Tag Archives: Gann

Planetary Resistance Confronts Markets

Planetary resistance.

It’s a trading concept astro-traders use.

But most other traders have never even heard of it.

But there it is.

Resistance?

Planetary resistance is like regular resistance in technical analysis.

It’s an upper limit.

Essentially, it’s a zone that inhibits prices from going higher.

In technical analysis, we can find resistance in previous market highs.

More specifically, a high that’s held up after being tested repeatedly offers strong resistance.

When that happens, prices are unlikely to go higher.

Or we can use technical tools to project resistance zones.

A Fibonacci retracement. A Fibonacci extension.

Or an Elliott Wave target.

It doesn’t really matter how we get there.

By defining resistance, we can set price targets.

We can clarify our trading expectations.

And we can trade more effectively as a result.

What About Planetary Resistance?

But what makes planetary resistance different?

It’s market resistance derived from planetary positions.

So correspondences between planetary positions and market prices are a key.

As described in the book Gann Secrets Revealed Volume 1,  each degree of the zodiac matches specific prices.

By understanding those matches, we can track trading action.

Then, based on specific planetary alignments, we can anticipate trend changes.

It’s a fabulous trading tool.

That’s why I discussed planetary resistance with Larry Pesavento yesterday on his TFNN show.

We chatted about this S&P chart:

Mars Planetary Resistance with S&P
The red lines on the chart correspond to the positions of Mars. The blue lines represent Saturn. Note the heavier red line moving diagonally near the top of the chart. This first-harmonic Mars line clearly defines planetary resistance. The lighter red lines are Mars harmonic increments.

It highlights planetary price lines for Mars and Saturn.

With either stocks or commodities, planetary price lines reveal trading opportunities.

“There Must Be Something There.”

So I shared this chart with Larry.

He noted that “You mention Mars. You know W. D. Gann spent a great deal of time… And a lot of his charts have markings of Mars and things like that. Is that the same type of work you’re working on?”

I confirmed that connection. In response, Larry noted the precision of planetary resistance.

He looked at the price bars on the chart. Then he said “it’s amazing how they bounce off those red lines. There must be something there. That’s for sure!”

Here’s the full interview from the Trade What You See program:

CLICK HERE for information on the Fibonacci Trader/Galactic Trader software.

Get discount details on the Astro-Trading Intensive at: http://bit.ly/AT50NOW

 

 

 

Trading Turn Just Ahead

The Spring Equinox is coming up fast, giving us an opportunity for an important trading turn.

It’s big enough to impact all the markets.

The equinox marks the passage of the Sun into Aries.

It’s the first day of Spring in the northern hemisphere, and the start of Autumn south of the equator.

It was a favorite timing indicator for trading turn calculation by W. D. Gann, the pioneering astro-trader.

Gann also marked the date prominently on his trading squares and wheels as he pondered the market action with his unique price and time tools.

Setting Up A Trading Turn

This year’s Spring Equinox is on March 20 – that’s less than a week away.

It’s going to be especially powerful. That’s why we’re looking for to trigger a significant trading turn.

Why is this one more powerful than usual?

It’s because the astrological events surrounding the equinox create a piling-on effect.

This year the Spring Equinox comes on the same day as a Full Moon.

In fact, those two events are less than four hours apart.

And on top of that, we’ll be getting lots of extra action in planetary declination on the same day.

The Sun will be parallel the current two-eclipse midpoint.

The Sun will be parallel the January eclipse antiscion.

The Sun will be parallel the eclipse point from the solar eclipse last August.

And the Sun will also be parallel the eclipse antiscion from that same August solar eclipse.

Since some of that planetary action will be precise in the hours following the closing bell on March 20, we may actually see the trading turn hitting on March 21 instead.

But whether a trading turn comes on March 20 or on March 21, the current uptrend suggests a shift to the downside.

That gives a reason to believe that a trading turn next week will mark a short-term trading top.

W. D. Gann, the Number 90, and the Summer Solstice

The Summer Solstice is here at last, and we’ll be watching for a response from the markets as we move past the weekend and get a fresh trading week underway.

In the meantime, I’ve continued to explore the kind of connections with the Summer Solstice that I recently mentioned here in my posts about Silver and stock market trading, and in my most recent interview with Michael Yorba on his Traders Network radio show.

But as usual, it’s been W. D. Gann that has really gotten me thinking.

Back in the closing months of 1935, when Gann put together his brief essay on “Natural Resistance Levels and Time Cycle Points”, he wrote about lots of correlations to the number 90, which has key connections to the Summer Solstice.

That particular essay contained very little specific information about astrology and the markets, but Gann did reference the seasonal connections of this particularly important number. He also used the number 90 extensively in his discussion of practical techniques for timing market resistance zones.

The attention that Gann gave to the number 90 was what provoked me to put together a brief article on this important market timing factor for our members at FinancialCyclesWeekly.com. It’s a quick review of Gann’s work in the essay, but it does underscore the value in paying attention to the mathematics behind the markets.

You’ll find the full article at: http://www.financialcyclesweekly.com/members/W-D-Gann-and-the-Number-90.cfm

By the way, the work of W. D. Gann is also figuring prominently in the new report that’s currently being prepared on “Timing The Next Market Top”.

It should be ready for distribution by the end of next week– if you’d like to get early-bird notification as soon as it’s available, just CLICK HERE to leave your name and email address.

 

Astro-Trading Silver at the Summer Solstice

When I was interviewed by Michael Yorba on his Traders Network radio show yesterday, we had a great chance to discuss this weekend’s Summer Solstice and it potential impact on the markets.

The Summer Solstice will arrive at 6:51 a.m. EDT on Saturday morning, June 21st.

This event is carrying some extra weight this year because of the recent activations of the 90-degree cardinal point at the beginning of Cancer by Venus and Mercury. These events have already shown their importance in moving the markets; the Summer Solstice is the Sun’s activation of that same 90-degree point in the cardinal axis. That’s just one of the reasons that W. D. Gann gave it so much attention.

To get an idea about the potential impact of the Summer Solstice on stock market trading, be sure to check out this chart for the historic effect on the S&P 500. As you can see, our back-testing of this index during this annual event gives us good reason to consider adding some short positions to the Financial Cycles Model Portfolio at this time.

But not all markets are likely to decline at the Summer Solstice. Take a look at what happened to Silver when this event took place last year:

Silver Summer Solstice 2013
Silver responded emphatically to the Summer Solstice in 2013, with the precious metal climbing by nearly 13% in the month of trading just after this key planetary event.

Needless to say, if you’re interested in trading precious metals, be sure to your homework thoroughly! Even though we got a big bounce in Silver at the Summer Solstice last year, and even though the Summer Solstice coming within three trading days of an isolated low in Silver about 76% of the time, this event only triggers a trend reversal to the upside about 29% of the time. So a rally in Silver (or in any other precious metals) is not a foregone conclusion following the Summer Solstice this year.

You’ll get more details about the Summer Solstice activation of the 90-degree cardinal point and its creation of a major zodiac pressure point for the markets in this recording of the complete 10-minute interview with Michael Yorba during yesterday’s show on the Traders Network:


click here to download or listen on your mobile device

By the way, during this interview I mentioned to Michael that I’m currently working on some new planetary cycle research to help fine-turn our understanding of the trading top that’s just ahead of us in the equities markets. This new report on “How To Time The Next Market Top” will be available in about a week; CLICK HERE if you’d like to get on the list for early-bird notification as soon as it’s available.

Stock Market Trading at the Summer Solstice

Yesterday’s market action just after the announcement from the Federal Open Market Committee was a clear reminder not only of the power of the Fed in swinging market sentiment, but also of the power of the cardinal zodiac points.

It’s the 90-degree location that’s in play right now, at the start of the zodiac sign of Cancer.

This was one of W. D. Gann’s favorite spots to watch in his astro-trading research and market forecasting, and for very good reason.

As I’ve noted before, one of the things that made the timing of the announcement yesterday so noteworthy was the fact that transiting Mercury was conjunct Pluto in the Federal Reserve horoscope, which also happens to be at this key 90-degree zodiac location.

This kind of conjunction is not terribly rare in and of itself, of course– what was unusual was the fact that it came during an FOMC meeting.

The result, of course, was an extremely sharp response from the markets, as I noted in my post after yesterday’s market close.

In a kind of knee-jerk overreaction to the announcement, the equities indices rallied sharply during the final hours of trading, but we’re expecting some solid price consolidation and a possible pull-back during today’s trading, as the transiting Mars activation of the Fed’s Moon/Saturn midpoint comes into play more strongly.

The next time we get an activation of this key zodiac point is just ahead of us– it’s the Summer Solstice coming up this Saturday.

While the market impact is a little hard to forecast because this is a weekend event and because the net effect may be reduced somewhat by Mercury’s current retrograde condition, the Summer Solstice itself has a solid track record for triggering trend reversals in the markets– it happens about 3 out of 4 times.

S&P Summer Solstice
The Summer Solstice helps trigger trend reversals in the S&P 500 about 74% of the time.

We’ve been back-testing the last 53 times this event has happened, and have found that the Summer Solstice has previously triggered a trend reversal down roughly 44% of the time, a trend reversal up 30% of the time, and no trend reversal at all 26% of the time.

Since the stock market remains in a disturbingly persistent uptrend right now, it looks like the odds favor a move to the downside following the June 21 Summer Solstice this year.

We won’t know how it works out until Monday, of course, but right now our expectation is that we’ll see declining prices in equities as the new trading week gets underway.

“Gann was very private about using astrology….”

When I joined Michael Yorba for my weekly interview on his Traders Network radio program on Thursday, he asked me to help make sense of the market action.

“A lot of folks are getting whipsawed,” he said, because of the contradictory signals and the confusing market action.

I told him that one of the clearest indicators we’ve got going right now is the change of seasons at the Spring Equinox, which was a key market timing indicator used by W. D. Gann.

“W. D. Gann was very private about his use of astrological cycles in market forecasting,” I said, “but he had a pretty good track record.”

As an extra bonus for Michael’s listeners, I had also used the social network page on his website to post a link to my recent video about the back-testing we’ve done with the Spring Equinox, resulting in a specific trading strategy for precious metals, individual equities, and market indices from around the world.

Michael also commented about the savings his listeners could get when they used his special YORBA coupon code to order the new report on The Stock Market Collision Course.

You can here the entire interview, which also includes Michael’s questions about Elliott Wave counts and price targets, by clicking the player here:


click here to download or listen on your mobile device
By the way, even if you missed the original broadcast you can still use the Coupon Code I mentioned in the interview to get a 10% discount on the new Stock Market Collision Course report.

Just go to http://bit.ly/ATsmcc and click through to order, then use Coupon Code YORBA during the check-out process.

The S&P Makes a “Correct High” on the Equinox

We were watching the intra-day price action in the S&P 500 closely yesterday, since it was the Spring Equinox, and we had done extensive back-testing of this event’s potential effects on the markets.

In making a price projection (published on March 16 in Issue 1411 of the FinancialCyclesWeekly newsletter) we used the Universal Clock version of W. D. Gann’s Wheel of 24:

Gann Wheel for 2014 Spring Equinox
The planetary positions at the Spring Equinox are shown here on the Universal Clock, based on W. D. Gann’s Wheel of 24, with the Sun (the yellow dot) on the right side of the wheel hitting the 0-degree Aries point on March 20. The outer ring shows price levels corresponding to the current trading range of the S&P 500 Index; note that the Sun’s position triggers prices of 1801, 1825, 1849 and 1873. We’ll watch for support and resistance at those prices on March 20.

As noted in the caption for this diagram, the critical price levels for the day were from 1801 to 1873– an intra-day high or low, or a close for the day, at one of these prices would be powerful confirmation of the Spring Equinox energy at work in the market.

As it turned out, the trading yesterday in the S&P hit the price target of 1873 as predicted in the newsletter our members received– the exact high was 1873.49– and the Index closed just one point below that, at 1872.01.

We refer to this kind of precise alignment with a planetary price point as a Correct High, a perfect picture of price and time coming together.

Will We Hit Gann Resistance Today?

Today is the Spring Equinox, which is one of the most important dates in the year as far as the determination of market trends is concerned.

At least that’s what W. D. Gann thought, and he mentioned the date of the Spring Equinox in a number of places in his writings on trading methods and market forecasting.

That’s why we decided to put Gann’s theory to the test by back-testing more than a dozen market indices from around the world, as well as precious metals, currencies, and a group of individual equities.

We came up with some surprising results, which I shared in an online video a couple of days ago.

We also featured this research, along with a Universal Clock illustration based on Gann’s Wheel of 24, in the most recent issue of the FinancialCyclesWeekly newsletter.

In that article, I noted that for the S&P 500 Index at the Spring Equinox today, “the Sun’s position triggers prices of 1801, 1825, 1849 and 1873. We’ll watch for support and resistance at those prices.”

So far today, the S&P has been trading well above the 1849 mark, but has had an intra-day high of just 1866 and change.

We’ll have to wait and see if it hits the 1873 level or not. If it does, it will be a big confirmation of a potential sell-off tomorrow, especially if that’s the closing price or an intra-day high.

We also developed a high-probability trading strategy that can be applied to the markets right away.

You can review the results of that research, and discover the trading strategy for yourself, by watching a free 14-minutes video on W. D. Gann and Trading Profits at the Spring Equinox.

To see the video now, go to:

http://marketastrologer.realbusinessresults.com/how-w-d-gann-picked-a-date-for-market-profits/

How W. D. Gann Picked A Date For Market Profits

The Spring Equinox will be here on March 20, bringing the possibility of a big inflection point in the markets.

Equities usually react pretty bearishly to the Equinox, at least for the short term. There’s a big price dip for a day or two, as the high-energy impact of the Sun’s passage into Aries makes itself felt in interpersonal emotions and on the trading floor.

Then things begin to settle down.

They settle down and then often start to look so rosy that we actually see a bit of bullishness invading the market environment!

When I observed this phenomenon, it inspired me to take another look at some of W. D. Gann’s ideas, which soon confirmed that I was on the right track in following the planetary influence on the markets.

But I didn’t stop there.

I came up with a hypothetical trading plan based on the Spring Equinox, and then did extensive back-testing to see if that approach — a “14-Day Spring Equinox Trading Strategy” — would actually hold up under pressure.

The results were pretty amazing, which is why I recorded this video about the project:

In spite of the fact that it can sometimes be a little challenging to understand and apply, W. D. Gann’s work is always worth paying attention to. For example, I was just reviewing the brief report I did a couple of years ago, W. D. Gann on Natural Trend Change Dates in Daily Market Movements, and seeing how accurate his simple method proves to be. Interesting stuff!