Sunday, August 26, 2018

Experiment 2: Parsing price and time in the DJIA

WD Gann studied in his laboratory in New York according to the principle of "as above, so below."  Was he studying the stock market for only the purpose of making money or for what it might tell him about natural laws that cannot be seen.  "As above, so below;" How many times did he declare that?  Even modern science uses analogy to "imagine" relationships to be tested.  Mr. Gann studied the mathematic relation of time and space as it presented itself in the stock market and, in my opinion, knew that mathematics must govern the smallest of particles.  From the Ticker Interview:


"....mathematic principles of the highest order...." are the foundation of all things great, the universe, and all things small, the quantum realm.

How closely does this quote this 1909 quotation confront the "probability cloud" of modern quantum physics and assert causality, sensed in the stock market and proven beyond any measure of improbability (286 trades in 25 days with only 22 losses), exists throughout nature?  Does it give you pause to think of the nature of quantum physics, be it string or loop theory, and consider Mr. Gann's choice of the Faraday quotation above?  "....mathematical points of force."

In trying to understand Mr. Gann's stock market methods, as I interpret them from the Map of Time (MOT) and the correlated Weekly Map of Time (WMOT), I see mathematic occurrences that force me to believe, consistent with my admitted bias, that time and price are interdependent and analogous to, if not the same as, time and space.  And both are mathematically determinable, not the result of a "cloud of probability."

Last week, I posted a note, "Experiment," in the DJIA proposing August 21, 2018 is its highest secondary print (the highest high being January 26, 2018) in DJIA before a discernible drop.  [Through means other than Mr. Gann's methods or mathematics, I've concluded the drop will be dramatic and both tops, January 26 and August 21, will endure.]

Let's examine that claim, that August 21 is a secondary high, a bit further.  Try this experiment yourself to get an idea of what I am seeing in the math.  Use the average price decline per day for the period January 26, 2018 to the lowest low since then, April 2, 2018 to project the secondary high (the column containing green highlights):


Back in the day, actually, as recent as about a year ago, I'd perform the "simpleton math" that I've presented in the column with all the green highlights.  And I come up with August 12, 2018 as being a candidate for the secondary high.  And, true to my modus operandi of a year ago, I'd be wrong.  Now, that's the part you can do.  

The next part (the yellow highlights), you'll need two dates I have derived from the MOT and WMOT as "givens;" January 28 at 4:30am and August 2 at 2:32am.   Then you can create the remaining math in yellow.  I've used my Map of Time (an annual map covering 168 years) and Weekly Map of Time (covering approximately one week depending on whether you consider solar or equitorial time) to find those two dates you will treat as givens.  Given those dates should be, again, straightforward math.  Do the math.

Three major points:
  • The bull wave did not end with the January 26, 2018 high as we interpret from the stock market.  Rather it occurred on January 28, 2018 at 4:20am according to the MOT and WMOT.
  • Second, the WMOT differs from my old simpleton method as a result 1) a 2-day difference in the starting point (1/26 versus 1/28) and 2) 7 days due to the extrapolation of that difference via its relation to the change in price between those dates and the bottom on 4/2/2018.


  • Vastly, the most important point; delta price and time are being used for the period 1/28/2018 to 4/2/2018 to predict a secondary high on 8/21/2018.... accurately.
Under my simpleton method, I'd come up with August 12, 2018.  Using the methods I've imperfectly learned from the MOT and WMOT, I come up with August 21, 2018 at 1:31pm.  The actual high as of this writing is August 21, 2018 at the 12:52-12:56pm bar.  That's 35 minutes off.

*** ***

I've always sensed market time is not the proper variable in predicting the market and the above tentative result would so indicate.  And I've always believed time and price were determinable and that Mr. Gann had the math to do so.  I've only my renditions of his Map of Time, some crude ideas of how to navigate them derived from Major Motors, and the above results...which are startling to me.

You may criticize the above in many ways; for example, I didn't derive and explain my claims that the actual high was January 28 not January 26.  [Unfortunately, if I'm correct in those methods, I do not foresee me ever explaining them.]  Or, you could claim that the Ticker Interview was staged, with the help of Richard Wyckoff and others.  Why, it appears Mr. Wykcoff is plausible as it appears he may be buried less than 400 yards from Mr. Gann.   Or you could claim WD Gann died not wealthy and since everyone wants to be wealthy he didn't know anything.  "According to your faith, be it unto you."  

Your final complaint might be, the 'fat lady hasn't sung.'  Nasdaq and S&P made new highs Friday and DJIA is only 98 points away from an intraday high exceeding that of August 21.  Now, this complaint is certainly true.  Just as certainly,"time proves all things."

If proven true, then I will be certain of the following excerpt from the Ticker Interview:


Like the elements of the periodic table... stocks, indices, places, people, organizations exhibit their individual properties according to their 'number.'  In the case of the elements, its their atomic weight. In the case of others, its their "number" derived by other means or methodologies (Luo Clement).  As Pythagoras is thought to have first said "All is number."

Its an experiment.  Where I was at a 30% comfort level this last week that the DJIA secondary high was printed on the Augutst 21st, I'm now at an 80% level now.  

And then again, I might be a bug on the windshield as early as Monday at 9:30am.

Jim Ross

Followup 8/27 9:25am.  DJIA futures up 144 and will likely gap over the proposed 8/21 secondary in which I had great confidence.  Another failure. 


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