX confirming the Gann Master Cycle?

The $DJIA is still following the Gann Master Cycle.

It is remarkable that my annotations from July 7th 2021 are still accurate many months later.

Some of my followers posed the question can we expect a shallow or deep correction once a top has set in ?

So far this seasonal indicator did not deviate much (-0.02%) from the past. The correlation 0.94 is exceptional high since 2008, but amplitude does differ from the past. Times are different, social themes are similar but nowadays stock market information is available at the speed of light. Going forward amplitude will differ as well. Anomalies may occur and a greater cycle can cause inversions, contractions or extensions of the cycle we are following here.

Is the $VIX confirming the Gann Master Cycle?

The question I asked myself can we conform the expected Gann Master Cycle path ahead of us from a different view and using a different dataset as well. For example does the CBOE Market Volatility Index ($VIX) confirm the Gann Master Cycle going forward? This will probably also give a clue around the volatility to be expected form a different view.

So I did the analysis this morning. I love Sentient Traders software to do a quick analysis using the out of the box standard nominal Hurst Cycle model. Although my data on the VIX only goes back 30 year it did come up with an interesting model confirming the Gann Master cycle and a 10 year panic cycle as well.

If this Hurst analysis on the $VIX is correct there is a cluster of cycles going into a low at the end of December 2021, which is a probable high in the Stock market. We know from Jim Hurst: “the highs and lows of cyclic fluctuations are time synchronized” ¹.

This analysis seem to confirm the probable path of the much larger Gann Master Cycle and other planetary cycles I have been writing about in my thesis on Venus Retrograde (Rx) in one of earlier posts.

Conclusion

We will see what will happen as these forecasts are only based on a selection of cycles that seem to project a probable and future path of the Stock Market closely. However there is no guarantee that there are no other larger cycles that may interfere. So, always do your own analysis, trade the chart in front of you, be careful and read my disclaimer.

Have a good weekend to you all and take care!

PS: I am preparing a special publication: The Fiorente2 - Yearly Stock Market Outlook 2022. Stay tuned for further notices and let me know in reply of this post what you like to be included in this 2022 Stock Market Outlook. All my subscribers will get a discount for this publication.

Disclosure: No positions in the indices mentioned in this post at the time of writing.

1. J.M. Hurst “The Profit Magic of Stock Transaction Timing”, 1970, page 33.