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88

The Time factor will overbalance both Space and Volume. When Time is up, space movement will start and big volume will begin, either up or down. At the end of any big movement- with monthly, weekly or daily- Time must be allowed for accumulation or distribution.

Consider each individual stock and determine its trend from its position according to distance in time from bottom to top. Each stocks works out its 1, 2, 3, 5, 7, 10, 15, 20, 30, 50, and 60-year cycles from its own base or bottoms and tops, regardless of the movements of other stocks, even those in the same group. Therefore, judge each stock individually and keep up weekly and monthly charts.

Never decide that the main trend has changed one way or the other without consulting the angles from top to bottom and without considering the position of the market and cycle of each individual stock.

Always consider the annual forecast and whether the big time limit has run out or not before judging a reverse move. Do not fail to consider the indications on Time, both from main tops and bottoms, also Volume of Sales and position on Geometrical Angles.

A daily chart gives the first short change, whioh may run for 7 to 10 days; the Weekly Chart gives the next important change in trend; and the Monthly the strongest. Remember, weekly moves run 3 to 7 weeks, monthly moves 2 to 3 months or more, according to the yearly cycle, before reversing.

Yearly bottoms and tops: It is important to note whether a stock is making higher or lower bottoms each year. For instance, if a stock has made a higher bottom each year for five years, then makes a lower bottom than the previous year, it is a sign of reversal and may mark a long down cycle. The same rule applies when stocks are making lower tops for a number of years in a bear market.

When extreme advances or declines occur, the first time the market reverses over 1/4 to 1/2 of the distance covered in the

Previous movement, you consider that the trend has changed, at east temporarily.

It is important to watch space movements. When Time is running out one way or the other, space movement will show a reversal by breaking back over 1/4, 1/3 or 1/2 of the distance of the last move from extreme low to extreme high, which indicates the main trend has changed.

HOW TO MAKE UP yVNNUAL FORECASTS

I have stated before that the future is but a repetition of the past; therefore, to make up a forecast of the future, you must refer to the previous cycles.

The previous 10-year cycle and the 20-year cycle have the most effect in the future, but in completing a forecast, it is best



to have 30-years past record to check up, as Important changes occur at the end of 30-year cycles. In making up my 1935 Forecast on the general market, I checked the years 1905, 1915, and 1925. For the 1929 Forecast, I compared 1919- ten years back, 1909-twenty yeara back, 1899- thirty years back, and 1869- sixty years back, the Great Cycle.

You should also watch 5, 7, 15, and 50-year periods to see if the market is repeating one of them closely.

MASTER 20-YEAR FORECASTING CHART 1831 - 1935

In order to make up an annual forecast, you must refer to my Master 20-year Forecasting Chart and see how these cycles have worked out and in the past.

As stated before, the 20-year cycle is the most important cycle for forecasting future market movements. It is one-third of the 60-year cycle and when three 20-year cycles run out, important bull and bear campaigns terminate.

In order for you to see and study how these cycles repeat, I have made up a chart of 20-year cycles, beginning with the year 1831. To show all of the cycles from 1831 to date, I have carried through on this chart the monthly high and low on railroad and canal stocks from 1831 to 1855. Beginning with 1856 I have used the W.D. Gann Averages on railroad stocks until the beginning of the Dow-Jones Average in 1896. After that I have used the Dow-Jones Industrial Stock Averages.

After the end of the 20-year cycle in 1860:

The next cycle begins at 1861 and runs to 1880.

The next cycle begins at 1881 and runs to 1900.

The next cycle begins at 1901 and runs to 1920.

The next cycle begins at 1921 and runs to 1940. By placing the monthly high and low prices for each of those 20-year periods above each other, it is easy to see how the cycles repeat. The year of the cycles are marked from "1" to "20." Study the chart and note what happened in the 8th and 9th year of each cycle- that extreme high prices have always been reached.

INDIVIDUAL STOCKS

I have told you before that you should not depend on the Averages to forecast the trend of individual stocks. These Averages give you the general trend, and while many stocks will follow this general trend, you should figure out each stock individually and let its position on geometrical angles and time periods determine the different months in the year when the stock is likely to make many tops and bottoms.



11 1/4

101 1/4

101 1/4

281 1/4

22 1/2

112 1/2

202 1/2

202 1/2

33 3/4

*120

213 3/4

300

123 3/4

*225

303 3/4

56 1/4

*135

236 1/4

315

146 1/4

240

326 1/4

67 1/2

157 1/2

247 1/2

337 1/2

78 3/4

168 3/4

2S8 3/4

348 3/4

*180

270

360

( very liportant)

These angles measure the time periods. Always watch what happens around 45, 60, 90, 120, 135, 180, 225, 240, 270, 300, 315 and 360 months from any important top or bottom as all of these angles are very strong and important, ]ust the same as the 45 degree angle, and indicate strong culmination points.

REVIEW OF DOW-JONES INDUSTRIAL STOCKS FROM 1896

1896 - Extreme low in August.

1897 - A secondary low was recorded in April, 1897. We find

there was a fast advance in the 11th to 13th month from August, 1896 low.

Take any individual stock and make up a chart like the Master Forecasting Chart, carrying it across ten years and twenty years, and see how its tops and bottoms come out. I have made up a chart of the 10-year cycles on U.S. Steel and also a chart of the 20-year cycles, and I am always glad to furnish these charts to the students of my Course on Forecasting so that they may study the individual stocks and be convinced that the theory will work on an individual stock even better than it will work on the Averages.

No person can study the Master 20-year Forecasting Chart and the cycles without being convinced that the time cycles do repeat at regular intervals and that it is possible to forecast future market movements. By studying Resistanoe Levels, Geometrical Angles, and Volume of Sales in connection with the cycles, you can determine when the trend is changing at the end of campaigns.

FAST MOVES AND CULMINATIONS AT IMPORTANT TIME PERIODS

It is important to go over the monthly chart of Industrial or Railroad averages or any individual stock and look up the months when fast advances and fast declines have occurred and figure the number of months from any important top and bottom.

Watch how bottoms and tops come out on the important Geometrical Angles or proportionate parts of the circle of 360 degrees, whioh are:



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