Tag Archives: cardinal ingresses

W. D. Gann on Groundhog Day

,W. D. Gann had the right idea when he paid attention to Groundhog Day in an oblique kind of way.

After all, Groundhog Day is a curious bit of American folklore.

The 1993 “Groundhog Day” movie with Bill Murray created a cultural archetype. When you mention Groundhog Day, many people immediately connect the name with the notion of endlessly-repeating events.

I guess you could say that it’s like deja vu all over again….

Not Just Deja Vu

But Groundhog Day is actually a long-observed American holiday.

One that W. D. Gann knew quite well.

It had its U.S. origins with German settlers in southeastern and central Pennsylvania in the 18th and 19th centuries.

Groundhog
W. D. Gann was less concerned about this furry critter than he was about the planetary dynamics of a key calendar point.

According to the traditions associated with this annual event on Februrary 2, if it’s cloudy when a groundhog emerges from its burrow on that date, spring will come early.

If it’s sunny, on the other hand, the groundhog will see its shadow and return to hibernation as winter weather persists for six more weeks.

February 2 is also the annual date of Candlemas and of the festival of Imbolc in the Celtic calendar. More important for astro-traders, it also marks the midpoint of the Winter Solstice and the Spring Equinox in the northern hemisphere.

W. D. Gann and the Eighth Harmonic

It thus has particular significance as an eighth-harmonic calendar point in W. D. Gann’s market calculations.

As many students of this pioneering astro-trader’s work understand, W. D. Gann deeply understood the significance of market timing. He knew that paying attention to the calendar was one of the keys to connecting price and time for more profitable trading results.

To that end, W. D. Gann focused on the dates of the solar cardinal ingresses throughout the year:

As the Sun moves into the zodiac sign of Aries, we have the vernal equinox, the start of Spring in the northern hemisphere.

With the Sun’s entry into Cancer, the summer solstice ushers in another change of season.

The Fall Equinox comes with the passage of the Sun into Libra.

And the first day of Winter in the northern hemisphere comes when the Sun moves into the zodiac sign of Capricorn.

W. D. Gann’s Innovation

But W. D. Gann took things even farther.

In working with his calendar calculations and market forecasting, W. D. Gann also paid close attention to the timing midpoints between those cardinal solar ingresses.

UranusPlutoFeb2-W.D.Gann
Uranus and Pluto are approaching a fresh waxing square alignment on Groundhog Day in 2016.

This year, however, Groundhog Day has special significance for astro-traders. Uranus and Pluto will revisit their waxing square on that date; it’s an alignment that had seven exact iterations between 2012 and 2015. Although the two planets don’t make a precise 90-degree alignment this time around, it’s worth paying attention to the market reaction.

S&P UranusPluto
This chart shows the average price movements of the S&P 500 Index for 15 days before and after the seven previous Uranus/Pluto waxing squares.

While various markets reacted to those Uranus/Pluto configurations in different ways, the manifestations outside of the markets were consistent with previous Uranus/Pluto fourth-harmonic influences: a big increase in social, religious, and political tensions, with extremism and belligerence hitting major heights.

With that kind of extra stress coming at a critical calendar point this time around, we could see disruptive or contentious influences in the news that may make their presence felt in the markets, too.

Applying W. D. Gann’s Astro-Trading Principles

As modern astro-traders, we have a clear advantage over W. D. Gann.

We not only have the opportunity to stand on his shoulders, and follow his lead in market analysis and timing our trades – we also have a tool he didn’t even dream of:

Computers.

Today, thanks to astro-trading software like the Fibonacci Trader/Galactic Trader program, we can rapidly visualize astrological dynamics in the markets through planetary price lines and other tools.

It’s advantage that is reviewed in great detail in the live workshop recordings of the program on Profitable Trading with Planetary Timing.

It’s also a key part of our Model Portfolio success with astro-trading at FinancialCyclesWeekly.com.

Mercury & Volatility in Stock Market Trading – Watching the VIX

The CBOE VIX index is a popular gauge of market volatility.

The higher the number is, the greater amount of perceived uncertainty there is in the market action, and the greater the likelihood of big price swings for active players to take advantage of in stock market trading.

When the VIX is high, there’s plenty of fast money to be made by agile traders who are savvy to the psychology of rapid market swings.

But right now the VIX is catatonic.

It’s not at its worst level ever, but it’s still so low that it shows a high level of complacency (dare we say “boredom”?) in the equities markets.

But all that may change starting next week, when retrograde Mercury crosses the cardinal zodiac point at 0 Cancer on Tuesday, June 17.

This is only the 14th time in the last 30 years that we’ve had such a Cardinal-point passage by retrograde Mercury. The last three times it’s happened, in 2009, 2010, and 2012, the VIX went up by an average of 12.5% in the two weeks following the event.

But there are times when this kind of alignment is bearish instead of bullish.

The difference seems to be in the degree to which retrograde Mercury triggers other planetary midpoints as it crosses a cardinal point in the zodiac– if there are a lot of midpoint triggers, the VIX declines for the next couple of weeks, but if there are just one or two active midpoints (or none at all), then the VIX tends to rise.

For example, the Mercury retrograde passage over the 0 degree Cancer point in 1994 triggered a lot of planetary midpoints:

Mercury retrograde 1994 dial
The Mercury retrograde cardinal passage at 0 degrees Cancer in 1994 was extremely active in triggering planetary midpoint structures.

The result in the VIX during the two weeks following this event was quite dramatic:

Mercury retrograde with VIX in 1994
The VIX dropped after the retrograde passage of Mercury over the 0-degree Cancer cardinal point in 1994.

In 2012, however, the Mercury passage in retrograde motion over the cardinal axis didn’t have the same kind of effect on the midpoints of other planets:

Mercury retrograde 2012 dial
The Mercury retrograde passage over the cardinal point in 2012 failed to activate other planetary midpoint structures.

The corresponding impact on the VIX was just the opposite of what we saw in 1994, with the index rising in the weeks after the Mercury passage:

Mercury retrograde VIX 2012
The Mercury retrograde passage over the cardinal point at 0 degrees Aries in 2012 sent the VIX higher.

As we consider the Mercury retrograde activation of the cardinal axis coming up next week, we once again see a chart with minimal impact on planetary midpoints:

Mercury retrograde 2014 dial
The Mercury retrograde cardinal passage on June 17, 2014 has a minimal midpoint influence.

Based on the correspondences we’ve seen in our study of this phenomenon during the past 30 years, we’re thus looking for an increase in market volatility– and a corresponding increase in the VIX– as we finish up June and move into July:

Mercury retrograde VIX 2014
Based on our analysis of previous Mercury actions and the VIX, we’re looking for a modest increase in market volatility following the June 17, 2014 passage of retrograde Mercury over the 0 Cancer cardinal point.

For more details on the impact of Mercury on stock market trading, be sure to see the book Mercury, Money and the Markets. It’s available from Amazon.com or direct from the publisher at http://bit.ly/MercuryBook