Harmonic Lines that Intersect

W.D. Gann had many tools in his arsenal. One of the most powerful was what he called Planetary Transit Lines. This technique was made possible when he devised the Wheel of 24 which allowed him to connect price and planetary orbital time. Jeanne Long in her writings in the 1980s took Gann’s work and refined it a bit more into the Universal Clock. In 2012, Italian mathematician Fabio Oreste took matters one step further in his book Quantum Trading.  Oreste applied some basic quantum physics to the concept of Planetary Transit Lines. I am sure Einstein would be doing the happy jig if he were alive to day to see how quantum science extends to the financial markets.

Long story short – what one should be alert for are times when Planetary Lines intersect. These intersections all too often represent points of  trend change. Sometimes the trend change is big, sometimes small. In order to benefit from these intersecting lines you need to be comfortable using stochastics or one of the oscillator indicators. If the technical indicators are suggesting an overbought or oversold market and if there is a harmonic line cross apparent in the very near future you are then in the unique position of being able to capture a piece of the trend change either through an options spread or an outright buy or sell trade.

I recently posted a couple videos on my AstrologicalTrader YouTube channel which I encourage you to look at. (http://youtu.be/qS4w3yDWWdY)

I will wrap up this short blog piece with a chart of Corn futures on which I have overlaid Jupiter, Neptune and Mars harmonic lines. I have indicated on the chart the various intersection points. Take a look at them, take a look at what price did within a couple days of the intersection and I think you will see why they are such a powerful tool.

Now that I have the very efficient software program Market Analyst, I can quickly perform the overlay of harmonic lines. In each edition of my weekly astrology E-Alert (see http://www.investingsuccess.ca for details) I make it a point to profile various stocks, commodities and indices in the context of harmonic lines.

What will make you sit back in contemplative silence is when you start to see how often times these harmonic intersections also occur just as various astrological phenomena are occurring. We do not control the Universe. In fact, the Universe controls us and our emotions which in turn then influence the financial markets. W.D. Gann tried to explain this many years ago and now Fabio Oreste in his book Quantum Trading is reminding us of such yet again.

Russell 2000 Entelechy

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Of Jupiter and Megaphones…..

In a recent edition of my Astrology E-Alert I weighed in on the topic of the megaphone pattern which many market analysts claim to be seeing right now.

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Bulkowski in his  Encyclopedia of Chart Patterns defines the megaphone pattern as one in which there is 2 lower bottoms and 3 higher tops. Following the 3rd top, there can be a nasty correction often in the 30% range. The image above shows this pattern.

If we next look at the S&P500, the argument for a megaphone falls apart because the so called 3rd top has actually broken out of the formation.

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But, here is what is interesting. If one takes a measurement of the price increase on the S&P500 from the 2002 lows to the 2007 highs, that distance is about 819 points. The price rise from the 2009 lows to the current time is closing in on a Fibonacci 1.618 extension of the 2002-2007 move.

The story takes an added twist if one stops to consider the declination activity of Jupiter. Jupiter is a massive, slow-moving outer planet. It will carve out its declination maxima and minima slowly over about a 1.5 year time frame. From one maxima to the next maxima ( or from one minima to the next minima) will be 12 years. Curiously enough if one looks at these maxima and minima events, one will note that important market actions have aligned to them. From 2000 to 2002, Jupiter slowly registered its maximum declination. The North American equity markets peaked, sold off and bottomed in this time. From 2007 to 2009, equity markets sold off and made a critical bottom. From 2013 to present, Jupiter can be seen making a declination maximum. We have North American equity markets now at important highs ( many say too high for the economic fundamentals…). We further have the S&P500 at a critical 1.618 Fibonacci extension.

The entire subject of economic cycles is a fascinating one. I highly recommend the writings of U.K. economist Fred Harrison. He talks about the 18 year economic cycle (which in my opinion is the McWhirter 18.6 year cycle). He notes that in every cycle there is a period of attitude adjustment which comes about 7 years into a cycle. We are now approaching that point in the current cycle.

So…adding up the evidence leads me to conclude that: (1) the economic fundamentals are decent, but they could be a whole lot better. (2) Jupiter is making its declination maximum which in past has aligned to significant market action. (3) The S&P500 is making a Fibonacci 1.618 extension. I would say we are headed for a corrective phase of some sort on the equity markets. Once this correction runs its course, the remainder of the economic cycle will play out. The latter parts of these 18 year cycles are usually the most powerful. We could well see the S&P500 correct and then go on to make serious new highs in the coming years. But…caveat emptor…the current cycle will probably peak in 2023 and make a sickening completion low in late 2026 ( with a Jupiter declination maxima).

 

 

 

Wheat and its natal Sun

In a recent edition of my Astrology E-Alert, I included some comments on Wheat futures. In particular, I noted…..

Wheat futures started trading for the very first time (the “first trade date“) on January 2, 1877. At that date, Sun was at 12 degrees of Capricorn. This is what is then called the “natal Sun position” for Wheat.

As transiting planets pass the natal Sun location, turning points can be seen often on Wheat prices. The following chart illustrates monthly nearest price action on Wheat futures.

Note that in early 2008 as Jupiter was passing the natal Sun position, wheat made a significant price high. Jupiter will again pass natal Sun 6 year from now in 2020.

Notice that in 2012, a rally in Wheat prices was halted as Mars passed through a 90 degree aspect to natal Sun. Mars is again passing 90 degrees to natal Sun right now.

Note further that I have overlaid this chart with a large green wedge. Wedge patterns will always resolve themselves – either up or down. Wheat is at a critical juncture right now as Mars makes its 90 degree aspect.

In November 2014, Mars will make a 0 degree aspect to the natal Sun location at 12 Capricorn. Watch for a significant price development at that time too.

You will further note that I have overlaid this Wheat chart with Jupiter 1st order harmonic lines. I calculate my harmonics using the equation advanced by Italian mathematician Fabio Oreste. Study these harmonics closely and I trust you will agree with me that they seem to align to those events when significant aspects were made to the natal Sun.

Wheat is at a critical juncture. If you are a Wheat futures trader, watch for something possibly interesting to happen to Wheat prices in the coming week as the wedge pattern tries to resolve itself under the influence of a Mars aspect and under the influence of a Jupiter harmonic line……

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Mercury – Retrograde and Elongation

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In a recent edition of my Astrology E-Alert (see www.investingsuccess.ca) , I went into considerable detail for subscribers on the topic of Mercury. Here is what I discussed:

Traditional astrologers will tell you to be careful when Mercury is Retrograde. You can easily flip open the pages of your Ephemeris and read the dates when Mercury will be Retrograde. Traditional astrology says do not sign any contracts, do not start any major new projects, do not cross the street, do not get out of bed and so on….when Mercury is Retrograde.

Mercury does not orbit the Sun in a perfect circle. It is subject to the gravitational pull from the Sun. Hence, its orbit is more like that of an ellipse (oval shape). This means that in its orbital path, it will have periods of time when it is farther removed from the Sun.

These times of maximum elongation determine whether we can see Mercury in the morning sky or the evening sky . These maxima and minima of elongation from the Sun are also closely associated with Retrograde events and as such must be used in combination with the Retrograde events to properly interpret the markets ( or human behaviour for that matter).

In 2014, Mercury will make 3 cycles around the Sun and with each cycle there will be a time when Mercury is at its maximum easterly elongation from Sun and a time when it is at its maximum westerly elongation rom Sun.

These dates are: Jan 31 (easterly elongation) and March 14 (westerly) ; May 25 and July 12 ; Sept 21 and Nov 1.

Sandwiched in between these dates are the time spans when we mortals on Earth view Mercury as being Retrograde. The start/stop dates for Retrograde in 2014 are: Feb 6 / Feb 27 ; June 7 / June 30 ; October 4 / October 24.

The above chart illustrates daily nearest price action of Dow Jones futures so far during 2014. I have overlaid this chart with red boxes to show Mercury Retrograde events. I have also added arrows to show maximum elongation dates.

Note that the sell-off that gripped the market early in 2014 ended as a Mercury Retrograde event started.

 Note that the Dow peaked just as Mercury turned Retrograde again last week.

The conclusion that must be drawn from this study is that Mercury, its Retrograde and its elongation events, cannot be ignored when studying the equity markets. Somehow its orbital action has an effect on the human psyche and that effect manifests itself in buying and selling action on instruments like the Dow Jones futures.