Observations

Formerly, I called them "predictions" or "experiments," but for lack of success I'm reducing the gravity I assign to my work accordingly.  Caveat emptor.

Heretofore, I have been unable to spend a lot of time backtesting.  I have been involved in discovery.  Now I'm at the point, or I believe I am, I've found out enough about WD Gann's numerology that I am trying to identify the common numerological "circumstance" that is shared between major Dow Jones Industrial Average tops and bottoms.  Namely, 1929, 1987, 2007 and of course, 2018.  The numerology is all derived from "Robert Gordon's Great Campaign in Major Motors" supplemented by the unique 'vibration' of the DJIA (as determined by the "Luo Clement" methodology).

I have not infallibly, i.g. mathematically, identified the 'numerical sequences' of which Mr. Gann speaks, that define numerical "cause and effect."  Simply, there's a lot of numerological smoke regarding three dates in 2018:

[About the August 29 date; there are yet dates in the near future (notably September 9) which would be candidates for such a "secondary high" that I have not had time to examine.  Still, there remains the 'smoke' that I perceive associated with August 29.  Follow-up, I've run the numbers on September 9 vs August 29 and August 29 seems to have far more smoke.]

If you understand the implication of the historic dates, then the next 2018 wave down will be a dramatic minor wave 1 down of a higher degree wave 3 down in the Elliott Wave model.  If the smoke and the ill-defined sequence I see are reality, the next weeks through at least November will be very bad.  But they will be only the first minor wave.

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I'm hardly at the lofty point of codifying 'cause and effect' and most likely at a another point of failure.  Still, I feel much further along in understanding that numerical principles are the 'cause' that needs to be studied.  Observation (events in the market, in quantum theory of the small or in astronomic observation of the large) only comforts us in asserting what pure thought, i.e., mathematics, discerns.  

How elegant and insightful the quotation of Faraday Mr. Gann presents in "The Ticker Interview:"

"There is nothing in the universe but mathematical points of force."

Quantum theory is only now realizing that the long thought-of "aether" that occupied theretofore believed 'void' space, is occupied by positions or particles be they strings or loops.  We still observe, or attempt to observe by inference derived by confident observation, the existence of these vastly small particles.  We still observe the unknown but recognizable order of the DJIA.  And we arrive at the point that the appearance and reappearance of an electron is a matter of a Heisenberg "cloud of probability."  Or that we sense the non randomness of the DJIA but we assign its understanding to the realm of probability.  Probability is not, in my opinion, the cause and effect which Mr. Gann considered "natural law" nor the "mathematical points of force" which Faraday imagines, nor the dice that Einstein quipped that God does not use.  

I have not read all of Mr. Gann's work and have studied only two pieces with great attention (though I have studied "The Magic Word");  "The Ticker Interview" (1909) and "The Tunnel Through the Air" (1927).  [I imagine Mr. Gann is looking down on me as I labor and winks as I note the difference between those dates.]  Where I perceive Mr. Gann provided, in his many works, heuristic guides to people otherwise unable to understand his numerical methods....and/or he did not want to give away his methods, I believe those two works contain all of his math and science.  The former provides the mathematic and scientific landscape, the latter provides the math.  Again, my opinion.

And, of course, we find or we observe the 'effect' in the stock market.

Jim Ross