Sorry!! The article you are trying to read is not available now.
Politics And Regulation
Trading And Investing
How To Trade
How To Invest
Wall Of Worry
Hoofy & Boo
From The Buzz & Banter
MV Education center
t3 live subscriptions
Buzz And Banter
Cooper's Market Report
The Options Strategist
Is the Market Swirling In the Eye of a Hurricane?
September 19, 2012 01:40 PM
Editor's Note: The following is a free edition of
Jeff Cooper's Daily Market Report
. For a two-week FREE trial of his daily commentary and nightly day and swing trading picks,
Signals curling on an open plain, rolling down the track again
See The Sky About To Rain
There is a lot of folklore associated with legendary trader W.D. Gann’s claim of seasonal significance related to the Equinoxes and Solstices.
Today, Art Cashin noted and quoted some of Paul Montgomery’s thoughts regarding the Autumnal Equinox.
To paraphrase some of the comments:
Gann reportedly claimed that capital and commodity markets tend to top on or around September 22 more than on any other day of the year. (This ties to the Autumnal Equinox).
This is the day which, according to ancient lore, the Sun enters its “Fall”, thereby reversing for a time the rising animal spirits, setting the stage for untoward events to unfold.
I walked through some of these cycles in this morning’s
Daily Market Report
, including the plunges beginning in October into November ahead of Nixon and Reagan's Presidential election victories in 1972 and 1980, respectively.
Did the Autumnal Equinox light the fuse to October massacre of 1978 and 1987 (interesting numerological mirror images)?
What about the October smash in 1989, and the 1987 Asian collapse, or the LTCM debacle/rescue on September 23, 1998?
Additionally, gold and silver stocks made their all-time highs on September 22, 1980.
There was also a historic gold corner panic leading to a peak on gold on September 21, 1869.
Knowing of the panic and depression conditions that followed, in early 1929, W.D. Gann forecast ‘panicky conditions for stocks’ in the fall of 1929. He was keying off his master 60-year cycle.
Naturally, a 'true square’ or cube has 6 sides and one revolution or cycle of 360 degrees divided by 6 gives 60 degrees of time in whatever time frame you are looking at.
In my opinion, this is how Gann squared the circle. This is what the Square of 9 is -- a square or pyramid encircled like the Great Pyramid by 360 degrees.
Dow Jones Industrial Average
) topped on September 3, 1929 at 386, crashing to 230 into October 29 (230 ties to late October on the Wheel).
I belief the significance of the Autumnal Equinox stems from the fact that it is opposite March 21 and the Spring Equinox which for Gann was the true beginning of the year.
As Gann used to say, if you can locate ‘zero’, you can measure the market and determine its vibrations.
The significance of March 21 is revealed in that on the Square of 9 Wheel, 19 vectors or vibrates off March 21. And 19 squared ties to 360 degees and one full cycle or revolution.
So, the Autumnal Equinox is opposite zero or March 21.
More remarkable I think is the power of the Square of 9 Wheel itself which reveals that the DJIA high of 386 in 1929 vectors 1586, the 2007 high on the
In addition, both these prices vibrate or vector the first week of July, or ‘zero’ point, or the beginning of the U.S. by virtue of the Declaration of Independence.
Both these prices square early to mid-October as 386 and 1576 are 90 degrees from early to mid-October.
In the case of 1929, it indicated a crash.
In the case of 2007, it indicated a false new high in the eye of the hurricane.
Is it possible that the market is in a similar eye of the hurricane here where a perfect storm of an Autumnal Equinox options expiration, reweightings, and a quarter-end mark-up are swirling in a perfect storm prior to a critical election and a cliff that may not be entirely fiscal?
Get Jeff's commentary plus day & swing trading ideas each day with a
FREE 14 day trial to Jeff Cooper's Daily Market Report.
No positions in stocks mentioned.
See All Tickers »
More From Minyanville
Trading and Investing
MV Education Center
Buzz & Banter
Cooper's Market Report
The Options Strategist
Directory of Terms
T3 Live Subscriptions
Buzz and Banter.com
Ruby Peck Foundation
Terms and Conditions
Follow Minyanville on Facebook
Follow minyanville on Twitter
Follow Minyanville on Linkedin
Subscribe to Our RSS Feed
©2016 Minyanville Media, Inc. All Rights Reserved