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.
Although the mainstream media has not drawn the correlation yet (and likely never will), Finance may be at a critical tipping point.
This past week, the Nobel Prize Committee awarded the Nobel Prize in Economics to three people – Eugene Fama, Lars Peter Hansen and Robert Shiller.
Of course, Fama is well known to anyone who has ever studied for the CFA program. He is the creator of the Efficient Market Hypothesis (EMH) which posits that the markets are a random walk of sorts. The EMH also posits that market prices are a reflection of all available information. I regard the EMH as a total joke and if you stop to consider the tech bubble and most recently the sub-prime mortgage related bubble you may be inclined to agree with me.
By awarding the Nobel Prize to a group of three people, I think we are seeing a shift or a tipping point. Fama is being given a pat on the back for his years of hard work and is being shown out the front door. But a new school of thought is being quietly ushered in through the back door and that is where co-recipient Robert Shiller fits into the mix. You may know Shiller for the Case-Shiller House Price Index. But, there is more to him. You see, he is best known for his years of work on Behavioral Finance which dictates that human emotion and exuberance play a role in market volatility, bubbles and crises. The third co-recipient is Lars Peter Hansen who is being lauded for his years of work on econometric modelling.
I am right glad to see the field of Finance arrive at this tipping point. You see, the stuff that I blog about and the material in my 3 books is basically a subset of Behavioral Finance. Planetary aspects and lunar events influence our emotions which in turn influence price action across markets. The effects of this cosmic influence can be measured with square root math and with esoteric techniques such as the Golden Sequence. W.D. Gann understood all of this way back in the 1920s. But, sadly sometime in the early 1950s after the markets had enjoyed a post WW2 run-up, the academics took charge with ridiculous notions that included the Efficient Market Hypothesis (EMH) and Modern Portfolio Theory (MPT).
Thank You Nobel Prize Committee for a big step in the right direction.
I sincerely hope that going forward great strides can be made by psychologists, biologists and the like to enhance our understanding of how events in our solar system and human emotion connect to market price and investor behavior.
The image in this blog is a weekly chart of Apple (Q:AAPL). Gann lines have been applied to this chart using the highs of Sept 17/2012 week as the starting point. In late November there appeared hope that AAPL would try to get above the 1×1 descending line, but that hope has faded now. The 1×2 line is guiding price lower. Only a near term move to above the $540 level would see an end to this downtrend…