,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.
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.
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.
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:
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.
Today is the Summer Solstice, the longest day of the year in terms of daylight hours and the first day of summer in the northern hemisphere.
The literal meaning of the word “solstice” is “the Sun (Sol) standing still”. That’s what seems to be happening from our point of view on Earth, anyway – for the past six months the Sun’s apparent path through the sky has gradually moved a little bit higher, a little more northward, each day.
Today, however, the Sun’s path through the sky is the same as it was yesterday; the Sun is “standing still.” Tomorrow’s path will be just a tiny bit lower, a little more toward the south, than today’s trajectory. It will continue to move a little lower each day until the Winter Solstice in December, when the cycle begins again.
The solstices are major turning points in the year, and they are often accompanied by shifts in mass psychology and sometimes changes in market trends as well. That’s why W. D. Gann paid such close attention to them, identifying them as key points in the annual cycle that all traders should remember.
This time around, of course, the market top came two days prior to the solstice, with Wednesday’s Sun/Jupiter conjunction calling the shots. And it was against that background of a major market sell-off that we saw the trading action respond to the Summer Solstice today.
As the Sun was standing still, the markets did the same.
The dizzying plunge in stock prices of the past two days paused briefly. Intraday attempts at a rally never really got off the ground, but the push to the downside didn’t pick up much momentum, either. The major indices closed up for the day, but their gains were miniscule compared to the losses of the last two trading sessions.
In other words, stocks basically spent the day treading water. While the big decline has paused, there are few clear indicators that price support will actually hold at the current levels. We’ll have to wait until next week to see if the bulls or the bears resume control. For right now it’s time to step back from the market action, catch our breath, and just stand still for a moment.
Not a bad thing to do on the Summer Solstice!
Astro-Trading & Financial Astrology Insights from Tim Bost